MaltaToday previous editions

maltatoday, WEDNESDAY, 5 FEBRUARY 2014 3 MIRIAM DALLI NOW that the European Commis- sion has green-lit the citizenship- by-investment programme and the government published the legal notice under which the pro- gramme will operate, social part- ners 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 Pro- gramme 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 lat- est changes, so much so that to- day they started discussing how to make best use of the funds. The Malta Employers' Asso- ciation was one such entity which had initially expressed its reser- vations with the IIP but its presi- dent Arthur Muscat, contacted by Malta Today yesterday evening, said that it withdrew its reserva- tions once the scheme was deemed acceptable by the European Com- mission. The MEA president explained that in this afternoon's meeting, the prime minister welcomed pro- posals 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 impor- tance on employment training and education but this sovereign fund could also open up the possibil- ity for government to help lessen the financial burden of maternity leave on employers," he said. Josef Vella, president of Union Haddiema Maghqudin said that the Union had set up a committee in which it will analyse and pro- pose projects for which the funds generated by the IIP could be best utilised. "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 is- sues as it has in the IIP," he said. Tony Zarb, secretary general of the General Workers' Union, was absent for the meeting as he is presently abroad, but he nonethe- less 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 vari- ous proposals on projects to the prime minister. Meanwhile, Paul Bugeja, presi- dent of the Malta Hotels and Res- taurants Associations (MHRA) said that in the meeting it was unanimously agreed that the ad- ministration 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 news- paper. "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 trans- port. "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 As- sociation 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 or- der to assist small businesses and enterprises, and lastly, so that any potential foreign investors are rep- resented on any board of trustees," Abela said. According to the Prime Minis- ter, foreigners' interest in the pro- gramme 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 nominat- ed to manage the fund. Muscat said the board must be composed of persons of integrity, competent to take decisions. Additional reporting by Tim At- tard Montalto News 'Proof of residency' required under new IIP legal notice MIRIAM DALLI NO certificate of naturalisation will be issued unless the main ap- plicant provides proof that he has been a resident of Malta for at least 12 months preceding the day of the issuing of the certificate of naturali- sation, a new legal notice regulating the citizenship-by-investment pro- gramme states. The new legal notice comes into effect after it was published in the Government Gazette yesterday af- ternoon. The Legal Notice 47 of 2014 was vetted and approved by the European Commission's legal services, providing Malta with the first such investment programme to be sanctioned by the European Union. It is yet unclear what constitutes "proof " especially since the current Article 10 of the Maltese Citizen- ship Act does not provide a spe- cific definition of residency, leaving room for legal interpretation. Same Article 10 of Chapter 188 of the Maltese Citizenship Act calls for an aggregate period of four years resi- dency – over six years – preceding the said period of 12 months. Addressing the press on the pub- lication of Legal Notice 47 of 2014 – the legal notice under which the Individual Investor Programme is regulated – parliamentary secre- tary for justice Owen Bonnici said the residency requirement will be implemented in "good faith". "The residency concept already exists in the Maltese Citizenship Act, where Article 10 defines the concept for citizenship by natu- ralisation. We have agreed with the European Commission that the concept will be implemented as is today," he said. Issues of residency, like citizen- ship matters, are to be decided by the member states. Flanked by Attorney General Peter Grech, Bonnici said residency "does not mean living in Malta 365 days". "It also does not mean that an ap- plicant doesn't spend a day in Mal- ta," he said. "We are creating the genuine link satisfying the require- ment of residency before applicants graduate to citizens." Pressed by journalists on the ac- tual definition of residency and its proof, Bonnici reiterated that "actu- al days of residence are not enough" as proof, insisting such concept "has long been utilized" in Malta. Now that the government has is- sued a new legal notice, it is unclear what happens to the motion filed by the Opposition over the previous le- gal notice, 45 of 2013. The PN will be taking its position during a meeting of the parliamen- tary group scheduled for tomor- row. Last week, two days before the agreement reached between the government and the European Commission, the Opposition filed a judicial protest forewarning pro- spective applicants under the IIP that their acquired citizenship would come with an expiry date. Bonnici is now urging the PN to clearly state that it no longer op- posed the scheme now that the pro- gramme enjoys the Commission's support. "Legally, the judicial protest is very weak and it's time for the Op- position to clearly state it no longer opposed it and that the controversy is now case closed." The amendments to the legal no- tice are three: 1. Article 4(d) of the new legal no- tice states that the main applicant for citizenship must 'commit him- self to provide proof of residence in Malta, and to provide proof of title to residential property in Malta in accordance with these regulations'. 2. Article 12 states that 'in certifi- cate of naturalisation under these regulations shall be issued unless the main applicant provides proof that he has been a resident of Malta for a period of at least 12 months preceding the day of the issuing of the certificate of naturalisation'. 3. Article 16 of the same legal no- tice repeals the previous notice. Parliamentary secretary for justice Owen Bonnici flanked by Attorney General Peter Grech Social partners have their say on IIP funds

• Cover