It is customary at this time of year to do either or both of these two things; namely to look at the performance achieved during the current year as it approaches its end, and secondly to look forward to the new year and to try and forecast how that performance will, or should be.

Having been part of this organisation for over fifteen years now, I know how much emphasis the directors of all the companies within the Vassallo Builders Group put on such regular analysis. The Group Chairman will no doubt be commenting on these important issues in his contribution to this magazine, so I will try and look at the new year from a different perspective.

As we are all aware, when we discuss the year 2003, one cannot help but be influenced by the fact that this year could be the most crucial year for the last forty years, due to the impending Referendum on membership in the European Union, and possibly also a General Election. As the run-up to the Referendum in particular picks up momentum, each sector of the Maltese society will be looking at how eventual membership in the EU could affect their way of life or their work ethics, and this could influence their decision in these elections.

As a major construction company with varied multi-disciplinary interests which include healthcare, hospitality, IT and education, we certainly cannot be disinterested in the effects which an eventual membership will have on the Group's future. We have to look at the medium to long range effect and not just at the short term consequences.

Will, for example, the construction industry, which is the backbone of this group of companies, be affected if Malta becomes a member of the EU? The straight answer is that it will be affected whether we join the EU, or if we don't. One cannot help noticing that Government has been taking measures over a number of years which approach local laws and regulation to those already practiced in the EU. A typical field are the Health and Safety regulations which are already having an impact on the industry, and is bound to increase its influence as enforcement becomes more rigid by the end of 2003.

How is it expected that the EU membership will affect the construction industry? One could of course speculate on the pros and cons, depending on one's political allegiance. However one's opinion should be the result of a clever assessment of the real issues, and there is no doubt that the overall environment within the construction industry will imporve significantly.

For example, one particular law which is bound to affect the industry is the Constructions Product Directive which regulates construction products. It provides essential requirements for these products such as performance, stability, safety in case of fire, safey in use, energy economy and other issues. These are not yet obligatory but member states are encouraged to adopt them for the general well-being of the public and of the construction workers themselves.

It is known that the Right of Establishment will permit EU building contractors to offer a service in Malta, but we are all aware of the limited potential of the local market as regards large projects. The prohibitive costs of setting up in Malta without seeking joint ventures with local firms, should defuse such a worry. On the other hand, I feel that this should be seen as an opportunity for local contractors to seek ways of using this to their benfit. Naturally, Maltese contractors will also have the opportunity to participate in projects within the EU, if the so choose, and knowing the entrepreneurial spirit ot the local businessman, they probably would!

With the implementation of the EU's Regional Policy, it is envisaged that a large number of infrastructural projects will be taking place in the Maltese Islands for quite some time, and this can only be deemed beneficial to the construction industry. And as we all know, when the construction sector is busy, it serves as a catalyst for many other related industries and businesses.

Regulations are normally considered opressive, but we have to admit that the regulations imposed by the EU on the construction industry, and which address pollution, noise, health and safety, building standards, and others, can only be beneficial to the country as a whole and would in time rise the standard of the industry to the level of competence found in the EU.

We, as a Group, see eventual membership in the EU, as a positive development, which will not only be beneficial to our operations, but also to our hundreds of employees and their dependants.


Edgar A. Rossignaud B.Arch., A.& C.E.

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