Licensed boat operators join the Malta Chamber of SMEs

A group of licensed boat operators that operate non-scheduled charters and pre-booked trips around Malta and Comino have joined the Malta Chamber of SMEs for formal representation in a bid to address recent serious events that are threatening their sector’s livelihood. Transport Malta, the Minister for Transport and the Prime Minister have been informed accordingly.

As per a concession granted through the Comino Ferry Tender and later communicated via Port Notice 1/2020, Transport Malta planned to replace the service offered by numerous small operators that have been in this business for decades. The Malta Chamber of SMEs will be defending the right of these operators not to be sidelined by a single player and consequently keep their place in the market.

Being operators duly licensed by Transport Malta itself, it is highly unjust that the same authority did not involve the already existing and operating players with the drafting of its strategy and instead forged ahead with its drastic, potentially unconstitutional plans that have a direct and clear impact on their business operation. The way the tender was issued also raises serious doubts on its legality in terms of public procurement rules. The move is also deemed to pose a breach under competition law.

The operators have sought redress in front of the Maltese Courts and the Public Contracts Review Board.

Meanwhile, implementation of Port Notice 1/2020 and the Comino Ferry Tender have been temporarily blocked from moving forward. This Port Notice unequivocally states that “In terms of the agreement, the Authority (Transport Malta) will be granting the Operator the exclusive right to provide scheduled passenger ferry services by sea on the route between the coastal area covering Cirkewwa South Quay to Marfa, Malta and the landing places found therein, and the berthing facilities and landing places in Blue Lagoon and Santa Marija Bay in Comino at all times. The Authority shall not authorise other passenger ferry operators to provide the same and/or similar services with the same rights on this route”

On meeting the Chamber of SMEs, the operators explained how they felt cheated that indications given by Government led them to believe that the request would be for a service that would complement theirs and not seek to push them out of the market. Most operators are family businesses that have been long operating and feel they are being pushed aside by an authority that has granted exclusive use of public land to accommodate one large player.

As a Chamber of SMEs, we condemn such an approach from an authority that should use its powers to protect small operators and the best interest of Malta at large. As a Chamber we see no valid reason for the need for such a concession, giving the exclusive right of use being grated to the select company and only bidder through very poor procurement practices.

As a Chamber of SMEs, we have already repeatedly signaled the authorities about the numerous malpractices our members have been experiencing in public procurement. No stone will be left unturned and we will demand that the authorities and those responsible shoulder full responsibility for their actions.

A link to the port notice may be found here.

Malta Energy celebrates its first milestone in a bid to defeat Malta’s renewable energy inertia

The subject of energy sustainability is certainly an area that Malta can do much more and accomplish better results. Our island presents many challenges but certainly ample opportunities that must be explored to the fullest of potential.

MaltaEnergy Ltd, a partnership between the Malta Chamber of SMEs and the Water Services Corporation was set up exactly for this reason. The company can now announce its first successful milestones and is an example of how targets can be met in line with the best practices.

The company invested a lot of time and effort to make sure that the projects being offered would involve as many enterprises as possible from procurement stage, whilst respecting E.U. directives. This way of doing public procurement is a best practice which moves away from the common practice of demanding to deal with just one entity that can take up all the work. It gives SME structures the direct opportunity to participate and provide quality projects.

The final project will involve putting specific rooftops to good use, and generate renewable energy.

The tender has now been awarded and is nearing implementation stage. A total of 5 different enterprises will take up the project with full ownership and responsibility, and with no cost or risk to the government. In return the operators will get a return from the energy generated and business stability for 20 years, strengthening our green economy and green jobs. The project will ultimately provide better grid stability and put us in a better position to cater for foreseen increased requirements our country will have on renewables.

MaltaEnergy Ltd is confident that these models are best practices for other public entities to follow and will pave the way for other projects of this sort.

If future projects are issued on this model, Malta will be in a much better position to reach and maybe exceed its renewable energy targets. In this case, the project capacity has doubled due to more efficient use of space, from 1 MW as originally estimated, to 2MW as proposed by the winning bidders.

It is estimated that the project will generate circa 3 million kilowatts of clean energy annually.

Businesses optimistic for 2020, Political instability and reduced profitability negatively affected 2019

Overall business performance during 2019 was mostly in line with expectations, reflecting an economy that was projected to slow down slightly. On the other hand, factors that left their mark on 2019, and which were not foreseen were clearly the political, and resultant economic instability and lower profitability. These two factors, in fact, also rank high in terms of concerns businesses cited for 2020, together with labour shortages. These figures emerge from an online survey conducted by the Malta Chamber of SMEs.

