Author: SME Chamber

• All Valletta Government owned retail outlets that are operated by tenants both under a title of lease (kera) as well as emphyteusis (cens), will now be eligible to submit an application under the SHOPS SCHEME. The Hon. Falzon said that applications will be open on Monday 11th May 2015 and will offer the opportunity for tenants to use their shops as security when they seek finance.  A €500 non-refundable administration fee will apply. GRTU proposed that this fee should be deductible as an expense in the tenant’s income tax return for the following year, however this is still to be confirmed.
• Applicants will benefit from a term of emphyteusis (cens) of 45 years;
• Government will accept applicants who can provide either a clear root of title of how they possess the premises or in lieu thereof, an affidavit detailing their acquired rights over the premises;
• Government will not accept conflicting applications over the same premises;
• Government will grant tenants the right to enter into the deed of cens as a limited liability company where the tenant is a private individual, and vice versa without the payment of a laudemium;

• The rates will be calculated on actual floor space therefore excluding columns, shafts etc;
• The rates will increase by 10% every five years. This increase is a flat rate and will not be subject to any cost of living adjustments;
• Future transfers of the title over the premises will be allowed against the payment of a laudemium to Government equivalent to one year’s cens;
• Government reserves the right to refuse any application at its sole discretion;
• Transfers by inheritance inter vivos/causa mortis will not attract a laudemium;
• Any existing leases or cens having rates higher than those introduced by the Scheme will remain unchanged, in the sense that the Scheme will not be used as a means of reducing the rate of lease/cens previously contracted;
• Properties subject to the conditions of the agreement with the Holy See (Vatican/Joint Office) will remain subject to those conditions in the new deed of cens;
• The premises can be subdivided (split) solely following the consent by Government;
• Tenants will have to provide Insurance cover for the cost of reconstruction and contents;
• The Scheme will be open for 12 months;

1. City Gate Arcade;
2. St. John’s Cathedral proximity;
3. Old University Building;
4. All kiosks (not only City Gate but anywhere in Valletta);

• Government will endeavor to facilitate the relocation if possible of any shops in these locations which will need to be relocated, most significantly those in the proximity of St. John’s Cathedral. 
• Government at this stage will nonetheless not be granting any compensation to tenants who will need to be evicted due to impending projects.

• Every employer has a legal obligation to manage occupational Health and safety to ensure appropriate measures are in place at all times, whatever the type or size of the company.
• Every employer must carry out a risk assessment to identify hazards in the workplace and remove these hazards.
• Every employer needs to consult with his workers on issues that could affect their health and safety at work.

These were the issues that were discussed in during a seminar that was presented by Occupational Health and Safety Authority.

Risk assessments are an obligation and part of the law. Experience shows that proper risk assessment is the key to healthy workplaces. Yet carrying out risk assessments can be quite challenging, particularly for micro and small enterprises which may lack the resources or know-how to do so effectively.  To facilitate the process, EU-OHSA has developed a comprehensive yet easy to use and cost-free web application, the OiRA an Online Interactive Risk Assessment that will help solve this issue. OiRA helps micro and small organisations to put in place a thorough step-by-step risk assessment process – from the identification and evaluation of workplace risks, through decision making on preventive actions and the completion of these actions, to continued monitoring and reporting.

One can use this system to start their risk assessment by registering on: www.oiraproject.eu

If you need any information regarding this programme, you can send an email to: .

Tourism Minister Edward Zammit Lewis, with the contribution and participation of social partners involved directly with the tourism sector, launched a Report on Tourism in Malta and its relationship to our economy. The Minister stated that the tourism sector experienced steady growth over the past years with continuous diversification to become one of the fastest growing industries world-wide. Nationally, it has developed into a major contributor towards Malta’s economic growth and therefore a detailed study on the industry’s input to the economy has been commissioned to solidify the cause of success and base the way forward for further growth.

One of the major variables which the report identifies is how the tourism industry in Malta has contributed towards growing employment opportunities. Tourist arrivals reached over 1.7 million in 2014 sustaining 20,500 direct jobs in the sector and an estimated 7,500 which are engaged indirectly. The Minister added that tourism provides one out of every five jobs in Gozo. This report substantiates the importance of having a clear policy for tourism as published through the National Tourism Policy in recent weeks.

