Author: SME Chamber

GRTU representative Elaine Zammit has this week attended an information session focusing on the Interreg MED funding programme 2014-2020.

The Interreg MED funding programme is aimed to:

• support the sharing of experiences, knowledge and improvement of public policies between national, regional and local authorities and other territorial actors of the MED area eligible regions.

• Contribute to the long-term development of the Mediterranean area.
• Strengthen transnational cooperation between regions and participating countries.

It will also focus on 4 priority axis of which 3 can be accessed by private entities and SMEs. The priorities axis are as followed:

Priority Axis 1: Promoting Mediterranean innovation capacities to develop smart and sustainable growth

This priority axis targets projects based on blue growth, green growth, creative and cultural industries and social innovation. Projects under this category will increase transnational activity of innovative clusters and network of key sectors of the MED area.

Priority Axis 2: Fostering low-carbon strategies and energy efficiency in specific MED territories: cities, islands and rural areas

This priority axis will focus on projects targeting energy efficiency in public buildings to raise capacity for better management of energy in public buildings at transnational level, renewable local energy sources to increase the share of renewable local energy sources in energy mix strategies and plans in specific MED territories and sustainable urban transport to increase capacity to use existing low carbon transport systems and multimodal connections among them.

Priority Axis 3: Protecting and promoting Mediterranean natural and cultural resources

This priority axis centres projects that target coastal and maritime sustainable tourism to enhance the development of a sustainable and responsible coastal and maritime tourism in the MED area and projects that focus on the management and networking of protected areas to maintain biodiversity and natural ecosystems through strengthening the management and networking of protected areas.

Priority Axis 4: Enhancing Mediterranean Governance

Projects under this category can only be submitted by the Government to support the process of strengthening and developing multilateral coordination frameworks in the Mediterranean for joint responses to common challenges.

Before an entity can consider applying for this programme, it is essential that certain minimum requirement are met. Such as the size of the partnership— at least 4 financing partner from 4 different countries must be included in the project. Additionally 3 of these partners must be located in the union part of the Interreg MED Programme area.

Project Budget — the budget must be structured according to the following budget lines:

• Staff costs (max. 40% of project total eligible budget)
• Office and administrative expenditure (15% of eligible staff costs)
• Travel and accommodation costs
• External expertise and services costs
• Equipment expenditure

The deadline for this application is on 2nd November 2015 at noon.

For further information and steps on how to apply, kindly visit: http://interreg-med.eu

The GRTU Executive Council met today to agree on its flagship proposals for Budget 2016.

GRTU believes that this year’s Budget should give utmost priority to the issue of enterprise competitiveness and GRTU believes that the cost of electricity impinges heavily on our enterprises’ competitiveness.

For a long number of years Maltese businesses not only suffered high electricity prices because of the international price of oil but also because they were asked to repeatedly sustain inefficiencies of the electricity supplier.

Now that the international price of oil has drastically gone down, there are substantial savings from the efficient BWSC operation and energy is available at significantly cheaper rates through the interconnector, we expect a significant reduction in the price our SMEs pay for electricity.

As such GRTU expects that as part of Budget 2016 the Government should reduce electricity prices for SMEs by 30%.

Retail sector employees attend cash handling training activities

On 7 July 2015 a ‘National Educational Programme for the Retail Sector’ was officially launched through a press conference addressed by the Governor of the Central Bank of Malta, Professor Josef Bonnici and the GRTU President, Mr Paul Abela.

The Programme entails detailed training meant to enable cash handlers in the retail sector interpret the various security banknote features at a glance.

Widespread training has already taken place in several retail outlets in both Malta and Gozo with over 100 training sessions provided by staff from the Central Bank of Malta’s Currency Operations Unit.

More than 800 employees, who handle cash as part of their daily duties, have attended these training sessions.

On 11 September 2015 employees from the various retail sector companies were presented with the Certificates of Attendance by Mr Alexander Demarco, Deputy Governor of the Central Bank of Malta and Mr Paul Abela, President of the GRTU. Certificates were also presented to the companies who have joined this educational programme.

The Central Bank of Malta and the GRTU endeavour to enhance and sustain their cash and other payment instruments’ related training and educational programmes, to ensure a wider reach with respect to employees in the retail sector.

