Author: SME Chamber

Fl-14 ta' Lulju 2011 l-Onorevoli Jason Azzopardi, Segretarju Parlamentari ghan-Negozji Zghar, nieda perjodu ta' konsultazzjoni pubblika dwar is-swieq fil-berah. F'dan il-perjodu l-Onorevoli Azzopardi stieden l-kummenti u s-suggerimenti ta' dawk kollha interessati f'dan il-qasam.  L-ghan ewlieni u li ssir riforma li tkun tirrifletti l-bzonnijiet ta' dan il-qasam, f'bilanc bejn il-bzonnijiet tal-bejjiegh, ix-xerrej, u dawk kollha li b'xi mod huma involuti direttament jew indirettament.

Il-GRTU laqghet b'entuzjazmu din l-white paper u rringrazzjat lill-Onorevoli Azzopardi tax-xoghol siewi u l-kooperazzjoni shiha li dejjem sabet min naha tieghu. Il-GRTU taqbel li dawn is-swieq fil-berah jaghtu karattru lill-irhula u l-ibliet taghna, jaghtu servizz lill-persuni li jinqdew minnhom, jiggeneraw ix-xoghol, u fuq kollox jikkontribwixxu lejn l-ekonomija tal-pajjiz.

Filwaqt li l-GRTU tirrikonoxxi l-importanza tas-swieq fil-berah, taqbel perfettament li ghandha issir evalwazzjoni fl-isfond tar-Regolamenti tas-swieq fil-berah f'Malta u Ghawdex. Taqbel ukoll li ghandha tigi proposta struttura legali gdida u effettiva ghal dan s-settur filwaqt li jigu mharsa l-interessi ta' dawk kollha involuti.

Il-GRTU taqbel ma hafna mir-rakkommandazzjonijiet prattici ghal kwistjonijiet organizzattivi u manigerjali proposti, ghalkemm hemm aktar x'wiehed izied. Ma ssibx oggezjoni li l-Kunsilli Lokali jiehdu rwol izjed attiv fl-immaniggjar tas-swieq fil-berah preferibilment bil-partecipazzjoni tal-GRTU bhala l-Assocjazzjoni li tirraprezentha l-Komunita' Kummercjali f'Malta u Ghawdex.

Il-GRTU taqbel mall-proposta ta' kif ser jinhargu u jithaddmu l-licenzji fosthom li tinholoq sistema elettronika fejn jigi identifikat il-bejjiegh. Il-GRTU taqbel u taghti s-support taghha sabiex jkun hemm swieq bil-berah ohra specjalizzati fosthom l'artiggjanat, snajja, prodotti tal-ikel u prodotti ohra esklussivament Maltin.

Filwaqt li l-GRTU tirringrazzja mill-qalb lill-Onorevoli Azzopardi ta' din l-White Paper tant mistennija sabiex tinstab soluzzjoni ghal dan is-settur, titolbu sabiex jikkonsidra s-suggerimenti li ghamlet bil-miktub  fuq din l-kwistjoni.

Earlier on this week, the gas distributors represented by the Malta Chamber of Small and Medium Enterprises decided to protest against the time now being taken by Government to decide on the introduction of  Amendments to Legal Notice 249 of 2008 issued in October 2008 . Legal Notice 249 of 2008 issued then forgot all about the existence of current distributors in the market who had a signed agreement with Enemalta . Enemalta was then the market regulator and also the supplier to the market of this commodity.

Enemalta had then signed an agreement with the gas distributors providing area exclusivity to each and every one. This was to make sure that the social aspect of gas distribution was well and truly provided to everywhere in Malta and not only that but also provided to every sector of society living anywhere.

An elderly person in Birgu on a fourth floor had every right to be provided with a service equal to an owner of a bungalow in Attard. To this day this situation in Gas Distribution continues to prevail.The protest early this week came about because one of the companies decided to use its own vehicles in an area where it said that its customers were not being well served.

