Author: SME Chamber

The "PEGASE" project
-Promoting Social Dialogue in SMEs has come to an end after a year of
operation. The project aims to strengthen the commitments of SMEs in the
participation of social dialogue and supporting them to better express the SMEs
needs related to social and employment issues.

The project provided the opportunity
to involve participants directly in the UEAPME work in the European Social
Dialogue. This gave them a quick overview of the practical conditions of social
dialogue in certain Member States.

One of the outcomes of the PEGASE
project is that the participants are better equipped and feel more comfortable
to justify their own involvement in the European and national social dialogue.
PEGASE also provides important tools to the participants which will continue
after the project, such as the network of participants to exchange their
experiences; the Newsletter with information and news on European Social
Dialogue activities provided by UEAPME and the Academy Avignon, the weekly
UEAPME Newsflash, covering the main fields of interest for SMEs such as
economic, fiscal, legal policies and a website which is a shortcut to all
necessary documents and useful links for social dialogue matters.

GRTUs, was also a project partner of
PEGASE, GRTU representative Michael Galea recounting his experience by saying
that "Social Dialogue is an objective that businesses, especially SMEs, have to
seriously look at. The issues raised at this level are important issues
affecting the daily life of businesses such as growth, employment, labour
market functioning, health and safety, life-long learning and development, working
time, gender equality and others. Participating at this level means that the
scope and activities can be agreed accordingly to SME priorities. This most
especially in today's business environment where we have SME's struggling to
make ends meet. In the PEGASE network I experienced the opportunity to
understand better the mechanism of how the SD functions, for example the
implementation of framework agreements. The reporting back on the state of play
of Social Dialogue of other EU countries and how effective and salient ideas
could be implemented back home. The network has helped in putting the SD on the
agenda of those countries where Social Dialogue is not yet developed and
discussions at national level have started. This will be continued and further developed
and therefore in itself will establish a lasting effect. Our organization is
now committed to Social Dialogue according to the EU model, it will continue to
play a role as social partner at national level, it will seek opportunities and
capacity, even through EU funded projects to express SME's needs and further
develop SD."

The main achievements of the project
should be to understand the procedures and decision making process in the EU
Social Dialogue by national organisations, to provide tailor made information
for small and micro enterprises, and to formulate the interests of small and
micro enterprises in the ESD agenda at a higher capacity.

Wara Laqgha kordjali li l-GRTU kellha
ma l-Onorevoli Jason Azzopardi fil-prezenza ta' sidien tan-negozzji kmieni
s-sena li ghaddiet, l-Gvern kien laqa' t-talba li għamlitlu l-GRTU ghan nom
tas-sidien sabiex l-istabbilimenti kummerċjali kollha f'Malta u Għawdex jkunu
jistgħu jiftħu fil-festi pubbliċi minghajr ma jhallsu ewro 700. Din
l-inizzjattiva ntlaqet tajjeb hafna mis-sidien li  ga kellhom l-opportunita' jibbenifikaw minnha
s-sena li ghadddiet.

Il-GRTU filwaqt li tirringrazzja
lill-Onorevoli Jason Azzopardi tal-kooperazzjoni shiha li sabet min-naha tieghu
u tal-Ministeru, tinforma lis-sidien tan-negozzji li l-festi pubbliċi għas-sena
2013 huma:

Il-Hadd 10 ta' Frar,  Hadd il-Karnival,

it-Tlieta 19 ta' Marzu,    il-Hadd 31 ta' Marzu

   l-Erbgha 1 ta' Mejju,    il-Gimgha 7 ta' Ġunju,

    is-Sibt 29 ta' Ġunju,   il-Hadd 8 ta' Settembru,

Is-Sibt 21 ta' Settembru.

Dawn il-ħinijiet tal-ftuħ ma
jaffetwawx lil dawk l-istabbilimenti li diġa' għandhom permess biex jibqgħu
miftuħa wara l-ħin tal-ftuħ fit-31 ta' Marzu u fit-8 ta' April.

Dawk l-istabbilimenti kummerċjali li
huma liċenzjati bħala stabbilimenti ta' catering jew bħala nightclubs,
diskoteti jew post ieħor fejn isir iż-żfin, jistgħu jibqgħu miftuħin sal-4 ta'
filghodu fil-lejl tas-7 ta' April 2012.

