Author: SME Chamber

GRTU has this week written to the Ministry for Infrastructure Transport and Communication (MITC) and the Malta Competition and Consumer Affairs Authority (MCCAA) following a just complaint GRTU has received from one of its members.

The MIA privatisation project was intended to give Malta a more efficient airport facilities centre. It was never intended to create unfair competition against private developers, retailers and service providers.

It now appears that no supervision whatsoever is being practiced on what exactly were the terms and conditions of the Privatisation Act. Already we have seen MIA using land obtained under the Privatisation Act to unfairly compete with developers that they themselves had to buy this acquired land from MIA at market prices to develop.

GRTU is now witnessing MIA utilising spaces in the departures lounge for normal shopping during the festive season in direct and unjust competition with high street retailers. GRTU considers this as highly unfair as MIA was granted these facilities to provide airport facilities and retailers could not have possibly competed with the current private owners of MIA to win these exceptional facilities. GRTU abided by the decision that MIA had the right to offer retail facilities in this restricted area of the departures lounge open only to passengers who have crossed passport control. MIA has an absolute dominant position, which it is now clearly abusing.

GRTU requested MCCAA and MITC as the public regulators responsible for competition and civil aviation to investigate this complaint. 

The GRTU Executive Council has this week met representatives of the Misrata Commercial Chamber and the Misrata Business Council. Following an introduction by the GRTU President Paul Abela on the work GRTU does it was explained how GRTU was on the forefront to give as much help as it could to Libyans when the trouble started.

GRTU worked especially hard to support the Maltese companies in Libya, that were going through a lot of hardship due to the war.

GRTU's Council Member and delegate on Malta-Libya affairs Mario Debono continued saying that GRTU's sections can be very instrumental in supporting Libya in its needs. GRTU has strong sectors of construction, food, renewable energy, waste management, tourism, etc… that are keen to work in Libya and cooperate with Libyan businesses.

There is plenty of room for cooperation and we want to start immediately sending delegations of Maltese businesses and receive delegations of Libyan businesses. We want Maltese businesses to get the experience and feel of the new Libya first hand and form partnerships. The Libyan and Maltese business associations have a lot of collaboration to do to help companies partner and set up in Libya.

The representatives from Misrata thanked the GRTU Council for the opportunity in meeting them. They emphasised that Malta and Libya have a long standing relationship and they are only too happy to collaborate with Maltese businesses associations and businessmen. They also stated that Libya is safe and it is safe for companies to go and explore opportunities in Libya. They need help in their facilities and experience to rebuild Libya from the most basic infrastructure and services. They also stated however that investment and work in Libya can be in any business but not in trade. Other than this, further restrictions are limited to the fact that it must respect the Libyan tradition.

Amongst the representatives were the biggest travel agency of Misrata, company of ceramics and materials for building and an ice-cream producing factory.

During their visit in Malta Prime Minister Lawrence Gonzi also announces that Malta is planning to set up a consulate in Misrata, Libya's largest city.

and all other Malta Representatives in the EESC and other EU Institutions – GRTU Director General Vincent Farrugia has, together with the other Maltese representatives at the EESC and other institutions, received a thank you note for the work and collaboration carried out during the years.

Mr Farrugia has had the opportunity to collaborate on various occasions with Mr Cachia Caruana as Permanent Representative on the work Mr Farrugia has taken on in the last years as member of the EESC. Mr Cachia Caruana and his staff have supported  Mr Farrugia whenever he asked for their collaboration. Below is the thank you note received:

"As I step down as the first Permanent Representative of Malta to the EU, I would like to express my heartfelt gratitude for your invaluable cooperation and support over the past eight years. We can all hold our heads up high knowing that we stand as respected and active participants in the European project, fully capable of defending our national interests and influencing EU policy. This is due, in no small part, to the hard work, professionalism and dedication of all those who have contributed to the interaction between the Government and the EU Institutions. I have no doubts that your capabilities as Malta's representatives within the EU Institutions will enable us to carry on building upon the success of the past years.

From the outset, the Maltese Government recognised EU membership as an effective tool that would allow us to achieve the country's long-term goals. However, like any tool, it requires that those using it possess the necessary skills in order to achieve the best results.

Eight years down the line, not only has membership of the European Union benefitted Malta on multiple levels, but it has permitted the Maltese Government to respond effectively to national challenges while contributing to addressing European interests and concerns which are today interlinked with those of Maltese citizens.

