Author: SME Chamber

Why did you become an entrepreneur? I never liked working for other people then there was a friend who introduced me to the option of becoming self-employed

How have you come to chose your line of business?

A friend who had already knowledge of the waste sector introduced me to it and I saw the opportunities I could use

Where did you go on your last holiday?

UK and Scotland and what impressed me most was the snow and their culture

What is your earliest memory?

I was naughty when I was a boy and something I remember clearly was that when I was at school in primary students had to take a plant to class and I didn't, so I stole one from another class but then I was afraid I was going to get caught that went to put it back.

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

This is something I never thought of. Right now nothing comes to mind probably because I'm happy the way I am.

The European Commission and the European Investment Bank Group launched a new guarantee facility for innovative small and medium-sized enterprises (SMEs) to help them access finance from banks. This builds on the success of the Risk-Sharing Finance Facility (RSFF), launched in 2007, that has so far helped 75 companies benefit from over €7 billion in EIB loans to projects enhancing European growth and competitiveness. The new risk-sharing instrument for SMEs will be managed by the European Investment Fund (EIF). In addition, the EIB and the European Commission are to provide extra resources for research infrastructures.

"Investing in research and innovation carried out by SMEs means that we will have more growth, sustainability and competitiveness in Europe" said European Research, Innovation and Science Commissioner Máire Geoghegan-Quinn. "The Risk-Sharing Finance Facility has proved to be one of the most successful parts of the EU's 7^th Research Framework Programme, and through co-operation with the EIB has already unlocked significant new investment for research, development and innovation."

"Without raising its potential through research and innovation, Europe will be unable to generate the growth it needs to maintain its place in the world economy," said European Investment Bank President Philippe Maystadt. "The Risk-Sharing Finance Facility has already helped many large and mid-cap companies realise their plans. With the changes we are announcing, we are confident that SMEs will now also benefit."

The SME risk-sharing instrument (RSI) will be managed by the EIF, the EIB Group subsidiary that specialises in providing risk finance to benefit micro, small and medium-sized enterprises across Europe via equity and loan guarantees. The EIF will offer banks a guarantee on part of their new loans and leases to innovative SMEs, allowing the banks to lend more and to do so at more attractive rates.

"Innovative SMEs in their start-up and early stages have particular difficulties in accessing finance," said EIF Chief Executive Richard Pelly. "The new RSFF guarantee window, the Risk-Sharing Instrument, addresses this funding gap and helps these dynamic and fast-growing SMEs to start and grow their businesses."

The amendment to the existing RSFF agreement was signed by Commissioner Máire Geoghegan-Quinn and by EIB President Philippe Maystadt at the start of the 2011 Innovation Convention in Brussels. It is expected to unlock a further €6 billion of loans until the end of 2013, including up to €1.2 billion for SMEs and up to €300 million for research infrastructures. From 2014, in conjunction with new instruments for equity finance, the Commission intends to scale up and expand the RSFF under the proposed Horizon 2020 Framework Programme for Research and Innovation.

Background
The Risk-Sharing Finance Facility
If the EU is to reach its target of investing 3% of its GDP in research, it needs to boost private sector investment in R&D and innovation. An important pre-condition for achieving this is mobilising finance. However, financial markets and institutions are often reluctant to back research- or innovation- intensive companies or projects due to the relatively high levels of uncertainty and risk inherent in their activities. The RSFF, launched in 2007, was a direct answer to this challenge. It improves access to debt financing for promoters of research and innovation investments by sharing the underlying risks between the EU and the EIB. Together, the European Commission and the EIB are providing up to €2 billion for the period 2007-2013 (up to €1 billion each). These contributions translate into billions of additional financing available to innovative companies and the research community.

RSFF for SMEs: the Risk-Sharing Instrument (RSI)
The RSI aims to encourage banks to provide loans and leases of between €25 000 and €7.5 million to SMEs and smaller mid-sized firms undertaking research, development or innovation, with loan periods of from two to seven years, and with the risk finance covering investments in assets (tangible or intangible) and/or working capital.

The EIB will mandate the European Investment Fund (EIF) to manage the RSI. The EIF, in turn, will enter into individual guarantee agreements with banks following the submission of applications to the EIF under an open call for expressions of interest, which will be launched in early 2012. Applicant banks will be treated on a first-come, first-served basis, subject to their meeting the requirements of the EIF's standard screening and due diligence procedures.