Il-ħinijiet tal-ftuħ
tal-istabbilimenti kummerċjali għall-perjodu tal-Milied, jiġifieri bejn l-1 ta'
Novembru u s-7 ta' Jannar se jibqgħu l-istess mingħajr ebda eċċezzjoni fejn
dawn jistgħu jiftħu mit-Tnejn sal-Hadd mill-4 ta' filgħodu sal-10 ta'
filgħaxija.

Il-festi pubbliċi li jaqgħu f'dan
il-perjodu li huma t-8 ta Diċembru, it-13 ta' Diċembru, Jum Il-Milied u Jum
l-Ewwel tas-sena se jkunu jistgħu jiftħu bejn l-4 ta' Filgħodu u l-10 ta'
filgħaxija mingħajr ebda eċċezzjoni.

GRTU Presents Position Paper – GRTU has this week presented its
Position Paper on the Review of Existing Legislation on Vat Reduced Rates and
requested that it would be taken into consideration when drafting Malta's
position.GRTU welcomes the initiative from the
European Commission to launch a consultation on the reduced VAT rates.

Step-by-Step
Approach

In a global approach of a VAT rates'
harmonisation GRTU suggests a thorough revision of the annex on reduced VAT
rates. In the ideal VAT world, there, in the long run, should be one EU VAT
system with harmonised rules and without borders between member states, one VAT
administration and one VAT return for all transactions within the single
market. Instead of 27 sets of VAT-rates, there would only be one VAT rate. From
a purely technical point of view, this would make the EU VAT system simpler,
more robust and more efficient. However, this ideal world does not yet exist
and the road to the single market EU VAT system is very long and winding.
Therefore, for the time being, GRTU reiterates its proposal to improve the
current system in a step-by-step approach.

Economic
Crisis

Needless to say, however, the topic
of reduced VAT rates, is and will remain very sensitive. Despite the undeniable
necessity of a sound consolidation of national households, purchasing power
needs to be strengthened as an effective tool to fight the current economic
crisis in the short and medium-term. Any additional burden on consumption by
raising the regular or the reduced VAT rates would jeopardise Europe's
move towards sustainable growth.

Outlook

Currently, the decision-making power
to apply reduced VAT rates is at the level of the individual Member State.
The Member States will not give up this autonomy. Moreover, a lot of businesses
in the ‘reduced rates-businesses' (and not only limited to those in the border
areas) will be very reluctant to accept any abolition of the reduced VAT rates,
even though it might be beneficial to them in the long term. For the time
being, it should therefore also be considered to keep this autonomy at the
level of the Member States.

GRTU is of the opinion that it would
still be worthwhile for the European Commission to investigate whether further
improvements can be made as a next step to the harmonised EU VAT system,
keeping in mind the budgetary/economic, the political and, not least, the
psychological impact.

Green MT has earlier today signed an
agreement with Santa Venera Local Council for the collection of recyclables and
packaging waste from the locality. Santa Venera with a population of 6800 and
2027 occupied households has a target collection of 6000kilos of packaging waste
weekly.

It is with this target in mind that
Green MT has set off its services within this Local Council in the central part
of Malta.
Green MT
will maintain all Bring in Sites currently within the Local Council and has
offered to increase the number of current sites to seven(7). It is assumed that
a bring-in-site is needed for every 300 hundred occupied household within a
locality.

Green MT will shortly deliver grey bags to
each residence and those residents who are not found at home can collect their
bags from the Local Council within a given period of time the week after. This
will further instigate residents to recycle more for their own good.

Green MT
continues to take on Local Councils across Malta and Gozo because it continues
to provide a not for profit operation at all levels. Green MT has
a current operational permit for 2013 and 2014 and well over 1350 members are
now part of this Scheme.

At the signing, held this morning at
the Santa Venera Local Council, the Mayor Mr Horace.J.Anastasi noted that the
Local Council requires a service beyond anything else, a service for each and
every residence. He continued to state that Green MT will be providing this
commitment across the board and augured that a number of environmental
initiatives will be affected in partnership with the Scheme.