This is a testament to how skilful we have been in using the EU ‘tool'. Although a new Member State, we can also boast of being one of the best integrated ones. Joining the Schengen Area and adopting the Euro as our currency so soon after membership highlighted Malta's ability to apply new responsibilities quickly and efficiently. Malta has shown itself able to fully embrace the responsibilities of EU Membership while also being a proactive player. The opening of the European Asylum Support Office is just one example of this; the hard work of many resulted in an enviable outcome for a new Member State.

I can only look back with pride on my eight years of service as Permanent Representative and this is also due to the support and professionalism that I could always rely on from you. I wish you all the best so that you may continue to represent Malta's interests with the same dedication that you have always shown."

Are the Directives still relevant? Have they
fulfilled their objectives? GRTU EU & International Desk
Coordinator Abigail Psaila Mamo has this week attended a meeting in Brussels on
the Evaluative Study of the Part-Time Work (PTW) and Fixed Term Contracts (FTC)
Directives.

Both the PTW and FTC
Directives resulted from framework agreements drafted by social partners at EU
level, signed some 15 years ago. The Directives have similar objectives, mainly
aimed at non-discrimination, preventing abuse and equal access to opprtunities
and information between on the one hand part time and full time workers and on
the other hand workers on fixed term and those on permanent contracts.

The European Commission,
though an independent consultancy carrying out research within the member
states, is seeking to analyse the level of implementation and the relevance of
the Directives today. Should the results of the study be negative, the
Commission might consider making changes in the Directives to address certain
lacks, which however might lead to disproportionate protection of workers and
more rigid labour market regulations, which we as employers' representatives
are against and therefore argues that the Directives should remain unchanged.
The report by the consultants has not yet been concluded, however preliminary
results indicate that a revision might not be required.

The employers
representatives agree with this conclusion as we feel that implementation was
effective and successful and the scope of the Directives are still clear and
relevant so there is no realistic need for further initiatives in this regard
at EU level.

Representatives at the
conference agreed in general that most problems related to PTW and FTC emanated
from national legislation and not from the Directives. The Governments in the
MS therefore should provide clearer information and address certain problems in
their law directly.

Employers have also
exchanged views on an issue being pushed by trade unions. The unions are saying
that PTW is a form of precarious work and that workers are forced into it as
they prefer full-time employment and full time employment is the ideal type of
employment. Employers disagree with such position. We see PTW as very
important. PTW increases access to the labour market for unemployed persons. It
provides the highly needed flexibility to employers but most especially to employees.
PTW also plays an important role in the attempt at balancing work and private
life.

A number of Member States
have gone further in the implementation of the Directives by introducing
additional initiatives providing further protection.

Till now the study has
outlined that 6 countries have registered significant changes in part-time,
while 11 countries have registered moderate. 8 countries have registered
significant changes for fixed term, while 14 countries have registered
moderate. It has also become evident that since the Directives started being
implemented clarity amongst employers and employees increased. For fixed term
greater flexibility was also registered.

The study is still
ongoing and the final results will be available in October.

The European Central Bank has
cut its main interest rate by 0.25% – to its lowest ever level. It means that its main
rate is now at 0.75%, the first time it has been below 1%. Mario Draghi, the
president of the ECB, said that he broadly welcomed decisions taken at the
European Council and eurozone summit last week (28-29 June). He refused to
comment on the possibility of further long-term refinancing operations (LTRO),
cheap loans to banks that were credited with restoring some calm to financial
markets at the beginning of the year.

Charges for using a mobile phone
abroad will be significantly reduced thanks to new EU rules negotiated earlier
this year. Checking e-mails, surfing
the web and making calls while on holiday became cheaper from the weekend.

From 1 July, the newest
EU rules against high roaming charges came into force, with cap prices for
calls, SMS and internet use on the mobile.

According to the new EU
law, prices for using mobiles phones abroad will be lowered to 29 cents per
minute for calls and 70 cents per megabyte for internet access in July 2012.

They will be further
reduced to 19 cents per minute for calls and 20 cents per megabyte for internet
access by 2014.

In addition, users will
be allowed to choose a different operator for roaming which is expected to
bring about more competition.

Most operators are
already starting to offer roaming packages for travellers in response to the
new law.

The new charges were
welcomed by the "Europeans for fair roaming" group which has lobbied
for further lowering of roaming charges with the support of 20 associations, 14
MEPs and 150,000 people.

The commission originally
proposed prices of 50 cents per megabyte in 2014. Effort from the European
Parliament and different stakeholders however managed to get them down to 20
cents per megabyte. This shows that determined citizens can have a real
influence on European politics.

