Author: SME Chamber

Siim Kallas, the European commissioner for transport, will brief members of the European Parliament's transport committee on Tuesday on EU rules on passenger ship safety in the light of the capsize of the Costa Concordia cruise ship. 

 

On Monday, the commissioner expressed his condolences and said that the Commission was engaged in a "full check of complex passenger ship safety rules [and] will make proposals during 2012".

The cruise ship capsized after it hit a rock off the Tuscan coast leaving some passengers dead and some still missing. International journeys such as the Concordia cruise are covered by International Maritime Organization (IMO) rules, while journey's within a country's own waters are covered by EU rules. The EU has the ability to go further than the IMO rules for international journeys, and it has done so in the past, for instance with ferries carrying passengers and cars. But rules on the construction of vessels rest solely with the IMO.

The Commission has been conducting a review since last year to see if the existing rules are fit for purpose. Some of the rules date from the 1990s and the dramatic increase in ship size and passenger numbers may mean rules on the stability of vessels or the training of seafarers need to be updated, a Commission official said. In 2000, the average cruise liner had 1,000 passengers. Today that number is 6,000.

Some Commission efforts to change rules on training of seafarers have been rejected by the Parliament, such as a requirement that people working on passenger ships speak English. Some non-Italian-speaking passengers on the Concordia have complained that the evacuation was chaotic and fraught with communication problems.

Ecology threat

The ship is on the edge of the Tuscan Archipelago National Park, the largest marine protected area in Italy. The danger of it slipping off the rock shelf into deeper water has prompted warnings of an ecological disaster, since the ship was loaded with heavy fuel and harmful chemicals.

Efforts are under way to extract the oil, but could take as long as four weeks. The Commission has offered to help with any environmental clean-up, but so far no assistance has been requested by the Italian government.

Environmental groups and the Italian environment minister have called for restrictions on cruise ship activity. Italian campaign group Marevivo said the industry has a widespread practice of sailing too close to shore "to create a picturesque setting both on board and on land". But the European Cruise Council said that its members "are subject to the highest safety standards around the world".

 

 

Why did you become an entrepreneur?  When I met my fiancée, my husband today, he was already in business.
How have you come to chose your line of business? He had already started a line which was more based on souvenirs and as time went by we widened to souvenirs, works of art, collectables, furniture, etc… I find it very interesting, challenging and it's a sort of thing we both me and my husband like.

 

Where did you go on your last holiday?

Italy. I love the Italian culture, food, fashion and the people themselves. I feel one of them when I'm there. I learnt a long time ago that even it's a big country people are themselves, have families, have a mutual respect for each other and foreigners, they make you feel comfortable even when you are dealing with them on business.

What is your earliest memory?

I was very young and my mother was expecting  a baby and they told me I would have a brother. I was very excited! We grew very fond of each other.

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

I admire a lot of famous people such as Mother Theresa, Hilary Clinton, Margret Thatcher, who I found impressive in the way she managed politics and economic, Lady Diana and how she was sensitive she was to the people. But nobody I can say I would really like to be. I'm happy to be me. If I was someone else I would not have the family I have which I care about dearly.

Extension of the mandatory take-back obligation still an issue for commerce – The recast WEEE Directive will bring some welcome improvements, but commerce regrets these may be outweighed by the mandatory take-back provisions.

 

Today, the European Parliament confirmed the trialogue agreement reached at the end of December on the recast of the WEEE Directive (waste electrical and electronic equipment). The changes will bring some advancement towards greater freedom of movement of electrical and electronic equipment; however it will impose a duty on retailers to take-back small volume WEEE, which may actually damage the long-term effectiveness of recycling provisions in the EU.

Christian Verschueren, EuroCommerce Director General said, "Our concern is that shops will eventually turn into collection points and that distributors take on responsibilities which rightly lie in the hands of producers and municipalities. We therefore particularly welcome the provision, whereby existing alternative schemes for collection must be maintained, not duplicated."

The commerce sector fully supports the principles of the internal market and has consistently encouraged efforts to increase the free movement of goods. We have always fully supported the environmental objectives of the WEEE Directive to improve the recycling of electrical and electronic equipment and contribute to resource efficiency. 

We therefore welcome the improvements introduced by the recast, which are a first step towards more harmonisation and reduced bureaucracy, thus helping small businesses and contributing to a better-functioning internal market. Nevertheless, there is still major concern about the long-term implications on the commerce sector of the new mandatory take-back of small volume WEEE by retailers.

Philip Fenech on behalf of the Hospitality and Leisure Division of the Malta Chamber for Small and Medium Enterprises, GRTU, welcomed the newly announced routes that Ryanair chose to operate to Malta. The seven additional routes provide increased accessibility from a Tourism viewpoint, especially those providing additional links to Italy and the UK, as well as the new routes connecting the Scandinavian market via Norway and Sweden.