On behalf of Green
MT, Mr Vincent Farrugia, Green MT Chairman,
thanked the Local Council for showing trust in Green
MT and ascertained that the Scheme is there to
provide a service next to none for the benefit of residents across Malta and Gozo.
He continued to say that residents will now notice the change as the Scheme
holds a personal relationship with the Local Councils where it operates and
answers to the Local Councils demands in no time.

Green MT Launches school campaign
for scholastic year 2013 – Green MT, the National Waste Packaging
Authorized Scheme has earlier this week launched its School Education Campaign
for scholastic year 2013. The Scheme, encouraged by its performance last year,
has this year taken on board a competition for over sixty schools across Malta and Gozo.

Green MT is holding an event in these Schools
in January and February in order to gear up the students to this campaign,
named, ‘Reduce, Reuse, Recycle'.

During the event the students are
introduced to a record just launched, also named Reduce Reuse Recycle, by Kristina Casolani, one of Malta's leading
artists. She is accompanied by a number of students who have auditioned in
order to take part in this record, which will be sold also from Schools (on CD)
with the final income to be forwarded to the Community Chest Fund.

The event includes the song by
Kristina Casolani, a speech by Green MT Eco Councilors, and also a number of
characters, part of the ZOO team who take it in turns to make recycling fun for
the students. The event finishes off by teaching the students the chorography
of the record.

The event has been well met in a
number of Schools already, including De la Salle College, St Edwards College
and the Franciscan Sisters in Sliema.

GRTU continues to insist strongly
that the political parties should seriously face the problems raised by their
own parliamentarians when they rashly voted in favour of the Rent Reform Act
which grievously damaged the safeguards that thousands of retailers and small
businesses enjoyed as tenants of commercial properties. GRTU contends that June
2009 was one of the darkest days for thousands of retailers victims of a wrong
parliamentary decision.

More recently GRTU has included this
very important issue in its proposals to the political parties for the General
Election:

GRTU considers that the Rent Reform,
which was passed with the support of all political parties, represents the
gravest example of initiative against a significant number of Maltese
enterprises since the war. The majority of European countries make it easy for
small enterprises to rent premises for commercial or economic operations and
the tenant is given enough breath to be able to redeem before the lessee can
dismiss him or increase his rent, including the provision of incentives by the
state where the commercial property owner is a private individual. In such a
way micro and small business in village cores and historic centres are
safeguarded rather than risking being wiped out as is happening in Malta. The
Maltese politicians in a unique case of consensus decided to take away this
right which had for so long been practiced in agreement between both the tenant
and the lessee.

GRTU strongly recommends the
reintroduction of lease protection for all enterprise owners who lease property
from property owners at least for a period of 12 years in which time,
independent private entrepreneurs will have opportunity to redeem their
investments before lease owners can evict or force renewal of lease. This is a
protection that exists in many other EU Member States and the Maltese
parliament gravely distorted the situation when all protection of small
enterprise owners on lease of commercial properties was removed. GRTU strongly
recommends the main political parties to commit to this obligating.

GRTU's efforts to change this law in
a system that is just and the tenant is safeguarded from expulsion have failed.
Several times were we told that our cause is right but no one has risen to
protect the enterprises that had their legally binding contacts cancelled. GRTU
appeals to the political parties to make it clear in their electoral manifestos
that small enterprises that operate from rented premises to earn their living
must be protected irrespective of anything else.

In a modern society it is
unacceptable for the state to interfere unilaterally in agreements existing
between third parties. The state has the duty to ascertain that efficient and
summary processes are in place to determine rent issues without the necessity
of direct state intervention.

GRTU appeals that those tenants that
had valid agreements recognised by law and by the lessee, who for so many years
had accepted the conditions he himself had set, must be respected. GRTU remains
strongly in opposition to the amendment of the Civil Code whereby the lease of
certain commercial premises is arbitrarily terminated in 2028 and 2018 for
subleases.

GRTU solicits that the recent
initiative in favour of commercial premises rented from Government situated in
Valletta include all economic premises within all areas the locality without
exception and that similar incentives are introduced forthwith to all other
localities in Malta and Gozo.

GRTU also proposes that long term
incentives are introduced, similarly to those policies applicable to state
owned industrial properties, whereby such properties are granted on emphyteusis
(cens) in lieu of rent.