GRTU’s Deputy President Philip Fenech, responsible for GRTU’s Leisure and Tourism section, commented on how over the past years our tourism sector has become more accessible to our arrivals potential through ever-increasing linkages to our island. Low-cost airlines showed their mark by encouraging the building up of the independent traveller aside to the already existent tour-operator market. Online sources have also been and important source for growth. In parallel to this, Malta’s business sector has continuously supported the developments to increase receptiveness and potential. The atmosphere for growth has been set and private investment has instilled confidence in tourism growth. It is expected that the public sector should also match the pace with that of the private sector if sustained growth is to be ensured. Infrastructure is one of the areas which remains behind.

Our tourism sector has taken shape from a mainly colonial tourist to a more diversified sector having developed through various niches. This gives a sense of security as the sector departs from resting on only one type of tourist market. These new segments also need to be developed further by tapping into emerging markets every year. The challenge is now how to refine the segments to optimise influx whilst monitoring that one segment does not override other existing or emerging niches.

1.7 million is a large amount for our island which leads to near-saturation point in peak months. However, GRTU’s vision promotes extending focus onto the shoulder months, moving away from the traditional sun-and-sea tourism onto creating other types of tourists, such as the cultural tourist, with cultural events held throughout Malta’s mild winters. Such events need to be created and sustained consistently, plotting them against the international cultural calendar. Conference and incentives travel and wedding tourism are other examples of potential niches that need to be strengthened through the shoulder months.

In a meeting with the Opposition represented by its SMEs Spokesman Hon Robert Arrigo, GRTU President Paul Abela reiterated commitment to maintain an open and healthy relationship with both Government and the Opposition as it had done in the past. Abela explained how GRTU, as the chamber representing SMEs and self-employed, benefitted from funnelling its proposals and concerns to legislators to ensure that these are kept au currant with the priorities of GRTU’s members when policy is being prepared and implemented.

Hon Arrigo acknowledged GRTU’s important role in putting forward the interests of SMEs and self-employed in policy-making. This sector represented the vast majority of Maltese economic operators and their representation in decision-making fora was of essence. Hon Arrigo explained how the fact that he himself is coming from the business sector can serve to provide a stronger bridge between GRTU’s interest and policymakers. He explained how the Opposition would be ready to put forward proposals even in Parliament where social partners were of concern. The Opposition’s role was to become an alternative government and therefore needed to keep a constant relationship with major social partners such as GRTU in order to be able to build its policies around their concerns and priorities.

Hon. Arrigo elaborated on a number of ideas that the Opposition is preparing as part of its vision for the economy. The Opposition, he said, was pro-business and would be putting forward proposals that encourage an environment where everyone can work and business to prosper.

The GRTU council discussed a number of concerns touching upon the various sectors of industry which GRTU represents. Paul Abela explained how GRTU was involving itself in the discussions on the WEEE Directive which Malta is obliged to implement and which is to replace the Eco-Contribution Tax. The way the implementation would affect businesses needed to be studied closely to ensure that Maltese businesses catering for specific sectors would not suffer.

Other main areas of discussion raised included problems related to access to finance for small businesses whereby Maltese businesses do not find the necessary avenues in terms of resources to support them in growing or surviving through a difficult phase despite the provisions of the Small Business Act. Administrative procedures which lay unnecessary burdens on small businesses also remain a recurrent problem over the years whereby the public service or public agencies do not understand the implications of excessive bureaucracy on the self-employed or small business. GRTU council members also emphasized on the need to tackle unfair competition which puts genuine Maltese business, particularly in retail, at a disadvantage.

In this sense, both GRTU and Hon Arrigo agreed on the need towards taking on the necessary next steps to educate and implement a stronger digital approach in our business models. Despite a strong ICT infrastructure Malta still suffers in economic uptake of digital means through various sectors of industry. Businesses need to be supported to be able to shift towards a strong and constant online presence that can help them compete within the online market.

The National Commission for Further and Higher Education in collaboration with Ministry for Education and Employment launched two strategic policy documents addressing higher academic education as well as setting a vision for vocational education and training (VET).

