Author: SME Chamber

The European
Commission (EC) will not impose preliminary anti-subsidy duties on China-made
solar products but will continue its investigation for another four months.

The European
Union (EU) launched its anti-subsidy investigation on solar equipment coming
from China in November 2012, responding to a industry complaints, and had nine
months to decide whether to impose any tariffs. According to its new decision,
it has given itself a deadline until December 5 to assess both the anti-dumping
and anti-subsidy cases and consider any definitive duties.

The news
follows an agreement from the end of July to settle the solar dispute between
China and the EU with a price undertaking deal, under which China-made solar
equipment will be sold in the EU above fixed floor prices. The companies that
accept such minimum prices will not be subject to any anti-dumping levies.
Chinese solar exporters that do not participate in the price undertaking will
face preliminary punitive tariffs of between 37.2% and 67.9%, as announced in
June.

The EC said it
is ready to include the anti-subsidy investigation into the undertaking at the
definitive stage, "should such action be warranted".

Meanwhile, the
European Comission (EC) is conducting an independent anti-dumping and
anti-subsidy probe into Chinese solar glass, used for the production of solar
panels.

Commissioner
for Children Helen d'Amato's proposal to raise the drinking age from 17 to 18
has been met with a mixed reaction by owners of bars and places of
entertainment, according to GRTU vice-president Philip Fenech.

Ms
D'Amato's proposal was one of several proposed amendments to laws concerning
issues falling under her remit in a memorandum sent to the Justice Reform
Commission.

National
anti-dependency agency Sedqa similarly believes that the minimum drinking age
should be raised by one year. But representatives of the leisure industry are
divided, according to Mr Fenech, who heads the GRTU's hospitality and leisure
division.

"Personally,
I believe that it should go up to 18, as this will end the disparity between
Malta and other countries within the EU, where the drinking age is mainly 18,"
Mr Fenech told The Malta Independent.

"I also
believe that this will raise standards in the industry," he said, later adding
that one had to be mature to drink alcohol.

But he
emphasises that this is his personal opinion, and not that of the GRTU, where
reactions to the proposal vary, mainly according to the establishments'
clientele.

The
owners of establishments that catered for a younger generation, Mr Fenech said,
argued that raising the minimum drinking age would see them lose a big chunk of
their business – so much so, that even their sustainability would be
threatened.

On the
other hand, those whose establishments attracted an older crowd believed that
the measure would improve their business, pointing out that the presence of
younger people deterred older people from certain areas.

Others
still, whose establishments attracted a mix of younger and older people,
expressed similar concerns to those whose venues were geared towards younger
crowds.

The GRTU,
Mr Fenech said, is discussing the proposal, but given the divergent views, it
was too early for it to come up with a common stance.

GRTU strongly
object to the new imposition on public procurement as evidence in all public
tenders issued by the Contract Committee over the last several weeks, director
general Vince Farrugia said.

GRTU's
objections are based on two issues. Public procurement of goods and services
should aim at the procurement of most optimal quality of goods and services at
the best available, competitive prices. "This is the role of the National
Public Procurement Agency (the Contracts Committee). It is not the role of the
Public Procurement to be Czar for social justice enforcement, whether this
refers to employment conditions, environmental issues, health and safety and
any other enforcement whatsoever."                                         

There are other appropriately established public institutions directly
responsible for the enforcement of laws enforcing labour, health, safety,
environment, standard, and any other condition. The National Public Procurement
Agency should not be subjected to the inspectorate of other public sector
institution because of any clauses imposed on Public Procurement documents.

"The
Director of Employment Relations, for example, has enough legislation and
resources to ensure that all employers, and not just government contractors,
abide by Malta's high quality labour protection laws. There is nothing that
precludes the Director for Labour to act against any employer who has been
found to be in abuse of labour laws. But the Director for Labour should not
expect the National Public Procurement Agency to do his work for him. The
director for labour and his labour inspectorate should never be given power
over the execution of contracts worth millions if not tens or hundreds of
millions euros. When the National Public Procurement Agency "subcontracts" its
own enforcement powers to other institutions it allows public procurement to
become wide open for abuse, corruption and incompetence," Mr Farrugia said.

