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Greens question Chinese motives behind Enemalta deal
Alternattiva Demokratika say China deal gives company foothold in EU market to circumvent anti-dumping tariffs.
12 September 2013, 12:00am
Matthew Vella
Matthew Vella
2 min read
Arnold Cassola
The chairperson of the Alternattiva Demokratika, Arnold Cassola, has raised questions over government intentions to assist the Chinese government in getting a commercial foothold in Europe to circumvent tariffs levied by the EU on cheap photovoltaic panels.
Cassola was referring to a deal reached with Chinese government-owned company China Power Investment Corporation to acquire 20% of the national energy corporation Enemalta. CPIC's subsidiary Shangai Power is a producer of PV panels.
"Last July, China approached the Maltese government to conduct a €4 million study on the feasibility of a bridge between Malta and Gozo, and it is drawing up this study completely for free. Now it is 'investing' €200 million that will go to reduce Enemalta's €800 million debt.
"It is very good to have fresh capital injected into Maltese companies and the government does well to look for it. But nobody gives a huge amount of money for nothing. Until now, China has pledged to give Malta a total of €204 million - for transparency's sake, the Maltese people must know what China is getting in return," Cassola said.
The AD chairperson also warned government not to hide behind excuses of 'commercially sensitive information'. "The Prime Minister should come clean with the Maltese: is the real issue here for China to get a commercial foothold in Europe to circumvent the tariff issue on PVs?"
In August 2013, the European Commission enforced tariffs on cheap PV panels imported manufactured in China in an anti-dumping measure.
AD's energy spokesperson Ralph Cassar said government should make its intentions clear. "Secrecy, using the excuse of 'commercial interests' when it comes to public utilities, is not on. It is in our interest that utilities remain under the control of the public, through the state.
"What will selling off of part of Enemalta mean when it comes to deciding the country's energy policy? We cannot risk Enemalta serving commercial or another country's interests, whichever the country. It is worrying that government has decided to sell off part of the state energy company without any public discussion or a competitive process."
AD said government was tying its hands and committing itself to buying energy from one private operator in the case of the gas plant, which has to be built by the same company that will provide natural gas to Enemalta. "Now with the selling off of part of Enemalta it is also risking making Malta's energy policy subject to purely commercial interests rather than ecological, social and local economic requirements."
Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...
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@kukkanja, I am attaching links to what you call "comics"
http://newint.org/features/web-exclusive/2010/03/09/chinas-neocolonialism/
http://newint.org/features/2011/04/01/chinasa-workers-chinese-factories/
http://www.amnesty.org/en/region/china
I think that you should broaden your horizons, at least beyond the dullness at the mile end.....
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@Marks. F'dawn l-ahhar 10 snin ic-Cinizi dahku(ghax xtraw) aktar minn hames mitt kumpaniji importanti f'kull pajjiz ta l-Ewropa: barra f'Malta ghax in-Nazzjonalisti, can see through the Chinese! Lol!
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@marks. Instead of reading comics, why don't you have a look at this article on the Economist? You can widen your horizon your horizon beyond Filfla and Pieta!
www.economist.com/news/china 21576440-chinese-investors-love-europes-companies-hate-its-bureaucracy-nice-see-you-eu
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@Jonas Cord Jr.re: the US of A that is a tad out of point, I am not American and have not defended the US of A..... If you don't believe that China absuses workers than take a look at Amnesty International's report.... European markets are flooded with items made in china precisely because the lower labour and environmental standards mean lower production costs and therefore it is convenient for a production plant to relocate to China...
@Fed Up: yes ceding control (albeit partially) over a State owned monopoly of strategic importance for the Maltese economy is an example of "excellent economic or strategic though"? You are the one who should shut up and feed your brain the crap spewed out daily by Super One.
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http://www.forbes.com/sites/kenrapoza/2012/06/10/china-companies-inching-into-europe/
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Dr Cassola, stick to Italian, historical research and linguistics: you are great and a gem! But as for politics, especially economic or strategic thought, just forget it and shut up please.
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Dr Cassola, stick to Italian, historical research and linguistics: you are great and a gem! But as for politics, especially economic or strategic thought, just forget it and shut up please.
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@vuci ta sens & marks - You both must have conveniently forgotten Guantanamo prison in Cuba run by the Americans creators of the PRISIM espionage system. The same Americans who also have the services of the CIA and the FBI. As for China whom you say abuses workers' rights etc...one asks - Why is it that European markets are stocked with every imaginable item marked "Made in China"? As for Mao when was it that he was last heard of on the World's stage? "To accuse one has to be totally clean" as one of our proverbs says in translation.
