Author: SME Chamber

 The Malta-EU Steering and Action Committee (MEUSAC) will be organising, on 30th November, a national conference on Europe 2020. The ‘Europe 2020' strategy has been drawn up to tackle the challenges of the economic crisis and to turn the EU into a smart, sustainable and inclusive economy, increasing employment, productivity and social cohesion across Europe. It is through the contribution of all citizens that it will be possible to reach the set targets.

This national conference wraps up a series of seminars on the various flagship initiatives of the Europe 2020 strategy, namely:

• An agenda for new skills and jobs & youth in the EU;
• Energy efficiency;
• Research and Innovation;
• The Digital Agenda;
• The European Platform against Poverty.

The conference includes presentations by foreign speakers from Denmark, Cyprus, Spain and the United Kingdom on the above mentioned issues. The topics selected include:

• Quality assurance in Vocational, Education and Training provision;
• Overcoming poverty and exclusion;
• Energy efficiency;
• An inclusive European information society in a time of economic crisis; and
• An Innovation Union for economic recovery.

Those interested in attending the conference are requested to register by sending an email on .

Date: 30th November 2011

Venue: The Palace Hotel, Sliema

Time: 8.30 – 14.00

MCESD- Malta Council for Economic and Social Development is holding a series of seminars funded by ESF -European Social Fund through the project closer to Europe. This seminar entitled models of social and civil dialogue in Europe aimed to focus on how European member states can combat poverty and social exclusion.

Two representatives from GRTU attended to this seminar held on the 17^th and 18^th of November at the Palace Hotel. The seminars' main speaker was Fintan Farrell-Director General of European Anti-Poverty Network (EAPN) since June 2002.

Fintan Farrell is involved in Partnership 2000 – an agreement done in Ireland. It consisted of an independent tribunal on education and discrimination regulations. This agreement was concerned on social welfare and its main objective was to reach and create an equal society for all citizens. Mr. Farrell is a great believer in participation and has contributed to the development of this practice, which seeks to empower people experiencing poverty and social exclusion.

The aim of the seminar was to enhance the quality of social and civil dialogue in Malta. Some of the examples that lead to social and civil dialogue are:

• Local Traveler Accommodation Consultative Committees
• National Social Partnership Agreements
• The open method of coordination on social protection and social inclusion
• Regular structured dialogue with the European Parliament

Such dialogue can cover more aspects from over-changing society rather than focusing only on poverty and social exclusion. Civil and social dialogue enhance participatory democracy meaning a societal model that seeks to extend this fear of participation and people's power to take decisions for themselves beyond traditional policy making. It is a notion that is becoming more forward: more factors influencing Government decision making. More citizens are being involved in their country development.

During this seminar, training programmes were done to achieve more close experiences of each of the participants. Small groups were formed to share experiences on how they were involved on social and civil dialogue. Groups were formed to share experiences on how they were involved in social and civil dialogue. Groups were formed from different people with different age groups. This helped us in gathering experiences from others and in amalgamating ideas.

These groups were also formed to express what we as Maltese want and expect from social and civil dialogue.

Some of the main factors highlighted were:

• Proposals and listening
• Commitment to reach compromise
• Progress, feedback and listened to
• Information and experts
• Respect and Action

Groups were also asked to discuss and try to reach a close definition of social and civil dialogue. The group in which GRTU representatives participated came up with the most close and appropriate definition as per Mr. Farrell, speaker of the seminar. The definition was: "People want to be informed as part of a transparent society in which they trust and engage in a dialogue of mutual understanding and respect leading to an effective action and solidarity".

No common definition is reached even internationally on what social and civil dialogue is but it is recognized both locally and internationally, more people are having more ideas about how we can develop civil and social dialogue. Civil dialogue is the public authority while social dialogue is like an intermediary that negotiates with the authorities.

The international labour organizations identified a very broad definition why it is difficult to find a proper definition. The ILO defines civil dialogue as: "A component and a tool of participatory democracy with the public makers as the interlocutor. It defines the relationship between public decision makes and organized civil society. While as to social dialogue it is defined as: "To include all types of negotiations consultation or simply exchange of Information between or among representatives of Governments, Employers and Workers on issues of common interest relating to economic and social policy."

Civil and Social Dialogue are meant to achieve more equality between citizens. It was concluded that more common democracy is being done so that the common good is reached rather than using individual ways of dialogues.

Civil Society today is more visible, more organized and more vibrant than ever before. And yet, despite an increasing number of consultations, there is a little shared understanding of what is meant by civil dialogue, civil society and participatory democracy. The emergence of civil society is one of the key features of modern democracies, whether at community, local, national or international level. Ultimately, engaging civil society in the daily life and the political process is a very effective way to promote social cohesion, solidarity and social justice, creating a better quality of life for everyone.

