Author: SME Chamber

Parliamentary Secretaries Jason Azzopardi and Mario De Marco should have never imposed on retailers what for GRTU is unacceptable: penalties and threats of loss of business license, not for any illicit trading (the country is full of it!) but for servicing customers at an hour when most people are out relaxing after a day's work.

 

Confectioneries and other food stores in many localities in Malta served the public late in the evening selling food items, bread, wine and beer and all of those items consumers usually need to take with them to a BBQ, for a party or for home consumption. These shops sell hampers in Christmastime and on other occasions. During Festa days in the town or village these shops put out tables and help the locality make merry. Under the category of confectioneries, other sellers come in like pastizzeriji, kiosks and take-aways. All self-employed persons earning a living for themselves, their families and their employees. These are people who  do not register to receive state moneys, pay their licenses and go about their business without much fuss and grumble.

The old Trading Licences Act did not allow them really all the freedom they practiced but in practice customers in Marsascala, Valletta, Sliema, St Julians, San Gwann, Iklin, Saint Paul's Bay, Qormi, Fgura, Marsalforn, Xlendi and practically all over Malta and Gozo throughout the whole year and in summer especially, could shop food and alcohol drinks without anyone going to check what has been purchased or what the shop owner sold and the reason is obvious: this is NOT Saudi Arabia. No one in Malta searches the person to see if any alcohol has been bought.

But now Mario Demarco and Jason Azzopardi, one operating from the Office of the Prime Minister and the other from the Ministry of Finance, came in mid-2011 and imposed this Law. It is puritanism version 2011. No retailer can sell to someone a bottle of wine or beer after 9pm and if the retailer dares meet the consumer's demand he will have his shop shut by the Police and have his License suspended for six months on first fault and permanently on the second. Plus he will also get incredible hefty fines. It is tragic. Imagine if it were a simple labourer, an employee member of a workers union. Try denying anyone his living. But it's ok if he's a self-employed. For these it is ok! They are only self-employed after all!

What nonsense says GRTU. This bit of absolute nonsense now has to go to Parliament. GRTU is sending the message to all MP'S very clearly! Those who vote in favour of this attack on retailers will be Named and Shamed at Election time by GRTU.

GRTU will issue specific directives to all self-employed and business owners not to vote for these candidates who say yes to this act. For GRTU they would have declared themselves as enemies of retailers and self-employed.

In 2011, GRTU will not allow this type of legislation to go through as if nothing matters. This proposed Law is preposterous. It is regressive and absolutely unacceptable. It sends us tumbling back to years now deeply buried.

It is a Law that hits like a bullet straight at GRTU's heart. WE WILL NOT HAVE IT.

GRTU Malta Chamber of SMEs warmly welcomes Arriva. We wish Arriva all the very best. GRTU has from the very beginning of the whole Public Transport Reform Programme been grossly enthusiastic and we have consistently given our support to Minister Austin Gatt the man behind the Reform. Indeed probably if it weren't for Austin Gatt we would not have believed that this B-Day would ever come. Austin Gatt is a mover. We felt from close range his enthusiasm for this project. This is a project which is the life-blood for all retailers in major commercial sectors and GRTU could not stay on the way-side.

 

GRTU through the Director General Vince Farrugia drew from the very start a position so at GRTU we all knew where we had to go and what we had to achieve.

First we identified the options; Government had either to:

1) Nationalize what was eventually a private monopoly

OR

2) Issue the whole National bus system or public tender for all contractors to provide all the services and to manage the whole system

  OR

  3) Liberalize the market to different operators so that they could enter the market and compete

The consultation in which GRTU took a very active part, led to the decision that the best option was a tender to appoint one professional private company.

GRTU's next major involvement was to ensure that Bus Owners who were all private self-employed entrepreneurs received enough options to join the new system or else being adequately compensate. Maltese Bus owners had their own independent association but GRTU as the National Organisation representing the self-employed was eager to give all its support to the Bus Owners Association.

The Bus Owners of Gozo are all members of GRTU so GRTU was also directly involved in the negotiations. It is hard for a self-employed to give up his business for whatever the price. For a self-employed his business is his life.

