Author: SME Chamber

The commerce sector welcomes the
commitments offered by Visa Europe on its interchange fees and associated
rules. The card scheme has offered to cut its interchange fees on credit cards
to 0.3%. It will also remove restrictions on cross-border acquiring.

"We welcome this news as
a further step in the right direction: it shows that the wind is finally
changing on interchange fees. But, we need even stronger measures in the
upcoming regulation," said Christian Verschueren, Director-General of
EuroCommerce. "More remains to be done: we need the Commission to go further
and to tackle all excessive fees on national payment card transactions."

If these commitments are
accepted, both Visa and MasterCard's cross-border interchange fees will stand
at 0.2% for debit and 0.3% for credit. The Visa commitments would also apply to
domestic fees in 10 Member States. This is an improvement, but it is only a
start. Interchange fee rates, in general, remain disproportionately high in
many Member States and this is where the real economic damage is being done. A
similar case is on-going in France with preliminary commitments from both Visa
and MasterCard to reduce their fees. However, these proposals do not go far
enough. The commerce sector looks to the Commission's forthcoming regulation on
interchange fees to take an even stronger line to fully resolve the issues at
domestic level in all Member States.

On cross-border
acquiring, Mr Verschueren commented, "We very much welcome this long-awaited
reform. We have long argued that the card schemes' rules on cross-border
acquiring were wholly contrary to single market principles. Merchants should be
able to fully benefit from centralising their acquiring in one place, which
will bring economies of scale to the European economy as a whole. We look
forward to similar rule changes from MasterCard."

The commerce sector calls
on the Commission to come up with even more robust rules in the payments
legislation expected before the summer. EuroCommerce will continue to campaign
for a regulation which removes excessive interchange fees, not only
cross-border but also on all domestic markets. It is also crucial that the
revision of the Payment Service Directive is robust in allowing new payment
providers and innovative business models to enter the market.

Anti-Dumping duties on enforced permanently – As importers certainly recall GRTU
had warned of such a possibility and held consultation meetings in this regard.
GRTU has this week received information that the duties have now indeed been
confirmed for 5 years, starting 16^th May 2013.

The products concerned excluding
ceramic knives, ceramic condiment or spice mills and their ceramic grinding
parts, ceramic peelers, ceramic knife sharpeners and cordierite ceramic
pizza-stones of a kind used for baking pizza or bread, currently falling within
CN codes ex 6911 10 00, ex 6912 00 10, ex 6912 00 30, ex 6912 00 50 and ex 6912
00 90 (TARIC codes 6911 10 00 90, 6912 00 10 11, 6912 00 10 91, 6912 00 30 10,
6912 00 50 10 and 6912 00 90 10) and originating in the PRC.

The
rate of the definitive anti-dumping duty applicable to the net,
free-at-Union-frontier price, before duty, of the product described above and
produced by the companies listed below, shall be as per this table:

The
full details and more importantly Annex A (with the list of companies on page
28) can be found on:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:131:0001:0045:EN:PDF

Changes in Taxation of Farmers

GRTU has written to Mr Roderick Galdes, Parliamentary Secretary  for Agriculture, Fisheries and Animal Rights:

Unfair loss of
revenue, related to taxation due from individuals who are full time farmers but
also support their earnings through other economic activities.

Pitkalija
reform: Unfortunately the previous Special Committee on the Reform of the
Pitkalija has been left in abeyance. The whole reform has remained a mystery to
buyers and no forums exist for us to present recommendations for reform.

Recommendations
for the reform and re-foundation on an new commercial structure of the area in
Ta' Qali in use by buyers from the Ta' Qali Pitkalija.

Enforcement
of Illicit Trading

GRTU has expressed its concern
to Prof. Edward Scicluna, Minister of Finance, arguing that the loss of trade
and negative impact on private trading profits of legitimate traders as well as
the effective drain of public revenue from customs tariffs, VAT, ECO Tax and
Income Tax necessitates strong effective action.

GRTU recommended the
immediate establishment of an ad-hoc Commission with the participation of all
stake-holders including GRTU to investigate, assess data and make
recommendations for action without further delay.