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@fwarjahraq - he certainly seems to have made you think. If he is a nobody and irrelevant - as you say - why are you so worried about what he said. It sounds as though you're worried he's telling the truth.
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As if you want that your views to be taken seriously...please remember that your leadership of which you are part has led AD to irrelevance even though you talk and talk and talk. The votes from the PN did not even linger a second on your party but carried on furiously to the PL. SO PLEASE STOP BEING A NOBODY IN POLITICS
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@Jonas Cord Jr."peacful and kind people" yeah right tell it to the victims of Tienamen Square, tell it to the Tibetans, tell it to the dissidendts rotting in the Chinese prisons.
Regarding the dumping issue yes China makes use of poor labour and evironmental standards to produce PVs so the EU was right to impose anti-dumping taxes on Chineses PVS. It is indeed incredible how you labourites are ready to justify anything your great and glorius leader says and does... No wonder that 36000 people decided to switch to Labour... which by no means, means that they were right but that is another story......
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@J. Cord Jr.; in answer to your final "pea brained" question - as a Christian Catholic country Malta should have every reason to oppose a country which systemically abuses human rights, worker rights, and was responsible as well for Tianamen Square. Additionally China is a country which systemically censors free speech and the internet. Thanks for your time; go on now and meditate in front of your picture of Mao.
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Reading the comments below one would conclude that the Chinese are perceived by the Maltese to be a bunch of twits and that they are being had by the intelligent Maltese crowd. The whole thing brings tears to Maltese eyes.
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@marks - You are a diehard, biased and insolent Nationalist still reeling from the 36,000 vote crushing defeat, for calling Labour sympathizers pea brained. Today all of Malta knows who the real pea brained are!!! The Chinese are a disciplined, peaceful and kind people. Why should Malta ever have a cause or reason to vote against these people, who always came to our rescue when we needed them?
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http://m.spiegel.de/international/business/a-894570.html#spRedirectedFrom=www&referrrer=
@marks
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I am getting really fed up hearing these silly noises coming from supposedly learned observers. Is negativity the only option for part time politicians? I would leave negativity to Simple Simon and his cronies. At least, these are already acknowledged write offs!!!
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Cassolla's moaning is as passe' at that of Ilona Staller
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The motives are crystal clear. Enemalta debts were always mentioned by the credit rating agencies. Now, they should reconsider their ratings.
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Mr. Cassola, go to sleep!
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MR. Cassola has awaken from his hibernation and coincidentally he always wakes up when Labour is in Government. Did the Chinese has vested secret interests in Malta or beyond when they built the Red China Dock and Mgarr Port breakwater back in the 70's? I prefer Mr. Cassola to retreat to his most beloved country Italy which obviously seems to be his now native country and forgotten his Maltese identity as did his ancestors.
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How many more colorful Maltese politicians of questionable resolve are there on this blessed island who tries to spark their political ambitions with banality?
Relevant politics dictate that one must hold his comments till the government presents this Memorandum of Understanding to parliament.
Remembering that Mr.Cassola has never been seen by the Maltese electorate as relevant, as he has never been elected to parliament and considering the substance of his comments on this article, it becomes very clear why he should be totally ignored.
The only good mark that he deserves is for his courage to speak recklessly to this nation and prove to them how unsuitable he is to represent them.
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Il-kbir ta veru Duminku Mintoff kien jghid il-hmar hallih jinhaq biex tinduna li hu hmar. Probabbli kien qed jalludi ghal Kazzo-la. Ha Ha.
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Could AD and Profs. Cassola state what is their position with regards to the E.U. opposing the availability of cheaper photovoltaic panels to its citizens please? What is Their position on the E.U. imposing tariffs on these environment-friendly and sustainability-enhancing goods? The prices at which Chinese companies want to sell their panels has very little to do with dumping prices; but is a result of a problem of overcapacity in production facilities, a fact widely known by anyone slightly familiar with the matter. Overcapacity in production facilities whose product might start becoming obsolete in a few years; due to the advancement in the development and pproduction of photovoltaic films. If the Maltese government can get a 200m injection of capital for 20%, hence maintaining a solid control with 80% of the shares, for an 800m debt ridden and 50-70m per year losing quasi-bankrupt piec...corporation - that si an awesome deal; which will leave all Maltese citizens better off. If on the way all the European citizens (including the Maltese ones) will be able to benefit from cheaper photovoltaic panels, than that is even better!
