Updated | Social partners have their say on IIP funds

Additional reporting by Tim Attard Montalto

Now that the European Commission has green-lit the citizenship-by-investment programme and the government published the legal notice under which the programme will operate, social partners and constituted bodies met the Prime Minister to discuss the terms of reference of the Social Development Fund.

An amount of the income from the Individual Investor Programme will be diverted towards a development fund that in turn will be utilised to fund infrastructural projects and programmes, Prime Minister Joseph Muscat said.

After some hesitation from a number of social partners over the citizenship programme, it now appears that all of the MCESD members have welcomed the latest changes, so much so that today they started discussing how to make best use of the funds.

The Malta Employers' Association (MEA) was one such entity which had initially expressed its reservations with the IIP but its president Arthur Muscat, contacted by Malta Today this evening, said that it withdrew its reservations once the scheme was deemed acceptable by the European Commission.

The MEA president explained that in this afternoon's meeting, the prime minister welcomed proposals by the social partners on ways in which the funds could be distributed, as well as suggestions on the structural format for the administration of funds.

Asked what projects the MEA had in mind, Muscat said that these could be several.

"The MEA places much importance on employment training and education but this sovereign fund could also open up the possibility for government to help lessen the financial burden of maternity leave on employers," he said.

Josef Vella, president of Union Haddiema Maghqudin (UHM) said that the Union had set up a committee in which it will analyse and propose projects for which the funds generated by the IIP could be best utilized.

"However, we also expressed our opinion that the citizenship issue is not the only issue which needs addressing," Vella said.

"There are other sectors which need to be given importance - such as transport and health - and we hope that the government will show the same interest in these issues as it has in the IIP," he said.

Tony Zarb, secretary general of the General Workers' Union (GWU), was absent for the meeting as he is presently abroad, but he nonetheless reiterated the Union's initial stance that the scheme was a good one, and one which will attract sound investment for Malta.

"We always believed that the scheme was good and it now seems like the other institutions are in agreement," he said, adding that the Union will be drafting up various proposals on projects to the prime minister.

Meanwhile, Paul Bugeja, president of the Malta Hotels and Restaurants Associations (MHRA) said that in the meeting it was unanimously agreed that the administration of funds should be transparent and not bogged down by bureaucracy.

"We have compiled a document with various proposals and will be presenting it to the prime minister tomorrow," Bugeja told this newspaper.

"MHRA believes that the funds should serve to raise the standard of living for the Maltese and not simple one-off projects," he said.

Bugeja said that the MHRA was of the belief that half of the funds generated by the scheme should be re-invested in social projects, whilst the other half should be spent on bettering the quality of roads Maltese roads and on a new effective system of public transport.

"Even if this means a completely new means of public transport, we feel that the country is in need of an efficient and 'green' system which will further help to promote the wellness factor of Malta in the region," he said.

Paul Abela, president of the Association of General Retailers and Traders in Malta (GRTU) said that his Union had made three project proposals.

"Firstly, we insisted that the funds must, in some way, go towards the creation of jobs. Secondly, that a development fund is set up in order to assist small businesses and enterprises, and lastly, so that any potential foreign investors are represented on any board of trustees," Abela said.

According to the Prime Minister, foreigners' interest in the programme is now on the rise and the next step is to ensure that Identity Malta and other structures are in place.

The Social Development Fund will be similar to the Norwegian Sovereign Wealth Fund where a board of trustees will be nominated to manage the fund.

Muscat said the board must be composed of persons of integrity, competent to take decisions.