ECO
Contribution

Writing
to Permanent Secretary Alfred Camilleri calling an urgent meeting to come
forward with a plan of action to resolve matters on Eco Contribution.

The
situation as it is now is no longer tenable and definitely not acceptable to
GRTU. Too many products that end up on the waste stream continue to remain Eco
Tax free while many polluters remain outside the legal registration regime. The
whole Eco Tax structures was established with little experience and with very
narrow aims and, in spite of the change brought forward through consultations,
the whole Eco Tax regime remains deficient. The end result is that too few
entrepreneurs are carrying the major burden. Government had become resistant to
change while the national targets remain unfulfilled. We now feel the time is
ripe for a thorough change.

Reduction
of Port dues

GRTU has written to Hon Dr Chris
Cardona on the excessive port charges imposed by the Terminal Operators and by
Malta Transport.

In spite of the previous
planned action to resolve this matter nothing effective was materialized. The
privatization of both the Valletta and the Marsaxlokk harbours brought
additional costs rather than the reductions that were promised. Furthermore
compared to other harbours, charges are simply not competitive.

GRTU has expressed the
importance to establish a new participative stake-holders' commission to
address this issue to investigate, assess and recommend is more logical
solution to bring in affective reforms.

Crafts
Village Ta` Qali

GRTU
has written to CEO Sue Vella saying that our impression is that this issue has
gone on the back burner.  The last stage
as approved by Malta Enterprise Board was the signing of the Memorandum of
Understanding on 6th of June 2012 that should have led the way for the fulfillment
of the agreed Plan of Action.

GRTU
requested an update of the state of play as GRTU is eager for a solution. GRTU
will continue to strive for a definite conclusion that satisfies the majority
of operators and leads the way for new craft ventures.

GRTU
requested for our specific committee to be briefed, updated and kept in
consultation. GRTU is looking forward to an early meeting in this regard.

Reduction
in Payment Card costs

GRTU has
written to Hon Christopher Cardona, Minister for Economy, Investment an Small
Business on the whole argument GRTU has concerning the Multilateral Interchange
fees (MIFs). These are charged at the banking level and passed on to merchants
and consumers, but it is invisible to consumers, who cannot avoid it. Banks argue
that in return they offer several benefits, many of which are not requested by
card holders, but are accepted because they are considered ‘free' – even if
many of them are rarely used.

This is
particularly bad for SMEs, which have no negotiating muscle, although many such
small businesses must now accept cards to retain their customers. The net
result is that every consumer pays, even those who pay by cash because this
‘transaction tax' ends up as part of the final price.

Following
complaints made the unfair situation created was recognised by European Courts
and important changes had to be made by both Master Card and Visa.

Across
European countries, the level of interchange fees varies significantly.
Competition authorities, central banks and other authorities around the world
have been investigating and expressing concerns about the operation of card
payment systems for many years. Reform has taken place in a number of
jurisdictions. In many countries, interchange fees have been decreasing over
time.

GRTU
emphasised that in Malta the issue needs to be taken seriously as it was taken
in many other Member States. Government should ensure that local banks are
implementing the decisions of the European Courts in a timely manner and where
discrepancies are found push for adherence. The office of Competition should
also legally investigate the anti-transparency and anti-competitive behaviour
of banks by imposing hidden and artificially high prices. MIFs should be
brought down the real cost of the service utilized.

Fees
for credit applications should be cost-based, unbundled from all other services
(e.g. interest free period and rewards) and paid for by the beneficiary of the
service. Any reintroduction of such fees by any other mechanism should be
banned.

The fee
that meets the test is set at such a level that the merchant would be at least
indifferent as to whether his customer pays by card or in cash.

GRTU's
impression is that the Public regulators in Malta have not given this matter
the due consideration in spite of the highly negative impact MIF charges have.
The GRTU requested determining action and a clear public position by Public
Regulators.

