Author: SME Chamber

During an MCESD meeting GRTU has today welcomed the white paper and said that this is something the GRTU has long been arguing on. The GRTU emphasized that while inspections should ensure compliance and therefore a level playing field between private operators, they are currently working the other way round. Because inspections are carried out on the same businesses and free riders are left undisturbed the abiding businesses not only are suffering from unfair competition because they are carrying the 

burden of taxation and other compliances the free riders, their direct competition, are not, but they are over and above also enduring the burden of inspections. Currently inspections are therefore counterproductive and therefore GRTU welcomes the fact that inspections will be risk based.

In addition GRTU argued that there needs to be a change in mentality. We are all the time saying that SMEs are the backbone of the economy but when Government inspectors come knocking on their door they are not made to feel this way. Inspectors have to change their attitude from one of authority into one that assists businesses. They should never aim at instilling fear and they should go out of their way to reduce the inconvenience caused. The White Paper aims to reduce the bureaucracy involved in the inspection system and to improve the transparency, coordination and clarity of inspections, allowing businesses to schedule several inspections on the same day. It aims to speed up and streamline inspections for businesses, which are currently carried out by 24 separate inspectorates.

Some 70,000 inspections are carried out per year on local businesses, ensuring that standards are kept in aspects such as food safety, environmental health, pricing, employment and health and safety on the job.

The consultation process, lasting six weeks, will allow stakeholders to voice their thoughts on the proposals. The White Paper can be found on www.socialdialogue.gov.mt for public consultation, which will be open until 30 October.

 

Economy Minister Hon Chris Cardona launched the Malta SME Week 2015 programme. SME Week is celebrated across the EU and this is of particular relevance to Malta where SMEs, micro-businesses and the self-employed dominantly make up our economy. Minister Cardona explained that this year’s theme is Digitising the Economy.

This topic is relevant to all sectors of business irrespective of their size, type and nature of business. Digital developments, new methods of communication, eCommerce and online shopping, are all phenomena which are taking place around us. Customers are online and therefore businesses have to seek methods on how to be present as well as otherwise potential is being missed to other sources such as competition from foreign businesses.

GRTU has taken up the initiative to organise a key event during this year’s SME Week – Malta’s Digital Economy Gap Analysis: Identify Your Business’ Next Step. Together with the support of MITA, MCA and Malta Enterprise, through this conference GRTU shall be giving an opportunity to participants to receive hands-on practical trainingon key issues related to the subject as well as to give feedback to the key policymakers. The Minister for the Economy, Investment and Small Businesses Hon Chris Cardona and Parliamentary Secretary for Competitiveness and Economic Growth Hon Jose Herrera, shall be present to receive feedback from the conference.

Amongst other topics, the conference shall seek to equip businesses with insights into how they can maximise their profits through eCommerce, what grants they may be missing out on, how effective and cost-efficient digital marketing can be for all businesses, and how simple methods of improving operations through digital means can benefit business’ competitiveness.

This half-dayconference shall be held on 13^thOctober and shall be followed by a free networking lunch. All SMEs, micro-businesses and self-employed are encouraged to attend. More details shall follow. For registrationand more information about SME Week 2015, kindly contact GRTU on .

 

The MEUSAC Core Group was this morning presented with the European Commission’s new strategy on better regulation aimed at reviewing the approach adopted by EU legislation and regulations in a bid to shift towards more practical and efficient ends. Regulation needs to be appropriate whilst standards and principles maintained through a balanced approach.

The new Juncker Commission is committed to ensure that the EU, its institutions, and its body of law serve the citizens and businesses and this

 has to be seen in their daily lives and operations. The Commission has set its priorities and in doing so has established that the EU should not expect itself to involve in each and every affair but only to involve itself where it is best deemed fit and appropriate. Policy-making has to open up and involved stakeholders right from concept and drafting stage. Better regulation is not a bureaucratic exercise.

Citizens’ perceptions have shown that 74% of Europeans believe that the EU generates too many regulatory burdens. Therefore the Commission is seeking to adopt more proportionate approaches, limited and focused new initiatives, and ensuring high standards of law-making procedures. This does not mean deregulation but finding ways of achieving the goals more efficiently. The better regulation is based on three key components:

• Openness and transparency
• Doing better tools for better policy
• Refreshing the existing stock of legislation

Malta has welcomed the Better Regulation Package particularly because of more consultation at all stages and accessibility of information. EU policy should be fit for purpose. Strengthening of the independence of the impact assessment processes are also key factors. Particular attention has been given to SMEs.

