Category: Archive – 2008

 Workshop 3 : Health and Safety issues

• – SMEs are considered as an essential element in economic recovery and job creation.

• – Within Europe, there are 19 million SMEs operating in hugely different sectors and employing nearly 75 million people. However, SMEs also record an over proportional 82% of all occupational injuries, even rising to about 90% for fatal accidents – a single accident can have catastrophic consequences on SMEs.

• – This is because SMEs do not usually have the recquired technical knowledge in risk control, ability to impart information, resources for training, monitoring and supervision.

• – New patterns of work can also lead to new problems, while longer working hours may lead to increased fatigue and greater risks of accidents.

• – Article 118a of the Single Europeam Act recognizes the special needs of SMEs in respect of occupational health and safety.

• – Although all OHS legislation is applicable on SMEs, consideration must also be given to their special requirements in the implementation of the legislation:

a) no additional bureaucratic burdens

b) easily understood legislation

c) preparation of guidance in implementation

d) dissemination of information-easily accesible information

– Prime motivator should be the knowledge that improving health and safety is integral to business risk management, while benefits include a mix of both tangible and intangible benefits, such as maintenance of reputation, client requirements, controlling insurance premium costs, reduction in absence rates as well as general improvements in health and safety.

Questions that need to be answered:

• (i) Should OHS be considered only as a legal requirement or are there any associated benefits for SMEs?
• (ii) Should SMEs be allowed to have lower OHS standards?
• (iii) What could be done to facilitate compliance by SMEs, and to help them achieve better standards of OHS?

The workshop included persons from private organisations, public and NGO's.

A discussion took place about the relationship between employers and employees and what is and what is not construed at law as a contract of employment.

As the business environment is changing so are risks. New risks are emerging that must be taken care of.

Stress and other mental illnesses are also an issue that need to be addressed but the OHSA is not getting involved in these because of limited resources.

All participants agreed that there is a need for greater awareness and training in health and safety matters.

Some participants argued that they have done everything possible to make the environment at work as healthy and safe as possible but the culture of the employees is one where they do not follow instructions and wear equipment. It is difficult to fire workers that do not follow health and safety rules becuase some of the workers are difficult to replace. Everytone agreed that a culture change among workers was necessary.

It was also clear that health and safety matters is not high on the agenda of business people. They perfer to discuss matters such as access to finance, marketing, cutting red tape and bureaucracy and so on.

Resources are required to implement health and safety at work. Micro and small organisations found it difficult to allocate resources to this subject.

Incredible but true, extensive road works were planned to start in the roundabout area at Fleur de Lys that would have closed all traffic to the area for at least four weeks, yes not days but weeks.

Thank God GRTU was informed a couple of days before road works were supposed to start. Naturally, GRTU demanded a stop to the works pending until an agreed plan that would justify the whole works action would be presented!

We do not even know whether it is someone's ambitious dream or whether it was really necessary and urgent. Forcing a traffic halt to a major junction like Fleur de Lys roundabout is not a joke. Yet someone thought they only had to inform and move on as if nothing is worth bothering about.

GRTU repeatedly emphasises that European Law makes it abundantly clear that unless proper arrangements are done to protect commercial interests of third parties, contractors and promoters of projects as well as licensing authorities are liable for damages.

It's the European Union this little country has joined or the jungle Union? That is why we fight for our members rights.

Just imagine: Fleur de Lys` junction and round about effecting traffic to St. Venera, Hamrun, Birkirkara, Msida, Balzan and Mriehel to Attard, Rabet and to Qormi by-pass closed because someone decided to embellish the roundabout. All this in July just on the opening day of the Trade Fair and the beginning of the summer flow to the north.

It's 37 C but do we have to go mad!

GRTU today raised the question of road works in Republic Street corner with Republic Archbishop Street to Bakery Street.

No one, yes no one, neither the Ministry responsible for Enemalta nor Enemalta Corporation who investigated the works, nor the Local Council who has probably authorized the works, not ADT not even Lombard Bank which are the people who ordered the work.  Nobody bothered to be decent enough to consult with GRTU so that the businesses represented by GRTU will be least inconvenienced.

Why bother? It's Malta 2008! If you think you're big enough, flaunt it. The streets blocked, shops loose business, restaurants practically lead, dust everywhere and warden paper and pen in hand to hit at anyone who dare cross the boundary imposed by the contractor.

GRTU Director General, Vincent Farrugia, and Hon George Pullicino, the Minister for Resources and Rural Affairs. Even though not responsible for the works Minister Pullicino took immediate action to cause the people responsible to at least be aware of the sufferings they are causing by coming immediately on site and giving orders.

