Author: SME Chamber

GRTU's Director General Vincent Farrugia opened the conference which was held in the afternoon at the Corinthia Palace Hotel. The conference was organised by the GRTU and BOV. The DG presented the results of a GRTU survey held in March to analyse how much information do our SMEs really have and how easily accessible do we find them. GRTU also sought to analyse their suitability and efficiency to the needs of SMEs.

This is in line with GRTU's renewed efforts this year to expose SMEs to what is available, discover any short-comings in the way schemes are being administered and propose changes with the aim of improving the situation. The full results are available on the GRTU website: http://www.grtu.eu/.

The survey found that 32% of respondents benefitted from a type of fund, grant, scheme, tax credit, etc… with the majority saying they received between €5,000 and €250,000.

69% of those that did not benefit said that it is because they never tried, 18% said they had not felt the need until now and 13% said they attempted but had their application refused. The refusal was because they either did not match the criteria themselves or of the scheme and a small group said they were refused for no apparent reason or because the project was not deemed to be innovative enough. The largest chunk, 33%, made the first steps but got discouraged on the way due to bureaucracy.

When we asked them what schemes had they heard about, aimed at helping SMEs access funds, the most popular was the JEREMIE initiative being administered by BOV, however still 39% said they never heard of any 53% however chose to say that they know of the existence of schemes that can help them access loans at lower collateral and guarantees, with only 10% of these saying they actually tried to make use of them with half of these being successful.

We asked respondents to tell us form where do they most frequently learn of schemes and how would they like to receive the information. Highest ranking were Government in general through advertising and promotions and the GRTU, followed by the initiatives and information provided more directly by the Government authorities. Their preference is to learn by email and through information sessions and direct one to one meetings.

59% said they were not completely satisfied with the schemes currently offered by Government authorities. They said improvements were needed in the amount of bureaucracy and paperwork applying entailed. They also complained that the payments took too long and that the schemes did not match their real needs. Most also complained that if they found a scheme they were interested in they would probably find that there is something in the criteria that made them ineligible to apply or else if there is a scheme which they can apply for they would have no real interest in it.

Throughout the survey it was evident that there is lack of information and enterprises themselves stated that they need more guidance and information that is accessible. The enterprises answering the questionnaire went on to suggest what they think would constitute good ideas for funding.

The Director General stated that the absolute majority of EU funds were generally reserved for big industrial enterprises or for agriculture. It is a relatively recent development that funds ar being offered to the majority of enterprises not the minority. SMEs are worth investing in. SMEs were responsible for 80% of the new jobs that have been created. Mr Farrugia said that many businessmen want money on the table, but that's not how the EU system works. It has become difficult for businesses to get money or loans especially when the businesses are small or at start-up phase. On GRTU pressure, the Government has come up with the Micro-Credit scheme which has now been extended to the Micro-Invest scheme which applies also to very small SMEs and even the self-employed. GRTU has pushed for schemes not to apply for manufacturers only but is still working to open most schemes also to retail and also to push retailers to develop further to be in a position to acquire more benefits.

Hon Tonio Fenech Minister for Finance, the Economy and Investment, stated that over the past four years it has spent €90 million to help businesses. Government has recently extended most of the schemes directed to SMEs. 570 businesses benefited from this support and the ERDF funds on offer have grown from €20 million to €42 million and the latest call closes on 3 April. 230 jobs have been created by this help. The JEREMIE scheme administered by BOV matches €10 million from EU funding with €52 million that are guaranteed by the scheme.

Hon Fenech said that Government has to strive to see SMEs are equipped with the required tools. Our job is also to improve the financial environment for business to be able to flourish. He also stated that an EU wide effort is needed. We must ensure they have enough liquidity to be able to benefit from EU funds.

The Government has recently come up with its Business First scheme through which 50 Government services are now offered under one roof at Malta Enterprise (in its new location inside the old St Luke's hospital grounds). 2500 businessmen contacted Business First in its first two months of existence. The government is also investing €16.7 million to improve the infrastructure in the industrial zones.