Under the terms of each agreement, the EIF will provide, in return for a fee, a guarantee to the bank concerned against loan defaults. For each default, the bank would receive 50% of the amount of the loan outstanding. Some 10 or so banks are likely to be involved, and the RSI plans to reach up to 500 beneficiaries with a total loan volume of up to €1.2 billion.

European Research Infrastructures
Research infrastructures play a crucial role in promoting knowledge and technology in Europe, bringing together a wide diversity of scientists and disciplines. In 2006, ESFRI published a roadmap identifying 35 priority EU-scale infrastructures required in key scientific areas. The RSFF is helping boost the emergence of these new research facilities, and the amendment will enable loans to be made not only to the infrastructures themselves but also to their suppliers and to enterprises commercialising their results and services.

Industrial installations, while being useful to society, can result in various environmental impacts, ranging from emissions to air or the marine environment to contamination resulting from accidents. For this reason, industry is regulated by the Environmental Protection Act and subsidiary legislation, including the following:

• IPPC Regulations: Regulating high-risk installations, such as power stations, certain waste management activities, large farms, etc.
• Waste Management Regulations: Defining waste management permits and registration systems (includingwaste carriersandwaste brokers).
• Additional permitting regulations on specific issues and/or sectors, e.g.VOC solvents,marine discharges, petrol stations & fuel terminals, various chemicals, etc.

Facilities covered by the above regulations, or whose development permit includes this as a condition, need to apply for an environmental permit. Companies may also apply for an environmental permit on a voluntary basis.

Environmental permitting application forms are available here, and need to be submitted to MEPA as one digital and one printed copy. IPPC application forms are available here, while registration forms are available here. Assistance may also be obtained by contacting the Environmental Permitting and Industry Unit at MEPA. 

The Consultation

MEPA is currently carrying out public consultation on a system of environmental permitting to improve the regulatory framework applicable to industrial activities of environmental significance. This system would result in improved protection of the environment, while offering several advantages to industry, such as legal certainty, clearer definition of environmental liability and the opportunity to identify priority environmental issues to enable appropriate risk management.

Further details regarding this proposal including the consultation brief, proposed draft framework for Environmental Permitting of Industrial Activities legislation and the Draft Environmental Permitting and Registration (Fees) Regulations are available at:

http://www.mepa.org.mt/environmentalpermitting

Further information may be obtained by calling the Environmental Permitting & Industry Unit on 22907230. MEPA will also be organising a number of consultation meetings in the coming weeks to facilitate discussion regarding this proposal.

Comments will be received by email on  or by filling in this contact form by 31 January 2012. Comments will be taken into consideration in the drafting and finalisation of the legislation.

FICCI is organizing the first India Sustainability Conclave on March 6-7, 2012, in New Delhi. The conclave aims at helping businesses find solutions to address the challenges of embedding sustainability within their day to day operations and help develop a whole new level of organizational commitment to their wider group of stakeholders, and not just shareholders and consumers.

The Conclave will focus on four dimensions:

• Broad understanding of businesses on trends, challenges, sustainability paradigms, current corporate initiatives and role of policy
• Elements of external interface for businesses such as supply chain imperatives, stakeholder engagements, and sustainability reporting
• Capacity building for businesses to build their internal capabilities – special Master classes
• Focus on two thematic areas – water and waste – key to sustainable business operations

The three special features of the conclave include:

• Master classes on Sustainability Reporting for Corporates and on Sustainable Financing for Banks and Financial Institutions
• ‘Sustainability and CleanTech Expo' providing companies an opportunity to present their sustainability milestones and initiatives, path breaking technologies and innovative projects
• Promotion of ‘Business to Business' interface through various networking opportunities and a structured B2B session

The Conclave will draw participation from leading companies and organizations that are at the forefront of sustainability and clean technologies, as well as global thought leaders, experts, policy makers and sustainability service providers. It will be an ideal platform to provide visibility to companies, organizations and stakeholders to showcase their prowess in sustainability and clean technologies.