At 15.00hrs in the afternoon when all the others were enjoying their siesta. Who cares!

50 years after the creation of the European Economic and Social Committee (EESC), current EU leaders, former EESC presidents and young Europeans from different European countries, gathered up in Brussels for a commemorative plenary session to celebrate its birthday. This special plenary session included a discussion of young Europeans and EESC members on the challenges facing the European Union and the EESC.

The plenary session was opened by EESC President Dimitris Dimitriadis, who stressed that in the past 50 years, the EESC has played an important role of the bridge between European institutions and organised civil society providing a visible and tangible contribution to the European Union's legislative process. He ensured that the EESC will continue to work closer with the EU institutions and European citizens.  One of the main EESC challenges is to reinforce the Committee's presence in the debate on the future of Europe regarding the ratification of the Treaty of Lisbon and to make the EESC works more transparent and more available for citizens.

In his key address, Mr Hans-Gert Pöttering, President of the European Parliament highlighted the great added value of the EESC opinions and a major repository of expertise of the EESC members based on the local experience. He underlined the importance of the solidarity in achieving European goals and the social dialogue at the European level. 'Common task is to build common future', stressed Mr Pöttering.

Youth Declaration: "The EESC and the future of the EU project: the youth perspective"

In the second part of the plenary session, EESC members and young Europeans (members of the European Youth Forum and EESC trainees) discussed the Youth Declaration, document containing a vision for the future of the EU and the EESC projects. Young people called for the EU and the EESC to concentrate on a number of issues. These include: globalization, population ageing, climate changes, sustainable development, and gender equality. They also called for reinforcing participatory democracy in a stronger partnership between all stakeholders in European governance. 'It is only by fostering synergies between stakeholders and political bodies that we can respond to the perceived democratic deficit and thus help to encourage Europeans to take ownership of the EU project', concludes the document.

GRTU would like to congratulate EESC on this important occasion. GRTU is a very active member of EESC through our energetic and capable representative  Sylvia Gauci, who sits on the INT, REX and NAT Sections, and has an important her role in INSULAIR and drafted an important paper on WEEE directive.

GRTU last week has published month its reaction on the European Commission's proposal for a regulation on the provision of food information to consumers.

GRTU welcomed the EC's intentions to simplify and rationalise food labelling,  but was disappointed by the lack of consideration for its arguments in the text, which cannot be regarded seriously as a contribution to simplification.

In fact, the 96-page document is far too complex to be workable in practice, and the consequences for the vast majority of all European food manufacturers and caterers remain completely unconsidered.

Without fundamental changes, SMEs would be put out of business for packaged foods, warned the Working Group. If the regulation were to come into force in this form, owners of a small and medium-sized enterprise would not be able to understand the rules themselves and would have to operate with the help of external experts.

The 2008 High Level Conference on Counterfeiting and Piracy took place in Brussels on 13 May. Enterprise Policy Director Luc Hendrickx took the floor on behalf of SMEs in a panel dedicated to the implications of counterfeiting and piracy for European competitiveness.

The fight against counterfeiting so far has been led with the misleading assumption that it only affects luxury goods and textiles, he said. Against this background, awareness raising activities are needed to inform consumers and involve SMEs, which may under-estimate the impact of counterfeiting on their business and which are often not in the position to protect their intellectual property rights, nor to follow the related legal procedures.

 Auto Dealers United

Auto dealers operating on the local market and selling primarily used cars bought locally have now come together to form the Malta Auto dealers Association.

Auto dealers have agreed to act as a semi-autonomous association under the GRTU – Malta Chamber of SMEs umbrella as all members of the Association have also accepted to be members of GRTU. The concept is based on two basic tenants:

Safeguarding and promoting of entrepreneurial interests full members of GRTU

Safeguarding and promoting specific auto dealers matters as member of the specialist Auto dealers Association.

The first formal meeting of the Association was held at GRTU on Monday 23^rd June. The meeting was addressed by GRTU Director General Vince Farrugia who explained what are the benefit of operating within GRTU.

The meeting was also addressed by Auto dealers Association President Michael Galea. Mr. Galea explained the work the five-man Association Committee is doing. Meetings have been held with the Task Force drafting the new vehicle registration tax, with the Minister for Finance the Hon Tonio Fenech and with Mr. Simon Vella Chairman of ADT.

Michael Galea gave details of what has been proposed to the Task Force to ensure that local auto dealers will not suffer a devaluations of the extensive stocks of used cars under their custody.