During the MEUSAC meeting, GRTU representative Matthew Agius expressed that GRTU welcomes this new approach not only at an EU level, but hopes that it is supported through transcending it down to Member States. This is about making the EU more relevant in practice. The proposed strategy focuses a lot on SMEs and small businesses. Matthew Agius stressed that concepts such as Think Small Firstshould not remain just buzzwords but one has to see the actual implementation of key policies such as the Small Business Act.

Such initiatives are about bringing a paradigm shift – rather than putting forward policy and expecting end-users to abide, one has to elicit the needs from the end-users and reflect the realities of micro-businesses and self-employed by understanding how policy impacts them, and then design policy and legislation accordingly. Agius further added that there were initiatives that had been taken even at a national level such as establishing the as the Commissioner for Simplification and Reduction of Administrative Burdens, yet these initiatives needed to be followed up with the necessary resources, autonomy and institutional authority to in effect see results.

GRTU has also been repeatedly calling for efficient and open SME Test initiatives to enable improvement of legislative and management processes even with the EU and public sector to be made based on evidence and facts from the field.  Commitment to better regulation must apply across the board. GRTU welcomes the aims of actions such as REFIT which are intended to review existing legislative issues at EU level and revise in terms of bringing forwarding simplification.

GRTU definitely agrees with and supports the positive concepts being brought forward such as openness, transparency and simplification. However one has to see that effective implementation of better regulation initiatives are undertaken in practice and not remain conceptual goals which are shelved.

 

 

All formalities are now in place for WEEE Malta to join the WEEE FORUM as a fully accredited member as of October 2015. WEEE Malta membership will be formally sealed in October 2015 when the WEEE FORUM meets for its coming General Assembly.

The WEEE Forum –WEEE stands for ‘waste electrical and electronic equipment’–is a not-for-profit association of 32 WEEE producer responsibility 

organizations (or ‘producer compliance schemes’) in Europe. TheGeneral Assembly is expected to increase its members to 36 during the coming General Assembly when four formal applications from WEEE Schemes should be approved. It was founded in April 2002 preceding the entry into force of Directive 2002/96/EC on WEEE. The WEEE Forum provides a platform for producer responsibility organizations to take on the challenge of electrical and electronic waste in Europe by fostering ideas and sharing best practices whilst optimizing environmental performance through a proper management of WEEE.

The WEEE Forum is the largest organization of its kind in the world. Over the years, producer responsibility organizations of the WEEE Forum have acquired substantial know-how on the technical aspects of collection, logistics and processing of WEEE. In 2012, the members collectively reported collection of about 2 million tonnes of WEEE.

The 32 current Compliance Schemes members of the WEEE FORUM hail from 21countries in Europe and WEEE Malta is proud to note that our first collaboration locally relating to WEEE expertise was effectively with the former CEO of EL Kretsen, Mr Jurgen Shultz who has spend four weeks in Malta  a few years back when GRTU was effectively working on setting up a WEEE Compliance Scheme.  EL Kretsen is also a founder member of The WEEE FORUM established in 2002.

 

The mission of the WEEE FORUM is to:

• Deal with matters arising from European legislation concerning WEEE;
• Optimize the operational efficiency of the members while striving for continuous improvement of their environmental performance;
• Promote exchange of know-how and best practice;
• Develop standards and technical specifications to fulfill producer responsibility on behalf of producers;
• Strive towards harmonization of procedures in regard to members and associated members or other structures that assume responsibility of producers for the management of WEEE.

WEEE Malta has already met with a number of the WEEE Compliance Schemes who are members of the WEEE FORUM, amongst which Raecycle is one of the closest collaborators. The Italian WEEE Compliance Scheme is one of the largest in Italy and other then a Compliance Scheme operates WEEE treatment and final recycling facilities in Roma and Syracuse, Sicily. WEEE Malta has had a couple of meetings with Raecycle with a view to strengthening areas of collaboration where economies of scale are possible and in addition to ascertain producer members in Malta are effectively complying to the legislation and thus making sure that no paper exercises are in place. Raecycle currently receives and processes just under 50,000tons of WEEE annually.

