Government to issue details about post-Brexit plan once situation less fluid

Edward Zammit Lewis told Business Today, the government is waiting for the opportune moment to issue more information on the preparations Malta is undertaking to deal with the increasingly likely no-deal Brexit scenario

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The government is waiting for the opportune moment to issue more information on the preparations Malta is undertaking to deal with the increasingly likely no-deal Brexit scenario, Edward Zammit Lewis said.

The European Affairs ministers told BusinessToday that the government’s Brexit unit is intensifying its readiness, and that once the situation is less fluid, will be issuing information to the public on the sectors which it anticipates may experience changes if the UK withdraws from the EU without a deal.

Earlier this week Boris Johnson said that freedom of movement would end on 31 October, the date Brexit is set to happen. The British Prime Minister insisted preparations for a no-deal Brexit were on track. This prompted Zammit Lewis to say that Malta was monitoring the situation and would be leaving nothing to chance.

Asked by BusinessToday on Wednesday to give details on what this in effect meant, Zammit Lewis said Malta was being vigilant when it came to any Brexit developments and would be carrying out adjustments its plan as needed.

“The [ministry’s] Brexit unit will keep intensifying its work and will, at the opportune moment, be passing information on to the public regarding the various sectors – such as SMEs and pharmaceutical sector – which we anticipate will see the biggest changes. We will be helping these sectors increase their level of preparedness to make them ready for every eventuality,” he said.

European Affairs minister Edward Zammit Lewis says government is  waiting for right  moment to pass  on more detailed information to the public about the  local sectors  which could be  most affected by a  no-deal Brexit
European Affairs minister Edward Zammit Lewis says government is waiting for right moment to pass on more detailed information to the public about the local sectors which could be most affected by a no-deal Brexit

The minister said that his ministry and the various other relevant departments had been working on their Brexit preparedness for a number of months.

“The work we are doing here is horizontal, and, although led by my ministry, involves also the principal permanent secretary and coordination at departmental level with entities such as Identity Malta, the Finance Ministry, the Customs Department, the Malta Financial Services Authority and the Malta Gaming Authority,” he said, “So, at various levels we are preparing both for a Brexit based on the current withdrawal agreement, and for a no-deal Brexit.

A no-deal Brexit, he said, was now “more of a possible reality than ever before” and was a “probable scenario, based on what Boris Johnson is saying.” He noted that, should the UK leave the EU on 31 October without a deal, Britain with start being considered a third-country by the EU.

Johnson has demanded that the EU abolish the withdrawal agreement’s Irish backstop, threatening that the UK would leave without a deal should his request not be upheld. His attempt was rebuffed by the EU, however, with European Council president Donald Tusk accusing the British government of failing to admit that this would lead to a return of a hard Irish border.

The UK government later announced that British officials would stop attending the majority of EU meetings from 1 September.

In terms of how he had responded to this, Zammit Lewis, who was sworn in as minister in late July, said he had promptly stepped up the government’s no-deal preparations.

“When I was appointed minister, I immediately began to coordinate with the relevant ministries at a political and administrative level to intensify our drill in preparation of the possible scenarios – both a Brexit with a withdrawal agreement, but also for the undesirable outcome of a no-deal,” he said.

Once there is more stability in the situation, the Maltese government will be starting an informative campaign, he said, highlighting that, due to the fluidity of the situation, there was a limit as to what information could be supplied at the moment.

“Our aim remains to protect our national interest, SMEs, micro-enterprises, Maltese citizens in the UK and Britons in Malta, and so on, to ensure Brexit’s impact is as well-managed as possible,” he underscored.

Asked to elaborate on how Maltese citizens in Britain and British expats in Malta will be safeguarded, Zammit Lewis emphasised that the Maltese government and Prime Minister had given their commitment that such persons would be protected.

“The goal is to maintain the status quo as much as possible. We have an interest to protect our British friends in Malta and the Maltese community in the UK. Commitments at a high level have been made. As we go along, we will refine them, but the aim is to lessen the administrative burden and, as far as it is possible, to keep the situation as it is as present,” the minister added.

Malta Enterprise in ‘constant engagement’ with businesses

Malta Enterprise has been preparing for Brexit’s impact for some time, and has been keeping in contact with all local companies which export to or import from the UK, the agency’s new CEO Kurt Farrugia told BusinessToday.

“We are in constant engagement with businesses - we are reaching out to them, particularly the ones which trade with the UK,” he said, “We are also engaged with stakeholders, the GRTU and the Chamber of Commerce to discuss possible initiatives.”

The general sentiment amongst local businesses, however, was not one of alarm, even in the case of a no-deal Brexit.

“Throughout the past months, most companies have been undertaking their own preparations, so there is a sense that if a no-deal happens, they will be ready.”

He said that no particular sectors were showing any significant worries about a no-deal withdrawal, but that Malta Enterprise would continue engaging with businesses and keeping tabs on developments, to ensure firms are not caught unawares.

Farrugia also confirmed that a number of UK companies, notably those in the aviation and video games sectors, had showed interest in opening an operation in Malta.

“There have been companies who have already set up in Malta but might choose to not announce outright that Brexit is behind this, instead saying they are expanding and opening a Maltese office,” he said.

“The reality is that there is interest by UK businesses to set up operations in the EU, and Malta is a good option for this. We are positioning ourselves as being open for such businesses, but do not intend to appear to be stealing any businesses away from Britain,” Farrugia added.

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