The Higher Education Strategy builds on the Further and Higher education Strategy 2020 set by NCHE in 2009 and the Framework for the Education Strategy for Malta 2015-2024.It is based on four priority areas for action:

• Increasing participation and attainment;
• Reducing gender differences;
• Encouraging innovative content and programme design; and
• Increasing employability and entrepreneurship

The strategy seeks to increase the participation of underrepresented groups in higher education to ensure that higher education is inclusive and accessible to all. The relevance of higher education to both the individual and the labour market needs to be further addressed and increased. Another priority of higher education reform is to encourage innovative content and programme design even to make mobility more attractive and relevant.

On the other hand, the national VET policy shows what Malta has achieved in relation to EU developments and policies in the sector. The policy proposes projects 18 key policy proposals.

GRTU considers the bridge between education and the world of work as an essential stepping stone to ensure a stronger human resource based to reflect the needs of the economy. Quality-based vocational and higher education empowers Malta’s workforce by enriching the human capital in various fields which local businesses may require. A clear holistic direction is necessary to ensure a coordinated vision between education and the economy.

The World Intellectual Property Organization (WIPO) is a specialized UN agency established to encourage creative activity and promote the protection of intellectual property throughout the world. WIPO Legal Head Marie-Paule Rizo visited GRTU offices this week to discuss possible applications of Geographical Indications in the case of Maltese products.

Geographical Indications are signs used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Some well-known examples of such names are for example Roquefort, Cognac, Basmati rice. However this is not limited to food and agricultural products but may also be related non-food products. For instance, Swisswatches represent a quality indication that is reflected through their design, manufacturing and relationship with Switzerland. Therefore high quality watches can be produced all over the world but cannot be labelled Swissif it does not fulfil specific criteria and is manufactured in Switzerland.

This therefore implies that geographical indications are not mere names or symbols and if not protected, it could be used without restriction and its value diminished and eventually lost. Protecting a GI enables those who have the right to use the indication to take measures against others who use it without permission and benefit from (and perhaps tarnish) its reputation free-of-charge.

GRTU representatives gave feedback to WIPO on the current situation regarding various products, both of agricultural and food nature as well as those which are non-food products, such as specific crafts. GRTU explained various challenges being faced by businesses who manufacture or deal with such products and discussed measures which could support and protect their uniqueness through positive measures such as promotion. WIPO will be producing a report upon its fact-finding mission also built on the input provided by GRTU which reflects what such businesses face on the ground. GRTU shall continue following the subject with WIPO in a bid to improve the situation also perhaps on a legislative level if necessary, whilst GRTU welcomes any feedback from its members.

GRTU’s Deputy President Philip Fenech has met Superintendent of Public Health Dr Richard Zammit and Environmental Health Director Clive Tonna following GRTU’s earlier communication on developments and implementation of policies related to fines and penalties on smoking in entertainment and leisure premises.

GRTU maintained its support towards continuous efforts by the Health Ministry over the years to promote healthier lifestyles without smoking. GRTU has over the past months however raised concern on the implementation of fines and penalties to venue owners that seek to be compliant. GRTU emphasized that such policies need to be implemented

 positively in a proportionate and reasoned manner. GRTU intends to build on its previous cooperation with the respective health directorates so that cooperation by owners is encouraged and rewarded.

During this meeting measures of enforcement were discussed in a sense that does not impinge unnecessary burdens to compliant owners whereby owners would have taken all necessary measures to deter tenants from smoking within their premises. Attention was drawn to the situations of business owners and venue managers who would have sought to abide by the law but are penalised for the actions of tenants beyond their control. A logical and practical approach needs to be adopted.

The smoking issue is to be extended to further curtail smoking in public areas to encourage healthier lifestyles and promote well-being. GRTU remains in support of initiatives to ensure that business owners fulfil their duties in terms of the law and in support of public health but also seeks to ensure that the policies which are intended to promote public health are not implemented in manners which create illogical burdens to business owners who comply.