Why did you become an entrepreneur? To be my own boss and nobody bothers me

How have you come to chose your line of business?Other than my family renewable energy is the love of my life, ever since I can remember as a kid I had an interest in energy generation and things of that sort. My mother has some interesting stories to tell!

Where did you go on your last holiday?

Australia and the thing that impressed me most was the ocean

What is your earliest memory?

We were in the car with my father and he was driving and was going to crash. I remember him very clearly saying to the man in the other car he was going to crash into "nigi u naqlghalek il-mustacci!!"

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

Richard Branson- He is hard working, earns money and has a good life.

This week I participated in a number of meetings related to tourism where we discussed the success industry enjoyed throughout this year and also went into detail on how to face next year's challenges due to the economic turbulence that is around us.

As President of the GRTU hospitality and leisure division I emphasised the point that many a time the statistical contribution of tourism is calculated mainly through hotel and restaurant activity. The effect of tourism is however in reality so broad that it literally affects almost every economic sector, in Malta. An example for instance is, when a factory is producing food some of the goods go towards tourist consumption, this but does not show in our national figures as tourism consumption, so is the case for other economic activities as boutiques and other shops of giftware, etc.. A very interesting presentation of the overall situation in tourism was delivered by Hon Mario De Marco and his team at MTA in an MCESD meeting.

Another separate meeting was also held with Hon George Pullicino and Hon Mario De Marco together with various stakeholders in the area of Paceville. The discussion focused on the fact that Government would be embellishing the main area in Paceville, where a lot of private investment was occurring and the embellishment would actually support this investment. Another important aspect discussed was pedestrianisation of the centre of Paceville and other issues related to logistics of the works that would be carried out. I emphasised on the importance that in the period during which works are carried out, every business would still be able to operate due to the fact that it is a high cost area, with retailers paying very high rents and compliance costs together with the large numbers of staff that they employ. Paceville also provides services in general to the local and tourist community. I made it clear that for all these reasons we cannot afford for even one establishment to close of have his operations limited at any time during the works. For this reason each area for which work is to be carried out a plan should be clearly laid out so that every establishment will be accessible to the public for normal trading businesses.

The GRTU would like to thank Transport Malta for a fruitful presentation held at Transport Malta Offices on Tuesday 22nd November 2011 informing all concerned with the phasing and the traffic management for the Triq Dicembru 13 to Menqa Roundabout Marsa Ten T Project commencing shortly.

GRTU on behalf of all stakeholders concerned informed that it continues to support the projects being carried out but would like to bring to the attention of the Authority their concerns and what the GRTU is proposing on their behalf;

Road works in Triq Patri Felicjan Bilocca, Marsa

• GRTU requests Transport Malta to re-consider the decision to commence the imminent road works scheduled for the above road and postpone the commencement date by a month till Monday 26^th December 2011.
• The planned road works and restriction to one-way traffic will seriously impinge on the logistics of the three to four daily container and trailer loads servicing the business community.
• One must also take into consideration the concurrent exit on a daily basis of many heavy vehicles distributing goods to vari-

ous outlets around  Malta and Gozo with deadlines, many of which are perishable goods and need to be refrigerated immediately not to break the chill chain.

Due to the festive season ahead these retailers are also responsible for the delivery of thousands of pre-ordered Christmas hampers and during the coming month these are expecting thousands of customers who purchase pre-packed or customised Christmas hampers from their premises which is open on a daily basis, including weekends.

While GRTU as agreed during the meeting held on Tuesday 22nd November 2011 offered its full support once the project commences, it urged Transport Malta to take into consideration our concerns and that works will be postponed by one month as requested.

VAT Exemption Number Requirement for Points of Sale other than Cash Registers – Any retail operation that opts for a computer based or other touch screen style point of sale system needs to be in possession of an exemption number from the VAT Department.

It is not enough to have purchased the software or hardware which a trader utilizes in his retail outlet from the list of suppliers approved by the VAT Department. The system needs to be registered with the VAT Department which in turn will issue an exemption number. Such number moreover needs to be correctly indicated on the fiscal receipt being given to consumers.

VAT Inspectors are heavily enforcing this requirement and several retailers are being arraigned in court charged with having deficiencies in their systems, with fines starting from €700.00.

Moreover in the case of more than one outlet operated by the same Company or trader, a separate exemption number needs to be applied for related to each and every outlet.

It is every trader's responsibility to provide a valid fiscal receipt bearing an exemption number unless the receipt is issued by a regular cash register. In the event of any issues that a trader may have with his point of sale system or fiscal cash register, it is always advisable to have the manual VAT receipt books available at hand, not to get caught out.

