BLOG 4 - A HOUSE OF CARDS

“We are nothing more or less than what we choose to reveal.”

– Frank Underwood

Now that I have your attention… unfortunately I will not be able to move on with my blog (sigh) without going over the insane backlash caused by post 3. I have to say I am very sorry about this, as this blog was always intended as a means to escape the everyday theatrics and the PR wars, but I’m afraid that certain lies and disinformation must be countered. I hope you will understand.

As you may know, Fabian Picardo, the GoG (on official GoG letterhead, no less) and some of their most twitter-happy sycophants launched a full-scale offensive against me this past week. Now I suggest to you, dear reader, to do the following exercise:

1 - Read blog 3

2 - Read the reactions.

3 - Come back (if your brain has not broken from a nonsense overdose).

If you cut through the drama, you will see that the substance of their criticism is that I used the expression “morally bankrupt” to define the industry that manages wealth for dodgy Russian oligarchs and, generally, helps the super-rich pay less (or no) taxes. Surely as the leader of a progressive party it does not come as a surprise that I have issues with an industry of this nature, right? I am also sure that most of the readers out there who define themselves as progressives will have similar reservations, fair?

Funnily enough these moral qualms are pretty common. GBC, while explaining the fact that three Gibraltarian companies had been listed in the “Pandora Papers” leak, ended its report with the following disclaimer:

“Loopholes in the law allow people to legally avoid paying some taxes by moving their money or setting up companies in tax havens, but it is often seen as unethical. Inclusion in the Pandora Papers therefore is not necessarily an indication of wrongdoing.”

So I think it is safe to agree that these practices are “often-seen-as-unethical” by the vast majority of the population, not by a fringe, idealist minority.

Then there’s the argument that the points raised in my blog amount to an attack on the people who work in the sector and their families, as well as a commitment to close the entire finance sector down if elected. This goes beyond demagoguery, it is just a barefaced lie. A shameless falsehood aimed at causing fear in the electorate. It is also an insult to the intelligence of the people of Gibraltar, who can see straight through the spin.

Now, I understand that, as an MP, it is my responsibility to temper my idealism with statespersonlike pragmatism, and believe me, I do. All the time. And I am not the only one. Unlike what this Government would have you believe, Gibraltarians are not stupid. We know exactly what is going on. We hold our noses, sometimes literally (when tankers get too close to shore while refuelling in our waters), about areas of our economy that have provided wealth and opportunity in a small territory with little-to-no natural resources and a myopic neighbour with no interest in doing business. We have endured the smuggling, the bunkering and the “often-seen-as-unethical” practices of a small part of our financial services because we know that the Gibraltarian national project requires economic independence in order to thrive.

In my blog, I recognised that these practices had brought prosperity where there was none, and had fuelled many of our very successful social policies. They have housed our people and educated our children, and for that we are grateful. It has also lined the pockets of a super-rich, local class who now control our politics. We have acknowledged and accepted this with great pragmatism, taking the good with the bad. What we are not willing to do (and this has become even more clear to me after what has happened since the last post), is give up our democracy for any business interest, however lucrative.

In my post, besides recognising the value of these practices, I also highlighted that there have been many changes, both locally and internationally, to the way this industry impacts our lives. It is depleting our land resources, transforming our landscape and culture and fuelling a real estate bubble, It creates serious problems of governance, and it is coming under great international pressure.

As a liberal, I will not give up my right to have an honest and accurate public discussion about the pros and cons of this model, “digan lo que digan” Fabian Picardo and his cronies, and as a democrat, I believe these decisions must not be taken by an elite, but by the majority of the population.

If it turns out that this industry is the only way to fund redistributive policies and create opportunity in Gibraltar, I (and I believe the rest of the community) will, of course, put the national interest first and strive to make our financial services industry better and more successful than it has ever been, including tax avoidance for HNWIs.

However, what if it turns out that, after careful, honest analysis, these practices are now causing more harm than good?

If that is the case then I shall bring to Gibraltar a bold and progressive proposal on how to diversify our economy and invest in areas that can bring prosperity to our people in a way that does not compromise our progressive values (as I said in my blog, technology investment areas, for example). Of course this would be a medium-to-long-term endeavour, ensuring new avenues of business exist before dispensing with others, and I am convinced that the few families managing assets for HNWIs would also find ways to benefit from this transformation, as these would require the decisive participation of our financial sector.

Let this be a message to the Chief Minister and to his choir of sycophants, who are behaving more like a lobby for the interests of the super-rich than as custodians of the greater good. I will not be silenced. I will continue to encourage honest and healthy debate on all the issues I believe to be important to our community, and I will do my best to counter the infantile, fairy-tale narrative you are spoon-feeding our people.

Gibraltar is not a pathetic weakling. British Gibraltar survived the longest siege ever endured by the British Armed Forces, two pandemics, two world wars, the evacuation of its people and the bullying of a fascist dictator. It has survived several economic collapses and reinvented itself successfully whenever its model has been challenged. More recently, Gibraltar in its current form (with its current economic model) has survived Spanish right-wing Governments pelting it with all sorts abusive falsehoods and instigating all kinds of international pressure. Gibraltar stood firm, with an economic model which was much less compliant and well regulated than what we have today, in the face of enormous pressures. Gibraltar will not crumble under the words of an opinionated MP, or come under any threat over a blog written by any of its citizens. Fabian Picardo’s administration however, might, and that is exactly what they are trying to avoid.

Gibraltar’s vulnerability lies in the risks attached to some of its core economic pillars, and not in the exercise of free speech. We rely on fossil fuel bunkering while at the precipice of environmental collapse, on a tobacco trade that demands tolerance to criminal practices and on an (perfectly legal and well regulated) industry of tax avoidance that is coming under great international pressure, and we need to talk about how we transform our economy to take on the future with confidence and optimism. As politicians, instigating these debates is perhaps the most fundamental part of our job. Do not let our Government tell you otherwise.

Let’s hope that Moneyval which, regardless of the Government’s narrative, found serious issues with the way we implement our own rules, does not “grey-list” us when the time comes. If they do, we might end up having these same discussions under a much more menacing backdrop: one that looks a lot like a house of cards.

Speak soon,

Marlene

PS: As the cronies and fake profiles continue their outpour of concern for the families that depend on the financial sector, I ask myself, where is the indignation for the families of Gibraltarians who are, TODAY, on zero-hour contracts and suffering exploitative working conditions? They have been erased from the official narrative, of course, but I will do my best to bring their issues to light. In next week’s blog I will tackle the covert privatisation of the public sector, with all of its ramifications.