Fl-laqgħa kordjali mal-Kap tal-Oppożizzjoni Dr Simon Busuttil, Paul Abela, President tal-GRTU qal li huwa importanti li l-GRTU tiltaqa’ mal-Partit Nazzjonalista biex iżżommu aġġornat fuq il-problemi li taffaċċja minn żmien għal żmien. Il-GRTU mill-bidu kienet ilha tinsisti mal-amministrazzjoni ta’ qabel u se tkompli tinsisti mal-amministrazzjoni preżenti biex il-parti tal-ftehim tal-konċessjoni tal-logħob bejn il-Gvern u l-kumpanija Maltco li tikkonċerna lir-riċevituri tal-lotto għandhom ikunu magħrufa. Illum il-GRTU tirrapreżentha 180 riċevitur tal-lotto li huma kollha self-employed.

Dr Simon Busuttil qal li s-settur tal-logħob kiber b’rata mgħaġġla fi ftit snin minn dipartiment li kien jirregola l-lottu pubbliku għal wieħed mill-ikbar setturi fl-ekonomija Maltija. Hu qal li l-Partit Nazzjonalista qiegħed jisma’ d-diffikultajiet li qiegħed jaffaċċja dan is-settur sabiex jkun jista’ jindirizzah fit-tfassil tal-politika tiegħu fil-ġejjieni.

Flimkien ma’ Paul Abela kien preżenti Alfred Muscat, President tal-Lotto Receivers Union u Marco Rossi, Segretarju.

GRTU CEO Abigail Psaila Mamo has this week met Mr Jerome Ompen, Candidate for Honorary Consul for Malta in the Kinshasa, Democratic Republic of Congo. During the meeting the business opportunities for Maltese and Congolese businesses were discussed and the prospects are indeed very interesting.

Overview

The Democratic Republic of the Congo, is a country located in Central Africa that borders with 9 other countries. It borders the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola. It is the second largest country in Africa by area and the eleventh largest in the world. It has a population of over 75 million. The

 language spoken is French however English is widely used for business. Kinshasa is the capital and the largest city of the Democratic Republic of the Congo, it has a population of 11 million. 

Business Environment

Mr Ompen described the Democratic Republic of the Congo as a safe place to do business, especially sine 3 to 4 years ago, and where the Government has launched a new policy to protect business and a number of tax incentives and PPP possibilities to attract foreign investment. The Democratic Republic of Congo is also a member of the World Trade Organisation and benefits from duty-free, quota-free EU access under the EU’s “Everything but Arms” scheme.

Opening a business is easy and on the same level for foreigners as for Congolese. In Kinshasa businesses will also find a good banking set up with a number of European banks.

Connectivity

Kinshasa has daily flights going directly from France and visas are obtained by applying through the Embassy in Rome. The Consulate is also able to facilitate the Visa process.

1.  Agriculture:

The Democratic Republic of the Congo has a strong agricultural sector and specialises in a number of specific products that it would like to offer for export. Congo is strongest when it comes to coffee and cocoa production predominantly as well as maize, tea and bananas. It can also export very good and effective pest control solutions. Apart from this there is a vast amount of land that can be invested for agricultural purposes as well as partnerships in agriculture such as investments in the production of peanut, peanut oil and palm oil. There is an agricultural cooperative one can deal with directly and the Climate is tropical.

2.  Infrastructure

The Democratic Republic of the Congo is not very developed when it comes to infrastructure and facilities and this is an area where the Government is seeking to attract a lot of investment and would consider Public Private Partnerships. They need to build schools, hospitals, recreational family facilities, water dams to produce energy, a public transport system, investment in aviation and internal flights.

 3.  Tourism

Tourism is currently mostly limited to business mainly. 40% of the Democratic Republic of the Congo is covered in forest and there is a lot of potential to arrange parts of it as a park for tourists to enjoy and organise safari tours as well as excursions for back packers. Hotels are very expensive and of low quality because they are very few. There is a lot of potential to build hotels.

4.  Exporting goods to Congo

Congolese drive cars that are both left hand and right hand drive and there is a market to supply spare parts for vehicles as well as the car hire market. Many today own a vehicle and are seeking to become insured, which provides an opportunity to service providers. Goods imported into Congo are generally low quality and the Congolese would like to see better products on the market, even at higher prices. The Chinese and Indians are currently dominating the market and they would like better quality when it comes to medicine and clothing.

Further information can be found on the following website:  http://www.pagewebcongo.com/index_en.html

Anyone interested can send an email on