 

 

 

 

 

 

 

Moreover the novel connections with Poland and Lithuania will provide a fresh impetus to the tourism sector. Every increase in accessibility to Malta results in a direct increase in the economic growth of our country, Mr. Fenech said.

The survey takes only 5 minutes to fill in.In most countries access to funds and capital by enterprises in order to be able to make investments in their business is very difficult. GRTU would like to know more about the situation in Malta. With this information the GRTU will be able to negotiate for better conditions with Government and the banks. The survey will be open until Wednesday the 25th of January.

To participate, please follow the link: http://grtu.net/surveys/index.php?sid=18

Services of General Economic Interest are for example: basic, publicly accessible supply of energy, telecommunication, postal services, transport, water and waste disposal services.

 

At its last meeting before Christmas break the European Commission adopted on 20 December a package of rules on State aid related to Services of General Economic Interests (SGEI) which replaces the so-called Monti – Kroes Package from 2006.

The package includes:

1. Communication clarifying the overall concept of State aid in the context of SGEI (public services, public services compensation, entrustment, transparency, public enterprises, etc.) – positive

 2. Decision, which exempts Member States from the notification of public services compensation, if the compensation is below 15 Mil Euro (before it was 30 Mil Euro) – positive – or it is related to social services (before only hospital and social housing as exempted) – negative.

3. Framework communication for assessing large compensations (beyond 15 Mil Euro).

Furthermore, the Commission presented a draft for a de-minimis regulation, which aims to declare compensation below 500.000 Euro within 3 years as free of aid. UEAPME has argued against this proposal, because SMEs could be the main victim of unjustified (over) compensation or cross-subsidies paid to potential competitors of our enterprises and the proposed regulation will take away the possibility to complain against such unjustified compensations.

GRTU has this week submitted its comments to Government on the issue in line with the position taken by UEAPME as follows:

1. General remarks

Given their weight in the economy and their importance for the production of other goods and services, services of general interest (SGI) are fundamental factors for competitiveness and cohesion, in particular terms for attracting investment in less-favoured regions. The quality, efficiency and non-discriminatory provision of SGI are also conditions for the smooth functioning of the Single Market and for further economic integration in the European Union.

SMEs, Crafts and Trades rely on a wide range of SGI – some of which have a great strategic importance – and considerably depend on high quality, affordability, continuity of supply, safety and security of supply of these services.

Given that SMEs also have to finance SGI through taxation and user charges, they are very interested in the efficient production of SGEI to ensure that services are delivered in a competitive manner. For this reason, SMEs are in general in favour of the private provision of SGI within a competitive environment. However the respect of the provision by the European Treaty, which allows each public entity to decide on its own how its public services should be provided.

2. General comments on the State aid package on compensations granted for the provision of services of general economic interests (SGEI)

The review of the so-called "Monti – Kroes" package from 2005 is welcomes with the aim to provide further clarification on the concept of undertakings and economic activities and the definition of State resources. Furthermore, we agree with the core principles of the regulations, which are based on an explicit entrustment act, compliance with transparency and public procurement rules, a clear definition of compensation and over-compensation and rules for the selection of providers. All these principles are in line with the demand of SMEs for an efficient and effective provision of such services.

3. Specific comments on the proposal for a de minimis aid regulation

We have in general no objection to simplifying the procedure for small municipalities, which entrust public services obligations to small companies. However, the concrete proposal made by the Commission may create some problems as regards an effective control of over-compensation and will increase complexity of the state aid system: The current "Monti – Kroes" package requires for all public service obligations an entrustment act and defines rules for compensation / overcompensation. This regulation is the only effective base for private companies to complain against distortion of competition, if companies or other entities entrusted with public services obligations are cross-financing other market activities (i.e. in cases of over-compensation).

The new de minimis regulation, which does not require any form of entrustment or any rule for the compensation of public services obligations, will take away any possibility for private companies to complain against the abuse of the general rules created by the Commission and by the Court of Justice. Therefore, we ask for conditionality as regards the use of the de minimis regulations. The regulation should only apply in cases where there is an entrustment act that includes clear rules for compensation. This would allow private companies to complain at least before national judges in cases of abuse and distortion of competition. If such conditionality is not ensured, we would propose to refer just to the general de minimis regulation, which allows only state aid up to € 200.000 within three years, compared to € 450.000 / 3 year in the current proposal. This would also avoid additional complexity by applying to different "de minimis" regulations in the area of State aid.

