Realistic and competitive prices across the board'

by Gotthard Tabone

The government is negotiating between all those involved in the mobile telecommunications sector in Malta and in a matter of weeks this sector will be liberalised with more realistic and competitive prices on the market, Finance Minister John Dalli said yesterday.

He was replying to a question from Louis Farrugia, CEO and managing director of Simonds Farsons Cisk at the end of a session during the annual Federation of Industry conference in Qawra.

Mr Dalli said privatisation is an economic exercise that should imbue the entities concerned with renewed vigour and efficient practices. He said that this exercise has got nothing to do with the sale of family silver but a part of a packaged solution which includes effective financial sector reform, the enforcement of modern legislation, the establishment of effective regulation, free-market policies, and the liberalisation of trade and capital markets.

The finance minister said that in this environment privatisation becomes an important means for the country to attract foreign investment. Privatisation signals the government's commitment to liberalised markets, thereby also encouraging investment.

He said that an international cross-country study for 36 developing countries found that each dollar in privatisation sales attracts 88 cents in additional Foreign Direct investment (FDI). In particular a dollar in infrastructure privatisation sales resulted in US$2.4 of FDL flows.

Mr Dalli said Malta is at a crucial crossroad in the economic sector. In order for it to achieve its potential for growth immediate action is required. In particular are the links to other aspects of economic reform. These include the strengthening of tax administration, the careful but steady move towards a sustainable pension system, the government's overall programme of fiscal consolidation, and the liberalisation of the capital markets.