GRTU sets up Transport Lobby Group

GRTU has over the past years represented various sectors of trade which are directly or indirectly related or affected by issues of transport and logistics. Rather than complaining, GRTU has in 2015 taken an active stance by bringing together the various types of operators involved. Over the past months this has proven to provide hands-on expertise from those who are 
constantly operating on the road – knowing the ins and outs of the situation, and ultimately being able to provide solutions. 
 
GRTU is bridging the concerns to find common solutions that can be brought forward and implemented both for the short-term and the long-term approach – something which will not only benefit business but our economy and society as a whole. 
 
Our representation includes, amongst others:
  • Chauffeur-Driven
  • White Taxi Service
  • Coaches (Unscheduled Bus Service)
  • Cargo Hauliers
  • Express Freight (such as Courier Delivery Service)
  • Airfreight Forwarders
  • (Essential) Goods Distributors (such as Gas, Milk, Bread)
 
Through this Lobby group GRTU has presented a comprehensive set of proposals during 2015 to the Ministry for Transport. Below is a summary of what was presented:
  1. Stronger consultation and planning to mitigate unnecessary burdens such as closing off periphery projects, widespread awareness of closures and diversion routes, and devising acceptable diversion routes for the duration of projects. 
  2. Traffic has to be channeled to secondary roads to reduce clogging where possible. 
  3. An ongoing stock-take of possible improvements and suggestions in various localities, including Paceville, Swieqi, San Gwann/Kappara, Qormi, Marsa, St Venera, Zebbug, Luqa.
  4. Authorities that close roads need to communicate and coordinate together in practice. 
  5. A Driver on Delivery Card similar to the Doctor on Call concept needs to be considered.
  6. 24/7 Use of Roads and Off-Peak Times (Road works, landscaping works, waste collection and other)
  7. Widespread Educational Campaign
  8. Enforcement that ensures Loading bays are not left occupied, buses use the appropriate bus-stop stations and upgrading subways
  9. Clearer understanding of the use of the newly installed Priority Lanes so as to ensure full usage by chauffeur-driven cars, white taxis, buses, coaches, motorcycles and even private vehicles carrying three or more passengers. 
  10. Increase of Boarding / Loading Bays in key areas such as business hubs (Valletta, Sliema, Paola, B’Kara, etc.). 
  11. Unused parking facilities and private parking facilities need to be put into use. It no longer makes sense to have development getting away with not planning adequate parking facilities. 
  12. In view of the previously announced logistics hub concept, one may even consider organized local combined logistics as applicable. 
  13. Incentivizing other methods of transportation rather than using one’s private vehicle needs to be taken from policy to action. This would include for instance increase of sea transport.
  14. Smart Technology Systems would smart parking sensor to advise drivers if parking is available or not to avoid unnecessary traffic and time wasted looking for parking; adaptive traffic signals technology would improve efficiency. 
  15. Encourage employers to invest in parking facilities and joint traffic solutions
  16. The CVA system in Valletta has clearly failed and needs a complete overhaul. All stakeholders involved need to be brought together to steer a holistic revamp of the entire system to address the evident inefficiencies which are definitely not within the original spirit within which it was established. 
 

GRTU’s main achievements in 2015

One of the biggest achievements of the organization during 2015 was the initiation of the abolition of Eco Contribution. After years of GRTU representation and complaining about the inadequacy of the law and its lack of logic, 2015 marked the year that started its abolition. GRTU has spearheaded this change and the journey was not an easy one as we faced 

significant impositions from Government due to the income Government derived from this contribution/tax. GRTU has been following the removal of this unjust tax very closely and there is an understanding that Eco-Contribution will be totally abolished in the coming years.

Another major win for the GRTU concerned its long standing crusade against excessive bank interest rates and charges. GRTU’s efforts have led to more affordable means of financing also through alternative sources that work independently of the banks as well as the Micro Guarantee scheme, another product that was developed by Malta Enterprise thanks to the efforts of the GRTU. 

Following insistence pressure by GRTU an investigation was carried by the MFSA as the regulator and the MCCAA as the competition authority that confirmed what GRTU has been arguing against for many years. The investigation focused on the bank’s level of profits, risk rating policies, financial literacy, interest rates and charges.

