Issue link: https://maltatoday.uberflip.com/i/785757
maltatoday, SUNDAY, 12 FEBRUARY 2017 2 News Malta's situation is further exacerbated by its small size, and the 'thinness' of the human resources market Slowing down the revolving door YANNICK PACE TOMORROW, Alternattiva Demokratika (AD) deputy chair- man Carmel Cacopardo will be making a case for the regulation of the so-called 'revolving door' before the Consideration of Bills Committee in parliament. The term refers to public officials leaving office and going to work in private sector jobs, often in ar- eas they were responsible for while in government, or vice versa. AD has called for legislation regulat- ing this practice to be included in the Standards in Public Life Bill which is currently making its way through parliament. While politicians taking up private sector jobs after their term doesn't neces- sarily imply w r o n g d o i n g , there have been sev- eral instances which have raised serious questions. In the recent Lowenbrau con- troversy, it was re- vealed that minis- ter John Dalli had – in 1990 – granted 24,000 square metres of land to Marsovin compa- ny Agrico Limited under perpetual emphyteusis, for Lm10,000 a year. Then, in 2004, shortly after he re- signed from parliament, Dalli was appointed chairman of Marsovin, before eventually returning to cab- inet in 2008. A year later, a govern- ment restriction under which that land could be used solely as a brewery was lifted, and it was eventually sold for €8 million. At a press c o n f e r e n c e last month, C a c o p a r d o cited the epi- sode as being one of the rea- sons to address the 'revolving door' in politics, adding that situ- ations like the Lowenbrau one call into question whose interest politicians are really protecting. Advocates of regulation will point to cases of politicians advis- ing on how to circumvent regula- tions they helped put in place, or private sector employees taking up government jobs and retaining too close a relationship with players in the industry they were previously employed in. The NGO Corporate Europe Observatory hosts a regu- larly updated list of MEPs, com- missioners and officials who have moved from EU institutions to pri- vate interests and vice versa. In 2010, just five months after his six-year term as European com- missioner for maritime affairs and fisheries had ended, Joe Borg joined Brussels-based lobby group Fipra, which specialises in regula- tory and competition policy mat- ters. Borg took up the position on the condition that he would not advise the group on matters di- rectly linked with his mandate at the Commission. Meanwhile, others feel that if in- dividuals were barred from moving between government jobs and the private sector, the political class would consist solely of career poli- ticians with little industry experi- ence. Labour MEP and former prime minister Alfred Sant agreed that regulation is the way forward. He said the practice should be legislated for, both in the Standards in Public Life Bill and in the sepa- rate pieces of l e g i s l a t i o n governing the design of "reg- ulatory and ex- ecutive public agencies". "Malta's situa- tion is further ex- acerbated by its small size, and the 'thinness' of the human resources market, the fact that many people know each other, and that most political appointees reflect political choices, all con- tribute to a more complex situa- tion compared to other countries," he said. AD is proposing a 'cooling off period' following a term in office, similar to that placed on European commissioners, who must wait 18 months before they can freely take up certain pri- vate sector jobs. This would act by withhold- ing "clearance" if conflicts of interest arise, according to Ca- copardo. Nationalist Party deputy leader Mario de Marco stressed however that even in countries where regulation exists, enforcement is not always straightforward. "In the UK, former ministers must seek advice of the Ad- visory Commit- tee on Business Appointments about positions they wish to take up within two years from retirement form public office," said de Marco. He explained that such measures do not stop the revolv- ing door, but rather attempt to regulate it. "[They] seek to achieve a delicate balance between an in- dividual's interest and the public's interests," he said, adding that due to Malta's size, this should be easier. De Marco warned that the per- ception of government being too close to "special interests" can lead to mistrust by the public and consequently must be addressed to meet the public's demand for transparency and higher stand- ards. Former PN finance min- ister Tonio Fenech suggested the sub- ject required wid- er discussion. "If society wants inde- pendence from influence it has to provide for it and protect it," he said, add- ing that impos- ing unrealistic laws could send the message to "good honest people" that the financial consequences of a ca- reer in politics are "over-taxing". If a cooling-off period is introduced there would have to be adequate compensation, as with EU officials. Sant too acknowledged that compensation would be necessary. "[A cooling-off pe- riod] will need to be backed – where and if relevant – by the provision of some form of compensa- tion, which has to be well defined," he said. In addition to a cooling-off pe- riod, AD is also calling for the role of MP to be a full-time one. Cacopar- do insisted that this would "sub- stantially re- duce, and pos- sibly eliminate conflicts" be- tween MPs' parlia- mentary role and other interests. Concern over the revolving door in politics isn't universally held. Labour MP Charles Mangion refuted the sugges- tion that there is anything " i n t r i n s i c a l l y unethical" in a politician being engaged by a "business institution." He argued that the matter must be evaluated "real- istically and not emotionally" and rejected claims that former politicians are engaged for their contacts and influence. "A change in government or the ascendancy of new political per- sonalities will seriously dent any influence the retired politician may have had," he said. Mangion also pointed out that ultimately only "good governance" can ensure that conflicts of inter- est are avoided. This was echoed by Fenech, who stressed that it all boiled down to ethics. "Cabinet members should under- stand the boundaries of good rea- son. [They] can't allow themselves to be influenced in their decisions by some consideration of a possible engagement by an interested com- pany in the future," he said. Good intentions notwithstand- ing, Sant said in order to pursue a career in politics, difficult choices must be made. "I am of the old- fashioned view that people in- terested in a political career should not have an equal interest in making good money," he said. Carmel Cacopardo Alfred Sant Charles Mangion Mario de Marco Tonio Fenech