For the renewal of politics – GRTU has today held a press
conference at the GRTU premises where GRTU Director General Vincent Farrugia
and President Paul Abela together with other senior officials presented GRTU
Political Manifesto for 2013 which is entitled ‘For the renewal of politics'.

In his introduction Mr Farrugia
explained that as the campaign is launched GRTU builds its political manifesto
by gathering the most important proposals, which GRTU presents in a document,
and solicits the political parties to commit to by including them in turn in
their own manifesto.

1.       Fiscal Economy

Social
assistance

GRTU insists on maintaining the
current policy, emphasising on the generation of new employment and economic
growth. We should also continue with the effective policy that provides support
to the groups living on the minimum wage or verging on it. Support through the
social system only according to need to low income families especially families
with children, avoiding however schemes that encourage able individuals not to
work and live out of social services.

An important element of this support
must be the provision of induction to increase their level of skills for
individual with low level of competences, also through adequate employment
opportunities. Support for skills should be given irrespective if the person is
born in Malta or is an immigrant.

GRTU is against any increase on the
minimum wage which is outside the existing system of COLA or another formula
that would be agreed at MCESD. GRTU
continues to insist on a policy that assists the lower skilled and unskilled
workers to achieve the necessary qualifications and skills that enable them to
earn income above the minimum wage. It should not be the responsibility of
employers that in an economy like Malta where 95% of businesses are micro to
sustain any form of living wage, employers are obliged to pay workers their sue
wage according to their productivity, social assistance to supplement a living
wage should not be the responsibility of individual employers

Income tax

GRTU has
been years insisting that the highest level of tax at 35% is excessively high
and that this is not a competitive rate. In the near future 50% of employees
and small enterprises will fall within this highest bracket and therefore the
commitment proposed in Budget 2013, that the rate starts to be reduced on a
period of years until it reached 25% need to be confirmed immediately following
election. GRTU requests a clear commitment that for the next legislature Income Tax will not increase again and if
there are circumstances where Income Tax will increase this will only be
possible with the majority of 2/3 of parliament.

VAT

The Budget deficit needs to fall within control
without the need that the current present VAT rate at 18% increase as is
happening in other EU Member States. 
GRTU requests a clear commitment that for the next legislature VAT will
not increase and if there are circumstances where the VAT will increase this
will only be possible with the majority of 2/3 of parliament.

2.       New Investments

Funding and
new opportunities

Adequate research needs to be carried
out together with a plan in order for Malta to benefit from funds within
European project bonds, such as the Connecting Europe Facility. Analysing such
an opportunity for instance should result in possible opportunities for
increasing our port facilities. In
addition, the regulations on micro firms are too tight when accessing funds and
schemes and GRTU strongly recommends a strong change in the mentality at the
provision of State funds to sustain hands-on free expert advice.

Guiding
private investment through schemes

GRTU has been presenting this
proposal for time and time again and Government has still not implemented this
sufficiently. Malta Enterprise has provided tax credits under the Create scheme
for creative projects within areas considered as creative zones. This should be
further developed in areas such as business incubation facilities, port
activity, marinas, ICT centres, etc…

New sensible investments are always
beneficial to the economy however small enterprises should be able to benefit
more from these opportunities. GRTU requests the earmarking of 25% of new
Government business to go to small businesses. Small businesses should be given
direct help when accessing projects through public procurement that makes up
for their lack of resources. This should go hand in hand with the enforcement
of small business friendly procurement policies across the public sector and
with an 'ombudsman' role which incorporates the task of challenging contracting
authorities on behalf of small firms after a valid complaint is submitted and
upheld.

3.       Rights of
Self-Employed

Self-Employed still suffer from an
acute discrimination when it comes to their rights in comparison to that of
workers with fixed salaries. The employment relations law does not give the
same safeguards when these self-employed come in a position that to defend
their interest must take collective action under the directive of the
organisation representing them. In addition to this the Authorities are
interpreting Competition Law in a way that every action taken by self-employed
having a commercial licence constitutes a breach in Competition law. GRTU
requests the commitment that this discrimination in the right to take
collective action of those economic operators that instead of working for a
salary choose to work on their own is legally determined and clarified.

