Author: SME Chamber

GRTU urges
Malta's anti-dumping committee representative to vote against the imposition of
anti-dumping duties – On 15 November 2012, the European Commission imposed – against the
recommendation of a majority of the EU's member states – provisional
anti-dumping duties of up to 58.8% on tableware and kitchenware originating in
the People's Republic of China.

In this context, GRTU has writtin officially to Government, calling on the Maltese
anti-dumping committee representative to vote against the imposition of
anti-dumping duties in the vote for definitive 5-year measures later this
spring.

GRTU
held a consultation meeting with its members importers of China originating
tableware and kitchenware in collaboration with the Economic Policy Division on
17^th October 2012. During the meeting direct feedback was given
and it was made clear that such an anti-dumping duty is not in the interest of
Maltese importers, retailers and consumers. GRTU had also made this its
position in writing and stated clearly that we oppose the imposition of such an
anti-dumping duty.

GRTU's
main objection to any antidumping duties was that they would impose unnecessary
extra costs upon consumers and that these would outweigh any benefits to
European producers. Additional arguments include:

Any suggestion that additional duties could be absorbed
by retailers is incorrect, especially
since the duty is planned to be substantial. In order to avoid unsustainable
losses, anything including the most marginal duty rates would have to be passed
on to consumers.

Imports of ceramic tableware and kitchenware
originating from China particularly tend to be concentrated in lower value
ranges. This means that any increase in prices resulting from the
imposition of duties is likely to affect those consumers least able to afford
it.

There are a significant amount of European producers
who import products from China and finish those products in the European Union,
before exporting onto the world market. These businesses will also be placed at
a competitive disadvantage compared to other global producers by the imposition
of European duties.

It is not at all clear that the imposition of
antidumping duties would lead to increased sourcing from European producers. In
fact, according to our members, antidumping duties would more likely result in
a switch to sourcing from other third countries e.g. Bangladesh and Vietnam.

European suppliers tend to excel in providing premium
products, focused on design quality. European suppliers would not be able to
compete at the same price points as Chinese suppliers where production requires
a higher level of labour input, such as for example small cast items with hand
painting, such as mugs and coasters.

There is an insufficient number of European producers
capable of supplying the volumes required by EU importers and therefore we will
face lack of supply which leaves no option but to seek other markets. In
addition many European producers also do not have the technical capability to
produce certain products required, for example stacking mugs.

Stoneware is not widely available in the EU. The
alternative earthenware is generally more porous and not as hardwearing.
In addition the surface of earthenware is grainy so many techniques cannot be
achieved.

In
summary, as a result of the provisional anti-dumping duties, retailers are
suffering reduced margins and consumers are paying higher prices, but there are
no extra orders going to European manufacturers. We do not believe that
Anti-dumping duties are in the Union's interest.  They increase prices for
consumers and add to inflationary pressures, without delivering any significant
benefits to European producers. The uncertainty created by the investigation
involves other unnecessary additional costs for retailers, wholesalers and
importers and works against other agreed EU policy objectives.

GRTU therefore urged Malta's anti-dumping
committee representative to vote against the imposition of anti-dumping duties
in the vote for definitive measures later this spring. GRTU requested a
commitment by Government to vote in the interest of Malta and inform GRTU as
the national directly interested representative with Malta's national voting
intention.

GRTU Director General and EESC
Employers representative Vincent Farrugia has referred to discussions taking
place with the aim of establishing a European Framework of Actions on Youth
Employment Negotiations during the EESC Plenary on this month. With more than
26 million Europeans unemployed, a key condition is to create more and better
jobs in addition to the 2 million existing vacancies in Europe. The level of
youth unemployment is rising across Europe in many countries, a situation which
has been exasperated by the financial and economic crisis.

Adequate macro-economic policies and
targeted measures for productive investment are needed to foster growth and a
job rich recovery. The competitiveness of EU products and services depends
significantly on investment in research & development, innovation,
education and training. There is a lack of certain key competences and a
shortage of adequate skills in certain sectors and regions in Europe, in
particular related to new industries' and specific public services' needs.

Well-designed employment regulations
are needed to promote more opportunities for young people to obtain a job. When
devising solutions to maximize youth employment opportunities, it is important
to maintain an adequate level of social and labour rights. Active labour market
policies are also needed to promote young people's access to employment, which
enables them to become independent.

