Author: SME Chamber

GRTU has reacted to VGT tariffs in relation to Port Workers through communication with Transport and Infrastructure Minister Hon Joe Mizzi. GRTU believes that the reason the Port Reform was carried out was to decrease costs, which however, have not decreased in the last 9 years. The understanding was that the contract had to cover all costs and charges and therefore VGT should not be charging for the Port Workers’ Miscellaneous Tariffs. Since GRTU had protested against increases by the VGT, it is evident that alternative ways to increase charges are being sought. GRTU has received correspondence on the matter fromTransport Malta Chairman James Piscopo whereby GRTU has been informed that fees being applied have already been in place in the Port Work Regulations. This implies that these fees may not have been fully applied in the past but are being enforced today. In practice this may means a de facto  increase having been effected.  GRTU will be continuing with its campaign to see port charges reduced.

 

GRTU welcomes the announcement made earlier today by the Hon Ian Borg that around 845 SMEs will be benefitting from a new scheme that facilitates access to finance. GRTU understands this will be similar to the previous JEREMIE scheme, which was indeed very successful and popular with the smaller businesses, however this time under the new SME Initiative.

The JEREMIE scheme, GRTU believes, was successful mainly due to the additional advantages it offered, primarily more advantageous interest rates and collateral requirements. GRTU feels that these advantages should be even more pronounced this time round as they should reflect the ever increasing efforts of the European Central Bank with rock bottom interest rates and other advantageous conditions that prioritise lending, for increased investment and job creation.

Another positive element in the new scheme is that it will be offered by a number of banks, or at least those that choose to go for it. GRTU had highlighted the fact that JEREMIE was offered by only by one bank as a limitation, not because the bank acting as a financial intermediary did not deliver, but because SMEs should be free to do business with the bank of

their choice. This is also very healthy and GRTU looks forward to seeing most local banks not only sign up, to offer this renewed facility to their clients, but also competing between themselves by offering the most advantageous conditions.

GRTU thanks the Hon Ian Borg for addressing this limitation and we augur that this effort will result in real benefits for SMEs, equal to those that SMEs in other EU countries benefit from when it comes to access to finance.

 

During the MCESD meeting called by GRTU to discuss fuel prices, the Minister for Energy and Health, Hon Konrad Mizzi, thanked GRTU President Paul Abela for the suggestions he made for change in the hedging strategy. The Government had stated that lowering fuel prices in line with the global trend, to better reflect the current fuel prices, was not possible due to the hedging agreements in place. Through his experience Mr Abela suggested that the Government hedges while the international prices are very low and average out the difference in price so that a reduction can be instituted with immediate effect.

Hon Mizzi said this suggestion was welcome and implemented with immediate effect and hence, following the new hedging, Government could announce an immediate reduction in fuel prices and that gradual and regular decreases will follow every month. The Minister also said that Government was using a short-term hedging strategy and this is the strategy it will continue using as it gives flexibility and the opportunity to react rapidly to changes in the market. In addition Mr Abela also put forward a suggestion of exploring the possibilities of introducing a stabilisation fund. This type of system was used to control price spikes for other commodities in the past. The Minister said he will look into the mechanism of the fund.

In addition Mr Abela also suggested that the Minister should come to MCESD to agree on a policy on fuel purchasing, while details were not necessary it would improve transparency and collective responsibility.

 

GRTU members feel very aggravated by the total inaction with regard to the amount of ‘occasional sellers’ that have literally set up shop, or better tents, in prominent areas to sell flowers and make the most of Valentine’s day.

GRTU has literally been showered by pictures from its members showing these individuals selling from underneath tents mostly just next to churches in the main square of the locality and other central areas such as roundabouts and other main streets.

Unfortunately this is a scenario GRTU was expecting and during the last months GRTU had stepped up its efforts to warn the authorities concerned and bring everyone around a table to find a solution so that this time round this yearly farce would be avoided. While the authorities have given the impression that they are trying to cooperate due to the intense pressure placed on them by the GRTU, they also clearly show an inability to take the necessary action. The authorities are caught up in the bureaucratic mess of uncertainty and unclear regulations they themselves created and in the most passive of approaches, feebly attempt to fire-fight when the building has already been burnt to the ground.

It is clear that these structures set up from the very early hours of yesterday to sell flowers do not hold permits issued by the Commerce Department, the single Department entrusted with issuing trade permits to anyone carrying out an economic activity. The Commerce Department assisted GRTU in reporting these operators, clearly carrying out an economic activity, to the Police Commissioner for immediate investigation.