Opportunities

One important reason why GRTU strongly
recommended micro & small enterprises to support Malta's accession to the
European Union was precisely because the EU provided the best and most
extensive market expansion possibilities for most Maltese based firms. The
Single Market is a top priority issue for GRTU and GRTU is satisfied that it is
extremely active at EU level in the promotion of the removal of tax and
bureaucratic obstacles that continue to hamper the efficacy and effectiveness
of the European Single Market.

GRTU also calls for the introduction of
new schemes as more and more firms are seeking new opportunities. This
particularly applies to firms who have reached the third generation and who are
finding the local market too small for their entrepreneurial capabilities while
reaching out to the larger European Single Market is too costly unless
supported through public finance.

An important element that still hinders
the full potential of the Single Market are the barriers caused by the
fragmentation of laws, especially those related to consumer laws. Government
must commit to the better functioning of the Internal market and push for a
minimum standard of consumer protection across the whole of the EU in order to
make it easy for small enterprise to operate cross border.

Duties

One important element GRTU regularly
deals with in relation to the functioning of the single market is duties
imposed by the European Union. We fully understand that Malta has limited
abilities when it comes to implementing such decisions and having a say however
yes we do have a say and we appreciate that our country is seen to act in the
interest of Malta. GRTU is against any type of protectionism. We do not have
much of a manufacturing industry therefore voting in favour of duties that will
lead to more restriction in the availability of goods both in choice and higher
prices to the detriment of Maltese consumers and traders simply does not make
sense. GRTU requests the commitment that when the local interest is evident
Malta votes in line with our interest and does not succumb to political
pressure.

Unfair
Competition

Further efforts are required to tackle
unfair competition, especially goods coming through the catamaran and evading
particular taxation. This is another issue that has dragged for too long now.
GRTU has tried on several occasions to get the Authorities to take action but
all we got was Authorities that either seemed unable when it fell under their
portfolio and Authorities that washed their hands if they were in a position to
take action. GRTU requests a commitment for concrete action which will bring to
an end this abusive and evasive situation which is also a dangerous one as the
multitude of goods that enter is uncontrollable.

5.       Skills

Talent and skills remain essential
for companies who are trying to survive in testing economic times and want to
emerge from the difficult times in good shape. This makes the ability of our
education and training system to develop skills and nurture talent a key policy
concern for business. Tough economic times also make it more important than
ever that effective education-business partnerships are in place to help
employers improve the skills of their workforces. GRTU can be instrumental to
help foster deeper relationships between on the one hand businesses and on the
other hand universities, institutes, colleges and schools.

Skills and innovation is GRTU's special
target area, Maltese SMEs cannot compete until Malta has a more capable and
skilled labour force with minimum restrictions in Malta' labour market to
unable Maltese SMEs to grasp the opportunities ahead of them. The investment
that the Maltese Authorities have done in skills programmes in all levels of
education has resulted in a relatively large number of SMEs active in high-tech
manufacturing and knowledge intensive services.

Schemes

GRTU has witnessed very valuable
training and employment schemes which however were time barred. GRTU requests a
commitment to make basic employment and training schemes that provide partial
employers with refunds for their investments made permanent. SMEs cannot time
their employment and investment needs with schemes that have deadlines and they
get very frustrated if they needed to make an urgent or sudden investment,
including employment and the scheme has just closed or will open in the coming
months.

Accreditation
and validation of skills

Many of the self-employed and small
enterprise owners we represent that work manually have gained very important
skills through the years of experience working hands on in their sector. These
are skills that are very valid but they do not have one single paper or one
single indication of the level of competence to show for it. This is something
GRTU feels is very offensive as like this we are throwing away so many valid
skills. For this reason we request a commitment to work closely with the GRTU
to initiate a wave of accreditation for skilled self-employed and manual
workers.

Transfer of skills is also important.
Many trades are dying away because the skilled individuals in those trades are
disappearing. The next legislation needs to address the specific skills and
training challenges facing business in the context of the economic situation.

Sector
Skills Council for Commerce

Sector Skills Councils (SSCs) are
independent, employer-led, nation-wide organizations that are committed to
working in partnership to create the conditions for increased employer
investment in skills which will drive enterprise and create jobs and
sustainable economic growth. We share the belief that the sectoral approach is
the most effective way to do this. Through their sectoral reach, SSCs are
ideally placed to articulate the voice of employers on skills; to develop
innovative skills solutions and to galvanise employer ambition and investment
in skills and job creation. In doing so, they are key strategic partners
in creating the conditions for increased investment in skills.