The current president of the WEEE FORUM is Mr Philip Morton from REPIC UK.

WEEE Malta is an Authorized Compliance WEEE Scheme set up by The Malta Chamber of Small and Medium Enterprises, GRTU. The Scheme has 380 founder producer members. The Scheme will be operated by WEEE (MALTA) Limited, specifically set up for this aim. It is A not for profit set up, with the aim of complying to the environmental legislation of its producer members with the best available technologies at the lowest of cost.

 

A consultation meeting was organised by NCFHE on the 22^ndSeptember regarding work-based learning and how to get such learning accredited.

There are many education and training courses which include a component of Work-based learning therefore NCFHE are finding ways to creating a set standard for such learning to get such teachings accredited. Work-based Learning refers to organised learning that takes place in workplaces. There 

are different types of work-based learning, based on the location and conditions of learning that include the following:

• Schemes or apprenticeships: where learners spend a significant amount of time on training in companies;
• School-based training which includes on-the-job training periods in companies;
• Work-based learning integrated in a school-based programme, through on-site labs, workshops, kitchens, restaurants, practice firms, simulations or real business/industry assignments.

In the Maltese context and in view of a draft update to the Referencing Report, it is being recommended that there are a number of aspects that need to be respected for work-based learning to be accredited:

• Work-based learning can only be accredited if it is a component of a training course,
• Learning outcomes for work-based learning need to be specified,
• Learning outcomes for work-based learning are to be agreed by the training institution, the employer providing the work-experience and the student,
• There needs to be an element of supervision of the student at the workplace,
• The learning agreement should include the mode of assessment for work-based learning,
• Method of assigning credits to work-based learning is to be an equivalent of 1 hour of leaning for every 1.5 hours of work experience.

All above points were discussed during the consultation meeting and such feedback would be taken into consideration by NCFHE when updating the Referencing Report.

 

This year’s World Tourism Day Theme is “One Billion Tourists, One Billion Opportunities”. GRTU is a great believer that tourism creates opportunities not just for the traditional tourism dependent sectors but for businesses in general. This has never been more pronounced than in the last years.

Today’s typical tourist no longer resides in a hotel and goes out only on excursions or to eat at a restaurant. Many tourists today stay in alternative types of accommodation, rent cars to go around the island and make their own visiting plans at their own pace. They buy food and nibbles from grocers and supermarkets to eat on the way to their destination and enjoy that odd relaxing eat in after a day of running around.

Today’s tourists seek the road less travelled and to spend time in our quiet villages and chat and eat with the locals. They look for the authentic Maltese experience.

In its 2016 Budget proposals GRTU is calling for the generation of increased economic activity in our localities. With our country’s small size it makes all the more sense to maximise our space potential and build on the concept of community tourism. Alternative forms of accommodation should be encouraged and incentivised. The popularity of staying in boutique hotels, small guest houses, hostels and even host families has soared drastically in recent years and Malta should be able to cater for such a demand. It is still tourism of high quality and value added but whose priority is the authenticity of the experience.

The value added in the utilization of available resources that could easily materialise with the right incentives. The ripple effect this would have on our economy as a whole could be remarkable. Cafés, Restaurants and retailers will benefit if tourists accommodation spreads from the traditional tourists areas to the localities. The package of incentives should focus on facilitating access to finance, which includes grants, tax credits and advantageous loans. Licensing and standards should also reflect this shift.

World Tourism Day is celebrated every year on the 27 of September. It is a global celebration that highlights tourism’s social, cultural, political and economic value.

#1billiontourists#WTD2015

 

GRTU President Paul Abela has called on the Minister for Finance to reduce electricity prices for SMEs by 30% in the next Budget. Mr Abela made his request directly to the Minister during a business breakfast held earlier this week.

Mr Abela started off by replying to the Minister’s comments during a Budget related public event where it was reported by the media that the Minister 

expressed his amazement that the GRTU had not made such representations when the PN was in Government and the prices of electricity were high. The GRTU President assured the Minister that GRTU is not politically affiliated and said that the papers he was waving in his hand were two press releases issued by the GRTU where it had heavily complained with the Government, at the time a nationalist Government, about the high utility prices.