4. Specific comments on the proposal for decision on public services compensation (block exemption)

We welcomes the reduction of the maximum amount of aid (compensation), which has not to be notified, to € 15 Million per year. However, we have serious concerns about the general inclusion of all compensations to hospitals and social services regardless of the amount of aid into the block exemption.

During the last years the provision of private services in the health and social sector has improved significantly in many countries, which has increased the effectiveness of such services as well the quality and variety of these services. The proposed regulation risks destroying these markets and may increase the cost and limit the supply in these sectors. Therefore, the Commission was asked to restrict these exemptions to the absolute minimum.

Consultation: Environmental Permitting of Industrial Activities  –  GRTU has this week written to the officials concerned at MEPA stating that after having reviewed the contents of the consultation document we noted that the time frame permitted to provide feedback in relation to this proposed legislation is quite short. (07.02.2012).

 

 

 

 

 

GRTU came to this conclusion after having come to the realisation that there are a significant number of sectors involved in this matter. GRTU therefore asked for an extension up to the end of April 2012. This would provide enough time to at least meet with the most important sectors involved and give them at least some time to provide a decent feedback.

GRTU has today received confirmation that following our request MEPA will be extending the deadline by 1 month-07.03.2012. MEPA also stated that it will also consider extending the deadline further should the need still be felt. GRTU welcomes this decision.

A Public Consultation Meeting was held yesterday 19^th January at the Mellieha Primary School after Transport Malta received a request from Mellieha Local Council to turn Triq Gorg Borg Olivier into a one-way in the direction towards the Ghadira Bay.
Transport Malta informed all those present that the Local Council is proposing to have Triq Borg Olivier one-way downwards from j/w Triq San Publiju to j/w Triq Snajjin for a trial period of four months. For this reason a traffic survey was carried out by officials of the Research and Development Unit to quantify and assess the percentage of through traffic in Triq Borg Olivier/TriqMarfa/Triq Kbira when compared with local traffic.

 

From the survey it results that for the traffic movement from Triq Marfa to Mellieha roundabout (uphill) for the morning peak, the maximum percentage of through traffic was 12,5% whilst a maximum of 87.1% was local traffic. For the traffic movement from Mellieha roundabout to Triq Marfa (downhill) for the morning peak, the maximum percentage of through traffic was 15.4% whilst a maximum of 84.1% was local traffic. In both cases, the percentage of through traffic for the midday peak was less.

A traffic survey was also carried out for heavy vehicles in the winter season in Triq Marfa for a weekday for passenger cars and for heavy vehicles, coaches and route buses. For the survey it transpired that Triq il-Kbira/Borg Olivier takes a considerable amount of heavy vehicles with a maximum of 29.6% for the downhill traffic during the morning peak. The percentage of heavy vehicles proceeding uphill is a maximum of 16.2% occurring during the midday peak time with 11.4% of heavy vehicles passing during the morning peak. The national percentage of heavy vehicles from the total licensed vehicles is 15.64%.  All the above percentage values for heavy vehicles exceed the national percentage except for the percentage of heavy vehicles proceeding uphill during the morning peak.

Conclusion

1. There is a relatively small percentage of through-traffic in Triq Borg Olivier and hence this percentage cannot be interpreted as being the cause of the congestion problems in this road

2. Data for passenger cars and heavy vehicles shows that the most critical movement is for vehicles proceeding downhill.  However such values also show that, collectively, the percentage of heavy vehicles passing through Triq Borg Olivier is very high when considering the effective road widths.  It is understood that it is not the wish of any of the stakeholders to reduce on-street parking in Triq Borg Olivier and hence, the additional effective road width required cannot be obtained through the removal of on-street parking.

3.  The main cause of the congestion problems in this road is not the through traffic but the lard percentage of heavy vehicles which, given the limited effective road width, are not sustainable.

4.  From an overview of the alternative routes identified through Triq Gnien Ingraw, Triq Tas-salib and through Triq Dun Frangisk Sciberras, it resulted that these alternative routes have serious road safety issues and are not considered adequate albeit they are already being used today but to a much lesser extent and only by the immediate residents of such streets. With the proposed one – way, the use of such routes will be due to no other options available by general Mellieha traffic.

 

 

I was shocked to hear the Hon Franco Debono statement that business and the economy is second, or lower still, to anything he is saying about democracy and our system of justice. I would have understood that a serious preoccupation would have arisen if the European Court of Justice, the United Nations or our own Constitutional Court had delivered any condemnation or decision that reflected badly on democracy and the rule of law in Malta. Indeed, if that were the case, I would have greatly subscribed to the need for people to revolt.