Whilst political instability was at its high mainly during the final months of 2019, unfortunately, it also coincided with the most important business period for the majority of enterprises. This phenomenon adversely affected client spending with Christmas shopping starting later than usual (closer to the 24th December rather than the previous week) while Black Friday scored below expectations for more than half of the respondents. Even though this trend was observed across all of Malta, Valletta operating outlets suffered the most. Electricity outages during this same period were also cited as another contributor of these disappointing results.

The respondents cited owner led initiatives such as new investments and marketing, increased consumption and staff training as some of the main drivers were positive performance was experienced.

The political situation, lower profitability, unfair competition, increased local competition, traffic congestion and parking featured high as contributors to negative performance.

60% of enterprises running January sales or discounts stated that business performance was in line with expectations. The rest of the respondents, excluding 4% that claimed that performance exceeded their expectations, stated that business started slower than expected in 2020.

The majority of businesses do however have a balanced to positive outlook for 2020. 75% feel that in 2020 they expect that business performance will be the same as in 2019 and some even expect it to improve. The remainder fear that business performance will worsen. This feeling of confidence can most likely be attributed to positive political developments witnessed from the second half of January.

 

Methodology:

The Malta Chamber of SMEs’ Business Performance Survey was conducted between the 9th and the 24th of January and gathered over 300 business responses. Participating enterprises came from a wide variety of sectors across Malta and Gozo. 69% of respondents qualify as micro enterprises, 22% as small and 9% employ over 50 employees.

Malta Chamber of SMEs launches a new image for 2020

“GRTU REBRANDS, MARKING A MILESTONE IN ITS 70 YEAR HISTORY”

The Malta Chamber of SMEs is today unveiling its new name and visual identity. We are positioning the organisation to reflect the modern and contemporary SME representative body it truly is today. Changing its name from the renowned ‘GRTU’ was a necessary step for the organisation to visibly reflect who it represents and how it evolved beyond just retailers and traders to all of Malta’s economic sectors, being micro, small and medium enterprises.

The SME Chamber is the longest standing business representative and has today grown to become the largest by representing SMEs from all economic sectors operating in Malta.  Our services have increased and diversified to cater for the needs of our members and the changing times.

Our new name reflects our wider representation and thanks to EU funding this is being complemented by fresh branding and an outreach strategy that will help spread information about the effectiveness and value of social dialogue.

The President of the Malta Chamber of SMEs, Mr Paul Abela, said that the organisation has been always very vociferous and always spoke freely in the interest of Maltese businesses and the national interest. ‘We have done this irrespective of who is in government because our interest is solely the national interest and as a result that of our members’.

A study undertaken recently with the general public has confirmed how the majority of respondents feel that the organization speaks for the national interest, showing wide appreciation for the important role the organization plays in today’s social, economic and political scenario.

Malta Chamber of SMEs CEO, Abigail Mamo, stated that Malta’s business demographic in terms of diversity of sectors operating in Malta has evolved greatly over the years. The service industry has grown exponentially and many new refined and value adding sectors have entered our economy in recent years and this is reflected in our membership base. ‘With these new sectors joining us we have also developed new services to cater for their needs. Our brand reflects the enterprises we represent and how our own organisation has grown along the years. With our new brand and further service development we are ready to take on the opportunities and challenges facing our members in 2020 and the years to come’.

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ Group

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ GroupHeartfelt congratulations to Stefano Mallia on his well deserved appointment.

Mr Mallia has been active in the EESC, representing Maltese employers, for the last 9 years. During this entire time, he has worked close to us as an organisation and has truly succeeding in delivering Europe to Malta and giving Maltese employers a voice in this important forum.

The European Economic and Social Committee is a very important institution being the voice of organised civil society in Europe. It is a reflection of what MCESD is in Malta. It is therefore instrumental and essential to our function as social partners.

As an SME Chamber we have also supported his candidacy and we express our pride on behalf of Maltese SMEs in having a Maltese national and a business person occupy this important position.

We are certain that more positive things will come to Malta and Maltese Businesses with Stefano Mallia’s appointment.

SME Week Conference 2019

Absolute majority of enterprises concerned about the banking situation in Malta

GRTU 1GRTU Malta Chambers of SMEs today organised it’s annual SME Conference. This years conference focused on the Banking and financial issues and GRTU Malta Chamber of SMEs published it’s survey results. During this years’conference over 200 enterprises attended this event.

