British Labour MP says golden passport ‘back-door route to reside in the EU’

A UK shadow minister from the Labour Party has expressed "serious concerns" about Malta's individual investor programme (IIP) which will sell Maltese passports for €650,000.

David Hanson, shadow immigration minister, told the Financial Times he had "serious concerns" about the Maltese proposal and had tabled parliamentary questions to find out what steps the Home Office had taken to oppose it. "This risks being a back-door route to reside anywhere in the EU which is not a tight or appropriate immigration policy," he told the FT.

According to the newspaper UK ministers are now "under growing pressure to intervene" against Malta's plans for the IIP, which will sell Maltese and consequently EU citizenship to non-EU nationals.

The controversial scheme was passed through parliament but it was only after Joseph Muscat flew to Sri Lanka for the Commonwealth Heads of Government Meeting (CHOGM) - where he met British prime minister David Cameron - that he decided he would back-track on a controversial secrecy clause that gave confidentiality to those who purchased a Maltese IIP passport.

The fast-track citizenship scheme was criticised by the Opposition for not carrying a heftier price tag or a tangible form of investment. But the government claims it can reap in as much as €30 million in 2014 alone, and it has earmarked €15 million of these revenues for this year's consolidated budget.

The FT claims the plans "prompted a backlash from UK and European politicians warning of a risk to national security" although it also cites fears that the UK's own 'investor visa' programme would be dented, having been popular with Chinese and Middle Eastern investors seeking a safe haven from the Arab Spring.

Kamal Rahman, head of immigration at Mishcon de Reya, was quoted by the FT saying that the IIP was the "single biggest rival" to the UK investor programme on the basis that €650,000 is a "small price for a highly reputable passport".

"It addresses all the critical concerns relevant to the global high net worth community. We have a large number of clients urgently awaiting the launch of the programme and are instructed to submit applications at the earliest opportunity."

The UK's investor visa invites foreigners to make investments of £1m, £5m or £10m in gilts or British companies in return for permission to apply for permanent residence in five, three or two years, respectively. However, in order to qualify for this, applicants must not spend more than 180 days outside the UK each year.

Finance minister Edward Scicluna has also told members of a European Parliament committee that the number of annual IIP passports could be expected to be capped.

In a statement, the Green Party said that it was "totally unacceptable" that the PN and the PL had not met since 29 November since talks on the IIP had started.

"It is shameful that the only information given to the public in this period was through Minister's Scicluna's hearing in the European parliament, where he not only admitted that the scheme as it is was a mistake but where he also unfortunately declared his lack of faith in the Maltese people by saying that Malta is 'short of certain people of calibre'," AD leader Arnold Cassola said.

"The talks should resume and be concluded on the three vital issues of 'secrecy', 'residence', and 'investment'. Maltese politicians have no right to make a fool of the whole Maltese nation because of their intransigence."