Every trader and retailer needs to be aware of the exorbitant penalties being imposed by the Court of Magistrates in the event of any VAT related breach or default. Moreover Chapter 406 of the Laws of Malta (the VAT Act) makes it highly unlikely for a trader to justify any VAT shortcomings when arraigned in Court.

The GRTU advises all members to take the necessary measures immediately in the event of any allegations of breaches or shortcomings following VAT Inspections, by contacting the GRTU or otherwise seeking advice from respective legal advisers.

The GRTU has this week participated to a consultation session organised by MEUSAC on the multiannual financial framework (MFF) for the period 2014-2020 presented by the European Commission on 29 June and entitled "A Budget for Europe 2020", which will be decisive for the implementation of the Europe 2020 Strategy in general but also to determine the possibilities the European Institutions will have to support Crafts and SMEs in Europe.

The EU Budget exists to fund activities and projects of common interest to the Member States (MS) such as the Common Agricultural Policy (CAP), regional development, the environment, climate change etc… This also so EU action in these areas would be unified. The commitments are divided under a number of headings:

• Smart and inclusive growth
• Sustainable growth: Natural resources
• Security and citizenship

Global Europe

• Administration

The total commitment is of 1,025B, funds which are also targeted to help the MS meet the targets set out in the EU 2020 strategy.

GRTU's general assessment of the MFF proposal is that compared with the needs of the SME sector we find it quite positive:

• Orientation to support the Europe 2020 Strategy;
• More coherence between the different programmes;
• It includes a dedicated programme for SMEs (Competitiveness and SMEs);
• It Includes SMEs as a specific target group for regional policies supported by European Funds.

Furthermore, the proposal states that the access to all programmes relevant for SMEs should be facilitated by simplifying rules, reducing costs of participation, accelerating award procedures and providing a "one-stop-shop" to make life easier for beneficiaries of EU funding.

However, the real results from the MFF for Crafts and SMEs in Europe will strongly depend on the specific programmes, which will be elaborated on the base of the framework, and on their concrete implementation. Both will be decisive to assess how much SMEs will profit from the MFF.

The main aspects as regards these questions – which have to be followed-up carefully  are:

• How much money in the different budget lines will be really dedicated towards Crafts and SMEs?
• Will the promised simplification really facilitate the up-take of the programmes for smaller companies?
• Will the representative Craft and SME organisations be involve sufficiently in the elaboration of concrete programmes at all levels in the framework of good partnership governance, notably at regional level?
• Will the diversity of SMEs be taken into account when the programmes are designed and implemented

The Commission proposal in general goes in the right direction – it "ticks the right boxes", but there is still a long way to go to make these proposals a reality for our Crafts and SMEs.

The GRTU would like to inform its members BURDNARA that Transport Malta is at present  carrying out road works at Triq L'Iljun Marsa. A notice on the Government Gazette has been issued followed by various adverts published on local papers for Trailers not to park on the road. To date unfortunately GRTU is informed that trailers are still being parked there and Transport Malta is being forced to remove on a daily basis. It would be appreciated if trailers are not parked while works are being carried out especially now that  asphalt works will commence in the coming days.

This week GRTU's Director General and EESC Maltese Employers representative also participated to the working breakfast of the Employers' Group with Commissioner Kristalina Georgieva on Cooperation with European Businesses in Humanitarian Aid, Crisis Response and International Cooperation – 22 November 2011 at the EESC.

It was proposed to establish a link between the Employers' Group initiative on "Ethics" and the EU initiatives in the field and initiate a project of a Communication Platform between private sector and the Humanitarian Aid department of the European Commission (ECHO). There is much to be done to better match business innovation and creativity with new demands for humanitarian aids and urgent responses to more complex conflicts and sudden crises outbreaks in the EU and throughout the world.

Mr Farrugia had the opportunity to speak in detail about the work carried out by Malta during the Libya crisis. He emphasised the tremendous efforts made by Maltese entrepreneurs during the worst of the war to ensure that the Libyan people and the liberation forces continued to have the necessary supplies of medicines, surgical supplies, food and water in spite of the great dangers involved. Vince Farrugia highlighted the current problems as Libya faces the arduous task of establishing genuine democratic institutions during periods of harsh economic necessities and in the absence of all necessary expertise and institutional support. Vince Farrugia and Commissioner Georgieva agreed that GRTU would present to her a memorandum as to who are the entrepreneurs currently operating in Libya and with direct contact on the field with the true Libyan situation. Detailing how they perceive the situation and the specific needs that the Commissioner needs to address with urgency in Libya so that the situation is favourably developed in the spirit of democracy and solidarity.