The problem here is that while they will not have a trading license they will most likely have a permit issued by one of the Local Councils. GRTU contends these are abusive licenses and in no way can the Local Council take it upon itself to bypass the trading license and issue such permits. The only leeway given to the Local Councils is of issuing permits for stalls and kiosks in view of the religious feast and other special celebration within the locality. The Local Councils are however extending this abusively and the authorities are turning a blind eye.

How can Local Councils be permitted to license trade? What competence or remit does the Local Council hold to do this? How is it permissible that two weights and two measures are still accepted when there is a clear single authority to license trade? Will the police, as our enforcement arm in this regard, be well-briefed to know what to look for and not accept any kind of permit issued? The permits issued by the Local Councils by virtues of Legal Notice 119 of 2002 – Activities Requiring Permits by Local Councils – are inadequate for this occasion and should not be accepted.

We cannot help but feel the Authorities are simply playing around with time and simply putting on a show, and not a very good one at that, to appear they are addressing GRTU’s complaints. We all know what needs to be done. A simple clarification in the law is required and also that the authorities that are responsible to license trade take it upon themselves not to permit any bypassing through strict enforcement.

GRTU has called on the Minister for Small Businesses, Hon Chris Cardona, to stop this unfairness and it has copied him in all correspondence. This is unfair competition and the Minister must take the power he has in hand to effect the changes that need to be done. This is not a time for the Minister to distance himself from the situation but stand for and with small businesses on this issue and stop once and for all this yearly injustice.
 

Businesses and individuals importing goods from Sicily through the Catamaran that are meant for re-sale must declare the goods they are importing and pay the relevant excise and other taxes due according to the procedure below:

• Trader should register as an Excise Registered Consignee with Customs immediately. It is not a lengthy procedure and does not involve any expenses. In order to do so trader is advised to contact Mr Carmel Farrugia, Manager Excise, on 25685219.
• Prior departure to Sicily, trader is to inform the Excise Section (25685200) that he is travelling to another EU MS and will possibly return with excisable goods. Date of return is to be communicated to Customs.

• The Excise Section of our department will pass on the message to our Enforcement Section.    
• On arrival, trader should provide to Enforcement Officers a copy of the invoice pertaining to excise goods and exits the gate with the goods. The invoice will be immediately passed to the Excise Section the following day.
• Within 48 hours from arrival trader, or his representative, should call personally at the Excise Section’s offices, with the original invoice, in order to submit a formal declaration and pay the taxes due.

 

This week GRTU formally launched the Association of Private Security Agencies of Malta, known as “APSAM”. This is an Association that was formed with the full assistance of GRTU and is fully affiliated, through their independent structure, within GRTU. APSAM has a 5 men Committee representing different company members.

GRTU Deputy President Philip Fenech explained that APSAM brings together 

12 security companies, the absolute majority of agencies providing private security services. The Association covers security guards, patrols, cash in transit etc. The main objectives are to bring the interests of the agencies together and raise standards and the level of professionalism within the industry. The initiative should lead to better adherence to the legislation and a very necessary step forward for the sector.

Chairman of the Association Julian Dimech explained that the idea of the association would be to consult with interested parties and eventually affect comprehensive legislation that meets the requirements of the sector, adequate standards and the realities in which we operate. He added that amongst the aims of the Association is that of improving the image of the sector, improving the standards and conditions for their workforce, through a number of projects the Association will be working on.

“I believe this is a good initiative and I hope to see progress in this industry in the coming months and years” Mr Dimech stated.

Police Commissioner said that this is a very good initiative that would better contribute to creating a healthy working synergy with the Police Force and other stakeholders directly concerned. He said that one would be able to see better cooperation with the police force.

Closing the event, Home Affairs Minister Carmelo Abela augured all the success to the Association and thanked the GRTU for the initiative. He stated that it would be very helpful for the Association to cooperate and work closely with those that are responsible of keeping order in the country. The Minister mentioned that Public Private Partnerships are something that we need to explore better and this would provide an ideal example. He said that we are all on the same side and have common interests, keeping order in the country.

 

 

During January 2015 GRTU has conducted a survey about small business performance in 2014 as compared to the same period in 2013. The survey was conducted online using a system of tokens. 200 members were selected at random and emailed a personalised token. Only members who received this token could participate and each could only submit their response once. The respondents were selected from across the business spectrum and included services as can be seen in the first graph of the survey.

The Survey showed that overall, when considering all the respondents including service providers a larger percentage of businesses fared better.

 

When the data was filtered to include only respondents with retail businesses the situation is markedly different with 40% claiming to have fared worse as opposed to 25% who claimed that they fared better.

The survey questions also asked the respondents why they think they did better or worse accordingly. The choices provided were varied and respondents were also allowed to key in other reasons apart from the ones provided in the selections.  Those that did worse in 2014 cited increased local competition and 24% cited sales lost to online shopping as well as 15% citing illegal trading as the main reasons.