‘This year GRTU’s proposals are targeted at increasing the competitiveness of our enterprises and in this respect the price of electricity is key. Through workings GRTU has carried out it transpires that the international oil prices have on average halved and the price at which Malta is buying electricity through the interconnector is mostly between 4c and 6c. In addition millions were being saved through the efficient operation of the BWSC. With all of these factors combined GRTU estimated that electricity prices need to be reduced by another 30% and in saying this we are being conservative.’ Mr Abela invited the Minister to engage independent auditors to assess how far the prices of electricity could be reduced. He also said that the supplier of electricity is a dominant player and therefore could not choose not to pass savings to its clients. Mr Abela said that the MCCAA should investigate the price mechanism on the basis of competition rules.

In reply the Minister assured GRTU that he had not made such comments about the GRTU and his criticism was targeted at the opposition. He also said that Enemalta was badly in debt and these had to be paid for.

Following the Minister’s reply two other interventions were made from the floor that supported GRTU’s energy claim. One of the interventions was by the Chamber of Commerce, Enterprise and Industry.

 

 

GRTU President Paul Abela and Council Member Karmenu Vella have this week met with Maltese MEP, Roberta Metsola. During the meeting, GRTU and Dr Metsola discussed various concerns that are currently affecting local business and SMEs. These issues included matters of unequal terms that SMEs face due to unfair competition. 

Paul Abela highlighted the importance of thinking small first and how policy-

making needs to be implemented with the smallest businesses and self-employed in mind. Dr Metsola acknowledged the role that SMEs and micro-businesses play in the EU economy but also in Malta. Dr Metsola expressed the importance for policy-making to maintain closer cooperation and dialogue with businesses. She outlined that Malta’s businesses have a lot to contribute. The right balance between safeguarding consumers’ rights and not increasing unnecessary bureaucracy or unfair burdens on small businesses needs to be found.

 

The GRTU has in recent weeks held a number of fruitful sessions attended by operators in the Passenger Transport Industry, consisting of (i) Providers of Chauffeur Driven Cars, (ii) Minibus Operators as well as (iii) Operators of Private Coaches.

The Passenger Transport Industry suffers huge drawbacks and inefficiencies 

due to several failures related to logistical ineptitude, road works, road closures, major arterial projects and conflicting permits granted to different entities to close public roads arbitrarily and most often without prior notice or visible signage as to what the alternative route for drivers is.

Moreover the Passenger Transport Industry also suffers considerable losses not only due to the aforesaid difficulties, but also due to changes in legislation that increase bureaucracy and reduce their efficiency; changes in policy affecting fiscal benefits that are lost or removed without prior notice resulting in less competitive rates for passengers; inexplicable decisions taken by the competent authorities concerning public roads, such as those taken in relation to Bus Lanes, which collectively result in astronomical levels of tension and frustration to passengers, drivers and operators alike.

Consequently the Independent Providers of Passenger Transport (IPPT) Section of the GRTU will be holding a number of further sessions for all chauffeur driven car operators, mini-bus operators as well as operators of private coaches in order to find solutions, draft proposals and meet the competent authorities particularly those having the ability to close public roads. Naturally these sessions are open to GRTU members as well as other independent providers of Passenger Transport that have their industry at heart as well as the vision of improving the logistics of our road infrastructure to the benefit of the whole country. Matters related to traffic and logistics are evidently effecting businesses, within or without this sector alike, and the general public directly. Through the support of operators with on-the ground expertise in the sector, GRTU is seeking to develop concrete solutions to address this matter of national concern. 

During the forthcoming sessions two main items will be discussed namely (i) the Kappara Roundabout Junction Project and (ii) the overhaul of the current BUS LANE policy.

The setting up of the IPPT Section complements GRTU’s representation within the transport sector such as cargo hauliers and gas distributors amongst many others. Acknowledging that transportation and traffic management have become core issues for the private sector and the general public alike, GRTU is placing transport as one of its major themes to be addressed in the upcoming Budget. The IPPT Section adds value and strength to GRTU’s efforts in serving as an effective transport lobby to put forward concrete proposals to address and improve the situation. 

For further details concerning the forthcoming sessions as well as membership information you are kindly requested to contact Mrs. Elizabeth Curmi Said on  or visit our offices at GRTU, Exchange Buildings, Republic Street, Valletta T: 21232881M: 79049409