"Public
Procurement should be accessible to all who can compete. This is how the
private sector procurement is done and Public Procurement should follow the
efficiency of the Private Sector. There are firms who are competent
administratively and financially to bid for public contracts. These are
specialist contractors who are not necessarily big. There are other firms,
however, who prefer to specialize in supply of services and to operate as
sub-contractors to the former. It is fallacious for anyone to state that
contractors are more efficient and that they can provide a more cost effective
higher quality service if all specialists and workers are directly employed by
the Tendering Contractors. On the contrary there is ample evidence to prove
that most suppliers of specialize services, most times offer higher quality at
lesser cost and that they can attract and incentivize better quality specialist
and service providers than contractors with directly employed individual. It is
inconceivable that a national public procurement agency is denied the services
of miscellaneous specialists who prefer to work as sub-contractors."

"Malta
cannot and should not have Public Procurement that denies sub-contractors. It
is bad for public procurement. It is inefficient and opens wide the opportunity
for abuse. It loads the National Public Procurement Agency with unnecessary
bureaucracy. But most of all it is bad for small businesses. It represents the
greatest blow suffered by small business ever."

Following a commission communication published earlier this
year on the setting up of a European Retail Action Plan, GRTU has submitted a
detailed position paper on the subject to the Ministry for the Economy,
Investment and Small Businesses.

The Commission communication is a result of intensive
work at Brussels level which GRTU was also involved in especially as member of
EuroCommerce and the EESC.

It is a very important communication and a
significant step for retail to be given the importance it deserves. As Europe's biggest private sector employer, retail
has the potential to continue creating new jobs and wealth. The Commission's
Retail Market Monitoring Report (July 2010) recognised the positive role that
retail plays in Europe's economy and identified a number of issues that need to
be addressed in order to allow the sector to realise its full potential thus
contributing to further economic growth and job creation. The European
Parliament's own initiative report, "A more efficient and fairer retail market"
recognised the significance of the sector for jobs and growth and urged the
Commission and the sector to work together to develop an Action Plan to address
outstanding issues. More widely, the Monti report of May 2010 urged the Commission
to tackle remaining obstacles to the creation of a European digital market, to
accelerate infringement procedures, and to adopt better conformity checks.

Retail thrives in Europe, employing around 18 million
people across the EU and accounting for 4.2% of GDP. 20% of Europe's SMEs are
retailers. Retail efficiency keeps prices down for consumers and ensures
choice. However, although the sector is strong and competitive, it could grow
even further, employ more people and provide even better value for consumers if
certain issues were addressed.

GRTU mentioned areas which required improvement as
they still pose a significant obstacle to the expansion of retail. These
included:

–     The full
implementation of the Services Directive

–     Retailers
still do not enjoy full freedom to establish operations in other Member States

–     Europe lags
behind others in creating an efficient digital retail market

–    Retailers
are subject to ever increasing levels of regulation that increase their costs
and extend their liability

A summary of GRTU's reaction to the Communication can
be found below:

1.  Achieving a
single market in the distributive trades: GRTU welcomed the proposal to set up
a permanent Group on Retail Competitiveness (involving Member States,
stakeholders and SMEs) to bring the problems besetting the sector to the fore
in European political debate, identify avenues for development, monitor
progress and prepare recommendations.

2.  Consumer
empowerment: An increase in available information does not equate to an increase
in knowledge, and in fact the opposite is often true. The Commission should
issue guidelines on how best to provide consumers with accessible information
on the features of their products, services and prices in a concise and easily
understandable form.

3.  Better access
to more sustainable and competitive retail services: Competition has forced
retail businesses to deliver better service and become more efficient. It is
imperative that the Commission distinguish between healthy competition between
similar businesses (which drives the pursuit of continual improvements in
quality and efficiency, in the interest of consumers) and other forms of
economic and commercial conflict between businesses.