The EU Commission has late last year
approved the setting up of an EU level Sector Skills Council for Commerce and
the absolute majority of Member States are able to participate in this EU level
project because they have a National SSC for Commerce. GRTU requests a
commitment for the establishment of a Sectoral Skills Council for Commerce,
Green Jobs and Services (maintenance and garage industries), Crafts Industries.

6.       Rent Reform

GRTU
considers that the Rent Reform, which was passed with the support of all
political parties, represents the gravest example of initiative against a
significant number of Maltese enterprises since the war. The majority of
European countries make it easy for small enterprises to rent premises for
commercial or economic operations and the tenant is given enough breath to be
able to redeem before the lessee can dismiss him or increase his rent,
including the provision of incentives by the state where the commercial
property owner is a private individual. In such a way micro and small business
in village cores and historic centres are safeguarded rather than risking being
wiped out as is happening in Malta. The Maltese politicians in a unique case of
consensus decided to take away this right which had for so long been practiced
in agreement between both the tenant and the lessee.

GRTU
strongly recommends the reintroduction of lease protection for all enterprise
owners who lease property from property owners at least for a period of 12
years in which time, independent private entrepreneurs will have opportunity to
redeem their investments before lease owners can evict or force renewal of
lease. This is a protection that exists in many other EU Member States and the
Maltese parliament gravely distorted the situation when all protection of small
enterprise owners on lease of commercial properties was removed. GRTU strongly
recommends the main political parties to commit to this obligating.

GRTU's
efforts to change this law in a system that is just and the tenant is
safeguarded from expulsion have failed. Several times were we told that our
cause is right but no one has risen to protect the enterprises that had their
legally binding contacts cancelled. GRTU appeals to the political parties to
make it clear in their electoral manifestos that small enterprises that operate
from rented premises to earn their living must be protected irrespective of
anything else.

In a modern
society it is unacceptable for the state to interfere unilaterally in
agreements existing between third parties. The state has the duty to ascertain
that efficient and summary processes are in place to determine rent issues
without the necessity of direct state intervention.

GRTU
appeals that those tenants that had valid agreements recognised by law and by
the lessee, who for so many years had accepted the conditions he himself had
set, must be respected. GRTU remains strongly in opposition to the amendment of
the Civil Code whereby the lease of certain commercial premises is arbitrarily
terminated in 2028 and 2018 for subleases.

GRTU
solicits that the recent initiative in favour of commercial premises rented
from Government situated in Valletta include all economic premises within all
areas the locality without exception and that similar incentives are introduced
forthwith to all other localities in Malta and Gozo.

GRTU also
proposes that long term incentives are introduced, similarly to those policies
applicable to state owned industrial properties, whereby such properties are
granted on emphyteusis (cens) in lieu of rent.

7.       Access to Finance

GRTU identifies the access to finance
as a continuing hurdle. For micro business throughout 2011 & 2012
improvements have been achieved in this sector especially for loans less than
€1,000,000. GRTU understands that fewer loan applications have been rejected or
made subject to unacceptable conditions at least where Malta Enterprise
guarantees came into operation. The situation for loans to micro firms remains
however difficult in general and the cost of loans are too high for this
sector. The published average rates show a mix of home loans (subsidized
interests) and guaranteed loans by ME (subsidized) and standard commercial
(higher) so in practice accessibility is limited and costly and that is why a
continuation and extension of guarantee schemes is essential. Given the low rate
of defaults on bank loans in Malta, the risk is also highly manageable.  The reduction in interest rates on loans to
business reported by the Banks is therefore qualified.

Maltese banks remain excessively
exposed to the construction and development industry and as a result less
excess to funds is available for other businesses and GRTU hence sustains that
first and foremost new schemes should be created for properties that are not in
use to be converted into a premises from which an economic or commercial activity
is generated in order to create new opportunities and reduce the dependency of
banks on the property sector. It is very important that the maximum amounts of
funds be used for economic activities and existing schemes giving access to
finance and liquidity be extended long term for the enterprises to be able to
plan long term.