Coaching, tutoring and mentoring,
including through intergenerational cooperation, can facilitate the integration
of young people in their first job. Such an approach can help enterprises
promote simultaneously young and older workers employment. Moreover, individual
competence development plans can allow employers and employees to identify the
required competences of the young worker in a given work situation.

A majority of young people working
under temporary employment contracts choose to do so. However, due to a lack of
jobs, some young people may find themselves with no other alternative than to
accept a succession of short-term and/or part time contracts even though they
would prefer working full-time in permanent contracts. Therefore, social
partners and public authorities need to ensure that the conditions are right
for job creation and that permanent, temporary and short-term contracts are
regulated in a way that fosters sustainable integration of young people into
employment.

The Framework of Actions on Youth
Employment will establish a number of important actions and recommendations to
improve youth employment. These are currently in the final stage of discussions
between Employer Organisations and Trade Unions.

GRTU is launching the PVPFS scheme, which GRTU has
tailored with a leading local bank, that ensures that client can find the
purchasing of a PV system increasingly affordable through paying by
installments without having to fork out any additional money. This while the
system is generating electricity that compensates for the payments done.

If calculated on an average system that would cost
around €5,000, the utilization of the PVPFS would mean that the client shall
have no upfront payments to make and instead start paying the bank a monthly
fee of €75 for 3 years, which works out to the exact same amount as if they did
not use the PVPFS scheme. In addition to this the client will save circa €82.81
from the electricity bill  per month. When deducting the € 75 monthly
payment to the bank from the €82.81 electricity saving, not only will the system
be paying itself but the client would be making a profit of around € 7.81 per
month during the first 3 years.

For the following 3 years the client is
guaranteed the same €0.22c feed in tariff(six year agreement), totaling € 993
per year, or € 3,260 profit in the first six years. This means that the
customer not only did not have to fork out any money, but actually started
making profit from day one.  Systems are typically guaranteed for 20
years, and some PV systems which have been installed in Malta around 30 years
ago are still working today.

All
suppliers who have achieved the GRTU APPROVED CERTIFICATE may apply to
participate in the PVPFS, and a second information session for suppliers shall
be held shortly due to a very encouraging turnout. 

Food waste amounts to 89 million tonnes a year in the
EU, while 79 million EU citizens live below the poverty line. In its opinion on
Prevention and reduction of food waste,
adopted on 20 March 2013, the European Economic and Social Committee (EESC)
calls on the European Commission to take steps to counter this dramatic trend
aggravated by the economic crisis.

"The situation is unacceptable. Sadly, the
current crisis has increased the number of people who depend on social
assistance but reduced the number of food banks, even though the need for them
has risen sharply. Paradoxically, up to 30% of food gets wasted in EU
households, supermarkets, restaurants and along the food supply chain each
year. We must take action to stop this", stated Yves Somville (Various
interests group, Belgium), rapporteur for the EESC opinion on Prevention and reduction of food waste.

The EESC calls for a coordinated strategy at European
level, combining EU-wide and national measures, to improve the efficiency of
the food supply and consumption chains and to tackle food wastage as a matter
of urgency. Preventing and reducing food waste is important not only in the
wider context of food security and resource efficiency: it is also a social
issue.

The EESC recommends developing platforms for
exchanging experience on combating food waste and passing on existing examples
of good practices: channelling products from the food retail and catering
sectors to food banks, initiatives on taxation, discharge of liability for
donors or removal of administrative constraints are a few actions already
successfully implemented in some EU countries and regions.

In the EESC's view, the prevention and reduction of
food losses and food waste must be given a key place on the political agenda.
Combating food waste is already a fully-fledged policy in some Member States
and regions. The EESC calls for it to be made an EU-wide policy. Some 79
million EU citizens live below the poverty line and 16 million depend on food
aid, while 30% of food (89 million tonnes per year) gets wasted.

New measures to strengthen the rights of passengers:
this is the objective of the biggest reform of EU rules in the field of air
transport presented on last 13 March in Brussels. According to the document, subject to the approval to
Member States and the Parliament, the new laws are due to come into force in
early 2015.