Also speaking at the event, Joanna Drake from the Commission's Enterprise DG said she is honoured to be able to serve SMEs from the work she does at EU level. She stated that be it from big Germany or small Malta, SMEs face basically the same problems and challenges. A very interesting statistic is that SMEs employ 80% of total employment but during the period of recession SMEs created 85% of jobs. More women entrepreneurs than 34% are needed and she also stated that Think Small First is currently the most important tool. Another interesting statistic is that one of three SMEs who applied for a bank loan did not get it. She mentioned the new mechanisms targeted at access to finance- COSME and Horizon 2020. Dr Drake also emphasised on the importance of opening up the definition of innovation that suits SMEs. She warned that Malta was missing out on the EU's considerable funds for the setting up of venture capital funds.

She concluded by saying this conference is a good effort and much more is needed to reach out to SMEs.

Mark Scicluna Bartolo from the BOV SME unit explained, the JEREMIE fund was launched last April with a budget of €25 million in the first year. 198 enterprises were helped and the total allocated amounted to €19.3 million, a take-up ratio of 78%. The €19.3 million represent investment amounting to €30 million. 80% of the enterprises helped are SMEs with less than 10 employees. The maximum loan is of €510,000, payment over 10 years. The direct benefits are reduced collateral obligations and advantageous interest rates.

Total amount of funds available: €50 million. Ten months down, 26 months are left for this scheme. A number of applications have already been submitted and they are treated on a first come, first served basis.

Mr Scicluna Bartolo and Karl Herrera from ME explained how a successful application for EU funds is to be drawn up and warned of the pitfalls that are to be avoided. Emphasis was made on being realistic with the targets as they will haunt the business when it comes to get its funds back. Giving the necessary time to filling in the application and ensuring it really reflects the idea is very important. The 20 million for industry grants were also explained.

But the best example of how EU funds can be obtained was the success story reported by Remco Slik, a Dutchman who moved to Malta 10 years ago and who has now, with EU funds, restored an old palazzo in Vittoriosa and will be shortly opening it as a boutique hotel – Palazzo Vittoriosa. In 2008, he purchased an old and neglected palazzo in the core of Vittoriosa, formerly part of an auberge, at that time full of rubbish, but nonetheless a neglected gem. He applied for EU ERDF funding to restore it and open a boutique hotel, basing themselves on the huge attraction of the building and its ambiance. They applied through the Tourism and Sustainable Development Unit who were of real help. Mr Slik stated there is a lot of paperwork and he would suggest having the help of a professional advisor.

Stellina Galea, accountant by profession, explained in accountancy terms what the JEREMIE offer can mean in saved interest payments and the like. It can in fact be very advantageous is worked correctly.

Hon Minister Jason Azzopardi, Minister for fair competition, small businesses and consumers, was replaced by Permanent Secretary Paul Zahra and explained the many positive initiatives Government has already in place and in the pipeline for SMEs. He explained how government has cut down on the time businessmen used to spend to get government permits with the new initiative, currently under consultation, to simplify trade licencing.

 Hon Minister Jason Azzopardi, Minister for fair competition, small businesses and consumers, was replaced by Permanent Secretary Paul Zahra and explained the many positive initiatives Government has already in place and in the pipeline for SMEs. He explained how government has cut down on the time businessmen used to spend to get government permits with the new initiative, currently under consultation, to simplify trade licencing.

Why did you become an entrepreneur? Inspired by my dad Ray Mintoff as it was always a family run business

How have you come to chose your line of business?Tried various places of work but always ended back to my roots i.e. my family business

 

Where did you go on your last holiday?

My last Holiday was in Tuscany a few weeks before my marriage to Jonathan Dalli

What is your earliest memory?

Picnic with my family at Ta' Qali, riding my bike

If you could chose to be someone famous who would you be?

Victoria Beckam because i always admired how she balances fame and her family life while also struggling to keep her business running even though she already has it all.  