8.       Energy cost to enterprise

GRTU does not agree that now that the
interconnector project is being implemented and the consumer can in the near
future have a choice in service between the power station and the
interconnector, these are not kept separate. GRTU feels that these should be
owned and licensed separately and there is no mixture in the supply so that the
consumer knows clearly the price of the service and the credit terms. The
system of distribution should also not be part of the monopoly but can be
privatized. The lack of competition is a big problem in Malta, there should be
different supplies and wholesale now that there will be the opportunity. With
more transparency through increased competition it will become possible for the
users to see the hidden burdens that today they have to carry.

GRTU
requests that a system is created whereby small enterprises are given different
rates of payment for different periods even on a long term basis. With today's
system long term planning is not possible and nobody knows where he stands when
it comes to prices of utilities and even fuels. Long term planning is important
especially for industries with high energy content.

The emphasis
should mover away from subsidies to use of alternative energy and the
possibility of contracts at length that encourage the enterprise to invest. In
any reform Government makes in this sector it is important that the priority is
the guarantee of the service and that the suppliers accept to compensate when
the service fails and this creates commercial damages to other operators.

GRTU also requests the following commitments:

9.       Environment

GRTU is the national business
representative organization that is directly involved in its own managed
national scheme providing Green jobs and services.

The current environmental legislation
is of paramount importance and although considerable achievements have been
made during 2011, the need to make sure that a fair and level playing field is
maintained and is transparent is essential to ensure that the culture of
abiding to such legislation remains an onus on all enterprises.

The implementation of the WEEE
Directive is years overdue in Malta due to the current Eco Contribution being
paid by producers to Government in relation to EEE (Electrical and Electronic
Equipment) placed on the market. Its implementation would mean a reduction of
€8million in Government revenue but it would also mean placing an onus on
producers to work with authorised Schemes, making sure that Legal Notice 63 of
2007 is actually implemented. Implementation would mean one less infringement
notice for Malta.

GRTU also requests the following commitments:

10.     Pensions

It is vital to increase employment
levels and labour productivity, as well as undertake structural reforms in the
area of pensions, public finance and labour markets, there are uncertainties
regarding the choice of policies and success to address these issues.  For instance, it should be avoided to raise
labour costs to sustain pension systems, which would most likely affect employment
negatively and hinder sustainable growth. It is essential to ensure the right
framework conditions and incentives for employers to continue to provide
supplementary pension schemes. 

The real question remains how to
share the burden of a growing old-age dependency ratio and an increase in
pensions.  Inter-generational solidarity
is a fundamental principle and the effects of the crisis on public finances
cannot be ignored when looking for the best adapted ways of sharing the burden.

A
discrimination that has to be removed immediately is the discrimination in the
calculation of pensions between workers with a fixed wage and self-employed and
enterprise owner. The system should not be discriminatory and revised according
to an established rate equivalent as it is for those employed.

GRTU also
continues to maintain that the national pension system should be well supported
by the Government even through property transfers for the pension fund. The
list of properties of the joint office and other forms of support are required
so that the pension fund does not remain dependent solely on the contributions
that able workers give not to have their motivation to not work and produce
more declines.

GRTU also requests the following commitments:

11.     Self-Employed Famers and Fisherman

It is very
difficult for farmers and fishermen to have sufficient income to sustain
themselves all year round. GRTU therefore finds it 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 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 even
if he increases income through another economic activity as self-employed.

12.     Entrepreneurship

GRTU clearly identifies the urgent need
to push ahead with incentives to sustain entrepreneurial activity. The
guarantee schemes now in action already encourage individuals who are not from
traditional business families to seek entrepreneurship even though they do not
have parent's guarantees to help them start business.

GRTU also requests the following commitments:

13.     Responsive Administration

Regulation is the implementation and
enforcement of rules for the conduct of economic and business activities. It
includes national and European legislation and decisions made by statutory
bodies including sector specific regulators. Given that Europe drives so much
of our regulation, it is important that we do not over-regulate or, indeed,
‘gilt-edge' what European measures we are obliged to adopt. GRTU is an advocate
for reform and the reduction of red tape.