In 2015 GRTU has won EU funds to the tune of Eur 90,000.00, concluding its first ever European Social Funds project. The funds gave GRTU the opportunity to carry out a vast number of activities and reach beyond its usual capacity, increasing the exposure of the organization.

Thanks to this financing GRTU held two very successful conferences, one related to helping SMEs in reaching their online potential and another related to learning about and implementing the Budget measures. GRTU’s work and what it stands for were showcased through audiovisual tools, write-ups in popular magazines as well as tailor made publications. In addition GRTU also developed its first guidebook and online learning facility.

2015 was also a year were Government started taking concrete action against unfair competition. What has been achieved this year is far from being enough however it constituted an important first step because through intense pressure placed by the GRTU, Government’s policy shifted from one where it was arguing that goods coming from Sicily should be treated in the same manner as those coming from Gozo to one that involved a stronger regulatory framework and a degree of enforcement.

In addition, following GRTU’s campaign against the sporadic licensing of ‘occasional sellers’ Government abolished the exemption threshold of Eur 7,000. This will place the authorities in a position to be able to carry out checks that were impossible with the exemption.

GRTU’s sections have also been very active during 2015 and one of the most active and dynamic sections was the Renewable Energy Section. GRTU has successfully reached an agreement with Government in relation to the allocation of land for PV investments by the private sector. This will help Malta reach its EU 2020 targets and will help the sector through the supply of additional work that is not related to the schemes issued by Government. GRTU will be coordinating the project through a Public Private Partnership.

Apart from working relentlessly for the betterment of its members GRTU has also worked to improve the organization itself. In 2015 GRTU was awarded the Equality Mark by the National Council for the Promotion of Equality. This award is testament that GRTU is an equal opportunities employer and that its employment and working practices are gender neutral and fair.

The application process involved the development of an equality and sexual harassment policy, appointing an employee as an equality representative and implementing family friendly measures and work life balance options.

GRTU has this year also returned to printed media through its collaboration with the business journal – The Executive. This helped GRTU in widening its reach through an already established distribution network and a professional publication. The feedback received on the publication is very positive.

 

The GRTU Executive Council took the bold decision to relocate its headquarters, for the first time placing the GRTU in a position of directly owning the property it operates from. This we believe will drastically increase the value of the organization.

GRTU successfully holds its 67th Annual General Meeting

‘GRTU is going through a phase of renewal’ – Paul Abela, GRTU President
 

The 2015 AGM was held on Sunday the 17th of January at the GRTU Headquarters in Valletta. During the meeting GRTU CEO Abigail Psaila Mamo provided a detailed overview of GRTU’s 2015 Administrative Report.

The Administrative Report showcases the work carried out by GRTU during 2015. Amongst others it outlines the top achievements of the organization during the year, the multitude of issues that GRTU has touched with and work with specific sections.

The achievements of the organization during 2015 were many, ranging from the long awaited abolition of eco contribution, a step forward with regards to bank interest rates and charges, successfully winning and completing an ESF project amongst others. A more detailed overview of GRTU’s achievements for 2015 can be found on page x or on GRTU’s website.

During 2015 GRTU has also spearheaded a number of important issues for businesses placing them on the national agenda.

Amongst the most prominent for 2015 was GRTU’s request to reduce electricity prices for SMEs. This was one of GRTU’s main proposals for Budget 2016 where GRTU boldly requested a reduction of 30% in the cost of electricity for SMEs, and this was over and above the 25% that was given by the Government earlier on in the year.

GRTU’s claim gathered significant support from the other leading social partners as well as the opposition. GRTU intends to continue with its claim and representations on the issue in 2016 with the aim of winning a better deal for businesses when it comes to the cost of electricity.

Other important issues GRTU dealt with in 2015 were the Maternity Leave Trust Fund that led to GRTU being on the Board that would distribute the funds to the private sector, this we believe will ensure timely disbursements. GRTU was also very vociferous in its objection to the relocation of the Valletta Market and took concrete and constructive action on the issue of traffic in Malta through the creation of a new lobby group that brought together the main stakeholders in the industry.

