Author: SME Chamber

GRTU Gas distributors still in the dark – After nearly three years of design and construction, Gasco Energy New Gas Filling Plant will shortly come into full force. During a visit by the Prime Minister Dr Lawrence Gonzi and Minister George Pullicino last Thursday, the state of the art facility was brought to the fore of all those present including the media.

All is ready to go, except for a distribution system that is not on solid ground for any stakeholder in the sector.

It is however ironical that whilst a plan of such a size was designed and build from scratch in just under three years, the issue of Gas Distributors represented by the GRTU Malta Chamber of SMEs, remains unsolved. Whilst GRTU has worked for many long hours on this issue, there seems to be no solution in sight.

Gas Distribution has been in place in Malta for many years. For many years whoever wanted a service was provided with a service which is next to none within the European Community. Gas Distributors had and still have an obligation to serve every Tom, Dick and Harry, anywhere. They do this with the condition that each have their own operational social agreement with the public in general. And now we are told that because of the European Directives we had to liberalise importation and wholesale. Whilst that was acceptable, liberalizing distribution and retail was not obligatory. It was the Government's choice, one which was taken with the introduction of Legal Notice 249 of 2008 which completely forgot  the existing market distributors.

Time has lingered and Gas Distributors are now against a brick wall. The worst part is that we are not aware of the negotiations going on behind the scenes. We do not know when a decision will be taken. Time is against us, against the self employed who have over the last 40 years effected a distribution system for LPG cylinders which is the best in the Community. Of course not all was perfect but if by the word competition one means that our communities loose the service that is being provided today.

The Malta Chamber of Small and Medium Enterprises, GRTU, has waited long enough. It is a pity that the Government of the day continues to treat self employed like beggars. Beggars are never choosers. GRTU takes the opportunity to auger Gasco Energy and Liquigas a pleasant future in a  better state of the art facility. For the rest time is running out for everyone and we do hope that Government places this Gas Distributors issue as a priority matter. We expect a solution, and soon!

MCCAA is consulting stakeholders on a new legal notice which will amend Legal Notice 241 of 2009 on the Conformity Assessment of Marine Equipment. The proposed draft legal notice transposes Commission Directive 2011/75/EU amending Council Directive 96/98/EC on marine equipment.

 

Marine Equipment includes items such as life-saving products (lifebuoys, lifejackets, liferafts), fire protection equipment, navigation equipment and radio communication equipment. The legal amendments are highly technical in nature and relate to the testing procedures of the products. Importers are advised to ensure marine equipment they import in Malta comply to the latest regulations.

Background

A number of amendments to the international conventions and applicable testing standards have entered into force since the adoption of the last amending act to Directive 96/98/EC. Consequently, those amendments were incorporated into Directive 96/98/EC.

In the same period the International Maritime Organisation and the European standardisation organisations have also adopted standards, including detailed testing standards, for a number of items of equipment which are listed in Annex A.2 to Directive 96/98/EC or which, albeit not listed, are considered relevant for the purpose of that Directive. Therefore such items of equipment were also included in Annex A.1 or transferred from Annex A.2 to Annex A.1, as appropriate.

The above mentioned amendments made to Directive 96/98/EC need to be transposed into Maltese regulations and this will be done through the proposed Conformity Assessment of Marine Equipment (Amendment) Regulations, 2012.

Who does it effect?

Manufacturers, importers and distributors (sellers) of marine equipment.

Feedback

Feedback to be received by the 27th July 2012.

Comments to be sent to the Regulatory Affairs Directorate, Technical Regulations Division, Malta Competition and Consumer Affairs Authority by e-mail –

GRTU meets Minister deMarco to discuss issues – GRTU has earlier this week met Minister Mario de Marco, MEPA Chairman Austin Walker and Chief Executive Officer Ian Stafrace  to discuss pending issues in the quarrying sector.
Mr Vincent Farrugia, GRTU Director General, opened the meeting by thanking the Minister and all other officials present for their time and outlined that the quarrying sector represented by GRTU is extremely worried over legislation which has curtailed their operation into one of the strictest ever operations.