Another question asked “What are your expectations for 2015″ and the responses clearly showed that business is looking at 2015 with optimisim with 36% responding that they feel that 2015 will be better and only 17% expecting it to be worse. The responses to these questions tallied with the response for the next question which asked “What are your plans for your business for 2015?” where 31% are planning to expand their business and 57% planning to keep their business the same size.

Other questions included an assesment of sales performance during the Christmas period and here again the response was largely positive with 46% claiming that they were satisifed and only 19% claiming that they were not satisfied.

Respondents were also asked about how the 2014 Budget effected their businesses and here 29% claimed that the effect was negative with 15% claiming that the Budget was positive for their business. The remaining 56% claimed that the Budget has no effect on their business. The respondents that replied that the Budget had a positive impact on their busines claimed that the following factors effected their business positively :

• The reduction in electricity prices
• The promise that this year the Government will be tackling unfair competition by sea
• The promise that this year the Government will be removing Eco Tax
• The promotion of certain specific sectors
• The extension of certain schemes
• The reduction in road tax for small engine capacity motorcycles
• The addressing of transport issues that has eased delivery problems.
• The change in the VAT regulations that obliges everyone to issue VAT receipts.
• The changes in stamp duty of first time property buyers.
• The vehicle scrappage scheme

 

Respondents who claimed that the Budget effected their business negatively cited the following reasons :

• The small cost of living (COLA) increase which translates into less consumer spending power.
• The increase in excise duties on ammunition, wines, tyres, lubricant.
• The fact that the price of fuels did not decrease but instead was increased (during 2014).
• The Increase in road licenses.
• The introduction of new excise duties will only aggravate the problem of unfair competition.
• There were few incentives to industry.
• The measures regarding employment of people with a disability.
• There was Increase in running costs throughout the year.
• The Increase in tax on cement.
• The change in the taxation system when selling property.

Finally, respondents were also asked what are their concerns for 2015 and their repsonses are shown below in order of preference.

• Unfair competition and illicit trading is creating a market distortion.
• High fuel costs.
• Parking in all localities, especially in commercial areas and Valletta.
• Reduction in bureaucracy and Government administrative charges.
• Business should have easier access to funds and grants.
• The Eco Tax.
• Saturation of market.
• Issues in relation to fairness in public procurement.
• More help for Gozo businesses.
• Tackle dominant position players and their charges.
• Help to compete online.
• Hawker permits.
• We need to attract better quality tourists.
• Labour force limitations and lack of skills.
• Postal charges to export.
• Late payments.
• The removal of the Student card.
• The Rent laws.
• Reducing heavy vehicle licenses.
• Wardens harrassing potential clients.
• Loading and unloading issues.
• Car scrapping scheme to include also commercial sector.
• Opening Hours. (Bars want extended opening hours)
   

Please click here for the full Survey Document

The Substance Abuse Free Employee policy (S.A.F.E) was launched last week by Aġenzija Sedqa. This policy is aimedto raise awareness at the workplace of the dangers of drug, alcohol, gambling and technology abuse. It also supports employers as they recognise staff who may have a problem and encourage employees to seek help.

S.A.F.E. programme focuses on raising awareness on substance abuse at the workplace and is delivered by the Prevention Services. It comprises four different phases which include exhibitions and dissemination of informative material, training sessions with middle and senior management, informative sessions with employees and the formulation of the Substance Abuse and Gambling Policy.

The Policy, also addressess other addictions such as gambling, at the workplace sets out a company’s policy and procedures, including education, training and eventual referral, for helping with drug, alcohol or gambling-related problems. 

The GRTU together with representatives from the Malta Employers Association and the unions representing employees agreed that the addiction or abuse issues should be addressed in the same way as all other generally-accepted health issues. Such a policy will be encouraging and supporting all employees who have a drug, alcohol or gambling problem to seek help so that their work performance is not affected.Philip Fenech, GRTU, Deputy President, emphasized that SMEs find it very difficult to cope as their resources  are very limited. The long term absence of an employee with specialized competences  or tasks would be of a far greater effect on the business.

Moreover, the Agency is also focusing on promoting the concept of skills-based workshops where participants have the opportunity to discuss case studies based on real situations that they meet at the workplace.​​ Sessions are designed according to the needs of the company requesting the programme and the industry it operates in.

The Hon.Dr Michael Farrugia, Minister for the Family and Social Solidarity, Mr Joseph Gerada, Chairman of the Foundation for Social Welfare Services, Mr Alfred Grixti, Chief Executive Officer of the Foundation for Social Welfare Services, Dr Ronald Agius and Mr Jesmond Schembri, Operations Director for Aġenzija addressed those present.