Rent
Conditions on Gov Owned Shop Premises in Valletta

GRTU wrote to Dr Michael
Farrugia, Parliamentary Secretary for Planning and Simplification of
Administrative Processes. Following a worrying statement made in Parliament by
Dr Farrugia GRTU felt the need to highlight that the current rent policy as
obtained after years of negotiations with Government on behalf of retailers in
government owned premises is very important for many of our members, as indeed
is the whole reformed Rent Laws for which GRTU has strong and published
reservations.

Rent conditions are
important and the liabilities resulting from the incorporated conditions have
great impact on the viability of all enterprises. An enterprise does not merely
impact economically on its owner but also on other dependents of the enterprise
including employees and their families, creditors, etc. The survival of an
enterprise is a main issue for GRTU and that is an important reason why we
strive for security of tenure on rent matters and why we object to rent clauses
that jeopardize the long term survival of the enterprise if subjected to
generic renting conditions.

GRTU requested to be
consulted prior to any changes on the matter.

Burdnara
issues

Writing to Mr James Piscopo,
Chairman at Transport Malta, GRTU expressed that because of our members it is
extremely important for GRTU that a constant fruitful relationship and a
structured consultation process is maintained.

GRTU mentioned that
currently, Burdnara (Licensed Customs Clearance Agents and Cargo Haulers) have
unresolved issues related to operations at Valletta Gate Terminal, Laboratory
Wharf, Freeport, Hal Far Groupage Depot and Airport.

GRTU asked for an
opportunity to brief the Chairman on pending issues.

Authorised Waste Packaging Compliance Scheme Green MT meets its 2012
targets – Green MT, the National Waste Packaging
Compliance Scheme, has been provided with a permit to continue operations for
2013 and 2014. In the year 2012, the Scheme producer members placed 19,331 tons
of packaging waste on the market, and recovered a total of 12,942 tons in the
same calendar year.

– Self Compliant' Producers evade costs or payment of €1.5M in 2010 alone

– MEPA enforcement in the sector inexistent

– An unfair level playing field for schemes

– Approving Body (Eco Contribution) not as yet appointed

Green MT caters for 6 Local Councils in the Southern
Harbour Area, 8 in the Northern Harbour Area, 2 in the South Eastern Area, 5 in
the Western Area, 6 in the Northern Area and 10 in Gozo.

Recoveries from Local councils amounted to 7230 tons
mainly from Grey Bag and also Bring in Sites. This results into approximately
31.70 kg per capita across the board. The Scheme's market placement (Packaging
Waste placed on the market) for 2012 was generated as follows:

12951
tons from Scheme members who have Eco Contribution exemption 

6380
tons resulting from other members

Thus our total recoveries had to reach a recovery of
12894tons .  

The fugures are proof that our legal obligations for
Compliance for both Eco Exempt members and Non Exempt Members were reached.

‘Self Compliant'
Producers evade costs or payment of €1.5M in 2010 alone

We once again point out that within this market
sector, the operation of Authorised Packaging Waste Compliance Schemes is not
transparent and a fair playing field does not exist. It is a pity that a number
of questions remain unanswered both by the Malta Environment and Planning
Authority (MEPA), the regulator of LN 277 of 2006 and also by others in the
sector who should know better.

In 2010 alone over 766 producers declared themselves
self compliant. Together they placed over 15,733 tons of packaging waste in the
market and recovered only 566 tons from a legal obligation of 8810 tons. So
over 8244 tons of packaging waste was never recovered by these producers. They
did not do anything to effect self compliance, just filled in an application
and paid Euro 35 to MEPA.  So whilst Green MT and Green pak members paid
their respective Scheme hundreds and thousands of Euros, others paid nothing at
all.

MEPA were duty bound to issue penalties to each
producer who did not comply and further request those who did not comply to
join Schemes. They did neither!

To add insult to injury, Green MT and Green Pak
collect consumer packaging of these so declared self compliant and free riders
for free. This is not only not acceptable but utterly disgusting. Schemes are
forking out hundreds and thousands of Euros to recover the grey and green bag,
empty and maintain and upkeep bring in sites within Local Councils. Why should
we do this any longer? The past administration did not hear our voice for one
reason…they were not paying for such services. We now urge this
administration to hear our voice, cause if it does not, it will be shortly
taking on an expense of at least €6M to cover these services.