Mr Farrugia pointed out that Malta would not be where it is today if it had not been for this sector, and although the resource has not been managed well, we are still in time to safeguard this precious material, be it aggregate or limestone emanating from these quarries.

He also outlined that many years back the quarries were isolated but through the evolution of time there are now many residences that are effected by these quarries. He continued to state that twenty years ago a Minerals Board existed within MEPA which is now defunct. Although this Board did not succeed to solve many issues, at least there were people who were hands-on on the issues that discussed and learned. This sector was however recently also further plagued by stricter than ever explosives regulations, noise pollution and the most recent dust pollution draft paper.

These issues are making life impossible for many owners and many are still in the business simply because they consider it a hobby. To add insult to injury the quarry owners are deemed to pay in all the fiscal regime when they have as yet not recuperated their monies as the credit being taken up for payment exceeds well over a year, if not two.  He continued to state that this negative attitude towards quarry owners exists across the board.

Minister de Marco reiterated that the quarrying sector was formally included in the National Environmental Plan and accordingly he can confirm that there are no hidden agendas vis a vis this sector. He continued to stress that it would be best if a stock of the situation is taken before we get to a phase where we want to use the resource and we cannot find it. The cost of the resource should also be included in the cost structure so as to continue to work towards sustain able operation.

The Minister recommended that GRTU sends a list of quarry owners who are now facing any problems in relation to planning permit, extension of quarries, vibration levels during explosions, so that a three day marathon meeting is set up for this sector individually in order for MEPA to have the whole holistic picture.

Additionally, there are a few issues are common for every operator. These include noise pollution and dust monitoring, which legislation is currently open for public consultation. Such issues will be discussed by GRTU on behalf of the members with their presence.

For this meeting GRTU officials were accompanied by three representatives from the Quarries sector Committee.

GRTU DG and EESC Employers' representative has participated in the ACP-EU Regional Seminar of Economic and Social Interest Groups, organised by the European Economic and Social Committee (EESC) in Santo Domingo, on 5-6 July.

The African, Caribbean and Pacific Group of States (ACP) is a group of countries in Africa, the Caribbean, and the Pacific that was created by the Georgetown Agreement in 1975. The group's main objectives are sustainable development and poverty reduction within its member states, as well as their greater integration into the world's economy. All of the member states, except Cuba, are signatories to the Cotonou Agreement with the European Union.

The Cotonou Agreement (signed in Cotonou, Benin in June 2000) is the successor to the Lomé Conventions. One of the major differences from the Lomé Convention is that the partnership is extended to new actors such as civil society, private sector, trade unions and local authorities. These will be involved in consultations and planning of national development strategies, provided with access to financial resources and involved in the implementation of programmes.

During the meeting a commitment was made by Caribbean civil society organisations, together with the CARIFORUM Secretariat, a subgroup of ACP countries for economic dialogue with the EU. They made a commitment to define, before mid September 2012, the composition of the Caribbean side of the civil society Consultative Committee. The Caribbean civil society have said yes to more involvement in the EU-CARIFORUM Economic Partnership Agreement

Vincent Farrugia was active as a member of the EESC Anti-Poverty Committee and works on the EESC supportive mechanism for a more efficient and effective agenda for development cooperation and for the revision of the financing instruments and the review of the measurement of a country's progress in terms not only of GDP but also of improvements in human welfare and quality of life.

The Consultative Committee, encompassing economic, social and environmental aspects of relations between the EU and CARIFORUM is the only joint EU-CARIFORUM body in the EPA Agreement that has not yet been set up. The proposal on the composition will be presented to the EU-CARIFORUM Trade and Development Committee in September and will hopefully be adopted by the Joint EU-CARIFORUM Council in October 2012. This decision will make the Consultative Committee fully operational.

Discussions also addressed what the region can do to foster sustainable and inclusive growth. Ms Brenda King, President of the ACP-EU Follow-up Committee of the EESC, argued that "the transition to sustainable and inclusive growth needs the involvement of non-state-actors in order to be successful. This implies that democratic processes are in place and that a dialogue exists between non-state-actors and political decision makers".

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.