Issue link: https://maltatoday.uberflip.com/i/1115758
18 maltatoday | SUNDAY • 12 MAY 2019 INTERVIEW Allow me to start by quoting something you said as Opposition leader in 1995: "Government's economic policies are becoming increasingly liberal [...] There were elements in the country's economic policy that served to reduce workers to just another factor of production." Would you agree that those words are just as applicable to Joseph Muscat's economic policies in 2019? Not really. There has been a huge difference since then; to- day, there is an emphasis on re- distribution of wealth. That was not the case 25 years ago. Even in the context of how, for in- stance, VAT was being planned and implemented, there was no forethought that this was going to create a distribution problem, in terms of the wealth being created. But today, it is clear that, while there is a lib- eral policy as far as business is concerned, the distribution side of things – in terms of op- portunities, welfare, and jobs 'paying something more' – is there. That's the fundamental difference… All the same, today's Labour policies are very different from what they were, even a lot more recently than 1996… Socialist policies have to be different today, because… things have changed. Over the last five or six years, the rate of growth has been unprecedent- ed in post-Independence Mal- tese history… and I would say even before. So, the conditions in which you have to work, to move forward, are completely different. These are uncharted waters… Does that justify a Socialist Party lurching towards the right, though? Another thing Labour used to complain about in the past was 'precarity' [prekarjat] in employment. Today, unions complain about local businesses and industries hiring cheap, imported labour, often with little security of tenure. Isn't that the same concern? I don't think so. Had you asked me about the situation in Europe, I would have said 'yes'. But I am not convinced it applies to Malta, today. In the past it was a different story. The amount of precarity I encoun- tered while doing door-to-door visits in Fenech Adami's day: women, hanging onto their jobs by a thread; being exploited by employers […] I'm not saying exploitation doesn't happen today. But it's not the same as the precarity we complained about in the past. It would be an exaggeration to compare the situation today with the situa- tion back then… 25 years ago or more… There is reason for raising that quote, though. Politicians tend to say one thing when in Opposition, and another thing when in government… Obviously… In your case, you seem to be praising the government for its 'liberalism', when you had criticised past governments for the same thing. Not exactly. There are liberal policies, and neo-liberal poli- cies: by 'neo-liberal', I mean 'no holds barred' liberalism. Malta may be enacting liberal policies, at this point; but I don't think they are 'neo-liberal' policies. The unions are still quite strong in this country; but as happened in Europe, the private sector has taken over. I don't agree that it's a 'government policy': it is a European trend. Over the past 10 years, the ILO [International Labour Organisation] has been critical of the EU for flouting collective agreements. It never happened to this extent before. That's the environment we are living in. We're members of the EU, and we reflect European trends as well. Having said that, the emphasis on redistribution – which the government is do- ing; perhaps not 100% well – is something to reflect upon. If I support Muscat's government – which I do – I do it on this basis: i.e., given the conditions we're facing, they're doing quite a good job of balancing the dif- ferent voices, under a liberal management which is also un- der stress because it is part of the Eurozone. You said 'not 100% well'. Could you elaborate? One thing that I criticise is that, basically, we're focusing too exclusively on services. Back in the 1970s and 1980s, Malta said, 'We're going to industri- alise. We're going to invest in manufacturing.' That was our development model. And it's no longer there. We are focus- ing on services. Services have taken over the economy. And this government – accepting the model that came through as a result of EU accession – is making a success of that model. One of the most consistent criticisms directed at you is that, as party leader, you had campaigned against succession, though you now highlight the 'benefits of EU membership'. Would you admit that there is a contradiction between Alfred Sant before 2004, and Alfred Sant in 2019? There's no contradiction. I am not 'highlighting the benefits of EU membership', for crying out loud. I am accepting that we are now EU members. And I'm say- ing that we have to make the best job out of it. Now, most of what I said before we joined the EU, has happened. Agriculture is… doomed. Manufacturing is down by 50%. And we are tied to services. As far as develop- ments go, our trade-and-goods deficit with the EU has tripled. So, what we said, happened. But just a minute ago, you said that Malta's economic success 'came through as a result of EU accession'… Had we not joined the EU, we would not have gone onto a growth path. We're still on a growth path. But look at the first 10 years of membership, and you will find that growth rates were sometimes even lower than before. Look at in- vestment: where we had been told there would be a bonanza. Private investment slumped. So basically, I was right. But that's beside the point. Now that we are members, we have to make the best of it. So that criticism you mentioned is completely out of point, in my view. Irrel- evant… Let's turn to the actual campaign. The PN recently criticised Labour for being part of the 'Socialists and Democrats' grouping that favours tax harmonisation: which is part of Frans Timmermans' manifesto in his bid for the Commission presidency. How can Labour reconcile its tax policies, with its membership of a political family that holds the opposite view? We are members of the S&D because we are socialists. On quite a number of points we are for the socialist programme: for instance, 'making Europe a so- cial Europe'. On other points, we say 'No'. European socialist parties, as a conglomerate, are in favour of tax harmonisa- tion: which means setting tax- es, within certain limits, right across Europe for corporate positions. We have said 'No' to that right across the board. 'No, no, no'. Look at our voting records; look at the statements I made in Parliament; it was al- ways 'No, no, no'. Look at the statements I made within the S&D – actually, you won't be able to, because it's not public: but it's there. I told them: 'No, we disagree with that.' So our position is that: we are mem- bers of the S&D, but we disa- Former Prime Minister and Labour MEP ALFRED SANT is basing his last electoral campaign on 'defending Malta' – mostly from 'the hypocrisy of the Nationalist Party'. But how much of that is really a defence of his own party's record in government? The man who said 'No, Raphael Vassallo Raphael Vassallo rvassallo@mediatoday.com.mt