The conference was supported by Business 1st and MEIB as part of the month-long itinerary of SME Week.

74% of the enterprises replied that they find it difficult to get funds from banks. Up by 25% over the results of a similar survey that asked the same question in 2011.

The survey results show that businesses need more competition in the banking sector and that from a business perspective, the situation in the banking sector has never been worse. The survey results where published by GRTU Vice President Marcel Mizzi.

The conference was addressed by the Minister for Economy, Investment and small businesses. Hon. Chris Cardona, thanked GRTU for never shying away from challenges faced but also working towards finding a solution for these challenges. He insisted that “we are facing new challenges of new economic times, and there are no easy solutions. Offering support and resolutions for these dynamic challenges is what guarantees our businesses future success.”
The Minister referenced the tight labour market and changing banking policy as two of the new challenges businesses are today facing, as the country has entered a new economic era.

New challenges to businesses nowadays highlighted in the conference, also include their incorporation and adjustment to rapid technological changes, including data management,information security and incorporating a blockchain infrastructure.

Malta Enterprise CEO Kurt Farrugia also addressed the conference and announced that local businesses will benefit from a partnership signed between Malta Enterprise and T-Systems, a Deutsche Telekom subsidiary, whereby together they will be offering blockchain as a service for companies setting up their blockchain project in Malta.

GRTU Malta Chamber of SMEs President Paul Abela said that, while Malta is going through a very particulat time, we are facing challenges that come from having too much success. Paul Abela said that a lot of hard work went into getting Malta to whre it is today, and this hard work was not only done by our policy makers, but a lot of it was at the hand of enterprise owners.

 

 

GRTU 3 GRTU 6
 GRTU 7  GRTU 4

New Brexit deal agreed, UK PM Boris Johnson says

A Brexit deal has been agreed between UK and EU negotiating teams before a meeting of European leaders in Brussels.

Prime Minister Boris Johnson tweeted: “We’ve got a great new deal that takes back control.”

The two sides have been working on the legal text of a deal, but it will still need the approval of both the UK and European parliaments.

The DUP has cast doubt on its sign off, saying they still cannot support it.

The Northern Irish party earlier released a statement saying they could not back proposals “as things stand”, and – after the PM’s announcement – said their statement “still stands”.

Source: BBC

Budget 2020: What’s in it for you

Budget 2020: Positive, next steps should be for SMEs – GRTU

GRTU – Malta Chamber of SMEs saw plenty of positives in Budget 2020.

Paul Abela, President of the General Retailers and Traders Union, said that the GRTU had reacted to this budget positively, which in is words, “could not be otherwise.”

Among other proposals, Mr Abela referred to the proposed reduction of stamp duty on the transfer of a family business, and the tax reduction on the first 100 hours of overtime, as well as increasing the cost of living.

The government had also taken up the GRTU’s proposals to ensure adequate connectivity between Malta and Gozo.

 

The Government future step should be to enact another GRTU proposal – that of capping tax rates for SMEs to a maximum of 20%.

Budget 2020: What’s in it for you

Business

• Overtime will be taxed at 15%, This measure will apply on the first 100 hours of overtime in a year, for those with a basic salary of not more than €20,000, this measure will not apply to management positions

• The reduction of 1.5% stamp duty on the transfer of a family business will continue

Self-employed

• Grant of up to €200,000 for contractors to scrap old machinery and buy new, less polluting models

• Extension of start-up schemes

Workers

• COLA increase of €3.49 per week

• Pensioners will receive an increase of €7 per week, inclusive of COLA

• One day will be added to leave

• A Tax rebate cheque for those earning under €60,000

Property

• New scheme will see people under 40 who cannot cover the 10% deposit to buy a house, eligible for a government interest-free loan up to maximum of €17,000, paid back over 15 years

• First time buyers scheme will apply on property value of €175,000, an increase from €150,000, and the maximum benefit will increase to €6,500 from €5,000

• Schemes for property purchases in Gozo, urban conservation areas, second time buyers and equity sharing will be retained

• Scheme to restore facades of old houses Irrestawra Darek extended for a further year

Environment

• Next year, the bottle return scheme will start

• Single-use plastic will be banned in phases starting from a ban on importation in 2021 and distribution in 2022

• Grant to help shops set up green corners where they can sell products by weight

• Schemes covering PV panels and water pumps will continue

• Those who introduced PV panels some years ago and whose pay back rate is running out will benefit from a €1,000 grant to buy their own battery to store electricity