GRTU Vice-President Philip Fenech has this week participated at an informative session where he was breifed on this new scheme also to the benefit of employers.

The Agency for the Welfare of Asylum Seekers are launching this initiative which provides a legal job-matching service between the employers' needs and that of the refugees. Employers and even individuals seeking helping hands can post their vacancies and in return they would be given the contact details of potential worker/s. The service is provided fast and free of charge.

Who will be the employee:

– Refugees – Persons granted subsidiary protection

– Persons granted Temporary Humanitarian Protection

Vacancy forms can be obtained from:

– Marsa Employment Support Office, Marsa Open Centre, Xatt il-Mollijiet, Marsa, MRS 1151

–

offices are open Monday to Friday : 7.30 – 16.00

‘The time is more than ripe for Government to exempt importers/producers of batteries and accumulators from the payment of Eco Contribution if they are members of an Authorised Batteries and Accumulators Compliance Scheme'.

 

This was stated by Joe Attard, Chief Executive of Green MT, during a meeting held for importers and producers of this waste stream at GRTU earlier on last week. It was further stated that Green MT has applied for permit to operate a Batteries and Accumulators Compliance Scheme, however the logistics will not be put in place unless Government amends Legal Notice 84 of 2010 so that Schedule 1 will also include the harmonized system codes for batteries and accumulators.

Green MT, GRTU's fully owned subsidiary, continues to insist that this waste stream is another of those issues identical to the WEEE – Electrical and Electronic Equipment Directive. Whilst Government continues to earn millions from the payment of Eco Contribution, MEPA insists that producers have to be in line with LN Legal Notice 63 of 2007. GRTU insists that for one service only one payment is to be done and we shall not allow our members to oblige themselves to pay both Eco Contribution and also a Scheme. This blunder in the environmental field has to stop, and it has to stop now.

The members present for the meeting asked a number of questions which were answered by Mr Joe Attard. Other questions in relation to the interpretation of parts of the said Legal Notice LN 55 of 2010 will be referred to MEPA for their guidance.

Once again, Green MT continues to lead in the field of implementation of the National Waste Strategy. We have one aim, that of aiding small and medium sized enterprises to oblige to their environmental obligations with the best technical manner and at a realistic price.

Joe Attard concluded the meeting by advising all those producers present to register their market placement of batteries and accumulators with MEPA and await further instructions. Once Government decides to provide an exemption status, it will only be then that Green MT will implement the operational structures.

The Batteries and Accumulators Directive is another waste stream European Directive aimed at placing the onus of responsibility of recovery and recycling of the said waste stream on producers through the' extended polluter pays principle'. The Directive was transposed to Maltese Law through Legal Notice 55 of 2010.

Din l-Gimgha l-GRTU ghan-nom tal-Burdnara (cargo hauliers) membri tal-GRTU kitbet lill-Prim Ministru dwar r-Riforma tal-Port. L-iskop ta' din ir-Riforma kien li jitjieb aktar is-servizz fil-konfront ta' dawn l-operaturi. Il-GRTU infurmat li wara diversi laqghat, diskussjonijiet u lmenti li saru min naha tal-membri taghha jidher li dawn il-problemi baqghu ma gewx solvuti. L-maggoranza tal-membri jhossuhom urtati u ddisgustati ghall-fatt li donnu hadd ma jinteressah jipprova jsolvi jew itaffi dawn il-problemi.

 

Il-Burdnara ma huma sodisfatti xejn fejn jidhol l-rwol tar-Regulatur, tal-Valletta Gate Terminal (VGT) li suppost gie mahtur sabiex jiffacilita' x-xoghol ta' dawn l-operaturi. Sal-lum dan m'hu qed jaghmel xejn sabiex jwaqqaf kull ostakolu li qed jinholoq gol-Port b'detriment ghal dawn l-operaturi.