In particular, if the flight is more than 12 hours
late or is cancelled, the airline must book passengers on other carriers if
they cannot offer the service with their aircraft within 24 hours. Under the changes, airlines might also have to pay for
a maximum of three nights hotel accommodation. Airlines will be obliged to give passengers
information about why their flight was cancelled within 30 minutes of its
scheduled departure.

"Passenger rights may very well exist on paper but we
all need to make use of these rights when they are most needed, ie, in the
event of a problem, "says the European Commissioner for Transport Siim
Kallas.

He adds: "We are aware that the real priority for
stranded passengers is simply to go home, and that is why we focus on
information management and service and boarding on an alternative flight when
staying on the ground".

Besides, the new rules also clarify what is considered
"exceptional circumstances". Technical problems on board an aircraft
shall not be regarded as exceptional circumstances for example but natural
disasters, strikes or air traffic control are.

There are also news regarding complaints; airlines
will have to respond to passengers within tight deadlines (one week to
acknowledge receipt of the complaint and two months to provide a formal
response).

If there are disputes, passengers can turn to court
bodies responsible for the management of complaints to settle the dispute
(simple and inexpensive).

European SMEs' confidence declined for the fourth
semester in a row as a downturn due to a sluggish internal demand is feeding
through all Member States, according to a survey conducted by UEAPME, the
European craft and SME employers' organisation, and its members.

All economic indicators declined further in the second
half of 2012, with the recession striking SMEs even beyond their already
negative expectations.Smaller enterprises in the sectors most reliant on
internal demand, such as services and construction, were the hardest hit.
European SMEs predict a stable negative situation also for the first half of
2013.

Confirming a long-standing trend in the survey,
medium-sized enterprises' performance was superior, although still negative at
-4.7. These data show that the current recession is caused by internal demand
problems, which struck smaller SMEs in the services and construction sectors
harder than medium-sized SMEs more active in manufacturing and more exposed to
external shocks.

With no expectations of a real recovery, the outlook
is very gloomy", said Gerhard Huemer, Director of the UEAPME Study Unit, which
issues the "Craft and SME Barometer" prior to the EU summits in spring and
autumn.

Prices also reached their lowest level since 2009, a
clear sign of the downward pressure applied by the crisis.

For the first half of 2013, SMEs anticipate a stabilised
negative situation. For the second half, expectations are subdued, particularly
on turnover and on investments.

Against this background, UEAPME called on policymakers
to stabilise financial markets, implement structural reforms and support
growth. Finally, on the ongoing fiscal consolidation, UEAPME recommended
allowing "automatic stabilisers" to come into play in the short run to avoid a
further economic contraction and more negative effects on consumption.

GRTU
Executive Council has yesterday held a very successful meeting with the new
Minister for the Economy, Investment and Small Business, Dr Chris Cardona, and
Parliamentary Secretary for Competitiveness and Economic Growth, Dr Edward
Zammit Lewis at the GRTU office, where GRTU presented a Dossier.

GRTU
President Paul Abela welcomed the Minister and Parliamentary Secretary saying
GRTU was pleased of their nomination and of having given us an early
opportunity to meet the Executive Council. He explained that GRTU has undergone
a drastic change since Malta joined the EU and has now become very active and
very supportive to its members in this way. We have become pro active and
constantly reacting, presenting proposals and making opinions. GRTU is today
represented strongly at EU level.                                                                   

Hon
Minister Cardona expressed his pleasure at meeting GRTU officials formally for
the first time. This he said however was not the first time we met and the
Government wants to keep close contact. Government targets to start
implementing the electoral manifest in the shortest time possible. The Minister
said that the sectors represented by GRTU are priorities for Government and we
appreciate the importance the of the sector also for job creation. Dr Cardona
emphasised again that not only will regular contact with stakeholders be held
but they will go to stakeholders and not make them come to them. They will keep
this commitment with GRTU apart from the regular meetings that will be required
during this legislation. Parliamentary Secretary Zammit Lewis continued on the
Minister's remarks and reemphasised that support for small businesses will be a
priority for the Ministry as the creation of employment opportunities is the
main priority.