4.  Developing a
more sustainable retail supply chain: GRTU supports the proposed action 6,
which is aimed at supporting retailers in implementing actions to reduce food
waste and welcomes the decision to adopt a communication on sustainable food in
2013. GRTU also supports action 7, which aims to "make supply chains more
environmentally-friendly and sustainable" by using every means possible to
cut back on energy use and the production of materials which are a source of
pollution.

5.  More
innovative solutions: Recovery in the real economy is partly dependent on innovation
in this sector (action 8) and it is crucial that SMEs have more and easier
access to bank loans so that they can begin innovative projects and activities.

6.  Better
working environment: Matching up skills is essential for improving the quality
of jobs in the sector, which often serves as the way into or back into the
labour market and is not generally seen as an attractive, interesting sector in
which to spend one's entire working life.

GRTU, Malta Chamber of SMEs, is
Malta's registered national employers' organisation with the largest number and
array of micro and small business employers of members. GRTU strongly objects
to the new imposition on Public Procurement as evidence in all public tenders
issued by the Contract Committee over the last several weeks.

GRTU's objections are based on
two cardinal issues:

1.    
Public Procurement of goods and services should
aim at the procurement of most optimal quality of goods and services at the
best available, competitive prices. This is the role of the National Public
Procurement Agency (The Contract Committee). It is not the role of the Public
Procurement to be Czar for Social Justice Enforcement, whether this refers to
employment conditions, environmental issues, health and safety and any other
enforcement whatsoever.

There
are other appropriately established public institutions directly responsible
for the enforcement of laws enforcing labour, health, safety, environment,
standard, and any other condition. The National Public Procurement Agency
should not be subjected to the inspectorate of other public sector institution
because of any clauses imposed on Public Procurement documents.

The
Director of Employment Relations, for example, has enough legislation and resources
to ensure that all employers, and not just government contractors, abide by
Malta's high quality labour protection laws. There is nothing that precludes
the Director for Labour to act against any employer who has been found to be in
abuse of labour laws. But the Director for Labour should not expect the
National Public Procurement Agency to do his work for him. The director for
labour and his labour inspectorate should never be given power over the
execution of contracts worth millions if not tens or hundreds of millions
euros. When the National Public Procurement Agency "subcontracts" its own enforcement
powers to other institutions it allows public procurement to become wide open
for abuse, corruption and incompetence.

2.    
Public Procurement should be accessible to all
who can compete. This is how the Private Sector Procurement is done and Public
Procurement should follow the efficiency of the Private Sector. There are firms
who are competent administratively and financially to bid for public contracts.
These are specialist contractors who are not necessarily big. There are other
firms, however, who prefer to specialize in supply of services and to operate
as sub-contractors to the former. It is fallacious for anyone to state that
contractors are more efficient and that they can provide a more cost effective
higher quality service if all specialists and workers are directly employed by
the Tendering Contractors. On the contrary there is ample evidence to prove
that most suppliers of specialize services, most times offer higher quality at
lesser cost and that they can attract and incentivize better quality specialist
and service providers than contractors with directly employed individual. It is
inconceivable that a national public procurement agency is denied the services
of miscellaneous specialists who prefer to work as sub-contractors.

Malta
cannot and should not have Public Procurement that denies sub-contractors. It
is bad for Public Procurement. It is inefficient and opens wide the opportunity
for abuse. It loads the National Public Procurement Agency with unnecessary bureaucracy.
But most of all it is bad for small businesses. It represents the greatest blow
suffered by small business ever.

The European Commission will not impose provisional measures
in the anti-subsidy proceeding concerning solar panels, cells and wafers
originating in the People's Republic of China. The anti-subsidy investigation
is running parallel to the EU's anti-dumping investigation on solar panels and
was initiated on 8 November 2012 upon a complaint by the Union industry.

The
European Commission can, within a period of 9 months, decide to impose
provisional anti-subsidy duties. However in this case, the investigation will
continue without provisional measures and the Commission will continue working
actively on the case in order to arrive to definitive findings that are due at
the end of this year.