Bhalissa kulhadd jaf li ghaddej ix-xoghol fuq it-toroq (Ten T Project). Wahda mit-toroq involuti hija Triq l-Ghassara li ga qed tohloq inkonvinjent kbir ghal dawn l-operaturi pero l-GRTU dan ix-xoghol kienet taf bih u m'ghandha l-ebda hsieb li tohloq tfixkil sabiex dan ma jsirx sakemm s-servizzi tal-membri taghna ma jigux mahnuqa. 

Il-Burdnara kuljum jilmentaw li ma jistghux jahdmu l-ghaliex l-Port dejjem qed ikun okkupat b'diversi attivitajiet. L-Avviz Legali li jaghmilha cara li l-containers vojta ghandhom jinzammu Hal Far spicca fuq l-ixkaffa. Qieghda tinkiser il-Ligi kuljum u r-Regolatur m'hu qieghed jaghmel xejn biex isolvi dawn il-problemi. L-ispazju ta' fejn jahdmu dawn l-operaturi qieghed jinkera ghal attivitajiet bhall-films, transhipments ta' karozzi, etc. L-VGT minflok tikkopera permezz ta' laqghat kontinwi ma' Transport Malta sabiex jigi organizzat ahjar it-traffic management qieghda tikri kontinwament shed 3 ghal attivitajiet diversi bi tfixkil ghal dawn l-operaturi. Fl-opinjoni tal-GRTU l-VGT ma hijiex qed tiehu l-passi neccessarj u prattici sabiex dawn l-imsemmija problemi li qeghdin jiffaccjaw l-membri taghna jigu solvuti. 

Il-Burdnara qeghdin jilmentaw li l-VGT qieghda timponi spejjez ezorbitanti fuq l-operat taghhom anke sahansitra spejjez tal-area minn fejn il-vettura taghhom tkun ipparkjata fil-hin tal-hadt u tghabbija tax-xoghol. Dawn barra spejjez ohra.

Il-GRTU tinsisti li din hija ngustizzja fuq l-membri taghha u talbet  l-intervent tal-Prim Ministru sabiex jintlahaq kompromess u dawn l-operaturi jkunu jistghu joperaw minghajr it-tfixkil, burokraziji zejda u l-kundizzjonijiet difficcli li qeghdin joperaw fihom illum.

Il-GRTU tapprezza jekk tinghata l-possibilta' sabiex tiddiskuti dawn il-problemi mill-aktar fis possibbli.

GRTU DG and EESC Employers' representative, Vince Farrugia, has this week also participated in the Launch of the European Citizens' Initiative in representation of EESC. In his intervention Mr Farrugia congratulated the EU institutions for this initiative. He said that for this action to be effective we need to involve the largest number of citizens. Vince Farrugia mentioned that from the experience he has of representing SMEs he feels people fail to understand that behind every business there are citizens.

 

The faces behind the owners of small business in Europe are those of at least half the citizens of the United Europe. There are 23 million SMEs, most of them small businesses, and if we take just a figure of 10 as representing employees and family of owner we are talking of half the EU population, this without taking into consideration others involved. These citizens depend on the success of the European Union and its initiatives. They are people firsts, citizens first, and obstacles to their functioning as citizens in a free Europe are obstacles to their economic activity, to their way of living and to their security as citizens.

The Commission has identified this through the important Citizens Report of 2010 and others, including the important Monti report on the Single Market. Ongoing are a number of institution run initiatives in which I am myself involved as EESC Rapporteur on issues like removal of: Cross Border Tax Obstacles for EU Citizens, Obstacles for the furtherance of E-Procurement, Double Taxation and now also obstacles to Citizens on Inheritance Taxes. I also drafted an important report on Budget Surveillance where I insisted on action to safeguard from budgetary austerity important commitment initiatives.

The system of research by the institutions and work on what the consultations bring to the fore are evident, but we know all too well that this is not good enough, not sufficient to diminish the growing disenchantment of EU Citizens with the EU. That is why the European Citizen's Initiative is so important. Essentially the Commission is saying that "what we do is never good enough" now "you as citizens have the right too take own initiatives. Don't just sit there and criticise but mobilise and throw Initiatives at us backed by a million signatures so you really force us to act the way you want".