A bureaucrat can never appreciate this. But we daily walk with the skin of the self-employed and we feel what they feel. For Gozo Owners GRTU got an excellent deal: they got the compensation for losing the Public bussing contract, but they retained the bus which they could use as licensees to operate the unscheduled bus service in Gozo and this private bussing service license is valid for both Malta & Gozo. The Maltese Bus Owners got only the money compensation and a first option on jobs with the new sevice.

The next big step for GRTU was to ensure that the New Bus Network covered adequately all Commercial centres. GRTU strongly believed that the cost of the private car for each household is too high as a ratio of a family's budget and that most families given an effective Public Transport System would switch to more bus use. Valletta shopping is already 70% dependent on bussing. This will be a rule for most commercial retailers soon. So GRTU joined the discussion and consultation practically on all locations defending the interests of retailers and service providers.

Sunday July 3 is B-Day. We are satisfied with most of what Arriva is offering and we are confident it will improve. Our trust is also in the man who worked most to get the whole project through Manuel Delia. Manuel is a formidable person; hard but very capable and also a good listener.

We argued and spend hours of discussion and reams of paper in correspondence. But we say it loud and clear – if only there were others like Manuel Delia's in the public sector. Thank You Manuel.

Congratulations to all. Let's keep working to get it better

The European Commission adopted a draft regulation that will better inform consumers across the EU and achieving the aim of better and clearer legislation. 

For example, lactose-free food, slimming products or protein bars could be covered by the dietetic food legislation. The proposal repeals this directive and abolishes the concept of dietetic foods because its application differs significantly between Member States and creates distortions in the internal market. Dietetic foods will be solely covered by other already existing legislation, such as, for instance, the one on nutrition and health claims and/or the regulation on the addition of vitamins, minerals and other substances to foods.

 

The draft regulation strengthens and clarifies provisions for foods intended for vulnerable groups of the population who need particular protection – namely infants and children up to three years old, and people with specific medical conditions, such as cancer patients or individuals with metabolism disorders.

It does so by maintaining the existing compositional and labelling rules applicable to infant and follow-on formulae, processed cereal-based foods and other baby foods and foods for special medical purposes. Further, the proposal establishes a single EU list of substances, instead of the existing three, that can be added to these foods. The substances covered in the list include, among others, minerals and vitamins.

Other benefits

The new framework will result in less administrative burden, more clarity and consistency within the EU and consequently allow for more flexibility for the evolving, innovative food market.

No products will have to be withdrawn from the market as a result of the new rules. Those covered by the dietetic food legislation can remain on the market but will be legislated fully by the other pieces of existing food legislation. In order to facilitate the adaptation of products and reduce costs for operators, mainly in terms of re-labelling, a two-year transitional period is foreseen.

The proposal will be now submitted to the European Parliament and the Council. If these Institutions reach an agreement on the proposal the new regulation should be in force by the end of 2012.

Background

Foods for particular nutritional uses are defined by the existing framework legislation on dietetic foods, as foods that are different from foods for normal consumption and are specially manufactured products intended to satisfy the particular nutritional requirements of specific groups of the population.

The designation under which a dietetic food is sold is accompanied by a suitability statement for the particular nutritional use and the specific group of the population to whom the food is intended (e.g.: gluten-free food for celiac people, processed cereal-based food for young children, infant formulae for infants from birth, food for sports people etc).

After more than 30 years of application, and given the evolution of food products and the evolution of EU food legislation, a review of the dietetic food legislation became necessary. Specialised "normal" foods have increasingly been targeting sub-groups of the general population (e.g. protein bar supporting muscle building for sportspeople, food supplements for pregnant women, fortified food in calcium and vitamin D suitable for older adults, slimming products etc).

Consequently, the difference between "dietetic foods" for specific groups of the population and "specialised foods" for the general population or sub-groups is no longer clear for citizens, stakeholders and enforcement authorities. Therefore, it became clear that the existence of a specific EU framework for "dietetic foods" existing in parallel with other, more recent, pieces of legislation was no longer justified.  

 

 

Reference is made to a recent public consultation initiative that the EU Commission has initiated. This is a joint initiative between DG Trade and DG Internal Market. The consultation period is between 8th June 2011 and 2nd August 2011. We will have the change to discuss this in the next meeting at EPD scheduled for the 27th of June.