Michael Galea assured auto dealers that government was conscious of the problems raised by the Association/GRTU and he expressed his confidence that by July/August the new regulations will come into action, he expressed his optimism that the new registration system will not affect auto dealers negativity.

Thumbs up? The count-down has now started for the final situation.

The WTO Round, started in 2001 in Doha, is gaining fresh momentum with the new negotiation texts tabled in Geneva on agriculture and industrial goods. First reactions last week from some interest groups have however criticised the texts. GRTU, however, supports the progress made in the WTO.

 "Europe needs a deal in 2008 – failure is not an option," said Xavier Durieu, Secretary General of the European retail and wholesale organisation, EuroCommerce. "Commissioner Mandelson is doing a good job. He deserves support from all. As consumers feel the impact of higher agricultural and manufacturing prices, multilaterally agreed liberalisation for a wide range of products is needed more urgently than ever."

Now is the time to focus on the whole picture and put consumers first. Too much is at stake for Europe:

The removal of red tape at customs ("trade facilitation" in WTO jargon) will spare European companies some 3% of their transaction costs.

Improved conditions for commercial presence of European supermarkets outside the EU will create jobs and export European culture.

The European agricultural sector is still highly protected – to the detriment of developing countries and European consumers. An ambitious WTO deal will help getting things right.

"Not least, only the stable multilateral framework of the WTO with its dispute settlement mechanism can make sure that all countries respect the rules. A predictable and legally certain regulatory environment is indispensable for companies in Europe and abroad. Protectionism is the best route towards recession in Europe. Global governance ensured by the WTO is too precious to be put at risk. Now more than ever, Europe should be united in supporting it", concluded Mr Durieu.

 ‘Adapting to Change – Government's commitment to SMEs' – St Julian's – 24 June 2008

Ladies and Gentlemen,

Small and Medium Size Enterprises are the bread and butter that make our economy. 98% of our businesses consist of small enterprises and a larger part of these are micro-enterprises that employ less then ten employees.  As the Minister responsible for this sector, I am not only honoured to be with you here today to deliver the opening address of this day's event, but more importantly to send a strong message of this Governments commitment toward these businesses that generate the wealth and jobs in this country.

I would also like to take the opportunity at the opening of this event to thank the GRTU and the Forum Malta Fl-Ewropa for organising this event thus providing a platform to focus on the issues pertaining to small and medium size enterprises, to share ideas on how to continue promoting their growth and to overcome the obstacles that hinder their success.

SMEs are not only important in our economy but a European level it is being more and more recognised that the Lisbon goals for the creation of wealth and jobs can only be attained through healthy SME.    It is for this reason that the Commission has taken a number of initiatives to make life easy for businesses.  As a Government we have consistently and actively supported these initiatives such as those outlined in the European Commission Communication "Putting SMEs First".

As a Government we have adopted this Communication wholeheartedly and my Ministry has initiated and is undertaking a number of projects line with this Communication. A case in point is the simplification of legislation and administrative burden reduction. The Commission has set an ambitious target, that of reducing administrative costs for businesses by 25% by 2012.  I am pleased to note that a lot of work has already been made and we intend to continue aggressively pursuing this initiative which you will hear more of in a more detailed presentation this afternoon.

Speaking of simplification and administrative burden reduction, I would like to bring to your attention another important initiative that we are taking and steadily working on, i.e. the transposition and implementation of the Services Directive.  This Directive, which will come into effect in December 2009, covers all service activities; except for some which  are specifically excluded primarily because they are regulated by specific EU directives, namely financial, electronic communications and transport services. 

This Directive will not only provide another important tool to reduce the administrative burdens for service providers, but also assist Maltese service providers who want to test new markets in other Member States or who are thinking of establishing themselves to offer their services in the EU.   Also, quoting from an Article in the Financial Times of the 19th June by Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank, in his article "Europe must look again at liberalising services", states that "Over the past decade manufacturing has recorded an average inflation rate of 0.8 per cent in the euro area. 

In services, however, inflation was on average 2.3 per cent and has accelerated in recent months. Lack of competition in services, especially at local level, and the slow growth of productivity explain this resilience of pricing power".  Whilst many SMEs are service providers that may be facing increased competition, most SME are consumers of services that will hopefully benefit from higher price competition and which therefore is a measure of reducing the burden of cost of services to SMEs.

The Government is currently undertaking a major exercise in this regards that will culminate in the coming months. A significant part of this exercise is a major review of current legislation underlying authorisation of service providers in order to identify, simplify and dismantle barriers to the provision of services. It is planned that the revision of the current legislation will be concluded by November this year.