Malta's cost base remains high and
this impinges on business sustainability. Businesses are finding it difficult
to cope with the running costs which get incessantly higher. There are a number
of issues that must be address in order to get Malta's cost base right to ensure
sustained economic growth.

Maltese authorities are not only the
cause of multiple burdens but they charge enterprises whenever they get the
chance. The European Commission has clarified that Authorities should have
sufficient funds that they can provide services and courses at no charges. Some
authorities however refuse to collaborate, within their remit, with the GRTU
free of change because they prefer to carry out the same work at a charge. GRTU
requests a commitment that Public Authorities will not run on

GRTU also requests the following commitments:

Businesses hit by the economic crisis
will be thrown a lifeline under a new proposal from the European Commission
today to modernise Europe's rules on cross-border business insolvency, helping
to give otherwise viable businesses a ‘second chance'. The Commission is
proposing to modernise the current rules on cross border insolvency which date
from 2000.

Insolvencies are a fact of life in a
dynamic, modern economy. Around half of enterprises survive less than five
years, and around 200 000 firms go bankrupt in the EU each year. This means
that some 600 companies in Europe go bust
every day. A quarter of these bankruptcies have a cross-border element. But
evidence suggests that failed entrepreneurs learn from their mistakes and are
generally more successful the second time around. Up to 18% of all
entrepreneurs who go on to be successful have failed in their first venture. It
is therefore essential to have modern laws and efficient procedures in place to
help businesses, which have sufficient economic substance, overcome financial
difficulties and to get a "second chance".

The revision of the EU Insolvency
Regulation seeks to modernise the existing rules so that they support
restructuring of business in difficulties and create a business-friendly
environment, especially in times of financial difficulties. It will bring the
Regulation, which dates from 2000 up to date with developments in national
insolvency laws, in particular in terms of highly indebted firms. Creditors'
interests can also be served by a restructuring, as it can mean that they are
more likely to get back their money that might otherwise be lost in a
winding-up.

It will also increase legal
certainty, by providing clear rules to determine jurisdiction, and ensuring
that when a debtor is faced with insolvency proceedings in several Member
States, the courts handling the different proceedings work closely with one
another. Information to creditors will be improved by obliging Member States to
publish key decisions – about the opening of insolvency proceedings, for
example. All in all, these changes will improve the efficiency and
effectiveness of cross-border insolvency proceedings.

This proposal is also intended as a
first step towards an EU "rescue and recovery" culture in cases of
companies and individuals in financial difficulties more generally. The
challenge is to address the debtor's financial difficulties while protecting
the creditor's interests. In the future, there could be separate rules for
honest entrepreneurs and for cases where the bankruptcy was fraudulent or
irresponsible. In the case of honest bankruptcies, a shortened discharge period
in relation to debts and the legal restrictions stemming from bankruptcy would
make sure entrepreneurship does not end up as a "life-sentence"
should a business go bust.

The proposal for a regulation will
now pass to European Parliament and to the Council of the EU for negotiation
and adoption.

European Union regulators proposed
stricter health warnings on cigarettes in the latest bid to curb smoking in Europe, where tobacco-related illnesses are estimated to
kill one person every minute. The European Commission drafted legislation to
require that all cigarette packages feature a combined pictorial and text alert
covering three-quarters of the front and back. Under current EU rules,
anti-smoking images on packages are optional while text warnings are mandatory.

The commission also proposed to ban the
sale of cigarettes, roll-your-own tobacco and smokeless tobacco with
characterizing flavors. In addition, nicotine-containing products like
electronic cigarettes would be curbed under the proposal, which needs the
support of EU governments and the European Parliament to become law.

"Tobacco kills half of its users and is
highly addictive," EU Health Commissioner Tonio Borg said in a statement today
in Brussels.
"This proposal ensures that attractive packaging and flavorings are not used as
a marketing strategy."

Cancers as well as cardiovascular and
respiratory diseases are linked to tobacco use. Saying that 70 percent of
smokers start before the age of 18, the commission described the goal of the
draft legislation as to make tobacco goods less attractive to young people.
Under the new proposal, which would revise a 2001 EU law, cigarette packages
would also have to include an information message on the side that tobacco
smoke contains more than 70 cancer-causing substances. A current EU ban on oral
tobacco, along with an exemption for Sweden, would remain.