European leaders agree on immediate action to address market tensions – European leaders have agreed on immediate steps to forcefully address current market tensions. The European Financial Stability Facility (EFSF) is to be leveraged and leaders agreed to accelerate deployment of the European Stability Mechanism (ESM). The ESM treaty should now enter into force in July 2012. When the financial and economic sustainability of the euro area is threatened, an ESM emergency voting procedure will ensure swift decision-making. Furthermore, euro area and other Member States will decide within 10 days whether to provide additional resources for the IMF of up to EUR 200 billion (USD 270 billion), in the form of bilateral loans. As for private sector involvement, the EU will henceforth strictly adhere to well established IMF principles and practices.

European leaders agree on "fiscal compact"

To move more strongly towards a genuine "fiscal stability union", euro area Member States have agreed on a "fiscal compact". Several other Member States have indicated their readiness to take part after consulting their Parliaments. The goal of the compact, as a response to the current crisis, is to strengthen fiscal discipline and introduce more automatic sanctions and stricter surveillance. The main elements of the fiscal compact include a requirement for national budgets to be in balance or in surplus and a requirement to incorporate this rule into national legal systems at constitutional or equivalent level. Similarly, the rules governing the Excessive Deficit Procedure will be further reinforced. In addition, and based on the Commission proposals of 23 November, if, after examining draft budgetary plans, the Commission identifies particularly serious non-compliance with the Stability and Growth Pact, it will request a revised draft budgetary plan.

New EU fundraising rules to boost venture capital for SMEs and ease access
The European Commission has presented a strategy to promote better access to finance for SMEs. The EU Action Plan, released on 7 December, calls for increased financial support from the EU budget and the European Investment Bank. It also includes a proposal for a regulation that will make it easier for venture capitalists to raise funds across Europe by introducing a single rulebook for marketing funds. A related measure announced at the end of November, allows the use of structural funds to invest in enterprises at any stage of their normal business activity and not only at the time when they are established or are expanding, as was the case until now. As a result of a fall in lending to the real economy during the current crisis, it has become increasingly difficult for SMEs to access loans. Access to finance, however, is essential to enhance SMEs' competiveness and growth potential.

The Ecofin Council (bringing together ministers of finance and the economy of the 27 EU Member States) and the European Parliament have reached an agreement on the EU budget for 2012. As a result of this compromise, the limit on payments for 2012 was set at €129.088 billion. This represents a 1.86% increase over the 2011 budget.

This is slightly below the average inflation rate of 2% for the EU27. In the 2012 budget, particular attention is being paid to programmes aimed at stimulating growth and employment such as the 7th Research and Development Framework Programme (FP7) and the Competitiveness and Innovation Framework Program (CIP). These contribute towards reaching the targets set by the Europe 2020 Strategy for smart, sustainable and inclusive growth. More funds will also be allocated to the area of freedom, security and justice with an additional €9 million being made available for FRONTEX and the European Refugee Fund.

In a national Conference organised by Green MT, Malta's national waste packaging scheme, for its 41 local council associates. Green MT gave details of its successful operations for the year 2011 and gave also a preview of its planned strategies for 2012.

In the opening of the conference Vince Farrugia, Green MT chairman, states that "Green MT is Malta's only national social enterprise as it is one enterprise which is not only not for profit but where all resultant positive balances are reinvested for the benefit of participating members and associated Local Councils. This has been a hard task to establish, as the concept of social entrepreneurship in Malta is still not widely known and appreciated, however the sheer non-stop endeavours of the excellent team working on behalf of Green MT, the absolute support of participating Local Councils, and the tremendous work of all the contractors engaged by Green MT and the very growing support of families and households, the idea of a social enterprise working on behalf of the community is now taking roots. Gratitude is also due to the many Government authorities who give their support to our efforts to make the scheme a success. In spite of the many difficulties we have to work for success". Concluded the Green MT Chairman.

Joseph Attard Green MT CEO gave a presentation outlining that during the first 39 weeks of 2011 the scheme recovered 6,296 tonnes of recyclable waste from Local Councils in Malta. Green MT recovered recyclable fractions from a population of 256,000, thus the amount recovered is equal to a per capita weekly recovery of 25kg. It is to be noted that during the last week of September the scheme recovered 142 tonnes which is a peak for 1 week. Green MT's total amount recovery is of 10,657 tonnes throughout the period. Collections from local councils amount to 59% of all total recoveries.