In the meantime, MEPs and
EU member states rightly stepped in to ensure that customers get a fair deal
instead of a nasty bill shock at the end of a trip abroad.

Holidaymakers will also
be able to benefit from cheaper prices for mobile internet services while
staying in touch with family and friends back home over email and social
network sites.

Cloud computing: EC workshop
tackles contract terms

The European Commission organised a workshop this week in
Brussels to identify safe and fair terms for consumers and small firms in
contracts for "cloud computing", the use of software and other ICT services
over the internet. Speaking at the event, Enterprise Policy Director Luc
Hendrickx stressed that SMEs need neutral and understandable information to
take up offers for cloud computing services. As the data that could be stored
"in the cloud" are often crucial for the continuity of the enterprise, minimum
data security standards and proportional compensation clauses in case of data
loss should be introduced. A balanced and easily accessible alternative dispute
resolution system would also be needed for conflicts over contracts, he
concluded.

Carbon allowances: SMEs worried by
"backloading" proposal

UEAPME has recently published and sent to Members of the
European Parliament and to the European Commission a position paper on the EC
proposal to set aside or to withdraw temporarily ("backload") EU carbon
allowances from the market in 2013-2015. Although the so-called emission
trading scheme (ETS) for greenhouse gas allowances mostly affects industries of
a bigger size, such a decision could also have negative effects on SMEs, for
instance in terms of higher energy prices or loss of supply and subcontracting
opportunities. Therefore, UEAPME stressed that the ETS should continue to
operate as a market instrument, and called for a comprehensive impact
assessment of the proposed changes. UEAPME will monitor the developments on
this file in the ongoing legislative procedure.

Public image of entrepreneurs must
be redressed

Enterprise Policy Director Luc Hendrickx spoke  in Brussels at the "Young European
Entrepreneurs Seminar 2012" organised by the European Economic and Social
Committee. The public image of entrepreneurs must be redressed to encourage
this career path, he stressed. Governments should promote respect for risk
takers and discourage the negative conception by the public and the media of
entrepreneurs as greedy and self centred individuals. Actually, making money is
rarely the first reason why entrepreneurs start their own business. Financial
support to set up private businesses and boost self employment is clearly
needed but is not sufficient, continued Mr Hendrickx. In fact, training in
management competences is equally essential for a successful business. Last but
not least, the creation of private businesses is positive but cannot be seen as
a tool against unemployment, he concluded.

GRTU Council Member and Vice president EU and
International Michael Galea this week met the Consul for Trinidad and Tobago,
Mr John Hadad. Trinidad and Tobago, even though bigger than Malta are also
islands and so the representatives discussed the similarities, including the
fact that they were all once British colonies.

The population is three times
the size of the Maltese population. Tourism is also important to Trinidad and
Tobago however their strength is in oil and gas, that directly and indirectly
contributes to 80% of GDP. Mr Hadad said that they were aware that these
resources were not unlimited and therefore little by little they are trying to
switch their dependency on tourism. In addition to this they are
environmentally conscious and they are therefore trying to apply the Swedish
concept, where the revenue from the oils are being reinvested into
sustainability.

Cyprus has taken over the EU's
rotating six-month council presidency only days after it became the fifth
eurozone country to receive a bailout for its ailing financial sector. Cyprus
insists its presidency agenda will not be overshadowed by its request for
financial assistance, despite its banks struggling under the weight of huge
losses on their investments in Greece.

European commission
European Central Bank and International Monetary Fund auditors arrived in
Nicosia yesterday to begin an assessment of the struggling country's needs.

Cyprus' president
Demetris Christofias called for budgetary discipline in the EU to be
complemented by a "strong growth strategy", saying that
"austerity-only policies have not proven successful", says the
broadcaster.

Cypriot government
officials are hopeful that the island would avoid the kind of harsh austerity
measures endured by other bailout countries, with Nicosia very keen to retain
its 10 per cent corporate tax rate.

The Cypriot government is
also sounding out Russia and China over possible bilateral loan deals, as its
junk credit rating status prevents it from trading on international debt
markets.

Meanwhile, the UN and EU
have expressed frustration that Nicosia has announced that it plans to put
reunification talks with northern Cyprus on the "back burner" while
the country concentrates on its presidency duties.

EU enlargement
commissioner Štefan Füle has urged Cyprus to maintain the peace process saying
that there was "no contradiction" between a successful EU council
presidency term and continued reconciliation talks.