As any injury to the Union industry has already been
removed, at the preliminary stage, by the provisional anti-dumping measures and
the price undertaking on the same products, this decision does not have an
impact on the protection of the Union industry against unfair trade practices.
The decision not to impose any provisional anti-subsidy measures does however
not, in any event, prejudice any subsequent decision which may be taken at the
definitive stage of this proceeding.

When the Commission finalises its analyses in both the
anti-dumping and anti-subsidy cases, the findings will be disclosed to all
interested parties for comments. When the comments submitted are fully analysed
and considered, the Commission will issue definitive findings in both
investigations. The deadline for the imposition of definitive duties in both
cases is 5 December 2013.

The Commission also currently conducts an anti-dumping
and anti-subsidy investigation concerning imports of solar glass from China,
one of the raw materials used in the production of solar panels. This case is
however independent and is not subject to findings in the solar panel cases.

Protection of consumer rights still varies greatly between EU
countries. Only 35% of Europeans are confident buying online from sellers in
other EU countries and seven out of ten consumers do not know what do to when
they receive products that they did not order.

These are among the results of the 2013 Consumer
Conditions Scoreboard published by the European Commission. The results show
that a fresh impetus is needed to ensure that consumers can buy with equal
confidence and ease across the EU, whether online or offline. One key finding
is the decrease in consumer trust matched by an increase in the use of redress.

The Maltese seen to engage a lot in cross-border
e-commerce but are not that happy with how their complaints are dealt with.

Neven Mimica, European Commissioner for Consumer
Policy welcomed the Scoreboard and said "There has been progress notably
in the spread of e-commerce but improvements are needed in other areas. The
Scoreboard shows us where we should focus our efforts. It is our window on the
market. Its outcome will be reflected in my future actions such as setting up
the online-dispute resolution platform or better enforcing rules against unfair
commercial practices."

The largest absolute increase in e-commerce between
2008 and 2012 (of more than 20 percentage points) has been noted in Belgium,
Slovakia, Malta and Sweden. In Luxembourg, Malta and Cyprus, more consumers
engage in online cross-border shopping than domestically (the respective
percentages are 60% vs. 22%, 38% vs. 7% and 19 % vs. 4%).

The proportion of online cross-border shoppers has
grown in all countries since 2008. The largest increases are observed in Malta
(21 percentage points), Luxembourg (17), Belgium (16) and Finland (15). The
highest proportions of businesses (over a tenth) that engage in cross-border
sales were found in smaller countries: 13 % in Malta and Ireland, 12% in
Belgium, Lithuania and Czech Republic, 11% in Luxembourg.

At country level, web sales to consumers represent
over half of the overall turnover from the web channel in Malta (81%),
Lithuania (77 %), Bulgaria (60%), Ireland (56 %), Portugal (54 %) and France
(53%).

The majority of consumers do not agree that retailers/providers
comply with consumer legislation in the following five Member States: Greece
(60 %), Czech Republic (58 %), Bulgaria (56 %), Cyprus (54 %) and Malta (51%).

The highest level of satisfaction is noted in Sweden
and in Finland (both 77 %), Germany and Slovenia (both 75 %) while, at the
other end of the scale, less than half of consumers are satisfied with how
their complaints are dealt with in Malta (36 %) and Spain (48 %).

The Commissioner for Children Helen D'Amato in collaboration
with MCCAA, on Thursday 8th August 2013, launched a  draft document with regulations for indoor
play facilities. 

The standards are
intended for child entertainment areas used by children under 14 years, who may
be accompanied by adults. These areas exclude playgrounds, swimming pools,
child care centres, schools or areas which have an educational scope.
Minister for Social Dialogue Helena Dalli described
the standards as a positive initiative as it is essential to have full safety
in play areas. Dr Dalli said that after the regulations are set, she will make
sure that they will be legally binding.