Over the past eighteen months, GRTU – Malta Chamber for SMEs, has been actively involved in an initiative to give a national platform to bring forward Corporate Social Responsibility (CSR). This initiative has been formed jointly with all other major employers’ representatives in a bid to bring together all forms of businesses, small and large, in promoting CSR as a core concept for businesses. It is aimed at promoting initiatives and to serve as a network for cooperation in CSR.

CORE – Corporate Citizenship for Responsible Enterprises has been launched this week under the auspices of the Office of the President of Malta Her Excellency Marie Louise Coleiro Preca. Her Excellency highlighted how corporate social responsibility has been implemented by Maltese companies over the years but it was high time to promote it on the national agenda and to offer the space to bring all actors together. Companies realised that the implementation of a business that was responsible towards society was a crucial ingredient for sustainable development. Its founding President shall be Helga Ellul whilst GRTU nominee Carmen Borg shall serve as Secretary.

GRTU CEO Abigail Psaila Mamo expressed the importance of identifying what is already being done in practice. She outlined that at least 94% of business in Malta are micro-enterprises and therefore one cannot expect that the attitude towards promoting CSR with the largest of companies, can be transposed onto small businesses. Firstly one needs to acknowledge what is being done by understanding how each business is contributing responsibly towards society through the processes it has already in place. This has to be then be amplified by facilitating cooperation with each other in specific initiatives or through ameliorating business processes to achieve better results. Each business can be contributing to CSR but if the concept remains intangible and unreachable it cannot reach out to smaller businesses, which are in fact the absolute majority of businesses in our economy. A bottom-up approach has to be adopted in promoting what each businesses can be doing better to be more efficient and give something back to society, rather than having this the other way round.

Daniel Calleja-Crespo, European Commission General Director of Environment, expressed the EU’s support to such a positive initiative and outlined how CSR is being put at the forefront on the EU agenda. It is important to understand that the linear model of production has to shift towards the circular economy where businesses attempt to maximise the use of resources through re-using and recycling the supply chain eradicating all forms of possible wastage.

The launch brought together the various stakeholders in the chain of CSR. Various NGOs and businesses were present, with a number of GRTU members participating in the panels and activities during the launch – exposing their work in terms of CSR. During the panel discussions it was outlined that CSR should not be seen as a peripheral activity such as a financial contribution at the end of the year, but it should constitute a core principal within the processes of a businesses.

It is about management practices and employee engagement. It is futile for a business to simply give a monetary contribution to a charity if it is not respecting the environment in its production or respecting health and safety at the place of work for instance. Businesses also stand to gain from engaging in CSR. Businesses are expected to become more efficient and their customers hold them in higher esteem if CSR principles are implemented. It is a question of human resource management, quality and sustainability.

Sustainable Development Minister Leo Brincat, Social Solidarity Minister Michael Farrugia as well as Shadow Minister Marthese Portelli participated in the afternoon panel of the launch. They jointly expressed the Government’s and Opposition’s commitment towards supporting CSR as an essential facet of any business model. The launch was also attended by GRACE, the Portuguese CSR Network, which signed a cooperation agreement with CORE Malta at the end of the event. CSR Europe, which is the network for CSR organisation across the EU was also present. CSR Europe committed that it would re-open its membership in order to allow CORE Malta to be part of it as a full member.

It shall therefore be the mission of CORE Malta to network the already existing CSR initiatives to find possible scopes for cooperation to reach goals which otherwise cannot be achieved. It is also important to reach out to small and micro businesses to support them in adapting their practices as well. Micro businesses would not have the resources and time to set up CSR departments or foundations as their larger counterparts would – but they are the backbone of Malta’s economy and contribute greatly to society already. It is because GRTU endorses the idea of businesses being about positive change in society that it is four-square behind the CORE initiative. GRTU is committed to participate actively in CORE whilst promoting CSR across the board.

During a high level meeting with Commissioner Karmenu Vella and the European Commissioner Vice-President responsible for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen, GRTU President Paul Abela called on the Commission to go beyond measures and assess what is really happening on the ground and how effective the measures really are.

During the event that focused on The Investment Plan for Europe, Mr Abela stated that policies are still not sufficiently targeting SMEs and that the think small first principle is still more a paper than a practical measure.