 

But the state of democracy in Malta today is not in peril. Definitely not in the mind of the very vast majority of the Maltese and almost the absolute total of the enterprises GRTU represents.  I honestly think it is an insult to all Maltese were we to admit that in Malta we have serious problems with our justice system and with the rule of law or that our democratic institutions are so endangered that we stand better  off  if we were to throw everything else overboard and concentrate  only on the defence of democracy at whatever the price. There was a time in Malta, and not so distant, when we had to do that, and I personally am proud of the role I took then and so is the national organisation I proudly preside on today, GRTU. When the need really arose GRTU was on the forefront to fight for democracy, the rule of law and the right for free trade and the right to have an independent Court of Justice and a Police Force that protected and not threatened people. Who in his right senses can state today that we have a crisis of democracy that is worth throwing everything else overboard?

I deal with government and with public institutions on behalf of GRTU's seven thousand members, who together own more than ten thousand business and employ tens of thousands of Maltese employees. I know that there is much more to be done so that our system is fine tuned to the best of European standards. But I am proud, so proud, of what this country has succeeded to do in a relatively short period of time since we embarked on a programme of liberalisation and social and political development which has seen its climax in the years since we have been members of the European Union. We all admit there is still so much to be done and we are enthusiastic to get things done, but always within the framework of the institutions we have as a result of our adoption of the European model, democratically adopted and within the limits of our capabilities as a small nation state. We in GRTU have transformed ourselves successfully from an organisation that simply grumbles and complains into an effective professional and well organised outfit that not only successfully transmits to the authorities, here in Malta and in Brussels, the views and needs of the small enterprise and self employed sector in Malta's, but also into a strong national organisation that provides constant support and services to our members and that is tireless in the provision of proposals and suggestions for further improvements to our national economic performance and the constant upgrading of our democratic and social support and cohesion systems.

We do make noise and often complain loudly in the media and take drastic action when the need arises or when the arguments around the negotiation table lead nowhere, but we are all the time conscious that what we say in the public, though genuinely in support of the causes we are fighting on to safeguard our members, may have a negative impact on consumers and a serious subtraction of total sales to the sufferance of our own members. That is precisely what happens every time people are confused with an issue or another. It happens before Budget day, it happens each time there is a crisis, real or imagined. People simply withdraw from buying and stick to the essentials. Bars, restaurants, places of entertainment, supermarkets and home stores immediately feel the plunge. Consumer confidence today is so fragile and unpredictable. Politicians and we leaders of constituted bodies and trade unions have to be very careful as to what action and what messages we send to the public. This applies to all, leaders and backbenchers. The media more often than not is ready to jump on the sensational. Most times I believe that journalists are too gullible to bother about the impact of what they highlight. Indeed I suspect that very often certain sections of the media have a hidden agenda of distortion and exaggeration, in spite of the negative impact on business, may be more a design than a coincidence.

The political situation today is an exaggeration and the damage it is already doing to business is incalculable. My people are suffering. Businesses are losing money. Sales are in the doldrums. Of course, the economy and business is a priority. The crisis in the rule of law and to democracy may be big in Dr Franco Debono's mind, but I state categorically, that this is not the case in enterprise owners' minds. Business has enough problems to deal with. We have gone through a pretty tough period over the last 3 years. We as GRTU have argued and even banged on tables and done whatever we could possibly do within the framework of a democratic system where legitimate lobbying is not only permissible but has also the fora where consultation and negotiation occur on a wider agenda than most people care to know, but we always keep the wider economic and social picture in mind. Yes, it's the economy that rules.  There is no crisis either in democracy or in the rule of law. There is no crisis in the economy either. We have problems but with diligence and professional co-operation there are no insurmountable problems. Business owners are carrying a terrible burden. They are moving on, continuing to invest and utilise the support of a number of favourable assistance schemes that we as GRTU have successfully negotiated on their behalf. They are continuing to recruit labour and in spite of the new pressure on Government to further cut its Budget deficit, overall there is business confidence.

We in business do not love people who rock the boat. I don't want to go into the merit of what are the real issues between Dr Franco Debono and Dr Lawrence Gonzi and the Nationalist Party. What interests me is tranquillity and prioritising of what really matters for our businesses and for our employees. Lengthy discussions in Parliament and in the media on political issues and all this hype about instability is bad for business. I am honestly shocked at the number of business owners who express their ingrained fear of change. They simply don't want change and don't want anyone to rock the boat. Politicians cannot continue to talk and pronounce without taking heed of the economic impact of what they say. When I say economic impact it means loss of profits, it means loss of jobs, it means somebody is being made to pay, somebody is made to suffer, because someone else is enjoying his right to say and act irrespective of anything else. This is not correct. The country does not deserve this crisis. Whoever is responsible must reflect deeply and retract. Prudence and diligence must lead.