GRTU President Paul Abela closed the meeting saying that GRTU is today the main stakeholder representing SMEs in Malta and the GRTU is going through a phase of renewal where we are reinforcing the principles and mission of the organization while at the same time looking ahead and exploring new avenues that can enhance the service GRTU provides to its members.

Mr Abela thanked the GRTU Council for the time they invest in the organization to improve the working environment for the sectors they represent and the GRTU staff for their relentless efforts and dedication. 

GRTU and MCA launch tools to facilitate the advancement of Maltese SMEs in the digital world

The Malta Communications Authority and GRTU Malta Chamber of SMEs have today launched a number of tailored tools that will proactively increase the number of businesses in Malta that have an online presence and are able to compete online.

GRTU President Paul Abela stated that competition from the internet is one of the biggest concerns and challenges faced by Maltese businesses today. 

“It is a phenomenon that businesses need to adapt to and GRTU is pleased to be working hand in hand with the Malta Communications Authority to supply Maltese businesses with the necessary tools that will enable them to compete online”. Over a 100 foreign companies have registered for the Maltese VAT through the MOSS system to be able to sell to Maltese consumers and pay the Maltese VAT rate.

As part of a wider project financed by the European Social Fund (ESF) GRTU has not only identified the gaps that are holding businesses back but it has also developed learning tools to address them.  Thanks to ESF funds GRTU has developed a guidebook and an online learning tool, both aimed at upskilling businesses. These tools can help businesses go online for the first time as well as further develop and improve their online presence to be more effective and competitive.

Following the launch of the National eCommerce Strategy last year, the MCA Chairman said that MCA continues with its commitment to facilitate the uptake in eCommerce by ensuring that traders have the necessary means to capitalise on opportunities brought about by eCommerce. The MCA is cognizant that in today’s increasingly connected society, it is becoming ever so important for companies to develop and manage an effective online channel, especially in view of the fact that although 69% of businesses claim to have a website, only 14% were selling online in 2013, with the remaining sales occurring mainly through traditional brick-and-mortar stores.

It is therefore becoming critical for traders to be able to find the right expertise and support when setting up an online store or extending their business online. To this end, the Authority has re-visited the eCommerce guides for business, which it had launched some years back, and incorporated these in a website together with the online directory, BLINK,  so as to provide traders with a more comprehensive and practical reference tool. The eCommerce Guides for SMEs’ website is purposely designed around a number of categories reflecting the different phases that are usually required to set up an online shop. It features information related to legislation, website planning, online security issues, electronic payments, customer service, amongst others.

Hon Parliamentary Secretary for Competitiveness and Economic Growth, Hon Jose Herrera stated that ‘The national strategy for electronic commerce, that was ambitiously launched last year, is addressing the challenges through a number of measures that are spread on a six year period. First and foremost and without any doubt however, every enterprise needs to assess in great detail how this reality affects them. Therefore, the Malta Communications Authority and the GRTU are today jointly launching a package of information tools that will help enterprises undergo the necessary change. The guides are made available free of charge and provide enterprises with the necessary resources so that they can capitalise on the opportunities that electronic commerce brings. Through these guides we need to assist those industries where electronic commerce presents real opportunities for development and expansion.

Joint statement by the Ministry for Home Affairs and National Security and GRTU

The private sector’s role to raise standards in Paceville is pivotal

“We need to send a serious enforcement message on Paceville, but to succeed all stakeholders involved including the private sector must act in unity”, This was stated by Minister for Home Affairs and National Security Carmelo Abela during a meeting held with the Chamber for Small and Medium Enterprises in Malta on the issue of the amelioration of Paceville entertainment zone and surrounding areas.

The majority of entertainment operators in Malta and Gozo were present for the meeting including a high number of owners of establishments in Paceville. 

“Government is committed to see immediate improvements when it comes to the issue of safety and security in Paceville”, Hon Abela told those present. He noted Government is currently reviewing regulations that permit a stronger regulatory framework marking clearer responsibilities, for enforcement in the area of health and safety. The increase of fines as a deterrent which is currently under review was also discussed. 

GRTU Tourism President Philip Fenech said that GRTU was working closely with private operators to raise standards in the sector. “Together with the authorities we are taking a constructive approach and making advancements” said Mr Fenech. He noted that through these meetings, GRTU was enhancing the effectiveness of a platform which sees policy makers and the people that work on the ground, working together to understand each other’s realities and devise a way forward.