An unfair
level playing field for schemes

Schemes are not operating on a fair and level playing
field. Green MT in 2010 and 2011 used Wasteserv services only. Green pak used
five different waste managment facilities in 2011 and nine different facilities in
2012. Certificates issued by some of these facilities leave much to be desired.
They carry no audit trail at all, or if they do the audit trail is a false one
completely. It is easy for an individual to copy a few numbers of authorised
waste carriers found in the MEPA website and outline that they delivered
material to the facility whilst the material in different volumes would have
come from unauthorised vehicles, vans, trucks, etc, whose only interest is to
take plastic and carton from anywhere, mostly from free riders to the facility
and receive a payment. Our competing Scheme then bought the volume from these
waste management facilities.  Some of these waste management facilities
did not even have a weighing facility. How were receipts issued and on what
basis?

So we have free riders going to facilities in
unauthorised vehicles and getting paid some funds for doing so, and eventually
the facility sells the volume for certification and also exports the material
abroad against payment. We have a ripe black market economy, which the previous
administration was aware about but did not tackle in the last two years,
because they thought they would loose votes. The environment is neither blue,
red or black. It is green and I do honestly hope we keep it that way.

Government
needs to act now

Amendments to the current waste packaging regulations
were drafted late last year so that any company who placed consumer packaging
on the market would be obliged to be part of an existing authorised Scheme.
These amendments are still there, despite their urgent need to have them issued
as legal notice. These changes would help Schemes a bit further to meet their
financial expectations.

GRTU Malta Chamber of Small and Medium Enterprises way
back in 2006 set on path to make sure that the business community committed
itself to complying to environmental legislation. This in itself wasn't easy.
Now over 3000 producers are registered with MEPA, and out of these 2500 are
members of Schemes.

A lot of good work has been done to make sure that
many producers come on board but without continued support from MEPA's
Enforcement Directorate, this will surely fail as it has done to date. It has
failed both in 2011 and in 2012.

GRTU and Green MT will support any initiative by the
present administration to make sure that producers are all on a fair and level
playing field. We consider ourselves as leaders in this sector. We have
presented a Dossier to Minister Brincat on the problems currently in place
together with solutions. We have a lot of faith in Minister Brincat.

At present the
Approving Body (Eco Contribution) has not yet been appointed.

We cannot wait any longer. It is time for action. It
is time to decide and get things done. No more studies. The past administration
was so fond of studies that so many were left on the shelf and never came to
good use, after so many thousands of Euros were paid to so many consultants. We
are not in favour of more studies. We are in favour of decisions and actions.
Government needs to get its road map going in this sector, today before
tomorrow.  We are sure that together we can reach our goals, both locally
and on a European Level. We need to take strong decisions, we need to take decisions
that bite. But this we must do in the name of a better environment. Government
has our full support to reach its goals in this waste management sector.

Eco
Save Ltd – BT
Commercial Malta – Bajada
New Energy – Solar
Solutions Ltd – CD
Power Solutions Co Ltd – International
Sales Direct – Alberta
Fire & Security Solar Division – Solar
Engineering Ltd – Wurth
Ltd – Renergy
Ltd – Panta
Marketing & Services Ltd – Di
Natura – Frank
Borda Ltd – Prime
Solar (Malta) Ltd

GRTU has written to Professor
Joe V. Bannister the chairman of MFSA regarding the numerous complaints by its
members that HSBC has decided to start imposing yet another charge on
businesses. This latest increase concerns the charge on internet banking which
all businesses having HSBC accounts have to succumb to.

This of high concern for
GRTU's members as internet banking is today not a luxury but a necessity in the
daily running of an enterprise, so introducing a fee on a daily necessity will
inevitably put up business running costs which many businesses are finding it
increasingly difficult to cope with already in such delicate times and when
everyone else is doing his utmost to improve our employment levels. It is not
acceptable that such a charge is introduced without prior consultation and an
analysis of what the impact will be.