No documentation was made available to sustain this information. As such Gas Distributors cannot allow a situation where a company just because it was handed a distributor s authorization by MRA , Malta Resources Authority, uses this as a shotgun continuously threatening the livelihoods of these distributors.

Both companies have now agreed for a month not to use their vehicles for distribution of LPG cylinders and work with a multiflag sytem, the green or yellow cylinders together with the black cylinder on the same vehicle and its up to the consumer to make the final choice.

Whilst this mode of distribution might not be acceptable to the companies, it is acceptable to the distributors , the community at large and also to the environment. One heavy vehicle distributing gas in each locality is enough.

Of course  the way forward will need a code of ethics to be established for the distributors including times of operation, mode of operation, vehicle upgrades etc. Any distributor who would not oblige will face a grievance board as was the case when Enemalta established their exclusive territories.

Re inventing the wheel is sometimes not an issue. Why re invent the wheel when experience has already shown the best way forward. One would argue for the sake of competition? So is competition about an increase from Euro 5.40 to Euro 17 per cylinder just because Government has not been subsidizing gas LPG for the last three years ?

This only meant that the public at large now spends Euro 20 million to buy 1.2 million cylinders annually instead of Euro 6.5 million three years ago, for the sake of competition? Has Government ever outlined the value of the subsidy when the price was Euro 5.40, ? No never!

Competition is not about providing a service with a higher price just because Government is longer involved. GRTU hopes that we are not subsidizing foreigners or local giants in this industry. Competition or a free market is not about having ten companies selling the same product at different prices but all ten prices are well above the price of when the market was not free. !  In this market the price is established by the Malta Resources Authority. There is no space for collusion unless both importers of LPG cylinders to the market are not complying to their authorisation conditions.

Gas distribution done by a universal distribution system is the way forward in this small island. However if Government feels that it wants to accomodate the earlier promises made to both these authorisation holders and also the distributors, then there is an only way out! Compensate the distributor for loss of exclusivity and then the authroisations holders are responsible for distribution. Of course then this is where competition law or the law of the jungle comes about. A company in a dominanat position would have to oblige to deliver door to door to every corner of Malta but any one else just because he is not in a dominant position would be allowed to go and sell anywhere and everywhere and whenever he wants to. The law of the jungle at its best. And if this happens MRA no longer would issue a maximum retail price.

We will then witness what happenned in southern Italy a few years back. A collusion of three companies in places like Sorrento, Capri and Sardegna brought about astronomical prices of LPG. Of course these companies were caught out eventually and a fine of a handfull of millions had to be paid out to the Italian Authorities. But the public had for a substantial number of years been paying an astronomical price and was never refunded in any way.

This will not happen in Malta, not while GRTU is around and the gas distributors are around with an exclusive area and the MRA is there to issue a maximum retail price to protect the end customer.

Government needs now to put its foot down. Gas distributors want to continue to work.  If the companies importing their LPG cylinders are not ready to come to terms with the distributors or between them, then Government has to put its foot down and decide in the interest of the gas distributors and the end consumers.

We have had enough of big guys and foreigners trying to force Government to bully the self employed. Government needs to give GRTU assurances that SMEs are there to stay, not just on paper but in reality! Currently on many issues this does not seem to be the case. One month will soon pass and by then we hope that Government would have in reality provided SMEs with some peace of mind…..definately at least in this gas sector.

GRTU's presentation by Vincent Farrugia Director General emphasized the role of Traders and Retailers in the Maltese economy. – When we discuss wholesale and retail trade in Malta, we usually discuss all the commercial sector, because in reality importers and retails are wholesalers as well. Most retailers are retailers only. However, since the liberalisation of commerce the number of importers that are also retailers is continuously increasing.

The majority of businesses are all Micro that do not employ more than ten people or Small that don't employ more than 50 people. Their turnover in most cases is low compared with the European level, thus all fall down under Micro businesses.