 

In substance, the consultation aims to gather views from interested parties in respect of the current approach on public procurement adopted by the EU through international commitments (WTO Government Procurement Agreement) and bilateral/regional FTAs. The EU always had a very open approach when it comes to international public procurement (subject to the relevant regulations and thresholds) and has committed itself to granting market access to its public procurement market for certain foreign goods, services and companies. In contrast to the EU's policy favouring greater openness, many third countries are reluctant to (further) open their procurement markets to international competition, which limits business opportunities for EU companies in these markets. Similarly, some trading partners have maintained or introduced protectionist measures hitting EU companies. In this respect, the Commission is currently carrying out an impact assessment analysing how to set proportionate, coherent and effective terms of access to the EU public procurement markets for foreign goods, services and companies.

The replies to this consultation will feed the impact assessment with data, information and views of stakeholders on the current situation on the public procurement market of the EU and of third countries and on the (possible) effects of EU legislation in this field.

For a copy of the questionnaire do not hesitate to contact the GRTU.

 Towards a strong and more efficient use of tax-payers money

A new system of own resources, an abolition of the "juste retour" principle and a report on the cost of a non-Europe are some of the recommendations contained in the European Economic and Social Committee's (EESC) position on the EU Budget Review. Widely supported by Members, the position was endorsed at the June EESC Plenary Session.

 

"We are managing tax-payers money and should therefore be accountable to our citizens. These days, after the economic crisis has strongly hit our economies, we have to make the best use of national and EU budgets. By transferring expenses to the EU level and achieving the consequent economies of scale, we will ensure that the EU maximises the effectiveness of the public money it receives" said Henri Malosse, Rapporteur of the EESC opinion on the EU Budget Review.

The EESC is clearly committed to a fair and results-oriented EU Budget, founded on the principle of own resources. Taxpayers' money should be spent on clear priorities and visible projects that contain an added value at EU level and respond to EU citizens' needs and expectations, states the EESC opinion. It is of utmost importance to reduce the administrative burden that frequently reduces EU budget's effectiveness and raises costs.

Furthermore, along with the Commission the EESC proposes a newly created system partly based on transferred national taxes. It also underlines that the only way to make a success of an ambitious budget is to win the battle of public opinion. The EESC, in partnership with the European Parliament, will carry out studies on the cost of non-Europe, highlighting duplication in national budgets.

As the EESC also suggests, the "juste retour" principle must be abandoned as it is contrary to the values of solidarity and mutual benefit which underpin European integration. Rather, the subsidiarity principle needs to be applied.

The European budget must be strengthened and have a leverage effect, according to the EESC opinion. Because of EU level cooperation national and European budgets should complement each other, avoiding overlaps and attaining better results. The EESC recommends more systematic recourse to EIB loans, public-private partnerships and the creation of Eurobonds for investment.

Closing Date: 5 July 2011

Trade between China and the EU continues to increase, but investment flows between the two regions remain limited in comparison. European investors identify China repeatedly as a location that holds great untapped potential. However, China's growth, and the prospects that it offers for foreign investors, have been accompanied by growing concerns on the part of European investors about the lack of a level playing field in China because of persistent barriers and an uncertain business environment.

 

In the context of an Executive-to-Executive meeting on 29 April 2010, European Commission President Manuel Barroso and Chinese Premier Wen Jiabao instructed their respective teams to study the options for enhancing the bilateral investment relationship between the EU and China. To this end, a "Joint EU-China Investment Task Force" was launched in summer of 2010 to explore the scope for deeper cooperation on investment, including considerations of a possible standalone investment agreement.

In this context, the European Commission is launching a broad public consultation to gather views from relevant stakeholders regarding the future EU-China investment relationship. The consultation is open to all stakeholders within the EU and in third countries.

The Commission services will prepare a report on the consultation which will be published on the Directorate General for Trade website. All contributions will be published in a document attached to the report, to the exception of those from respondents who indicate that they do not wish their contribution to be made public or as indicated in the questionnaire wish to keep certain information confidential.

The questionnaire is available at :

http://trade.ec.europa.eu/consultations/?consul_id=153

 GRTU has yesterday discussed its practical suggestion for a solution of the problem with the Minister who consented on a short notice to discuss the views of GRTU together with his experts. This in an attempt to find a possible solution to the unacceptable difficulties which cropped up in Sliema due to the recent arrangements announced by the Ministry responsible for Transport and Arriva which effectively remove 62 parking slots along the seafront.

