Author: SME Chamber

The member states of the European Union clashed over the size of the EU's budget for 2014-20 and the role of cohesion funding for poorer regions. Disagreements aired at a meeting of the General Affairs Council on Tuesday (29 May) will feed doubts that the negotiations can be wrapped up during Cyprus's presidency of the Council of Ministers, in the second half of 2012.

The member states were represented at the meeting by ministers for European or foreign affairs.It was that first time that they had formally debated all the main elements of the EU's next multiannual financial framework (MFF), on both the revenue and the expenditure side. Their discussion was based on a negotiating document drafted by Denmark, the current holder of the rotating presidency, which left blank spaces for individual budget headings and overall figures.

A group of 14 member states, including the Czech Republic, Hungary, Poland, Romania and Spain, defended cohesion spending as a “major tool for investment, growth and job creation”. Another group of seven member states, including Finland, Germany, the Netherlands, Sweden and the United Kingdom, criticised the MFF proposal adopted by the European Commission last June as being “significantly in excess” of needs. Several member states want to cut the Commission's proposal of €1,025 billion by at least €100bn. Nicolai Wammen, Denmark's Europe minister, said after Tuesday's meeting that the “figures part” of the negotiations would happen in the second half of this year. Janusz Lewandowski, the European commissioner for financial programming and budget, said that the Commission was in the “final stage” of updating its proposal, to reflect the spring macroeconomic forecasts, new figures on Europe's regions, and the cost of Croatia joining the EU, scheduled for 1 July 2013.

Social Europe can be translated into business opportunities and the much-needed creation of jobs. During its May plenary session, the European Economic and Social Committee encouraged policy makers to foster social entrepreneurship and enhance corporate social responsibility in the EU. Three EESC opinions focus on how to give new impetus to the social sector and promote the social involvement of European companies.

 

European social business and social entrepreneurship funds The social economy sector already employs more than 6% of all EU workers. Approximately one out of every four businesses that was founded in Europe in 2009 is a social enterprise (e.g. a dairy cooperative where part of the workforce is composed of people with disabilities or a charity group employing persons at risk of poverty and social exclusion). In the current crisis situation, the EESC wants to strengthen growth, employment and competitiveness, while creating a more inclusive society that is in line with the Europe 2020 strategy.

Through two opinions on European Social Entrepreneurship Funds (rapporteur Ariane Rodert, Various Interests' Group) and Social Business Initiative (rapporteur Giuseppe Guerini, Various Interests' Group), the EESC invites the Commission and Member states to make public procurement and access to finance more accessible to social enterprises, develop national frameworks for the growth of social enterprises and appropriately implement the European Social Entrepreneurship Fund. According to the EESC, the future European Social Entrepreneurship Fund should also be accompanied by other financial instruments dedicated to social enterprises development. The European Social Entrepreneurship Fund cannot single-handedly improve the access to appropriate capital.

Corporate social responsibility The European Commission launched a new strategy for Corporate Social Responsibility (CSR) for the period 2011-2014. The EESC adopted an opinion on this subject, drawn up by rapporteur Madi Sharma (Employers' Group) and co-rapporteur Stewart Etherington (Various Interests' Group). The EESC opinion supports the voluntary nature of CSR, but criticises the lack of plans to encourage and help enterprises to take responsibility for their impact on society.

The Committee proposes that companies that make CSR a central feature of their organisation should report on their social and environmental impact using transparent methods. The same should be done by public administrations and large civil society organisations. The EESC also calls for specific measures for SMEs and greater attention to the sector of social enterprise, which has been neglected in the CSR policy initiative.

GRTU has the week written to the Prime Minister following the meeting held on the 3rd May 2012. Amongst the issues GRTU raised was the question of the unnacceptable delays that cargo hauliers (burdnara) are made to suffer by VGT at the Deep Water Quay/Labaratory Wharf to manage the loading and unloading of trailers from Euro Cargo Valencia and other ro-ro vessels. An average load of 180 – 200 containers/trailers required an average of 8 tug-masters to manage the unloading efficiently.

VGT is, however putting in service only 2 tug-masters (eg: Monday 28th May, between 10.30am until 2.45p.m only 2 tug-masters and no inspectors from Malta Transport where on site to monitor) with traders with perishable goods and in need of urgent delivery literally screaming for an acceptable service.

 

This issue has been going on for months. This is in addition to other mismanagement that should be under the Supervision of the Public Regulator. GRTU has written to VGT and met Senior VGT Officials. We have written to Malta Transport and met the Malta Transport, CEO Dr Stanley Portelli urging him to take remedied action. We have raised the matter with the Ministry and lately on two saparate occasions with the Prime Minister himself in the presence of Dr Simon Busuttil.