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Could AD and Profs. Cassola state what is their position with regards to the E.U. opposing the availability of cheaper photovoltaic panels to its citizens please? What is Their position on the E.U. imposing tariffs on these environment-friendly and sustainability-enhancing goods? The prices at which Chinese companies want to sell their panels has very little to do with dumping prices; but is a result of a problem of overcapacity in production facilities, a fact widely known by anyone slightly familiar with the matter. Overcapacity in production facilities whose product might start becoming obsolete in a few years; due to the advancement in the development and pproduction of photovoltaic films. If the Maltese government can get a 200m injection of capital for 20%, hence maintaining a solid control with 80% of the shares, for an 800m debt ridden and 50-70m per year losing quasi-bankrupt piec...corporation - that si an awesome deal; which will leave all Maltese citizens better off. If on the way all the European citizens (including the Maltese ones) will be able to benefit from cheaper photovoltaic panels, than that is even better!
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Could AD and Profs. Cassola state what is their position with regards to the E.U. opposing the availability of cheaper photovoltaic panels to its citizens please? What is Their position on the E.U. imposing tariffs on these environment-friendly and sustainability-enhancing goods? The prices at which Chinese companies want to sell their panels has very little to do with dumping prices; but is a result of a problem of overcapacity in production facilities, a fact widely known by anyone slightly familiar with the matter. Overcapacity in production facilities whose product might start becoming obsolete in a few years; due to the advancement in the development and pproduction of photovoltaic films. If the Maltese government can get a 200m injection of capital for 20%, hence maintaining a solid control with 80% of the shares, for an 800m debt ridden and 50-70m per year losing quasi-bankrupt piec...corporation - that si an awesome deal; which will leave all Maltese citizens better off. If on the way all the European citizens (including the Maltese ones) will be able to benefit from cheaper photovoltaic panels, than that is even better!
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The inanities of the labour syncopaths are exemplified by the posts below... Is the energy generation sector crucial for our economy, yes it is.... Therefore anyone controlling the energy generation sector will be have tremendous tremendous power. Do you Labour pea brains get that far? Now selling a €200M share to the Chinese does not give them total control over Enemalta but it gives them enough leverage to allow them to have substantial clout over the government. Do you think that the governement will be free to vote against "Chinese interests" in the European Council? I don't think so.... Is this a goood ting?
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Re 'a commercial foothold in Europe to circumvent tariffs levied by the EU on cheap photovoltaic panels.'
If we are doing something against the 'Holy' European rules, I am sure the commission will let us know. China invested billions in the US and European countries. Lets not be Holier than the Pope.
Luke Camilleri •
GREEN WITH ENVY ;)
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CASSOLA? Dan min ghamlu "Profs." u "PROFS" ta' x'hiex ? Profs tan-Nejn nahseb ghax dejjem hemm jaqa ' ;) :) U joqghod attent li ma jaqax fit-toilet :)
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Confucius says : Man who stand on toilet seat is high on pot ~ and Cassola is in danger of falling in!
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What we are selling off is part of the debt and mess left at EneMalta by the creme de la creme of Maltese politicians!
Credit ratings agencies see EneMaltas 'shares' as junk.
Who, in the West is willing to buy off the debt of EneMalta? Perhaps Dr Cassola can suggest someone from his Germans friends to buy the whole of EneMalta!
As for the question what are the Chinese taking in return, the answer is clear: recipe for pastizzi,qassatat( invented by PN) timpana and kinnie!
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Imma kif ma jisthux nies bhalek Sur Cazzola? Dejjem issibu x'tghidu kontra l-labour jaghmel x'jaghmel??!!! Saru tant abnormalitajiet taht il-PN u intom fejn kontu? So what? Ghamilna ftehim mac-Cina. For Heaven's sakes SO WHAT? Jaqaw kuntenti li taraw lil Enemalta tinqered bid-dejn li tellghu shabkom tal-PN? Ghax ma tibdewx tghinu lil Gvern tal-mument billi ma tkunux daqshekk negattivi u toqghodu tfittxu dik in-nitfa li tkun inezistenti biex tipprovaw tpogguh f'dell ikrah mal-poplu. Komplu inbhu ghax ghalhekk biss tajbin u forsi ghalhekk ma thallu l-ebda marka fuq il-votant.
