Author: SME Chamber

GRTU has this week continued its campaign against the unfair
level playing that is being tolerated with goods coming into our country
through a number of known means and at no time are they subject to paying VAT
and Eco Contribution.

The situation has been left unchecked for a long time
and the problem has continued to deepen with such evasive practices becoming a
commonly known affair. The issue has widened also to include the service sector
with foreigners giving services and carrying out complete works in Malta and
the VAT is not paid in Malta as it should be and we very much doubt if the VAT
is paid in any member state at all.

GRTU had written to DG TAXUD on the issue. The
Commission officials told us that not only does the Maltese Government have the
right to carry out checks but it also has an obligation to do so under EU law
because the VAT is part of the EU taxation regime and the Maltese Government
was bound to collect it. Tolerating evasion gives an unfair advantage for those
abusing of the system not only for Maltese businesses but EU businesses as a
whole and distorts the Single Market.

GRTU President Paul Abela has had the opportunity to
raise the issue with a number of high ranking Government officials and we are
pleased to note the intention of the Administration of looking into the issue
has increased. GRTU raised the issue with the Minister for Finance Edward
Scicluna during an MCESD meeting held on Monday. Hon Scicluna said that
retail  sales, excluding sale of motor
vehicles, has gone down and the Government is unsure of the reason behind it.
GRTU emphasized that there are two reasons for this, online sales and
undeclared sales. Mr Abela urged the Minister to look into the issue and ensure
there are no two weights to measure and a fair situation is restored not just
for the benefit of enterprises but also for Government revenue purposes. The
Minister invited GRTU to meet and discuss this as the Government wants to find
a solution.

GRTU this week also met Transport Malta high ranking
officials and the Minister for Sustainable Development, the Environment and
Climate Change Leo Brincat with whom it once again raised the issue and on both
occasions both Government representatives were very forthcoming and showed
Government's intent to tackle the issue.

The European Commission has launched
a consultation on its policy on CSR as elaborated in the Communication of 2011.
The aim of this consultation is to come to a future strategy on Corporate
Social Responsibility for the next Commission.

As you know UEAPME criticised
the 2011 Communication as the new definition does not take into account the
voluntary nature of CSR. In addition, nothing was done in order to accompany
SME organisations in their support for SMEs on CSR, as announced in the
Communication.

You can find the consultation
and background information, on the following webpage:

http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/public-consultation/index_en.htm

Kindly send
your contribution (filled in questionnaire) or any other general comment or
contribution, not later than 15th
July.

The EU's
economy is out of the woods according to the latest GDP figures released by
Eurostat yesterday. At the same time, inflation is under control and at par
with Maltese levels. New data issued yesterday shows the EU economy during the
first quarter of this year registered an annual growth rate of 1.4 per cent,
the highest in the last 12 months.

EU and Chinese
trusted traders will enjoy lower costs, simplified procedures and greater
predictability in their activities, thanks to a mutual recognition agreement
signed today. Under the agreement, the EU and China commit to recognising each
other's certified safe traders, thereby allowing these companies to benefit
from faster controls and reduced administration for customs clearance.

New EU rules
making it easier for companies to recover claims across borders have been
adopted today by EU Ministers. Member States in the General Affairs Council signed
off on the agreement recently reached with the European Parliament to establish
a European Account Preservation Order (MEMO/14/101) – a Regulation that will be directly applicable in the Member States
(except in the UK and Denmark which have an opt-out in this area).

The European
Account Preservation Order is essentially a European procedure that will help
businesses recover millions in cross-border debts, allowing creditors to preserve
the amount owed in a debtor's bank account. The proposal had been made by the
European Commission in July 2011 (IP/11/923). 

"Every Euro counts: Small and medium-sized enterprises are the backbone
of European economies, making up 99% of businesses in the EU. Around 1 million
of them face problems with cross-border debts. In economically challenging
times companies need quick solutions to recover outstanding debts. This is
exactly what the European Account Preservation Order is about," said
Johannes Hahn, EU Commissioner responsible for Justice during Vice-President
Viviane Reding's electoral leave. "Today's
adoption is good news for Europe's SMEs and the economy. Thanks to these new rules,
small businesses will no longer be forced to pursue expensive and confusing
lawsuits in foreign countries."

While the EU's
internal market allows businesses to enter in cross-border trade and boost
their earnings, today around 1 million small businesses face problems with
cross-border debts. Up to €600 million a year in debt is unnecessarily written
off because businesses find it too daunting to pursue expensive, confusing
lawsuits in foreign countries. The European Account Preservation Order will help
recovering debt across borders  by preventing debtors from moving their
assets to another country while procedures to obtain and enforce a judgment on
the merits are ongoing. It would thus improve the prospects of successfully
recovering cross-border debt.