 

It is incredible that the situation continues in it’s despicable and absolutely non-acceptable state of service. It cannot be that Government continues to tolerate a situation which benefits only VGT, who in spite of their original promises have not invested to meet their obligation at law. GRTU charges Government with this responsability, as in the absence of affective action by the Public Regulation, Government is directly responsible.

 

GRTU has asked the Prime Minister for an urgent action from his end as GRTUhave given up on the Regulator.

 

Unless the situation is affectively remedied GRTU will hold a press conference and demand the resignation of the responsible individuals and reserves the right to take immediate industrial action. You yourself stated last Sunday that people need to be “esteemed” and not just listened to Burdnara and traders are not being esteemed.

 

GRTU has this week written to the Prime Minister  to thank him for the excellent opportunity he gave the Burdnara Group, through Mr Karmenu Zammit, to present a number of issues affacting our members and deserving immediate attention.  One urgent issue that needs to be addressed was the complete lack of enforcement of the exit/entry at the Container Groupage Depot at Hal Far.

An agreement has been reached in 2004 through the intervention of Dr Simon Busuttil, that ensured all groupage containers are in the first stage transferred to Hal Far Groupage Depot. Burdnara trucks have been issued with a special No.Tag (HQ) to enter/exit all Port Areas and Cargo Section at Luqa Airport.

As this operation remains under the control of Customs, and transfers are an extension of Customs Area only, licensed burdnara cannot operate the system unless haulage is done on, the Trader's own registered transport. The same applies for exits from stores where only authorised vehicles are allowed and this to ensure proper enforcement.

GRTU stated that For reasons unknown to GRTU enforcement is not affected and Container Groupage Depot and the Luqa Cargo section have effectively become a free-for-all with complete disregard of the standards applied by licensed burdnara.

 

GRTU requested for all the necessary and immediate action so that the agreement with GRTU will be enforced. GRTU asked for a positive answer in the shortest time possible.

The GRTU generally welcomes the changes being introduced by the revision of the Trade Licensing Act. The Trade Licensing Act is being revised following analysis with the aim to simplify existing procedures, making the process less time consuming, closing any loop holes in the existing law and further clarifying its application 

The GRTU in particular made the following observations:

1. The most important revision is that we will be moving away from the requirement of submitting applications for a trade license for most sectors. This means that the sectors that are not connected with health or food shall no longer need to apply but simply notify the Department. With the notification one will be able to pay immediately instead of waiting for the acknowledgement. This should further accelerate the process.

2. The list of sectors and activities falling under the scope of the Department will be clarified. The requirement to submit a full MEPA permit will be waived and replaced by the requirement to only provide the MEPA permit number.

3. The commitment to issue a license within 10 days is welcomed. Cancellation of license will also be simplified however it is imperative for the fees and arrears to be paid. In addition the revision would introduce the concept that licenses are automatically renewable subject to the conditions of the license being respected.

4. The GRTU nonetheless wishes a clarification on the topic of ad hoc operators of stalls and kiosks as provided in Article 4A (2) (c). The GRTU emphasizes that a lacuna already exists in the Local Councils Act regarding the permit (or otherwise) required by such operators. It condemns illegal operators of kiosks and stalls who enter unfair competition with trade license holders during the most crucial periods (festivities, local feasts etc). The GRTU proposes that applications for these temporary stalls and kiosks are regulated by ad hoc legislation in order to iron out the differences which currently exist between the Local Councils Act, the Trade Licences Act and the amendments being proposed to the Trade Licences Act. The GRTU will not condone any such stalls/kiosks operators obtaining temporary permits who are blatently in breech of existing legislation, particularly those which adversely affect existing fixed traders and retailers.

5. This includes stalls/kiosks operators not having a trading licence; as well as the unecessary breach of the 50 metre rule, particularly in the case of applicants who are in competition with existing traders and retailers in the immediate vicinity. To this effect the GRTU proposes that an impartial and independent Board or Committee is set up in order to process applications for such temporary permits to avoid repeat occurances of the past years.

6. The current legislation provides for a variety of licence fees according to the size of the premises, in case of manufacturing activities and premises having a footprint over 800mts the license fee is calculated as 5% of the rental of the premises used. This leads to exorbitant fees in some cases and is discriminatory against small manufacturing premises, since while their fee is based on rent that of others of the same premises size, who are not manufacturers, is based on square meters. GRTU is therefore pleased that the licences will be capped.

 

The GRTU takes the opportunity to remind all businesses that all economic operations require a trade license to operate.