Mr Abela said that access to finance is still a problem for small businesses most especially. To encourage access to finance the European Commission should not stop at issuing the opportunity but should strive to make it as accessible as possible by providing it through a number of banks and adapt the requirements and terms and conditions for small companies. The event was held as part of the roadshow to promote the Investment Plan for Europe. Vice-President Katainen said: “As the Autumn approaches, we are starting to see the Investment Plan coming to life.

Already a number of large infrastructure projects across the EU have received the green light for financial backing and can start construction. And the European Investment Fund has signed more than a dozen agreements with intermediary banks which have the support of the EU guarantee meaning small businesses and start-ups can start to benefit from this extra line of finance.” Commissioner Vella said:”There are 29,000 SMEs in Malta. What they need to be successful is good access to financing and good infrastructure to deliver. The Investment Plan, as shown with the SME initiative agreed with the Maltese government in July, is designed to help achieve this.”

The Opposition Spokesman for Local Councils and Whip of the PN Parliamentary Group has visited the GRTU Malta Chamber of SMEs offices in Valletta for a cordial meeting with Green MT in order to further understand its operation. He expressed that  stronger collaboration with GRTU and Green MT could lead towards providing an even better service for recycling and waste 

collection to residents. He stated that the next step forward is for Local Councils to work closer together for both recycled and mixed waste collection so that the service becomes more professional and effective whilst strengthening its viability.

Green MT Chairman Paul Abela and CEO Joe Attard outlined the current operations effected by Green MT in a substantial amount of Local Councils across Malta and Gozo. Issues discussed included the  current collection of grey bags from localities and issues relating to monthly glass collection and individual environmental initiatives taken by Green MT in individual localities such as St Julian’s and St Paul’s Bay.

At St Paul’s Bay Green MT caters for collection of carton and plastic from commercial entities daily. In the past this was undertaken in collaboration with the Local Council but recently this has become a fully-fledged Green MT operation. In the case of St Julian’s Green MT, together with the Local Council, has introduced a pilot project collecting glass from a designated amount of commercial outlets in the catering and hospitality sector. The amount of outlets using the service is expected to grow and the aim is therefore to ensure that such an entertainment hub does not dispose of any glass at the landfill through mixed waste. 

With regards to the implementation of the WEEE Directive, Joe Attard outlined that there are still a number of issues that need attention if Malta is to comply. Local Councils need to ascertain that Electrical and Electronic Equipment pertaining to WEEE is delivered to Authorised Facilities and not to scrap metal facilities as is still the case. The current bulky refuse collection system needs to be revamped to maintain a sustainable operation across Malta and Gozo and does not become an added burden to Local Councils due to the implementation of this waste stream directive. To this effect Joe Attard stated that Local Councils need more information in respect to waste stream directives currently in force under EU law. Green MT shall be holding a National Conference to disseminate further information to all Local Councils across Malta and Gozo.

Hon David Agius outlined the Opposition’s commitment towards more education, better service, cleaner environment and waste management. Whilst congratulating Green MT on its initiatives, he encouraged further dissemination of      environmental information at Local Council level. In addition he outlined that changes need to be effected in current waste management systems across Local Councils so that economies of scale are set in place and residents given an upgraded service.  Hon Agius further outlined that current allocation of funds to a number of Local Councils were not sufficient and it is high time that these are reviewed in respect to land-filling fees. The contribution of companies towards waste collection is a statement of the environmental credentials that Maltese and Gozitan businesses carry. Paul Abela emphasized that under the polluter-pays principle, everyone has to be responsible for the waste generated. To this effect both residents and the commercial community had to shoulder equal responsibilities to make sure that one does not have to pay for the other.

Hon Agius thanked Green MT for its operations at Local Council level and outlined his continued support to the operation whilst auguring that the WEEE implementation starting in September will have the least hiccups possible. Hon Agius continued by outlining that such meetings had to be held more often in the interest of the Local Councils and their residents. He concluded that residents, businesses and Local Councils have to work hand-in-hand whilst more education and information campaigns regarding collection times and related information would increase the positive commitment by all. This would lead towards   having cleaner localities and better service to residents. 

