Last week I wrote a short article about how to survive Christmas debts and commented briefly on the addictive powers of credit cards that give us ostentatious power to spend beyond our means. Not surprisingly I have not received any feedback from banks. But then again I hardly ever receive any feedback, having written 52 weekly articles on Business Today.
Occasionally I meet business acquaintances who shower me with compliments urging me to continue but most of the time my inner feeling is that they are simply being courteous. Time is too precious for most to stop and read. Incidentally my options to write in another tabloid have been incuriously blocked by the mandarins at the Times of Malta due to the lame excuse that I am regular writer to a competing newspaper. Regardless, I carry on and here is my last contribution for this year. Surrealistically in the spirit of Charles Dickens‘ novel about Scrooge he has transmogrified water and electricity tariffs hike. All this does reflect the damning statistics about 2009 issued last week by NSO about the unprecedented deficit registered by the government. This revelation comes at a time when we read about the €25 million loss registered by Air Malta coupled with the amazing news that it sold its Hal Ferh at a low rate of €145 per square metre.
One sympathises that the property market is subdued but given its accumulated losses Air Malta could have negotiated a better return for the sale of a large tract of land (with Mepa permits) overlooking Golden Sands beach. Wonders of wonders this was an open tender and awarded to a hotel group which owns time share and Hotel properties located contiguous to this land. Nowadays one can be lucky buying a plot of land for a house at less than ten times this rate.
But this is not the time to whinge and moan. Thankfully the privatisation efforts of the past has contributed generously to lower the accumulated borrowings that has seen our small debt mountain reach €4 billion. Thus, at this time of reconciliation one cannot be tempted by the sin of Greed to contemplate the alternative higher recovery from the sale of our family silver. True some assets (typically Mid-Med Bank and others) have seen the price charged by the privatisation unit as a pittance compared to the bounty earned by smart foreign acquirers.
Reflecting on 2009 as a annus horribillis marred by a global recession and record unemployment we must feel contrite and atone for our past excesses. Our continued drive to acquire more earthly possessions label us as greedy which is sinful.
This raises the ire of the hedonists who claim that it is only three days to see the end of the year and we must let our hair down and party as if there is no tomorrow. I know the feeling among readers is Christmastide is not the time to talk about financial woes. Let the devil take the hindmost and lets all worry about deficit toting the €410 million mark if we meet again next year.
True this means that we have to work harder for our sins of gluttony and greed but with hindsight we have never hit a surplus in the past 22 years. So let our children worry about paying sovereign debt. Hence one notes the rush last Saturday (boxing day ) which heralded the initial sales for the season with crowds thronging Valletta for a bargain. Yes the Times of Malta and its magazines had (like other tabloids ) gleefully sold its advertising space to showcase luxury goods surrealistically believing we all won the Super Five or living among millionaires in lower Manhattan or Monaco area.
Such extravagant behaviour includes incessant luring of the public to partake of frequent acquisitions of luxury goods. This unbridled drive called greed is largely associated with material goods, where our desire to copy the Joneses is termed envy. Over extending ourselves usually by breaking the limits on overdrafts and credit cards we are unconscious of committing the sin of envy . This centuries old behaviour trait is well documented in history. It exemplifies the desire of resentment that our neighbour is driving a Porsche car or his wife dons that expensive designer coat which we perceive as lacking, and wish the neighbour to be deprived of it. Can we heed that Renaissance poet Dante who defined envy as “love of one’s own good perverted to a desire to deprive other men of theirs.” In Dante’s Purgatory, the punishment for the envious is to have their eyes sewn shut with wire because they have gained sinful pleasure from seeing others brought low.
I wonder how the glossy high definition adverts (at €2,000 a page) depicting diamond necklaces studded with emerald gems and white gold pendants have turned the envy of many. Subconsciously adverts work to instil a feel good factor that despite the lack of cash we dream to stretch our purchases beyond our means. It is not surprising that the over-taxed upper middle class will be suffering a financial hangover this season.
Still nothing can kill the spirit of rejoicing and many offices in Malta have celebrated in the usual style befitting their means and stature. I know that this year PKF invited over 60 staff and guests to a tapas and wine evening at a Paceville eatery followed by late night clubbing for those young at heart. Next day a traditional office lunchtime party was paid for by the staff as to food and drink but the management paid for a fun bus outing to Mnajdra Temples replete with siege music and free flowing drinks. This magical mystery bus took us on a surprise visit to places of interest . (some revellers tried their best at karaoke at the back seats of a vintage 1966 bus.) Larger audit firms have thrown more lavish parties . Stories talk about free flowing champagne and expensive finger food adorned with best Russian Caviar and black truffles.
This may contrast with what the BBC reported that this year recession has ruined famous year-end office parties in UK. With some notable exceptions since employers have wisely considered that their staff morale is important and they ditched the parsimonious policy not to organise a party. Quoting Stephen Broome, director of hospitality and leisure at PricewaterhouseCoopers it was business as usual despite the recession. Does this mean that we all wait eagerly for this Christian feast to excel in our extravagance and indulge in what the elders refer to sin of gluttony. This is the over-indulgence of anything to the point of waste. True Christians consider this unrestricted drive for indulgence in food and drink as a sin because of the excessive desire for earthly pleasures.
In this context party dudes wanting to try that tight fitting cocktail dress may be excused as lacking in self-control . In Dante’s Purgatory, the penitents were bound and laid face down on the ground for having concentrated too much on earthly thoughts but really and truly the Maltese have paid their penance for their sins.
Surely we cannot overlook the Strina jamboree garnering a record collection to care for the poor and needy . This time the record sum donated was reached devoid of the usual political pandering and high exposure to political cronies showering jackpots to callers which rendered past events more of a Las Vegas stunt. To conclude on a positive note. Let us throw caution to wind and partake of the New Year’s all inclusive parties at our hotels and clubs. It cannot but be a last sorrowful glance to a sinful 2009. Let me augur halcyon days in 2010.
A prosperous New Year from PKF.
George Mangion
Partner :PKF Malta .
Certified Public
Accountants & Auditors.
Members of PKF International - World-wide Group of
Accounting Firms.