Vince Farrugia, GRTU Director General and EESC Employer's Representative, has this week strongly contributed to the EESC draft Opinion  on the Europe for Citizens Programme during the 2nd Study Group.

Citizens should be at the very centre of European policies. The current Europe for Citizens programme 2007-2013 provides a legal framework to support a wide range of activities and organisations promoting European citizenship. The new programme will support activities to increase awareness and citizens' understanding of the EU, its values and history, such as the remembrance of Europe's past and partnerships between cities (town-twinning). It will also help people become more engaged in civic and democratic activities. This will fit in with the Commission's plans to designate 2013 as the "European Year of Citizens, which will aim to increase citizens' participation in EU policy-making, particularly the 2014 European Parliament elections.

During the study group Vincent Farrugia insisted that the Communication should concentrate more on the problem of Youth and the disenchantment of Youth on EU economic policies. He referred to the specific case of Malta where a heavy balance has been found on fiscal discipline and policies promoting economic growth and employment.

"Youth need to be treated better so they feel more attuned to European citizenship, irrespective of the economic policies supported by the Commission, which hopefully would be transformed to the benefit of youth employment, the future of the EU depends on the younger generation that thinks on themselves first and foremost as EU citizens and not as nationals of another Member State. For this to succeed, the younger generation must feel that beyond the tremendous education possibilities and additional social fund support that the EU has provided, the EU has, through its economic policies created enough jobs and labour mobility within the union for all the younger generation to be engaged in what matters most for them: Choice of career and ability to be effectively economically engaged in the development of a greater union". Stated Vincent Farrugia.

The final EESC draft Opinion will be presented for voting during the 482nd Plenary Session on 12th July, the final document including a number of amendments proposed by Vincent Farrugia as EESC Employers representative.

GRTU today held a successful information meeting for businesses interested in investing in  Libya. Participants were given an overview of the very important new Libya Investment Law by the exceptional Hala Bugaighis, Managing Partner, Awras Consulting Company. 

The same meeting will be held again next Monday 4th June at 16.00 hrs at GRTU. Seating is limited so registration with Abigail Mamo is required on or 21232881.

Il-GRTU izzomm ill-Malta Enterprise responsabbli tal-hsara lil min hu bla htija – Il-GRTU – Kamra Maltija ghan-Negozji Zghar u Medji llum laqqghet lill-beneficcjarji u lill-fornituri li applikaw biex jibbenefikaw taht xi wahda mill-iskemi mhaddma mill-Malta Enterprise taht il-fondi Ewropej li jaghmlu parti mill-European Regional Development Fund (ERDF).

Dawn il-fondi qed jithaddmu biex jghinu lill-intraprizi Maltin jinstallaw sistemi ta' panelli fotovoltaici.

Wara verifikazzjoni interna permezz tal-Awdituri interni imqabbda mill-Malta Enterprise, il-Malta Enterprise iddecidiet li tissospendi l-iskema ta' assistenza u li hemm bizzejjed evidenza biex tqabbad lill-Pulizija tinvestiga aktar kazi ta' suspett ta' dikjarazzjonijiet foloz bil-ghan li applikanti li jgawdu minn assistenza li taghha ma jkunux gustifikati.

Il-GRTU sa mill-bidu nett ta' dan oggezzjonat li l-applikanti kollha taht l-erba' skemi s'issa mhaddma mill-Malta Enterprise, gew identifikati qishom suspetti ta' attivita' illicita' u gew kollha suggettati li jkunu msejjha ghall-interogazzjoni mill-Pulizija meta setgha l-ewwel gie stabbilit internament mill-Malta Enterprise, min prima facia setgha kien hati u mhux gara li, gie imcappas kulhadd. Ir-Rizultat hu li s-sidien ta' intraprizi Maltin qed jigu msejha id-Depot tal-Pulizija sahansitra il-Hadd biex ikunu investigati qishom kriminali. Il-GRTU oggezzjonat ukoll bil-kbir li twaqqfu l-iskemi kollha u t-tielet li l-hlasijiet lil intraprizi twaqqfu meta l-Malta Enterprise bhala l-promottur taht il-Ligi tal-intrapriza Maltija taf li l-waqfien tal-hlasijiet fuq xoghol diga' ordnat u fuq materjali diga' stokkjati u mhallsa, se jpoggu hafna ditti f'diffikultajiet finanzjarji meta m'hemmx hjiel li dawn huma hatja ta' xi att illecitu.

Il-GRTU tistenna li aktar carezza u gustizzja tithaddem f'dan il-kaz ghax jidher li l-affarijiet qed isiru bl-ghaggla irrispettivament mill-hsara li qed issir lill-intraprizi li mxew b'mod korrett.

