Two of Malta’s main food and beverage producers are claiming Lm328,000 in subsidies which should have been paid directly from the European Union coffers, but which appear to be ‘unavailable’ because of Malta’s unpreparedness for EU accession.
They concern export refunds paid by the EU to companies exporting food products to non-EU members, which help them maintain their competitiveness on the world market.
Before 1 May 2004, the Maltese government provided these subsidies in the form of state aid.
But three years since EU accession, the two companies’ claims over maize and sugar could not be processed because the Maltese government had not yet set up its paying agency, responsible for processing the claims for export refunds.
The claims by HH Ltd, a subsidiary of Marsovin, and Foster Clark, Lm43,000 and Lm285,000 respectively, are believed to stem from the fact that the EU funds may not be available as claims have to be submitted within at least two years. Their claims account from May 2004 to March 2006.
The Exports Refunds Unit was supposed to be functioning at Malta’s accession in May 2004, however this unit started its operations in October 2005. Even then, it only started processing claims as late as April 2006.
Yesterday the Ministry for Rural Affairs and the Environment said the two companies’ claims had been processed and verified, with the evaluation of their claims having reached an advanced stage.
It said of the late set-up of the Paying Agency that its administrative capacity had required specialization, strict checks and accreditation by the European Commission.
“HH Ltd and Foster Clarks have been kept informed of the developments and meetings have been held with both on a number of occasions.
“Their claims have been processed, verified with customs authorities and reports have been drawn up. A final evaluation is now at an advanced stage and the ministry will recommend that legitimate claims be settled.”