"This is a tremendous challenge. It is really our duty as leaders in our communities to accept this challenge" concluded Vince Farrugia. "It is now up to the citizens to act in a concerted form. Not just parading and barricading. But concrete organised initiatives backed by committed citizens."

"The ball now is in the citizens court. The leaders, myself included, are often criticised for not doing enough even though we hardly have time for ourselves. We now must act as leaders to cause our citizens to come forward and help them organise to bring to the fore new initiatives that are really citizens' initiatives"

 

Nikolina Aguis and Edward Arrigo are the first two proud winners of Euro 50 cash voucher each. They participated in the recovery of glass through Green MTs initiative for increasing glass collection from Siggiewi. Siggiewi is the first locality indergoing such an initiative. In our third week of collection, Green MT recovered nearly two tons of glass from Siggiewi last Monday.

 

Green MT will be providing eight cash vouchers of Euro 50 each monthly in localities where a glass collection will be held. Coming Monday 2^nd April, a collection for glass starts from Mgarr Malta and on Thursday 5^th April another first collection of glass takes place in Ghasri Gozo.

Glass is being collected in plastic crates provided to the community by Green MT under an agreement with the individual Local Councils. The Scheme intends to have collections from minimally ten Local councils in Malta and all Local Councils in Agreement with Green MT in Gozo. This is an island wide initiative to decrease glass going to land fills. We do not want another Wied Fulija anywhere else in Malta. Enough is enough and we will continue to work with Government Authorities to provide an acceptable parameter to the Competent Authority so that glass fraction is reused locally thus creating more economies of scale.

Once we get the public on board of this initiative, our next step is to segregate glass according to its colour. This would be more beneficial…however we have made a start on the long and ambitious road…and each and every resident has a duty to either use the system or else use the glass Bring In Sites.

Vincent Farrugia EESC Employers Representative and GRTU Director General this week spoke in support of the Opinion presented by Lannoo and Burns regarding a Commission proposal establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014-2020).

 

The EESC Opinion

The EESC Opinion states that the programme should:

1. address all businesses;

2. focus its resources on essential priorities: information, support and advice, access to markets and to financing, adaptation of EU requirements and standards, cooperation, incorporation of the priorities of EU 2020 Strategy (innovation, green economy and the employment of young people);

3. establish a fifth specific objective to this end: to support SMEs and their access to advice, focusing on small and microenterprises.

The EESC stresses that there is an insufficient level of governance partnership in the proposal. The EESC calls for the creation of a working group that would allow European SME organisations to be consulted during all stages of planning, implementing and monitoring the COSME programme.

Important points presented in the paper were also:

1. a distinction to be made between, on the one hand, access to markets and on the other, information, advice and setting up SMEs;

2. support for action already undertaken by SME organisations and public organisations in the Member States;

3.  a modification of the missions and organisation of the Europe Enterprise Network to ensure that it complements the action of SME organisations and involves them directly in its work. The network must be more visible and its potential should be fully used.

What is COSME?

COSME has a planned budget of €2.5bn (current prices). Its objectives are:

1. facilitating access to finance for Small and Medium-sized Enterprises (SMEs)

2. creating an environment favourable to business creation and growth

3. encouraging an entrepreneurial culture in Europe

4. increasing the sustainable competitiveness of EU companies

5. helping small businesses operate outside their home countries and improving their access to markets

COSME will:

1. ensure continuity with initiatives and actions already undertaken under the Entrepreneurship and Innovation Programme (EIP), such as the Enterprise Europe Network, building on results and lessons learnt.

2. continue the many successful features of the EIP, while simplifying management of the programme to make it easier for entrepreneurs and small businesses to benefit.