Other details on link: http://www.greenmt.org/content/images/stories/seminar.pdf

On the initiative of the Head of Commission Representation in Malta Martin Bugelli, GRTU and other leading constituted bodies had the opportunity to meet Michel Barnier, Commissioner for the Internal Market and services during his visit in Malta. GRTU raised the issues related to obstacles to trade and investment in the internal market especially as these effect services, problems related to the implementation in Malta of the Transparency Directive and issues relating to thresholds on public procurement in the internal market.

GRTU Director General Vincent Farrugia stated that he is very much involved as Malta's employers representative at EESC on issues effecting the internal market. Mr Farrugia was the rapporteur who wrote the EESC adopted report on the taxation obstacles for citizens crossing from one country to the other. He stated that much greater effort needs to be done to eliminate the obstacles that are effectively prohibiting more trans-border investments by small businesses. In spite of the efforts of the commission too many hurdles still exist and the statistics show clearly that the vast majority of enterprises – 99% of enterprises are small and medium – hardly ever cross borders. This really means that under current austerity programmes, as imposed by various Governments under budget deficit procedures and as total demand continues to fall due to falling rates of economic growth, that an unbalanced situation in Europe continues to persist whereby areas in Europe suffer from shortage of labour while others have high rates of unemployment. This is one important factor why youth employment in Europe in many countries is so high. There are simply not enough incentives for EU citizens to become more mobile in spite the fact that we have just celebrated 20 years of internal market. Michel Barnier was also urged, given his vast experience in trade and administration, to push harder to remove existing obstacles and provide great incentives for owners of SMEs especially in the services area to be able to seek new opportunities for orders and direct investment across the EU.

Paul Abela GRTU President raised the question of public procurement. Also on behalf of GRTU and the employers Vince Farrugia was rapporteur on the Communication Green Paper on expanding the use of e-Procurement in the EU. The President stressed that the threshold level under which tenders for orders by Governments of member states are not obliged to be public should be removed. Traders, consultants and service providers from Malta cannot be expected to contest for the above threshold contract, most of there offers are just too large. It is easier for small enterprises from all over Europe to be able to bid for tenders for orders across border if smaller size orders where also open for cross border competition. The situation is getting even worse in the market of most member states such as Malta where obstacles for small enterprises to compete for public tenders are increasing rather then diminishing. The GRTU president appealed for strong immediate action on this issue.

"Small businesses have survived during the recession and will grow despite the treat of a second recession if they are given greater opportunities to work beyond borders. Malta is not afraid of this competition. On the other hand we make efforts as the national chamber of SMEs to encourage our members to look for opportunities within the internal market", stated Paul Abela.

Another speaker at this encounter with Barnier was Mario Debono. Mario is GRTU's special envoy to Libya and he is also President of the pharmaceutical section at the GRTU. Mr Debono explained that the way that the Transparency Directive is being implemented in Malta is erroneous, and in the views of the Pharmaceutical Committee he represents the Maltese Government is going beyond the power bestowed by this Directive. The Directive is aimed at ensuring transparency in the pricing of medicines that are refundable under medical health systems as operational within most EU countries. In brief this really means that the vast majority of EU citizens who are eligible for free medicines under the national health schemes of most EU countries should not be over charged by pharmaceutical suppliers as this would entail unnecessary and additional burdens on the national free medicines services. This situation is not applicable to Malta.

Medicines in Malta except for those listed as receivables of medicines in Malta from the state are sold by registered pharmaceuticals and paid for directly by Maltese citizens. It is a free market where the role of Government is only to ensure that market mechanisms work but definitely does not provide for a Government Imposed Price Control Mechanism of medicines. Yet in Malta under the aegis of the Transparency Directive, Parliamentary Secretary Chris Said, responsible for consumer affairs on behalf of the Government, introduced a regime which is nothing short then Medicine Products Price Control which is unacceptable in a free market and according to GRTU a sheer abuse of the Transparency Directive.