• Lighting systems in all squares will be changed to renewable self-sufficient systems

• Malta Stock Exchange will open up for green bonds

Education

• VAT will be removed on educational and vocational services, including distance learning

Pensioners

Government will issue 62+ bonds targeting 6,500 pensioners

Gozo

• Gozo tunnel – The pre-qualification questionnaire will be issued in the coming weeks

Others

• Malta Enterprise will invest in open areas in industrial estates to make them greener and adequate meeting areas for employees

• Cash transactions in real estate, car, yacht, precious metals and art, purchases will be limited to €10,000

GRTU says no to quotas or corrective mechanisms and yes to the real measures that will address the obstacles that remain to achieve an equally representative Parliament

final equality 2GRTU as the national business organisation representing the interest of SMEs has participated in the consultation exercise – ‘Gender Balance in Parliament Reform’ that seeks to make changes to the composition of our Parliament.

GRTU welcomes the consultation paper and the policy initiative that is being taken. GRTU acknowledges that serious effort and commitment is required in order to overcome the remaining hurdles and obstacles that are holding, not just women, but valid individuals of any gender that cannot participate in politics with the aim of becoming MPs because being an MP with the current conditions is today very difficult.

There are a number of radical changes, proposed in the same consultation document, that must be further strengthened and exhausted before one considers making changes to our constitution to change the composition of our most important democratic institution – Parliament, on the basis of gender.

The gender corrective mechanism is not what females or anyone else interested in politics needs. What is needed is a real chance to make this opportunity a reality. Current conditions for MPs force them to dedicate their life to politics and setting aside full-time career aspirations and their families. This is the real hurdle keeping not just women but all valid individuals that want to choose to be active and present in their families and pursue a career that will help them not to struggle financially. It is inhumane to ask from our MPs to stay at work because their pay at Parliament just cannot sustain them, then, after work hours, be an MP and dedicate him/herself to politics and then also be an active parent.

 GRTU CEO Abigail Mamo said that ‘This problem affects women mostly because traditionally they are the primary care givers and that is a reality. Therefore, choosing a life where they have to be most of the time away from their family is of course harder. What will the gender corrective mechanism fix in this regard? The answer is statistics and ranking. This will only result in one less reason to pursue and eradicate the obstacles that are keeping women away from Parliament, because on paper gender balance would have been achieved, cosmetically. That is not the advancement we women or our society deserves’.

As the consultation document itself outlines MPs should have the opportunity to pursue their political career full time. Their remuneration should reflect their responsibility and, being our decision makers, they should have their own secretariat and researchers to support their work. Those that are parents should be able to have time for their kids and family and therefore the hours of Parliament must reflect this and child minding support introduced. These are the radical changes that will make a difference on how many women feature on our ballot sheet.

The problem is not the voter. The gender corrective mechanism will be applied to correct voters’ choice when the voter is not really biased against women. Statistics show amply that voters vote for women. In the last general election voters voted for women in almost the same proportion they voted for men. 19% of all men on the ballot paper and 14% of all women on the ballot paper were elected. If one had to look into greater detail in the numbers, the discrepancy is less than 5%. The situation is markedly different with the members for the European Parliament elections. In the last two EP elections the voter choice for women surpass greatly the choice of males; by 20% in the latest EP election. Where is this big discrepancy that will necessitate doctoring the composition of our parliament?

We need to do more to attract women to be candidates and this is done if women can consider this as a viable option. The consultation document even puts incentives for parties to carry projects to bring more women on our ballot sheets through financial incentives, another very innovative and radical proposal.

One must also consider how the quota or gender corrective mechanism will impact the perception of women, especially those women elected through the system. GRTU CEO Abigail Mamo added that ‘there is nothing more demeaning than being the token female. I work in what was traditionally a male dominated environment that today has changed a lot in this sense. I am in my position based on merit and have had to prove myself like anyone occupying such positions. I cannot imagine what it would have been like for me personally to be placed in my position just for being female. Apart from feeling ridiculed I would have had a tough time proving my worth and changing people’s perception of me that I am not just female but also worthy in occupying my position. I am no exception, I am only proof that the society we live in has changed and women are not prejudiced as they used to be in the past’.

On a final note GRTU believes that now that we have reached a state of progress where individuals can even choose not to associate with any gender and real effort is being put to treat everyone equally, basing a corrective mechanism on gender sets our country a good number of steps back, not forward.

Malta Chamber of SMEs
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