3. support, complement and help coordinate actions by EU member countries. COSME will specifically tackle transnational issues that – thanks to economies of scale and the demonstration effect – can be more effectively addressed at European level.

 

COSME is expected to contribute to an annual increase of €1.1bn in the EU's GDP. The Enterprise Europe Network is expected to assist 40,000 companies with partnership agreements, resulting in:

1,200 new business products, services or processes annually

€400mn annually in additional turnover for assisted companies.

Access to finance will be easier for entrepreneurs, in particular those willing to launch cross-border activities, resulting in an expected annual increase of €3.5bn in additional lending and/or investment for EU companies.

What happens now?

The Commission's proposal will be discussed by the European Parliament and the Council, which must agree to adopt it. COSME should start on 1 January 2014.

Fil-25 ta' Jannar 2012 l-GRTU organizzat laqgha ghall-membri taghha mall-Onorevoli Jason Azzopardi, Ministru ghall-Kompetizzjoni Gusta, Negozji Zghar u l-Konsumatur, fejn fost affarijiet li gew diskussi qamet diskussjoni dwar l-possibilta' li tigi mahfura s-somma ta' Ewro 700 sabiex sid ta' hanut jkun jista jiftah f'Festi Pubblici li jaqghu matul l-Gimgha. Il-GRTU giet mitluba sabiex tahdem fuq il-granet ta' Festi Pubblici li jaqghu matul 2012 u tipprezenthom lill-Ministru sabiex jigu diskussi fil-Kabinet. Il-Gvern laqa' t-talba li għamlitlu l-GRTU sabiex l-istabbilimenti kummerċjali kollha f'Malta u Għawdex jirbhu d-dritt ghall-hanut jew stabbiliment taghhom li jiddeciedu huma jekk jifthux biex iservu l-pubbliku f'numru ta' festi pubblici minghajr ma jhallsu s-somma ta' Ewro 700. Il-lista li talbet l-GRTU ghan-nom tas-sidien ghas-sena 2012 hi din:

Il-Gimgha 10 ta' Frar (ma lahqitx intlahqet decizjoni), fejn l-ħwienet jistgħu jiftħu mill-4 ta' filgħodu sat-8 ta' filgħaxija, is-Sibt 31 ta' Marzu, il-Hamis 7 ta' Ġunju, il-Ġimgħa 29 ta' Ġunju, is-Sibt 8 ta' Settembru, il-Gimgha 21 ta' Settembru. 

Il-Festi pubbliċi għas-sena 2013 huma:

Il-Hadd 10 ta' Frar (f'dan il-kaz ser jahbat Hadd il-Karnival), il-Hadd 31 ta' Marzu,il-Gimgha 7 ta' Ġunju, is-Sibt 29 ta' Ġunju, il-Hadd 8 ta' Settembru, is-Sibt 21 ta' Settembru

Id-dati ghas-sena 2013 hawn fuq msemmija huma suggett ghad-disussjoni minhabba li hemm xi festi li jaqghu l-Hadd li jridu jimbidlu ma granet ohra li jaqghu matul il-gimgha. Il-GRTU taghmilha cara li din hija issue ta' Festi Pubblici li jaqghu matul il-Gimgha u mhux issue ta' Sunday Trading.

Dawk l-istabbilimenti kummerċjali li huma liċenzjati bħala stabbilimenti ta' catering jew bħala nightclubs, diskoteki 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.

Is-sitwazzjoni ghalhekk hi kif gej;

Dawk is-sidien li jixtiequ jifthu f'dawn il-granet msemmija ma humiex obbligati li jhallsu Ewro 700 sabiex jaghmlu dan. Il-GRTU taghmilha cara li mhux obbligu sabiex wiehed jiftah anzi, tappella lis-sidien kollha biex jekk mhux tant importanti kummercjalment ghandhom jaghtu priorita lis-serhan taghhom bhala individwi u tal-familja taghhom kif ukoll s-serhan tal-impjegati taghhom u l-htigijiet tar-residenti fil-madwar tan-negozju taghhom.