Report on Business Today Breakfast meeting on 9/10/2019
A summary – there were many points made over the 2 hours, many made before.
- No deal Brexit would be a disaster for UK and Europe with massive drops in GDP, problems with supply and trade. The governments are seeking to mitigate the potential effects.
- No deal might be being used as a bargaining chip in these last days, but it is a dangerous one, and we have to be ready in case bluffs are called.
- An extension is not welcomed by most speakers as this will just add more uncertainty and not resolve the main issue of the Irish Backstop/border issues. As the remainder of the agreement is broadly receiving support in Uk Parliament (so far) then there is a need to resolve this sticking point.
- The Maltese government speakers were friendly and thoughtful about their connections to the UK. There is just as much concern in the Maltese in the UK as there is the British in Malta (there are twice as many Maltese in UK as there are counterparts.
- If there is a no deal the same items that have been reported will happen regarding residence. As this was a business focussed meeting there was little on healthcare etc, but those reassurances remain.
- One point was for Maltese in receipt of a Malta pension in UK, they will continue to receive it as normal.
- British people already working in Malta will have to go through the registration process but will not have to apply for employment licences etc as a full 3rd party country would after a no deal. But if they are new to Malta employment after a no deal then it will be up to the Maltese authorities how to handle this. Some of my Maltese business friends privately expressed concern over this. I also wonder what will happen if someone changes jobs.
- All the main concern is over a no deal, and its implications, if there is a deal then things will be much smoother.
- There was an implication that in a no deal some products may be delayed, or unavailable This could mean certain pharmaceutical products are not available, if in doubt do what the Maltese business people seem to be doing, and stockpile just in case. (apparently this includes 2nd hand UK cars!).
- Financial Services seems to be a major issue – as the UK accounts for about 80% of the EU business. If the passporting rights and other permissions are just cut off this could cause issues for Malta and worldwide. To try to lessen the impact the MFSA are allowing UK fund managers and other pertinent businesses a 2 year transition to move their business from passporting to Malta. Again only a major concern in no deal. I suggest members have sufficient cash in hand to cover a few weeks if they draw Euros out of UK based funds after a no deal date in case of a millennium bug type issue with ATMS etc.
- Everyone was told to look at the UK website Living in Malta guide and the new Brexit be Prepared Malta site.
- The presentations and Q+A were conducted in a way friendly to British and with concern about the ongoing business relationship being as strong as possible. Mention of the Commonwealth links were made by the minister although this is more a loose grouping rather than a legal framework of the EU.
- Minister said Brexit is a loose/ loose situation, and that after over 1000 days since the vote we would know by now how it will sort out. Later there was some indication that Malta might benefit over other countries due to English speaking and close ties. Efforts continue to get a deal. Some comment was made to the aftermath of a deal or no deal situation, but clearly the desperation is to get some sort of deal and work from there. Malta may benefit from being a location whe UK business look to get a European foothold.
- The High Commissioner spoke well, again and gained sympathy, candour and backing, using humour and an honest approach. He is of course towing the government line. There is a lot at stake not just health, pensions and travel. Terrorism, security, human rights etc. A lot in common, Malta been in EU for 15 years, Malta and UK together for 220 years.
Over 100 top business people attended, with all the press and TV. Stuart Gill stayed behind to answer questions and chat to Harvey and me.
Speakers: Glenn Micallef, Edward Zammit Lewis, Marika Tonna, David Xuereb, Joe Cuschieri, Stuart Gill
For Link to Business Today Article click here
Report submitted by John Rusher, Hon Treasurer 9/10/19