Green MT is a fully-owned subsidiary of GRTU, set up with the aim of aiding producer members and SMEs to comply with environmental legislation using the best technologies available at the lowest price. Green MT operates a Packaging Waste Compliance Scheme and has over 1100 registered members. For further information one can contact Green MT on 21496965/6.

GRTU was invited by NCFHE to discuss an Employee Skills Gap survey under a project which consists of three initiatives; a study on skills supply and demand in the Maltese labour market, a graduate tracer study, and training sessions for education providers on the implementation of Bologna Process tools.

NCFHE is requesting the assistance from employers’ associations to disseminate the survey to their members and support them in achieving a high response rate from all sectors of the economy and all types of companies.

The data collected through this research shall provide insights on the following;

1. Information on skills shortages in the labour market to facilitate decision making of policy makers and education providers, career guidance professionals as well as students and their families about areas of study and levels of qualifications sought in the    labour market

2. Provide important feedback to education providers on the knowledge, skills and competences required in different sectors of the economy in order to evaluate the relevance of the their study programmes to the labour market

3. Advise stakeholders on the needs of the labour market

4. Assess the impact of ongoing reforms of the education system in Malta

5. Provide a basis for future systematic and periodic employee skills gap surveys in Malta

NCFHE shall be holding focus groups with HR members from different organisations and sectors in order to build on further evidence for Employee Skills Gap. This survey should be distributed to all organisations by the end of September and a report with all findings would be available by April 2016.

Whilst acknowledging that a closer corporate taxation system at European level could support more coherence in terms of dealing with different tax regimes across the EU, GRTU’s understanding on the effects upon small and island economies such as Malta remain of major concern. Harmonisation in this field of policy along various fronts can lead to an understanding of having the possibility of a one-size-fits-all scenario, which across the realities and make-ups of the Member States’ economies within the EU, may be close to impossible unless it provides unfair advantages to the larger and higher-taxed jurisdictions.

There a number of concerns which effect Malta and its SMEs. In the first instance, such measures are assumed to benefit SMEs in bringing taxation regimes closer in perhaps a bid to make it more straight forward for the potentiality of specific SMEs to engage in business across EU Member State borders. Nevertheless one should firstly not assume that this is the only challenge for SMEs to engage in such cross-border business and moreso, it should not be entertained that not moving towards such policy direction is undermining SME interests in Malta in any way.

First of all, GRTU stands by the principle of subsidiarity and therefore where possible policy decisions should always be taken closer to home. This is a principle that also supports the concept of thinking small first, which allows SMEs and their respective representatives to influence the agenda closer to home. This implies the notion of fiscal sovereignty, which in terms of SME interests in Malta maintains that Malta as a Member State remains in control of its fiscal and taxation policy. This allows a micro-economy like ours to apply policy as would make best sense in terms of our national priorities and allows for adaption towards fiscal well-being in proportion to our small size and economy. Small economies need to retain and maximise their potential flexibility which is an advantage often weighed out by other cons of being of such small size and limited in resources. In turn this also allows for healthy tax competition across Member States. Initiatives driving towards a one-size-fits-all fiscal and taxation policy imply that we are also pushing towards no incentivisation of competitiveness in terms of tax regimes. This will allow a status quo and lack of initiative to re-invent taxation regimes for business  attractiveness – something which all SMEs across Europe would benefit from, but most of all which small island economies like Malta can adapt and renovate in, yet would be unable to if we go head-first towards this direction.

Conditionalities and optionalities still remain – and this is understandable in order not to allow rigidity of entrenched systems to be in one way or other undermining business potential and realities in any Member States. Yet, therefore if this road is to be taken, allowing optionality, one would be risking all the undermining factors for SMEs and related business whilst still providing an opt-out in cases of larger and stronger economies for specific cases which would en toto result detrimental to SMEs from smaller states. This optionality also provides a burdensome system for Maltese SMEs which are often smaller in size and setup than their European counterparts.It is also not guaranteed that any eventual sharing mechanisms based on the formulae proposed, would definitely result in fair and equitable results and may therefore favour the revenue towards larger Member States.

The clear argumentations of small economy setups vis-à-vis their larger counterparts and lack of adequate practical one-size-fits-all apparatus which would benefit all on an equal footing, show that before heading forth with such policy direction, one has to rethink the practical impact on all Member States and forms of entrepreneurial settings within each, prior to designing any such form of way forward.