Next steps: After its
publication in the Official Journal – the EU's Statute book ­, expected in June
2014, the Regulation will be directly applicable in the Member States (except
in the UK and Denmark).

Background

The new European Account Preservation Order will allow creditors to
preserve funds in bank accounts under the same conditions in all Member States
of the EU (except the UK and Denmark where the new EU rules will not apply).
Importantly, there will be no change to the national systems for preserving
funds. The creditors will be able to choose this European procedure to recover
claims abroad in other EU countries. The new procedure is an interim protection
procedure. To actually get hold of the money, the creditor will always have to
obtain a final judgment on the case in accordance with national law or by using
one of the simplified European procedures, such as the European Small Claims
Procedure.

The European
Account Preservation Order will be available to the creditor as an alternative
to procedures existing under national law. It will be of a protective nature,
meaning it will only block the debtor's account but not allow money to be paid
out to the creditor. The procedure will only apply to cross-border cases. It
provides common rules relating to jurisdiction, conditions and procedure for
issuing an order; a disclosure order relating to bank accounts; how it should
be enforced by national courts and authorities; and remedies for the debtor and
other elements of defendant protection.

The European
Parliament's Legal Affairs Committee (JURI) voted to back the Commission's
proposal (MEMO/13/481) in May 2013. Ministers discussed the proposal at the Justice Council
meeting on 6 June 2013 and reached a general approach on 6 December 2013 (SPEECH/13/1029). The European Parliament issued its support for the proposal in a
plenary vote in April 2014 (see MEMO/14/308).

A Campaign
organised by the European Agency for Safety and Health at Work (EU-OSHA) What is Stress and how can it affect the Workplace? Stress
cannot be ignored. It is the second most frequently reported work-related health
problem in Europe and is believed to be the cause of more than half of all lost
working days.

Even
though in some instances stress is caused by something outside the working
environment there are various causes that contribute to work related stress. It
could be the result of bad work practices, competition from other businesses,
restructuring, tough targets or client expectations. Stress can leave a
negative impact on everyone meaning both individually as a person and also for
the business performance itself. Stress generally results when the demands of
the job exceed a worker's capacity to fulfil the task at hand.

How does it affect the employees?

Workers
that are affected by stress find it very difficult to concentrate and make
decisions. Stress is the main factor of many of the mistakes that happen and
occur at the workplace due to anxiousness. Stress is also a major contributor
to absences from work. Prolonged stress might also lead to health problems in
the future In some cases, workers may be unwell but still coming to work – this
is known as presenteeism. It occurs when workers come to work but function
below their full capacity.

Facts:

Statistics:

Work-related
stress is the second most frequently reported work-related health problem in
Europe – after musculoskeletal disorders. Around half of workers consider it to
be common in their workplace. 50-60% of all lost working days can be attributed
to work-related stress. In a recent European poll conducted by EU-OSHA the most
common causes of work-related stress cited were job reorganisation or job
insecurity (72% of respondents), working long hours or excessive workload (66%)
and being bullied or harassed at work (59%). The same poll showed that around 4
in 10 workers think that stress is not handled well in their workplace.
Typically, stress-related absences tend to be longer than those arising from
other causes.

According to
EUROSTAT data, over a period of nine years, 28% of European workers reported
exposure to psychosocial risks that affected their mental well-being. The good
news is that psychosocial risks can be prevented and managed regardless of
business size or type.

What's in it for the employer?

Although the
employer has a legal obligation to manage such risks at work the argument goes
beyond mere compliance and abiding by the law. It is in the best interest of
the business to manage stress effectively. It is proven that managing stress
and psychosocial risks contribute greatly to effective improvements of key
business performance such as work quality, goal setting and attainment. It will
also affect the operations of the business when it comes to lowering costs and
reducing staff turnover.

If the
organisations is factoring in stress related drawbacks, workers can operate at
full capacity. Proper and effective management in relation to psychosocial
risks and stress will reap great benefits in the long run. Businesses will find
that recruiting staff is generally easier, as job seekers come to value the
positive environment and culture in such companies. The investment in time and
resources in managing stress will pay for itself in the form of a healthier
workforce and workplace environment and in the long- term sustainability and
improved social responsibility of the business.

What should we do?

The campaign
initiated by the EU OHSA emphasises that psychosocial risks can be assessed and
managed in the same systematic way as other occupational safety and health
risks. The standard risk assessment model and a participative approach are the
ideal way of identifying the risks and tackling the issue. First, identify the
hazards and those potentially at risk. Managers and workers need to be aware of
psychosocial risks and the early warning signs of work-related stress. Second,
evaluate and prioritise the risks. Decide which risks are of highest concern
and focus on working on these first. Third, plan preventive action. A plan
needs to be put in place to prevent psychosocial risks from occurring. If risks
are not avoidable, think about how they can be minimised. Fourth, implement the
plan. You should specify the measures to be taken, the resources required, the
people involved and the time frame. Finally, monitor and review on an ongoing
basis. You should be prepared to amend the plan in response to the results of
monitoring. Remember that people can react differently to the same set of
circumstances. Your psychosocial risk assessment should take account of workers'
abilities and needs (e.g. those related to gender, age or experience).