Mario Debono on behalf of GRTU strongly urged Michel Barnier to take up this issue. GRTU has already written to the Commission as GRTU believes that the Malta Government is in infringement. "GRTU is against any abuse by any trader in the pricing of medicines. Government is right in ensuring that suppliers of medicines under public procurement should adhere to the strictest control so that the pricing of medicines to Government services not only appear to lack any hidden profitability but also to lead in a free market with just pricing. Supply of medicines in a free market in a small country like Malta that finds it extremely hard to ensure regular supply from leading manufacturers because of the small size of orders and demands from various brands cannot be accepted to compete under rigid and illicit price control interventions by Government. Traders are suffering but those that are suffering the worst are the patients as a wide range of medicines are becoming uneconomic to trade for local commerce. This is a serious situation as it is turning the clock back to the years of state dirigiste economic policies. This is why GRTU strongly urged Commissioner Barnier to act.

Strong proposals by Vince Farugia-Malta Employers Representative – The European Economic and Social Committee (EESC) Plenary Session held yesterday 8^th December in Brussels discussed a number of recommendations that the EESC wanted to highlight, solutions to the current Euro zone financial crises. Speaking in the discussion where select speakers from the three groups at EESC – Group I (Employers), Group II (Employees), Group III (Civil Society). On behalf of the Employers Group, Vincent Farrugia, Malta Employers member raised 7 important points:

1. Immediate implementation of what is already agreed: Vincent Farrugia strongly urged as top priority for action by the EU Council of Ministers for the immediate implementation of all legislative instruments (six pack) on economic governance already agreed to by all member states. He insisted to implement without further delay all agreed initiatives for the recapitalisation of European banks and to take more determinant action on the stabilisation of volatile economies.

2. Enhancing competitiveness and economic growth: It is essential, Vince Farrugia stressed, for national and European competitiveness and economic growth to be enhanced by more specific investment programmes, including the possibility also of bringing forward for implementation essential parts of the Europe 2020 Agenda.

3. Ex-ante review and approval of national budgets: Vince Farrugia insisted that the EESC should come out very strongly in favour of stricter fiscal discipline as Europe cannot afford a repeat of the way the stability and growth procedures where abandoned in the pre-crises period. The EESC should also come out strongly in favour of the adoption of strong fiscal rules, including rules that imposed balanced budget strategies on member states. The balanced budget rule should, as he advised in his report on the Effective Enforcement of Budgetary surveillance in the Euro Area, be implemented in a phased, economic and sustainable manner. Mr Farrugia commented negatively however on any imposition on all MS of any ex-ante review and approval of national budgets by the Commission. He requested the EESC to come strongly against this concept as it infringes upon national sovereignty and erodes the authority of democratically elected Governments. "What the EESC should insist on strongly is that the ex-ante review and approval of national budgets should be adopted only, but strongly, in respect of countries which break the rules, which as a result are risking the financial stability of the whole Euro area", emphasised Vincent Farrugia.

4. Compact in favour of fiscal stability: "Too much loose talk is being stated on the establishment of a fiscal union when actually what most mean and are ready to accept is a compact approved by all member states to impose greater fiscal stability. A fiscal union normally implies a finance authority super-imposed on all member states and with powers to impose taxation at ‘federal level'. It also implies that someone will decide on how these federal taxes will be used. This is not what member states want and it is not in the spirit of the EU Treaties. What we all want is increased fiscal seriousness and the right mechanisms to impose discipline. This can be done through a ‘compact' and not through a ‘fiscal union'" stated Vince Farrugia.

5. European stability mechanism (ESM): The ESM is a flexible and robust institution, specifically geared to address current and future challenges in the financial markets. The EESC should come out very strongly in favour of the earliest entry into force of the ESM.

6. Mutualisation of depths: Mr Farrugia said that "again a lot of stress is being made on the concept of Eurobonds, but no one stresses their implication. The most serious of which is that all the member states of the Euro zone would approve a process of mutualisation of depths, implying that those member states that have been disciplined, have not abused of the Stability and Growth Pact rules and have no problem in raising money at the tight level necessitated by their prudent fiscal policies, will have to be castigated by being undermined by the imposition of depth burdens of those member states who have abandoned prudence and discipline and are therefore suffering from the consequences".

7. Treaties of the EU: Vince Farrugia finally strongly urged the EESC to move publicly against any proposed changes to the EU Treaties. Treaty changes would lead to delays in the action that is urgently needed and would create more divisions than solve. "The last thing that Europe needs at the moment is division rather than unity", stressed VF. He urged that the best way forward is for all the 27 member states working together to produce an agreed solution and agreed implementation mechanisms rather than any Treaty change.