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One here justifiably asks: Has any public discussion taken place when the PN administrations decided to sell off Mid-Med Bank and all the other milking cows of our Country during the past twenty five years? Why is it that whatever Labour administrations do is always shadowed by declarations to put in doubt the achievements?
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Komplu sejrin hekk Cassola u l-poplu kazzola jaghti il-vot lill AD
Rita Pizzuto •
Mr Cassola stop embaracing Simon Busuttil. If you want to return to your first love, the NP, then do it officially but don't hide behind the Alternattiva. Now we know why Alternattiva keeps lolsing face. Dont' try to find excuses in order to blast the Government for such an impressive deal. Other countries in Europe envy Malta's position, a small country that in a few months had managed to put the island back on the map with such deals (including the one with Libya). Why is it that while every entity in Malta has welcomed with open arms, the government's achievements in so short a time, it is only you (I doubt if your party (or is it just a club?) and the NP are trying to find fault. Where were you when the NP brought Malta to its knees? How can you be credible?
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Mr Cassola,don't worry the Gov is only selling debts that the PN left,and that can never be paid.
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It seems that Mr. Cassola will be soon contesting the European Parlament Elections and wants to show his face with the voters ( Sic). But please for Heavens sake, comment with some sense if you really wants to win some votes. Your comment about this agreement is so poor and senseless.
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Vuci HADRA fid-desert tipprova taghmel hsara lili u lil Maltin huti.
Jista dan li jahseb li hu tant bravu AHDAR u l-partit tieghu tal-hodor jghidilna jekk qattx qab nitfa investiment lejn pajjizu?
Kont nahseb li l-aktar persuna li hadet gost b'dan if-ftehim dwar il-panelli kella tkun propju il-kap tal-Hodor.
Kont zbaljat.
joseph mercieca •
Where was AD when others decided on HFO and found a contractor on the yellow pages. Where was AD when the PN sold the island's assests to foriegners? Old habits die hard and AD is airing all these doubts becasue it is China.
Isn't AD happy that the debt of EneMalta will be reduced by 25%. As regards information it will come in due course.
As regards dumping it would be a case of Europe taking some of its own medicine. We all know that Africa is the dumping ground of Europe. So what if someone dumps in Europe.
All this is soar grapes AD like the PN are just antilabour so whatever it does is questionable.
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L-ORAKLU TKELLEM.......Ic China min zmien Mintoff interessat ruha li tahdem mil qrib ma pajjizna...forsi sabiex tkun eqreb lejn l-Ewropa, u l-Afrika ta fuq, u forsi tifrex il kummerc taghha billi tuza pajjizna bhala `hub`? B`hekk ahna dejjem ser immorru il quddiem...ta min iffakkar li kien Mintoff l-ewwel Prim Ministru mil l-Ewropa kollha li beda ir relazzjoni ta hbieberija u kummerc mac China..partiti ohra baqaw ikkahmati ma l-Inglizi u issa l-Ewropa...
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Firstly I would like to congratulate the PM and his team for his strategic vision in not focussing solely on the EU and the traditional European business world. First Libya now China and let us hope the next step will be the other BRICS nations for this is where economic growth and opportunies lie untapped. As for the AD I would rather if we start calling them greenhorns rather than greens for when it comes to economic vision they are simply totally myopic.
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Firstly I would like to congratulate the PM and his team for his strategic vision in not focussing solely on the EU and the traditional European business world. First Libya now China and let us hope the next step will be the other BRICS nations for this is where economic growth and opportunies lie untapped. As for the AD I would rather if we start calling them greenhorns rather than greens for when it comes to economic vision they are simply totally myopic.
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Imma Dr Cassola, jekk ic-Cinizi jahdmu l-PV panels Malta u jesportawhom lejn l-Ewropa, dan ikun jissejjah dumping? Imma kif ma tahmlux il-pajjiz ghaziz taghna jimxi l-quddiem. L-uniku dumping li ghandna hawn Malta, u inti u l-erba l-ohra shabek taqblu mieghu hija d-dhul ta nies illegali f'Malta.
Dr Cassola, meta tibda tirrispetta lil niesek il-Maltin u taghmel l-almu tieghu biex tara li jkun hawn il-gid f'dan il-pajjiz, imbaghad forsi nibdew naghtu kasek.
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Stop saying stupid things. What is wrong in the Chinese investing in Malta, as has done in many other EU countries? Prejudices jeopardize our country's interests, particularly FDI. I hope there are no hidden agendas from some quarters.