GRTU's
Director General Vincent Farrugia stated that we have vast experience and GRTU
can be of service to this Government to report what was working and what was
not working. He reminded the Hon guests that employment is highest amongst
small and micro enterprises. A main problem that exists in the better
functioning of the labour market is that adequate matchmaking of skill needs.

The
first issue discussed was the rent reform, which has been almost 5 years at the
top of the agenda for GRTU. GRTU once again emphasised what an unjust situation
this has created. To start solving the situation Government has to issue the
property market value index. Protection for enterprise must come first and
foremost. It is unacceptable that after such long years of building a name for
themselves they are just thrown out. 

GRTU
also stated that while welcoming the 45 year lease extended to commercial rents
in Valletta it was however very negative that Government left out those areas
where it felt it could get a better deal. If Government knew there stood a
chance that the situation for certain business would be compromised because of
their location it is even more important that they are given rights to be
safeguarded. Similar is the unjust situation with the City Gate shops where
only one was granted a long lease, the others were left with a 6 month renewal.
GRTU called on the embellishment of city gate which would not cost millions but
would at least get it out of the sorry state it is in as there is such room for
improvement.

When
it came to schemes GRTU stated also that the Micro Guarantee has not started to
work yet due to bureaucracy and business first should be better able to guide
businesses and make more effort to ensure businesses are helped and follow up
is made after the service. The Business First Council, set up to analyse
progress and tackle problems only met once after the opening of Business First
and no communication after that was ever made. Also GRTU members were eager to
see the Employment Aid Programme and the Training Aid Framework reinstated and
called for the e-commerce scheme to also be reopen.

An
important point mentioned was the potential for internationalisation as the
Maltese market is very limited. GRTU emphasised that we need a new strategy for
Libya and Government needs to start believing in business in Libya and urge
banks to help Maltese businesses in Libya. China was also an important market
as they are very keen on anything to do with the Mediterranean. More support
should be given by Government in this regard. The Minister stated that
improvements could be done in both our internationalisation efforts and the
branding system. Whereas before branding was fragmented by the different Authorities
the Government will attempt to make branding more value for money by combining
more areas of interest.

The
unfair competition created by goods coming through the catamaran which evaded
VAT and Eco Tax is something which needs to be tackled with immediate affect.
We want strong enforcement officers to tackle this unfair situation. Likewise
the Eco Tax system should be revised as this is also grossly unfair. There are
many other products that could be included in the Eco Tax system to better
spread the burden on all products and alleviate the burden on some products
that carried a very high Eco Tax, an Eco Tax much larger than that in the rest
of the EU.

GRTU
also argued that it is very difficult for farmers and fishermen to have
sufficient income to sustain themselves all year round. It is therefore
acceptable for them to have some type of other income to sustain themselves.
Today however a farmer and fisherman who has another economic activity looses
the opportunity of having a low income tax rate on the income related to
agricultures because he looses the status of full time farmer. This system is
unfair and a farmer or fisherman who's main income is derived from his vocation
as farmer and fisherman should not loose the fiscal advantage. GRTU also argued
that farmers and fisherman should be regarded like other self-employed and
enterprises when it comes to Malta Enterprise schemes as far as they do not
benefit from the same incentive from somewhere else.

The
situation of Ta` Qali was also mention, a situation that persists after 25
years. The current state is that some operators have signed while some have not
because of many reasons but it seems there are still more problems.

GRTU
also mentioned the unfair competition coming from free riders that compete with
established businesses that without any license fill a van with goods according
to the occasion, such as selling flowers on valentines day and mothers day, and
go around all of Malta and sell these goods at the detriment of establishments
that pay licences, permits and undergo regular checks to ensure
standardisation.

Here is the new 5 euro, in
circulation as of May. Retailers having cash authentication machines should
start to prepare and upgrade their machines to be able to accept the new
banknotes. The European currency is renewed. As of next May 1st
the new € 5 euro will enter into circulation.

There are many innovations introduced with this new
banknote: 

New graphics – First of all, the new 5 euro is the first of the
"Europa series". It shows the hologram and watermark portrait of
Europe, a figure of Greek mythology.

Europa was the Phoenician king's daughter. She was
seduced by Zeus in the guise of a bull, who is said to have carried her off
bringing her in Crete.