One interesting development which could be a consequence of the implementation process of the Services Directive is the possibility of taking this opportunity to consolidate the various services offered to business and potential entrepreneurs into one central unit in order to improve our administration from the resulting synergies and to offer the business community a focal point for its needs including assistance so that it can make better use of the opportunities offered by a single market of twenty seven States and 500 million consumers. The Ministry is actively considering this possibility with a view to simplifying and widening the process of providing assistance for our businesses.

We have also embarked on a review process of SME requirements in comparison with larger entities and identified key areas for improvement. For example, we believe that the obligations imposed on SMEs by the current International Financial Reporting Standards are too burdensome for smaller businesses, and thus taking up precious time and consequently imposing a high compliance cost on the operators. Most micro-enterprises in Malta are family-run businesses, making it excessively burdensome for these businesses to come in line with the standards.  

In response to this need, the Government has embarked on an initiative to establish a simpler framework of reporting known as the General Accounting Principles for Smaller Entities (GAPSE), which, I'm pleased to announce, will be launched in the coming weeks. The aim of GAPSE is to reduce the audit and financial statement reporting requirements of SMEs to a more realistic level, making compliance more affordable and freeing up precious time, without straying away businesses from the required reporting requirements of users such a shareholders, creditors, banks, fiscal authorities and other users. 

Another important initiative is the review that we have recently commenced to bring investment incentives within reach of all enterprises, whether large and small. Government is conscious that incentives, tailor-made for smaller enterprises, should be available in order to sustain the necessary drive for SMEs to work and invest more.

With this need in mind, my Ministry is reviewing the operations of both the Malta Enterprise and the Malta Industrial Parks with the intention of putting more emphasis on the specific needs of SMEs, including the provision of incentives specifically targeting micro-and small- enterprises as while investment promotion must remain the fundamental focus of these enterprises, experience shows that with less efforts indigenous micro-enterprises have the potential to become small, and possibly even medium enterprises.  All local businesses have started micro and we should not be trying to change a formula that has been successful and that can bring more success with a bit more focus.

As you are also aware, the EU Commission is proposing a Small Business Act for Europe in order to fully establish SMEs at the heart of EU policy making. The Commission document will be published on 2 July of this year. The Commission has already stated that the European Act will be driven by three political objectives:

• putting entrepreneurship at the forefront of society,
• irreversibly anchoring the "Think Small First" principle in policy-making at all levels within the EU, and
• Systematically promoting SMEs' competitiveness and growth.

Government strongly supports the Commission on this initiative, although we have emphasised the need to be more ambitious. Whilst we appreciate that at a European level the Small Business Act has to cater for all SMEs, duly taking into account their diversity and the different categories and sectors in which they operate, however when transposing this at a local level we should ensure that this Act is more of an act that simplifies life for SMEs particularly micro-enterprises, then a body of principles and standards. 

Access to finance is also an important issue for many small businesses. This element is important both in the case of new start-ups as well as with regard to those companies wishing to draw up long-term business plans. In this respect, micro credit (and small credit) schemes should be further promoted. Accessing credit also needs to be facilitated and made less expensive for small businesses. The same applies to tools provided by standardisation which needs to be made more accessible for small businesses. We feel that standardisation can give a significant contribution to innovation and competitiveness of SMEs. Government agrees that more effort is required to ensure that standards-making processes become more accessible to SMEs in order to ensure that these reflect their needs and interests. With these issues in mind, Government aims to be in the forefront in the negotiations on the Small European Act. 

However, much as we agree with the Commission's thrust, we believe that such an initiative must not be left at a European level but should be acted upon at national level, by building on the good points emerging from the Commission proposals but also adding those elements that are closer to the national interests. With this thought in mind, Government aims to be in the forefront in implementing the provisions of this proposal and turning it into our own Small Business Act. 

To conclude, red carpet, not red tape cannot just be a wish, but is a concept that urgently needs to be rolled down.  I augur that this Forum will not only help to unfold this commitment but will be followed by many others on related topics. Faced by the prevailing international economic challenges, such as the rise in oil and food prices, the pressures on SMEs are inevitable, and whilst cushioning such prices may be desirous to limit the impact of the initial shock, adjustment to these realities cannot be avoided.

This makes it more important to have the right environment and the necessary support to surmount these challenges and keep growing. Government is committed to give SMEs the necessary assistance, be it improved access to finance and incentives or a healthy legislative environment that ensures fair competition without adding unnecessary burdens. Thank you.