The private operators raised a number of concerns that they encounter. Amongst the challenges mentioned were the anomalies in the licensing regime and the difficulties with fake and stolen Identity Cards. Others remarked the unlevel playing field created by one off events and by some establishments that are utilised for entertainment purposes but fall within a different licensing category. The need to strengthen the training of a number of security personnel was also pinpointed. 

GRTU stated that this meeting followed the one held recently with the Malta Tourism Authority related to licensing and compliance. In this meeting, they were represented by Tourism President Philip Fenech and CEO Abigail Psaila Mamo. Accompanying the Minister for Home Affairs and National Security Carmelo Abela was Mr Joe Bonello, Policy Advisor 

GRTU and MTA initiate wave of communication efforts targeting the hospitality and leisure industry

A number of operators representing the majority of entertainment establishments in Malta and Gozo have yesterday attended a communication meeting related to compliance and higher standards organized jointly by the GRTU and the MTA.

The meeting was chaired by Philip Fenech, GRTU President for the Tourism

 section, and it was addressed by Paul Bugeja, MTA CEO, David Mifsud, Licencing and Enforcement Director and Charles Burlo, Head of Monitoring Board for Health and Safety in places of entertainment and GRTU CEO Abigail Psaila Mamo.

The aim of the meeting was of helping operators in the sector attain higher standards by explaining compliance and licensing legislation and having a constructive exchange of views on the issues the operators face on a day-to-day basis.

Amongst other things a number of important issues were discussed including the presence of under age youths in places of entertainment, the capacity of the establishments, evacuation and drills, fire safety and juvenile delinquency.

The GRTU and the MTA and the operators are stepping up their efforts in time for the festive season to ensure that people can enjoy themselves while feeling safe. This is the first of a number of initiatives that are aimed at bringing the main stakeholders to work together for the betterment of the community at large.

Il-GRTU u l-MSBCA jesprimu l-preokkupazzjoni taghhom fuq l-izviluppi dwar ir-rilokazzjoni tal-bejjiegha tal-monti

Il-GRTU u l-Merchants Street Business Community Association (MSBCA) illum laqqgħu lis-sidien tan-negozji li jinsabu  fi Triq il-Merkanti, Valletta u dan in vista ta’ l-aħħar żviluppi dwar ir-rilokazzjoni tal-bejjiegħa tal-monti.

Is-sidien tal-ħwienet ta’ Strada Merkanti filwaqt li jirrijaffermaw li għamlu investiment ta’ miljuni ta’ ewro fil-ħwienet tagħhom u dan sabiex itejjbu l-

livell tan-negozju tagħhom, ma jistgħux jiġu issa f’pożizzjoni li l-investiment tagħhom jixxejjen.

Jifhmu li anke il-bejjiegħa tal-monti iridu jaqilgħu l-għixien tagħhom u huwa għalhekk illi qed jipproponu li l-bejjiegħa jerġgħu imorru quddiem is-Suq tal-Belt propju fejn kienu ftit taż-żmien ilu.

Is-sidien huma ferm preokkupati li numru ta’ franchises li qed joperaw minn Strada Merkanti huma deċiżi li jirtiraw jekk kemm-il darba il-monti jiġi rilokat matul Triq il-Merkanti.

Is-Sidien disposti li jitkellmu u jiddisktu u dan bil-għan li tinstab soluzzjoni.

The Family Business Act: What exactly am I going to benefit from?

The white paper heralding a new piece of legislation that the GRTU has been working on and insisting upon for several years, has finally been published and is nearing its entering into force.
 
The Family Business Act will shortly provide a regulatory platform whereby incentives being introduced by the very Act itself, as well as forthcoming incentives for family businesses that fall within the definitions of the Act, will benefit. The Act includes enabling provisions to allow the competent Minister to further legislate on a number of aspects including the development of further benefits.
The new law defines family businesses and identifies the business models by which family businesses trade and operate. 
 
The Family Business Act allows a broad spectrum of legal scenarios through which a family business may be operated: limited liability companies, registered partnerships, unregistered partnerships, and even listed or trading companies on a multilateral trading facility.
 