Ancient Greeks use "Europe" as a
geographical term, from which our continent takes its name. On the back of the
new banknote, there is a map of Europe, which incorporates now also Malta and
Cyprus, amongst the new Member States that have joined in the EU.

The new Europa series banknotes will feature the
architectural styles throughout Europe's history, leaving out monuments or
bridges that used to be featured in the first series. The styles are:

€5: Classical

€10: Romanesque

€20: Gothic

€50: Renaissance

€100: Baroque and rococo

€200: Iron and glass architecture of 19th century

€500: Architecture of 20th century

An independent designer based in Berlin, Reinhold
Gerstetter, was selected to refresh the design of the euro banknotes.

Why new banknotes? – The new banknotes are innovative
in terms of technology, one can spot new features which provide higher
security.

The amount of research carried out and eventual
development of the Eurosystem aims to make the euro banknotes so safe that they
actually constitute a deterrent to counterfeiters.

Credit institutions, professional cash handlers and
citizens should be better able to recognize counterfeits with the new tools
that have been introduced in order to improve the security of banknotes in the
Eurosystem.

It will be easy to use the simple "FEEL, LOOK,
MOVE", without special training.

The banknote, in fact, has got some particular
characteristics related to sound and texture. The novelty is that one can
perceive a series of dashes  to the left
and right margins .

Looking at the banknote one can also see a neat
picture which is a reference to the value of the banknote.

Another novelty is the ‘€' symbol that appears in the
security thread where the silver strip on the right of the banknote shows both
the amount of the value and the € symbol.

Gradual introduction – The new series will be introduced gradually over
several years, starting from the € 5 banknote in May 2013, followed by the € 10
banknote a year later.

Each country has its own "cash cycle" and
the rate of substitution of coins will not be homogeneous across the euro area.
The first series of €5 bank notes will still be in circulation and gradually
faced out.

As of 1st May 2013 therefore both series will be legal
tender and will circulate in parallel. This means that they should be treated
and accepted as equals.

Curiosity about € 5 – The €5 banknote was very commonly used last year
(2012) and the amount of €5 banknotes produced is equivalent to the distance
between the Earth and the Moon.

"The euro-notes are a great success", said Mario
Draghi, President of the European Central Bank. "They represent the unity
and diversity of our continent. They are the most visible symbol of European
integration".

The EESC Plenary on 21st March 2013 approved an Opinion
on the ‘Abuse of the status of self-employed'. Vince Farrugia as Malta
Employer's representative made a long list of amendments ensuring that the
Opinion reflects the objection of genuine self-employed against the abuse of
their status by two different groups:

1. The employers who continue to recruit workers
in precarious conditions to offer cut-price services against competitors who
abide by labour laws and respect the ILO resolution of the 15th June 2006 which
advises Governments to take action to suppress this abuse of the status of
self-employment.

2. Free riders who under the guise of
self-employed act in direct competition with genuine self-employed without
abiding to tax, standards and other licensing and wages regulations. These free
riders succeeding in eating away substantial ratio of markets at the expense of
the genuine self-employed who abide by all applicable laws.

Among the proposals adopted by the EESC in its important
Opinion is the amendment of Vincent Farrugia that states that when considering
the employment status of a person who is nominally self-employed and is prima
facie not considered as an employee, it can be presumed that there is an
employment relationship and that the person for whom the service is provided is
the employer if at least five of the following criteria are satisfied in
relation to the person performing the work:

(a) s/he depends on one single person for whom the
service is provided for at least 75% of his income over a period of one year;

s/he depends on
the person for whom the service is provided to determine what work is to be
done and where and how the assigned work is to be carried out;

(c) s/he performs the work using equipment, tools or
materials provided by the person for whom the service is provided;

(d) s/he is subject to a working time schedule or minimum
work periods established   by the person
for whom the service is provided;

(e)  s/he cannot sub-contract his work to other
individuals to substitute himself when carrying out work;

(f)  s/he is integrated in the structure of the
production process, the work organisation or the company's or other
organization's hierarchy;

(g) the person's activity is a core element in the
organization and pursuit of the objectives of the person for whom the service
is provided, and

(h)     s/he carries
out similar tasks to existing employees, or, in the case when work is
outsourced, he performs tasks similar to those formerly undertaken by
employees.