Mr Marcel Pizzuto, Chairman of MCCAA said that the
indoor play facility regulations follow 2010 Standards for Playing Fields which
resulted in a huge improvement and less incidents. This led the Children's
Commissioner to propose standards for indoor play areas which were drawn up by
the MCCAA.

The public consultation will take two months during
which stakeholders, especially parents, are encouraged to submit their views.
Following this, and once recommendations are considered, the government intends
to introduce these regulations in law.

Mrs D'Amato said works on such standards has been
ongoing for a year-and-a-half during which she, together with the MCCAA had
discussions with several entities including the Health Department, the
Occupational Health and Safety Authority, the Trade Department, the Social
Welfare Standards Department, the GRTU, the KNPD, the Chamber of Commerce,
Enterprise and industry, Mepa and the Building Regulations Office.

Mrs D'Amato emphasized that  the right for children to play is
fundamental. She highlighted the document focuses on safety and she too
believes the implementation arm should come next.

The document may be downloaded from the Malta
Competition and Consumer Affairs Authority website: http://mccaa.org.mt/ and feedback can be sent through the website or
on email:  .

The National
executive Council of GRTU are alarmed that Government has ignored the warnings
expressed by GRTU and has arbitrarily changed the rules of the games in Government
procurement. It has limited the participation of small enterprises and
consultancies with the introduction of a clause in the declaration companies
need to sign in order to apply for a Government tender that ‘no part of the
service to be provided under this contract shall be sub-contracted'.

The
absolute majority of small firms do not have the full capacity to implement
tenders. These however used to team up with other small firms or a
subcontractor and carry out the full requirements of the tender without abusing
of the system in any way and fully abiding with employment regulations. This is
the normal business practice internationally and this was the norm up to
recently. In the EU 420,000 small businesses apply sub-contract in public
tenders as is their right across member states and here the Maltese Government
is prohibiting sub contractors from working in their own country.                          

The new
rules have closed off the government procurement market for self-employed and
many small businesses, many of which depended on these tenders and will in time
have to shut down. This is a clause that has been imposed without having measured
the negative economic impact this will have on these businesses.

The
National Executive Council has discussed the issue directly with the Prime
Minister in last week's meeting and the Principal Permanent Secretary the week
before and we have been assured this was just a misunderstanding and
subcontracting is still allowed. The papers black on white say otherwise. This
is the most negative anti self-employed action on record. GRTU will take all
available legal methods in Malta and the EU to fight against this imposition.

GRTU
Malta Chamber of SMEs has also  always
stressed in all its presentations to Government, on behalf of small and micro
businesses, that the way forward on public contracts is quality standards and
approved skills. The problems with most public contracts are twofold: The
public sector pays very little on public contracts for cleaning, security,
health care, etc. The same goes for most construction projects. Government does
not insist on quality standards of services or where it does, it fails to
enforce.

Similarly,
skills standards are never ever enforced. The end result is that contractors do
their best to deliver a service within the bounds of the limited funds
available. The basic truth is that contracts that aim at high quality standards
of services through the engagements of approved standards and appropriately
skilled personnel are very expensive.

The
truth is that if Government wants to safeguard the community from abusive
standards, Government must be willing to pay more. The Government strategy to
cut out the self-employed and small businesses from all sub-contracting is in,
GRTU's view, completely wrong and an insult to qualified and hardworking
self-employed and small business providers.

This
strategy is particularly bad for Gozitan micro and small businesses whose main
participation in major Malta Government contracts is through sub-contracting.
Most Gozitan micro business owners do not even dream of becoming paid employees
of major Maltese contractors. It is even cruel for anyone to create a situation
where micro business owners are forced to become employees of other
contractors.

GRTU
urges Government to reverse this malicious strategy before it results in a
sharp increase in registered unemployment. The option Government is giving to
many self-employed depending on Government contracts is to close business and
register for work. A double punishment as it is in the nature of the
self-employed to be free and not to be forced to seek salaried employment. GRTU
still believes that reason ought to prevail and that Government will change
their dangerous strategy.