Most businesses nowadays dominate in importation more and more because of mergers and acquisitions. The large part of importation is being done by direct importers representing brands on the market in which nowadays is on the increase and rapidly in parallel trading. The range of products is enormously being increased since the explosion of products produced in China.

As regards for the volume of sales and turnover, taking into consideration the deflated figures for inflation and not taking into consideration the turnover of sales of motor vehicles the figure can be adjusted on effective days.

In 2010, the index for wholesale, retail turnover and volumes of sales in the last 10 years has approximately remained the same. The index in 2001 was at 104.67 and towards the end of 2010 was 104.67 until 2003, the index was on the increase but started decreasing in 2004, whilst in 2005 it decreased to under a hundred and kept on decreasing in 2006. In 2007 it increased at a high rate but in 2008 it decreased. However, in 2010 we gained the same levels of 2001.

The reasons are various and to understand better the index one has to evaluate the index of the gross private consumption. Taking into consideration the last adjusted statistics based on working days and seasonal affects, one finds that in last august Malta was among 12 other European countries where the retail trade declined. Malta had a substantial decrease of -8.8% like Romania, Spain and Portugal.

In a large country like Germany the decrease was substantial. It's difficult to find out the determining factor but the 2 main factors are: the decrease or increase of salaries or the impact of economic progress on disposable income of households, as well as politics in general that stimulated a decrease in internal economy example during the recession period Germany kept its economic surplus meaning the balance between buying and selling and also in keeping internal balance meaning if its deficit or in case of Germany surplus.

Considering the value added from the wholesale and retail sector in Malta, one finds that in 2005 the total added value was 1,053,477,000 and in 2010 this increased to 1,168,173,000. In the last three quarters there was a constant increase that although the total income decreased, the sector was finding a solution to the financial problem and started increasing the added value that is an essential factor.

When considering the total added value in Mata at the end of 2010 was about 5000,000,000. This means that a little bit less than a quarter of the economic value added in Malta come from wholesale and retail. Taking into consideration the employment act from the wholesale and retail sector including the food, transport and storage services was that of 47,835 by the first 6 months of 2010, it then increased for the total of 52,846 that represents 38% of the employment in all enterprises offering a service.

When considering the wholesale and retail sector in 2005, 25,317 were employed while in 2011 the figure raised to 28,136. In the last 5 years during the recession the level of employment remained approximately 28,000 even if in the last year Malta had a downward trend in employment in the service sector from 140,699 to 129,324.

In its analysis GRTU is identifying a number of problems that are affecting this sector. An acute problem is that of the heavy increases in expenses and an even worse problem is that of the electricity and fuel bills. GRTU continuously makes proposals to the Government, in fact a lot of schemes were approved. Moreover, they are being put into action so that more enterprises can structure their expenses on energy products. The second problem is the financial restraint. Although schemes like Micro Invest Schemes and Micro Credit Schemes help a lot of businesses, but  some others are captured in this financial restraint as these types of schemes are not adequate. A lot of enterprises are suffering from commercial debts with other businesses everyone is having long-term loans and then they have to re-pay it since they can loose everything if they don't, sometimes even with excessive overdraft re-payments (installments).

For many businesses, property was a safety valve for them but however, nowadays it is difficult to exchange this tangible asset to a liquid asset and it is for this reason that GRTU in its proposals presented to the Government for Budget 2012, that the main proposal is a scheme that helps these small enterprises win over this problem. GRTU have no doubt that with more advantages from the Government, entrepreneurs can achieve these kinds of problems. Moreover, if these businesses are helped to surpass these kinds of problems all the economy will go through an upward trend.

The Council of The European Union approved a compromise text aimed at ensuring that food labels carry essential information in a clear and legible way following a second-reading agreement with the European Parliament. This means that the new regulation is now adopted. The new food labelling rules enter into force 20 days after their publication in the Official Journal of the EU which is expected for the end of November. The vast majority of them become applicable three years after their publication.