Mil-Laqgha tal-lum fil-GRTU harget car li l-bicca l-kbira tal-intraprizi applikanti taht l-erba' skemi diga' baghtew bizejjed fid-dewmien inspjegabbli biex isiru l-hlasijiet dovuti u mhux spjegabbli li min m'hemm xejn kontrih ghandu issa jbati aktar bl-iskuza ta' din l-investigazzjoni.

Il-GRTU f'isem il-membri applikanti tal-erba' skemi l-ewwel nett qed titlob li id-dewmien minhabba investigazzjonijiet ghandu jigi rifless f'estenzzjoni tad-data sa meta ghandhom jitlestew l-installazzjonijiet. Il-GRTU qed taghmilha cara u pubblika li f'isem l-applikanti zzomm lill-Malta Enterprise responsabbli tal-hsara kummercjali, ta' kull dewmien u ta' kull implikazzjoni ingusta ta' xi htija li taghha ma jkunux responsabbli.

 

State Aid: Commission adopts rules on national support for industry electricity costs in context of the EU Emission Trading Scheme  – The European Commission has adopted a framework under which Member states may compensate some electro-intensive users, such as steel and aluminium producers, for part of the higher electricity costs expected to result from a change to the EU Emissions Trading Scheme (ETS) as from 2013.

 

The rules ensure that national support measures are designed in a way that preserves the EU objective of decarbonising the European economy and maintains a level playing field among competitors in the internal market. The sectors deemed eligible for compensation include producers of aluminium, copper, fertilisers, steel, paper, cotton, chemicals and some plastics.

Commission Vice-President in charge of competition policy Joaquín Almunia said: "If production shifts from the EU to third countries with less environmental regulation , this could undermine our objective of a global reduction of greenhouse gas emissions. There may be such a risk in some sectors, given the expected impact of the ETS on electricity costs as from 2013. The rules adopted today allow Member States to address this issue while maintaining incentives to decarbonise production and consumption and minimising any distortions of competition."

The reform of the ETS agreed in 2009 and taking effect from 2013 onwards means that electricity bills for companies in the EU are expected to increase as a result of the stricter cap under the ETS post 2012. The Commission has therefore adopted a Communication setting out the criteria under which Member States may support some categories of users which are expected to be particularly affected by the ETS reform.

Based on official Eurostat data collected from Member States and input from public consultations, the Commission has identified a certain number of sectors that are deemed to be at a significant risk of carbon leakage. Carbon leakage means that global greenhouse gas emissions increase when companies in the EU shift production outside the EU because they cannot pass on the cost increases induced by the ETS to their customers without a significant loss of market share to third country competitors. The Commission has assessed in which sectors there existed a genuine risk of carbon leakage and consulted Member States and stakeholders. If the conditions set out in these new rules are met, aid to compensate for EU ETS allowance costs passed on to electricity prices in these sectors will be considered compatible with the internal market.

The new rules carefully balance several key objectives. They aim to mitigate the impact of indirect CO2 costs for the most vulnerable industries, thereby preventing carbon leakage which would undermine the effectiveness of the EU ETS. At the same time, the rules have been designed to preserve the price signals created by the EU ETS in order to promote a cost-effective decarbonisation of the economy. They are also designed to minimise competition distortions in the internal market by avoiding subsidy races within the EU at a time of economic uncertainty and budgetary discipline.

The rules allow subsidies of up to 85% of the increase faced by the most efficient companies in each sector from 2013 to 2015, a cap that will gradually fall to 75% in 2019-2020.

Moreover, the construction of new highly efficient power plants which will implement an environmentally safe capture and geological storage of CO2 (CCS-ready) by 2020 may receive support of up to 15% of the investment costs.

Background

In March 2007, the European Council adopted a climate and energy package, with the aim to combat climate change and increase the EU's energy security while strengthening its competitiveness. The ETS Directive as amended in 2009 is a central component of that policy. It lays down two binding targets to be achieved by 2020: first, a reduction of CO2 emissions by 20% from the emissions level in 1990 and, second, increasing the share of renewable energy sources in the EU to 20% of overall energy consumption over the same time span. At the same time the European Council established a (non-binding) target to increase energy efficiency by 20% by 2020.

The 20% reduction target remains valid, although the EU is committed to moving to a legally binding 30% reduction commitment depending on international action. The EU's objective is to reduce CO2 emissions by 80-95% by 2050.

The full text of the communication will be available at:

http://ec.europa.eu/competition/sectors/energy/legislation_en.html