The Act also caters for family businesses that may be operated through indirect ownership structures such as those set up as holding companies, trusts or even private foundations. 
 
The new law has created the role of a Regulator for Family Businesses who will carry out the function of being a leader and a representative of the sector. As the administrator of the Register of Family Businesses, the Regulator will collate those businesses that have been allocated the family business label after meeting the established requisites.
  
What we know about at present, through the publication of the white paper, are those benefits listed in the draft.
 
So what is in it for local family owned businesses?
 
The benefits that are to be introduced with the new Act are mainly twofold: those pertaining to the operation of the business per se, and those pertaining to prospective transfers between family members of immovable property or shareholdings on which Duty is payable.
 
The Operational Benefits:
 
  1. Micro Investment of a maximum tax credit of €50,000 over a three-year period, naturally subject to Malta Enterprise’s terms and conditions;
  2. Legal and Accountancy advisory services up to €2,500 over a five-year period;
  3. Assistance for Arbitration sittings;
  4. Education and training for owners and their employees of up to €1,000 annually per family business;
  5. The positive consideration of lease renewals occupying government premises;
  6. Loan guarantees of up to €500,000 per business for the purpose of acquiring the business or parts thereof;
  7. When a registered family business is occupying industrial government premises or land on lease or emphyteusis (cens) and subject to the business satisfying all the conditions of the tenancy agreement that has lapsed, the Regulator shall recommend to the Malta Enterprise and/or Malta Industrial Parks to renew the tenancy. 
 
The Fiscal Benefits:
 
  1. Duty on Documents on immovable property being transferred between family members of a family busiess shall be chargeable on the first €500,000 of the value of the property transferred at the advantageous rate of 3.5% or part thereof;
  2. In the case of Duty on Documents payable on the transfer of shares of a family owned company between family members, or interests in a partnership, trust or foundation, no duty will be chargeable on account of the first €150,000 of the value of the shares or interests in a partnership, trust or foundation transferred.
 
GRTU is inviting all its members to submit any representations they may wish to make on the white paper explained above by not later than Friday 20th November 2015. Alternatively should you wish to discuss in further detail, you may schedule a private meeting with our legal advisor who will examine your own family business queries in greater detail. In either case you are kindly requested to email or call our offices directly.
 

Migration: An important source of employment for the private sector that must be safeguarded

GRTU CEO Abigail Psaila Mamo has today participated in a citizens debate entitled ‘Living with Migration’ which concentrated on the issue of migration in Malta including how they are perceived by citizens, how they themselves feel they are treated and the case for their integration.

It was mentioned that migration is an issue not just in Malta but in many other EU countries, where the numbers are even bigger than in Malta. When 

we speak of migration we commonly associate it with asylum seekers and illegal migrants coming from Africa. Migrants however come from other EU countries as well as other 3rd countries and there is a good number of migrants that are skilled. 

Ms Psaila Mamo said that Malta has a very low level of unemployment and migrants fill in the vacancies the Maltese are not interested in working in or not skilled enough. There are a number of sectors where migrant workers are essential, simply because there is shortage in the Maltese labour market. She said that there is an issue with the lengthy procedure for a third country national to be able to work in Malta and also with regards to the recognition of qualifications.  Another thing she mentioned is that GRTU is supporting the Government in its efforts to regulate work of illegal immigrants through the newly announced Budget measure that will establish an Immigration Work Office where businesses will be able to buy the hours of work they need and the current situation of going to Marsa to pick an illegal immigrant for work will stop. This is something GRTU has been insisting on for many years because businesses have no other option but to employ them illegally and this would put a stop to any abuse and social contributions would be paid in the process. GRTU will be involved in the consultation process before this system is established to ensure that the system is not bureaucratic and that the cost of employment is reasonable and viable for enterprises.

Another way GRTU is supporting the integration of migrants is through social entrepreneurship. GRTU has applied for an Interreg project whereby it would work with disadvantaged groups such as women, pensioners, youths not in education and employment as well as migrants to help them tap into entrepreneurship as an option to employment. If funded the project would start being implemented later next year.

 

 

Malta Chamber of SMEs
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