 

This altogether surprising decision was taken without consultation with representatives of the business community.

GRTU regrets  that unfortunately an issue that could have been resolved without much adverse  and unnecessary comments was so hastily decided. GRTU has this morning discussed with the Minister  responsible for Public Projects, Architect George Pullicino, alternative solutions to the problem and as a result of this consultation GRTU is confident that with enough good will from all the public authorities involved in the matter a solution can be effected without much further delay that would rebalance the parking problem created by the new changes to the Bus routes effecting the area. GRTU is confident also that the new Bus Lane and the new arrangements together with the practical solution as discussed with the support of GRTU will be a boost to business in the area.

GRTU has today appealed to the Prime Minister so that he intervenes so this matter is resolved without much further argument as the alternative plan presented by GRTU  mitigates favorably  the negative impact on commerce in the Bisazza Street and the surrounding area.

Gas distribution has in the last seven months been in the public limelight. Now more then ever it is time for decisions to be taken. In 2008, Government issued Legal Notice 249 of 2008 which did not include the existing distributors who were supplying gas to the market, both in Malta and Gozo. This meant that overnight someone either craftily enough or through a desired ‘lapsus' ironed them out completely.

 

When Legal Notice 249 of 2008 was published Liquigas were issued with the first authorisation emanating from such a legal notice. The second authorisation was issued to Easy Gas over a year later. All this was done when Government was fully aware that each distributor had a licence to operate within an accredited area.

Now the past is in the past and the distributors, through hours of long work and dedication together with the GRTU have worked to establish a distribution system acceptable to one and all and where the consumer reigns supreme.

Amendments to the current Legal Notice 249 of 2008 are now about to be issued for public consultation, and beyond the consultation period the right decisions will be taken. Of course we stand to beleive that the Amendments to the Legal Notice 249 of 2008 will be issued by not later then coming Tuesday 28th June 2011. Further delays are not acceptable and this would only mean that someone at ministerial level has decided to stop such amendments from being published. This would not only be detrimental to the gas distributors but also to the current players in the market both, Liquigas and Easy Gas.

The distributors under the guidance of GRTU have stood their ground and have cooperated to the limit to make sure that no stone is left unturned to make sure that eventually the end consumer will have a service, operating with much more efficiency then it is today and with standards as deemed fit in 2011. If anyone at any level has other ideas, then they need to be aware from now that they have on their hands a battle of swords. It would not be to our liking and we would of course stand up to be counted.

History has a way of repeating itself. Let us move on and make sure that whoever has to decide, be it The Prime Minister or Cabinet, does so, with respect to these distributors and also to the stakeholders currently operating in the market, and none less to the consumer.

Tuesday 28th June remains a deadline!

The GRTU strongly welcomes the long awaited launch of the Photovoltaic (PV) scheme. During the launch GRTU was represented by President Paul Abela and Council member Noel Gauci in representation of the sector. The same GRTU representatives had met the PPCD and the MRA some month back and successfully managed to win for the sector a bigger financial commitment in addition to what was already earmarked for the scheme. GRTU once again thanks Ms Marlene Bonnici, Director General at the PPCD, for the extra 4 million Euros.  

 

The GRTU had just last week written to Hon Pullicino and placed pressure on the Malta Resources Authority weeks before for the launch of the PV scheme as the sector operating in this area represented by GRTU is heavily dependent on these schemes, since if there is an incentive the buyers will understandably wait for it. The GRTU therefore thanks the authorities for having taken immediate action especially for taking up GRTU's suggestion of launching it before the tradefair, which benefits both businesses and the consumer.

GRTU's Director General Vincent Farrugia just yesterday was guest at Siemens as EESC member of the TEN Section (Transport, Energy, Infrastructure and Information Society) where he followed technological and innovative developments which Siemens have introduced on a diverse number of alternative energy systems and the Siemens project on reduction of excessive use of energy by industry and commerce. Mr Farrugia met with Andre Bouffioux, CEO of Siemens Belgie-Luxemburg.

GRTU Malta Chamber of SMEs represents operators in the alternative energy sector and has a study group that is working so that in Malta there would be better services and assistance so that Malta wins the battle of reducing its dependence on energy from fossil fuels by 20% till 2020.