MCESD meeting ‘positive,’ opposition to Bencini softens

Fears that the first Malta Council for Economic and Social Development (MCESD) meeting in the new legislature would be overshadowed by the controversial appointment of former union man John Bencini as chairperson faded away as the majority of social partners described the meeting as "positive."

In the hours preceding the two-hour meeting this evening, a number of organisations, including the General Retailers and Traders Union (GRTU), the Malta Employers Association and Union Haddiema Maghqudin (UHM) expressed their concern at the former Forum confederation of unions president's appointment, with the employers association saying it would attend in protest. Only the General Workers Union and Forum were in favour of Bencini becoming MCESAD chairperson.

However, after a protracted meeting in Floriana, in which finance minister Edward Scicluna made a pre-budget presentation, representatives of various members expressed their satisfaction at the outcome of the meeting and appeared to have reluctantly put their objections aside.

At the end of the meeting, Bencini said that he intends to take on a more proactive role as MCESD chairman and called on the government to be transparent in regards to the country's financial situation.

While thanking the finance minister for giving a clear picture of the situation, he pointed out that the council members who had expressed their opposition to his appointment "realised that they will be given their due importance after seeing the way the meeting was led."

Saying that that he was disappointed and hurt at the opposition he described the meeting as positive and noted that "today I am satisfied at the maturity shown from all sides."

Bencini added that he was "a happy man" and said he would meet all members of the council individually to ensure that the council is truly consultative council.

Speaking to the press at the end of the meeting, Scicluna, said that although the deficit was bigger than projected, it could be brought down to under 3% by the end of the year.

Avoiding to speak on Bencini's appointment, Scicluna stressed that the meeting was positive and said that "if social partners work together targets can be achieved and difficulties will be overcome."

He added that the precise deficit figures would be announced during the 2013 budget speech on Monday and expressed his optimism on implementing all measures pledged in the previous budget speech and the electoral campaign.

"Targeted deficit improvements remain unchanged and all figures will be announced on Monday," Scicluna said, adding that he was confident that if Malta entered EU excessive deficit procedures, it exit them by the year's end.

UHM secretary-general Josef Vella said that the issue was raised during the meeting and augured that a working relationship built on trust is developed between Bencini and the member organisations.

Vella said: "On our end, the proof of the pudding is in the eating and we will now see whether our concerns were justified or whether they can be overcome," and added that the majority of members agreed on a structural change in the council to avoid similar situations in the future.

He also pointed out that the finance minister explained the financial situation and said that Scicluna told the council that if targets are met, the country would register a surplus by 2015.

GWU boss Tony Zarb described the meeting as positive and said that the social partners were committed to make their part "as long as we are given a clear and truthful picture of the country's finances."

Congratulating Bencini for his leadership, Zarb said that the council should be modelled on similar European bodies which have a rotating chairmanship.

Social Dialogue minister Helena Dalli pointed out the government's intention to have a rotating chairmanship and augured that all member organisations show "the good will"  to achieve positive results for the benefit of the country.

GRTU president Vince Farrugia said the "ideal" MCESD chairman would have been current finance minister and former council chairman Edward Scicluna but the government had gone ahead with Bencini's appointment without consulting the social partners.

Despite saying that this lack of consultation was unprecedented in the council's history, Farrugia expressed his agreement with a rotating chairmanship and augured that despite the union's scepticism the council moves forward and functions well for the benefit of the country.

He also noted that the economic figures presented by the finance minister showed a deficit that was much worse than expected but expressed optimism that the situation would be overcome.

"If all the announced projects and budget measures are introduced we can achieve the set targets by the end of the year."