Trickle down... and tell me when?

If I had to read into the British election – which is the closest ever to call, we are told – I would say that one of the things bothering Prime Minister David Cameron is that his economic successes are not being translated into tangible support from the electorate.  

Labour and prime ministerial contender Ed Miliband could very well win the election, because most of the British electorate does not really seem to understand what David Cameron is saying when he talks of the creation of wealth. Or does not agree with him.

“Mr Cameron thinks of the banks, but not of us the pensioners,” was what one angry pensioner told a Sky journalist.

Oh yes, there are the multiplier effects from wealthy banks and financial offices, but they are not enough to create a ripple in the goldfish bowl for the average wage earner. And there are more of the latter than of anything else. Whether there or in Malta.

In Malta we have for years had politicians trying to drum into us the idea that wealth creates wealth, and all that jazz.

There is little doubt, of course, that wealth, most especially when it comes in the form of foreign investment, does generate a positive shiver in the economy.  

But let us not be too over-excited and gullible. There is a huge constituent in the population, that goes by the name of Joe and Mary Public, who do not have a finger in that wealth because they are not businessmen and entrepreneurial.

They do not make a killing should they see one, because a killing never comes their way. They have static jobs, which are as worthwhile as all the others, but their earnings will never give them the return in the same way the contractor, the suppliers, the architect and interior designers take their own handsome cut.

Most foreign businesses come to Malta not because of the fine climate and affable folk but for another very simple reason – to avoid high taxation and for a very quick return on their investment. Most universities all round the world are driven by a business model, unlike the one in Malta, which is not driven by profit but by its contribution to the educational spine of this country.

An American University in the south is part of the Prime Minister’s dream to reinvigorate that geographical region of Malta. 

In the eyes of many environmentalists, plonking a 90,000 square metre university at Zonqor Point is not exactly the way to galvanise the south.

But they could be proved wrong.

Destroying the environment does make people better off, that is the (immoral) truth.

The decision most of the time, is whether it is worth destroying the environment for some more wealth.  

Environmentalists are also unimpressed by the investment of €115 million. Just in the same way, I suppose, I was not interested in and was unimpressed with the Smart City concept. It is now so many years later, but it still has to prove itself that it is not a white elephant.

Yet, it was clear from the start that the government wanted the south to be burdened not with a power station or Freeport but with a university. And yes, a high end university, which will be attracting foreigners, is not a bad choice. But joining the institution will be possible only if one can pay one’s way.

As a sop to the green lobby, the government is suggesting to set aside 450 tumoli for a national park. It is not a symbolic olive branch – 450 tumoli are more than a big mouthful and if done correctly such a park can really serve a highly useful purpose.

The south does need a national park, but I am not quite too sure what exactly the PM thinks of as a national park. My idea of a national park is miles apart from the national parks planned by the present and past administrations.

The area in question is that stretch of coastline which until today is pristine, apart from the primordial hunters and trappers.  

Former Prime Minister Lawrence Gonzi wanted to build a road from Zonqor Point to Xghajra and then off to Smart City. Somehow it got shelved.

Indeed, with the planned foreign hospital at Smart City, and a university at Zonqor Point, there may be a real surplus of work. And yes, 4,000 students will definitely contribute to the entertainment and rental businesses in the area. Just in the same way that the iGaming industry did in the North and inner harbour area.  

But not everyone is eating out of the iGaming pot.

And iGaming, as we all know, is here primarily because of the great fiscal advantages, and is on borrowed time.

The American University is a splendid idea, there is little doubt about that, but the location is a contentious one, firstly because the location had best be left as it is. And secondly because it is ODZ.

To the new generation of politicians, unused land is ‘bad land’. They apparently see no value in something that is not exploited. 

But then again, where could the government locate such a project?

That Muscat manages to fast track these applications and promote this kind of business is also a difference that sets him apart from his political predecessors, who remind me most of the time of sloths in motion.

But the one thing that concerns me is that after a referendum that sent a resounding message to the administration, that the environment cannot be neglected, we are faced with yet another gargantuan project.

The PM should start by saying whether he considered the environmental implications of such a project, or whether he will consider them.

It also proves that all this talk of a major development in the south has been proved to have substance in it. Whether Labour MP Silvio Parnis was aware of what was brewing is very unclear. And it would not surprise me that the man was completely left out of the loop.

After watching his appearances on Smash TV, I think he is better suited to the role of an evangelist than as chairman of the committee for the south.

And the same goes to the environmental groups, who need to regroup and have a voice. As things are, I am still trying to figure out why they have not taken advantage of the grand result that was registered on 11 April.

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As we think of wealth and incrementing finances, and of listening to figures and stats, I am intrigued by the definition of wealth.  

What is wealth?

What is a country’s wealth measured by? – the high buildings, tucked next to each other like dominoes and baby's blocks, and blocking out the sun? The congested and sickening condition of our roads, with more cars than we can cope with trailing each other bumper to bumper? 

Is wealth all about the toxic air that is making young children dependent on inhalers? Is wealth all about the scarcity of free spaces and the nostalgia of Malta and Gozo as we have known them?

Is wealth only about money? – I very much doubt it.

Wealth in our culture, the one we do not embrace, is about something else.