Article by Gayle Lynn Callus who is currently
reading a Bachelors Degree in European Studies.

New Opportunities for
Maltese Businesses – The US Embassy
in Malta, in collaboration with the American Chamber of Commerce in Malta
(AmCham Malta),  will be organising a
seminar on  22nd May at Malta Enterprise
in G'Mangia, entitled "Transatlantic Trade and Investment Partnership – New
Opportunities for Maltese Businesses".

The
Seminar will be discussing the potential opportunities that the planned TTIP
initiative between the US and the EU will offer Maltese businesses from a
variety of expert perspectives. 

You are
cordially invited to attend.  Mr Peter
Chase Vice-President Europe of the American Chamber of Commerce (aka US Chamber
of Commerce) will be addressing the Seminar.

Further
information and confirmations are available on tel: 2561 4120 or

On Friday 23^rd May 2014, Xarabank will be holding a fundraiser
in aid of poor people around the world, including children dying of starvation
and sickness.

Therefore your organization is invited to help these people
by either donating 500 euro to sponsor a
community well. This well will provide clean drinking water and water to
irrigate agriculture.

Or/and

Donate a "bike" designed for people, whom lost their limbs due to illnesses.
These bikes cost 200 euro, they make people mobile again and give them a chance
to be more independent and productive.

You are invited to present your donation on Xarabank
either by coming live during the program or by sending the donation to:

Mission Fund, Eureka Court,Block A, Flat 6, Mosta MST 1018

and upon receipt, your
organization will be mentioned and your logo will be shown (to be supplied)
during the program.

A receipt will be given for all donations.

The program will be held on the 23^rd May 2014, Live on Television Malta (TVM) at 20:45pm. Kindly let us
know as soon as possible if you are interested in participating.

Should you need any further information kindly contact
Russell Sammut on 21249200 /

GRTU President
Paul Abela has this week expressed GRTU's wishes to see Business First operate
renewed energy to help SMEs and also expressed GRTU's support and guaranteed
involvement to see it function to our satisfaction.

Mr Abela also ensured that
GRTU and Business First will be collaborating closely to reach out within the
available schemes to members and hold regular information sessions on this
regard. Business First is offering a number of new services aimed at helping
businesses and boosting their potential to succeed. In keeping with the
commitment to deliver a large number of services  for businesses under one roof, the
one-stop-shop facility is being strengthened with the presence of officers from
the Inland Revenue Department at Business First.

Through
their expertise, the officers will better equip Business First – which also
hosts a MEPA officer on a weekly basis – and will ensure that an improved
service is provided to clients. The re-evaluation of the services at Business
First has also led to the setting up of an outreach programme comprising a
number of initiatives.

The
approach in this case is twofold, namely the organisation of information
sessions for enterprises in collaboration with various stakeholders, as well as
the scheduling of company visits to bring the services offered at Business
First and Malta Enterprise closer to businesses. Currently, plans are being
concluded on a structured programme of company visits. 

The
Minister for the Economy, Investment and Small Business, Dr. Chris Cardona said
that this initiative will further widen and strengthen the range of services
that Business First offers, which will continue to enhance its reputation as a
one-stop-shop for start-ups and businesses. Minister Cardona said that Business
First will continue working with constituted bodies and other entities so that
further cooperation is established. "This will lead to more services being
offered by Business First, to the benefit of their clients," said Minister
Cardona.

In
addition to the new services at Business First, Malta Enterprise has also
developed revised versions of the Micro Guarantee and Micro Invest schemes to
assist micro and small enterprises. 

The
Micro Guarantee scheme aims to accelerate business growth by facilitating
access to finance for smaller undertakings, which often have limited availability
of funds and consequently may find it difficult to carry out new investments
and take up business opportunities. 

Through
the Micro Guarantee scheme, eligible undertakings will be given a guarantee of
up to 65% or 80% depending on the activity.  The Guarantee can cover loans
between €2,500 and €100,000 obtained from commercial banks.  The Guarantee
which may be used to finance projects leading to business enhancement, growth
and development.

The
Micro Invest scheme will continue to encourage undertakings to invest in their
business, to innovate, expand, and to develop their operations. Undertakings,
which may include self-employed persons, will be supported through a tax credit
representing a percentage of the eligible expenditure and wages of newly
recruited employees.

Malta Enterprise may approve a tax credit on an annual basis equivalent
to 45% of eligible expenditure, which includes costs incurred between January
1, 2014 and December 31, 2020.  An additional bonus of 20% applies to
undertakings operating from Gozo, which may thus benefit from a tax credit of
65%.