Commissioner expresses distrust on cheap labour economy / Malta News Briefing – Thursday 6 July 2023

Updated 1220

European Commissioner sceptical on Malta’s strategy of basing growth on foreign workers: European Commissioner Nicolas Schmit has emphasized the importance of investing in Malta’s workforce skills in order to raise wages for workers and prevent the emigration of highly skilled individuals. During his visit to Malta, Schmit, who holds the position of EU Commissioner for Jobs and Social Rights, he expressed doubts about the long-term viability of Malta’s well-known approach in recent years, which focuses on importing low-income foreign workers to stimulate economic growth. He argues that this strategy lacks incentives for companies to invest in skills and productivity. Relying on unskilled labour and a large workforce for growth is not an ideal prospect for a country like Malta, as it may hinder sustainable development. (Times of Malta)

Steward Health Care loses case on unpaid VAT bill: Steward Health Care Malta has been unsuccessful in a case involving an unpaid tax bill of €36.8 million. A judge ruled that the tax commissioner’s attempt to recover the outstanding amount was not done in bad faith, contrary to the company’s claim. The company, which previously operated three state hospitals, filed a civil case against the inland revenue department seeking to have the court revoke the garnishee order granted to the taxman regarding the substantial tax bill. The case was initiated in April, following a judge’s decision to invalidate the “fraudulent” concession granted to Steward Health Care by the government for the management of St Luke’s, Karin Grech, and Gozo General hospitals. The court deemed the privatisation deal fraudulent, with evidence of wrongdoing at every stage. (Maltatoday)

EU report shows decline in justice system, media pluralism ‘at risk’: According to the European Commission’s annual rule of law report, the efficiency of the Maltese justice system has experienced a further decline, giving rise to concerns. Published on Wednesday, the report refers to the 2023 EU Justice Scoreboard and draws attention to a deteriorating trend observed in various important efficiency indicators. On media freedom and pluralism, the report classified Malta as ‘high risk’ based on an assessment by the Media Pluralism Monitor. The report noted that factors that negatively influence media freedom include political and state pressure over the media, and a highly concentrated market where only a few media organisations are present. (The Malta Independent/Newsbook)

Morning Briefing

TCNs will need EU driving licence to operate Y-plates

New regulations stating that foreigners seeking employment as cab drivers in Malta must possess a valid European Union driving licence have come into force. Non-EU nationals will no longer be eligible for the Transport Malta issued tag for Y-plate cars and will be required to undergo a driving test instead. Previously, non-EU individuals were granted the tag and given a one-year period to obtain an EU driving license. The transport ministry has implemented these new rules with the objective of enhancing sector regulation to guarantee the provision of high-quality and safe services. (Times of Malta)

74% of plastic bottles collected by BCRS

Environment Minister Miriam Dalli disclosed that BCRS Malta Ltd, a private company responsible for the beverage container return scheme, collected 74% of all drink containers in the market between November 14, 2022, and June 18, 2023. The minister revealed this information in response to a parliamentary question raised by Ivan Bartolo, a Member of Parliament from the Nationalist Party (PN). Bartolo had sought clarification on the amount of deposit refunds issued by BCRS Malta through vouchers distributed from their Reverse Vending Machines. In her response, Minister Dalli stated that BCRS Malta has issued a total of €8,284,762 in deposit refunds through these vouchers during the specified period. (Maltatoday)

Qormi man imprisoned after importing explosive material

Jomic Calleja from Qormi has been sentenced to five years’ imprisonment by Magistrate Donatella Frendo Dimech. He was found guilty of illegally importing explosive material into the country without the required license from the Commissioner for Police, as well as associating with others in committing this offense. In addition to the prison term, Calleja has been ordered to pay €2,827 in Court expenses and forfeit two personal guarantees worth €51,000. The case dates back to March 2020 when police investigations into drug trafficking led to the discovery of an international plot involving Calleja to import a bomb into Malta. (TVM)

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