The main objective of the new regulation is to enable consumers to make balanced and healthier dietary choices. In order to achieve this, prepacked food must in future be labelled with the energy value and the quantities of fat, saturates, carbohydrates, protein, sugars and salt. As a general principle, the energy value and the amounts of these nutrients (which together form the "mandatory nutrition declaration") will have to be expressed per 100g or per 100ml, but can additionally be indicated on a per portion basis.

Furthermore, they can also be indicated as a percentage of reference intakes, better known as GDA (Guidelines Daily Amounts).

Food business operators can use additional forms of expression or presentation as long as certain conditions are met (e.g. they do not mislead consumers and are supported by evidence of consumer understanding). All elements of the nutrition declaration should appear together in the same field of vision but some of them may be repeated on the "front of pack"

Further to the positive feedback received by various members of the industry and also after a circular sent by the Valletta Gateway Terminals Ltd, we wish to advise  that as from the  3rd October 2011;

• The VGT Head Office Counter Service will be open to the public from 0700hrs to 1600hrs
• Delivery service at Deep Water Quay (DWQ)and Labaratory Wharf (LW) Terminals are extended from 0700hrs to 1700hrs

These new opening hours are on a trial basis and should VGT feel that it will have an adverse effect on the industry, it will revise accordingly.

The SME Committee met with the EU SME Envoy, Daniel Calleja Crespo. The role of the SME Envoy is to open up channels of communication between the Commission, SMEs and their representative organisations, and encourage similar developments in Member States. The Envoy's main objectives are to reduce legislative burdens, to develop further access to finance, and to promote access to markets. SME members are encouraged to send details of specific obstacles to doing business in Europe to Géraldine Verbrugghe, our new full time special assistant on SME policy.

To cope with labour shortages, the commerce sector will have to draw workers from the older age group, concluded the ILO Global Dialogue Forum last week. The Forum examined ways in which the work processes and environment can be adapted to facilitate the participation of older workers in the retail sector labour market.

EuroCommerce presented good practices, implemented at both national and European level, to over 40 government, employers' and workers' delegates from more than 25 countries. The delegates agreed that the retail sector's social dialogue should design initiatives to attract and retain workers of all ages in a highly competitive demographic context.

Why did you become an entrepreneur? I was employed, with a well established company but they fail to honor the contract

How have you come to chose your line of business?I was a T.V technician and started sales and repairs.

Where did you go on your last holiday?

Greek Islands

What is your earliest memory?

My first holy communion

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

I am most happy as I am

The Malta-EU Steering and Action Committee (MEUSAC) together with the Malta Competition and Consumer Affairs Authority (MCCAA), is organising a consultation session on Directive 2009/128/EC establishing a framework for Union action to achieve the sustainable use of pesticides.

This Directive, which needs to be transposed into Maltese law by December 2011, aims to reduce the risks and impacts on human health and the environment related to the use of pesticides. The Directive also aims to promote the use of alternative pest management methods.

Date: Thursday, November 10, 2011

Time: 18:00 hrs

Venue: NGOs Centre, Il-Madonna tar-Rummiena Street, Xewkija

The aim of the Directive is to ensure that Member States draw up plans to reduce the potential damage caused by pesticides.

The Directive focuses on plant protection products.

It instructs Member States to:

1. Adopt National Action Plans (NAPs) aimed at reducing the risk from pesticides on human health and the environment;
2. Set up compulsory systems of training and education for distributors and professional users of pesticides;
3. Set up framework for systematic equipment inspections;
4. Protect water supplies;
5. Examine alternative pest management methods;
6. Examine harmonised risk indicators;

  The session is of particular interest to:

• NGOs;
• Farm Advisory Services;
• Producer Organisations;
• Co-Operatives;
• Pesticides' dealers; and
• The general public.

The session will be conducted in MALTESE.

The opening address will be given by the Hon. Dr Chris Said, Parliamentary Secretary for Consumers, Fair Competition, Local Councils and Public Dialogue.

Interested participants are requested to register for this session by not later than noon Friday, November 4, 2011 by email on .