This is exactly in line
with our argument against the excessive and even hidden charges made by banks
on enterprises and consumers as HSBC is once again hiding a charge behind
increased services, services that are once again not optional and most of them
not requested. HSBC by all means can and should increase its services but
enterprises that are happy with the current necessary basic service and do not
want to add any additional unnecessary costs should be allowed to have a
choice. HSBC has already reduced the number of branches drastically to
encourage clients to utilize internet banking so now the possibilities to go
back to using the branches has been reduced.

The bank enjoys a
dominant position and such initiatives should be regulated. GRTU has asked that
MFSA takes the issue seriously and that GRTU is given an early opportunity to
discuss the matter as our members merit a reply for the concerns expressed.

Eco Save – BT Commercial Malta – Bajada New Energy – Solar Solutions Ltd – CD Power Solutions Co Ltd – International Sales Direct – Alberta Fire & Security Solar Division

The EU acts in
a wide range of policy areas where its action is beneficial to the Member
States. The Union funds these policies through an annual budget which enables
it to complement and add value to action taken by national Governments.

The European Union's activities impact on the day-to-day life of
its citizens by addressing the real challenges facing society:

Innovation Policies

1.   Environment and sustainable developments:

      In terms of environment and
sustainable development, the EU aims to help prevent climate change by
seriously reducing its greenhouse gas emission. The EU has a target to cut
emissions by 20% compared to 1990 levels, raise energy share of the market to
20% and cut energy consumption by 20%. The EU also managed to convince other major
super powers to work in the same direction.

      The EU is also tackling a wide
range of other environmental issues including noise, waste, exhaust gases,
chemicals, industrial accidents and the cleanliness of bathing water.

2.   Technological Innovation

      The EU rightly saw that Europe's
future prosperity would depend on its ability to remain a world leader in
technology. The EU's goal is to spend 3% of its GDP on research, mostly spent
in areas like health, food and agriculture, ICT, energy, environment, transport,
security, etc.

Solidarity polices

The EU's solidarity polices are designed to help underdeveloped
regions and troubled sectors of the economy, to mitigate market imbalances.
European Union funds are used to boost development in regions lagging behind,
to rejuvenate industrial areas in decline and to help young people to find
work. The funds are known as "Structural Funds", which top up or stimulate
investments by the private sector and by national and regional governments.

Common Agricultural and Fisheries
Policies

From 2013 onwards the European Commission wants the CAP to give
priority to making European agriculture sustainable, giving farmers sufficient
protection from volatile markets, preserving biodiversity and protecting local
and regional speciality products.

The EU has also begun reforming its fisheries policy. The main
aim here is to preserve stocks of fish (such as the endangered blufin tuna) and
to reduce the overcapacity of fishing fleets while providing financial
assistance for people who leave the fishing industry.

The social dimension

The aim of the EU'social policy is to correct the most glaring
inequalities in European society. The European Social Fund (ESF) was
established in 1961 to promote job creation and help workers move from one type
of work andor one geographical area to another.

This goes hand in hand with legislation that guarantees a solid
set of minimum rights. Some of these rights are enshrined in the Treaties, eg
the rights of women and men to equal pay and equal work. Others in directives
concerning the protection of workers and essential safety standards. The
Charter of Basic Social Rights sets out the rights that all workers in the EU
should enjoy: free movement; fair pay; improved working conditions, social
protection, protection for children etc.

Who does what?

There are some areas which are of the sole competence of the EU
such as a customs union and the monetary policy for countries using the euro,
other areas of sole competence of the Member States such as tourism, civil
protection and education, and others areas where the competences are shared,
these include: the single market, social policy, environment, consumer
protection and energy amongst others.

      21 228 843

GRTU, Exchange Building,
Republic Street, Valletta

More than 1600
exchanges have so far been organised under the Erasmus for Young entrepreneurs
programme and some 3200 businesses have been created or expanded (including
numerous joint ventures and new cross border relations, see MEMO/13/412). Since
2009, funded by the European Commission, Erasmus for Young Entrepreneurs
enables new entrepreneurs –