Category: Archive – 2008

 

GRTU has written to the Ministry for Finance, Transport and Communications on behalf of our members in various localities who are facing difficulties in finding available places for loading and unloading.

This situation has been created resulting from a situation where the design, location, times of use and enforcement of loading/unloading places in the localities lack policy guidelines.

 

GRTU has therefore requested a meeting with the Ministry and with the participation of Malta Transport Authority (ADT), the Association of Local Councils and the police.

GRTU has requested this meeting in order for all parties to agree on a set of guidelines that can be made applicable in all localities. For this reason GRTU has requested the Ministry's intervention. GRTU has requested the Ministry's most urgent attention to the matter as the absence of clear policy guidelines is the cause of unnecessary conflict.

 

 

GRTU conducted a survey among developers to produce a Document for the reform of MEPA. This Document includes a wide ranging set of proposals that while sustaining the developers and construction industry, ensures a constant flow of quality construction that meets the demand of a changing market.

 

The GRTU Document ensures that growth is contained within the limits of an environment that is acceptable to all. The Document also provides for efficient and easy means of redress to all concerned with the environmental impact of specific development projects. It safeguards the developers from the abuse of those who on the flimsy of excuses negate the country, developers, construction industry service providers and worker of the opportunity to support their work or economic activity as it is their right as citizens of Malta.

The Document strives to meet the interests of all without allowing one sector to over-step on the rights of others. GRTU's Documents will be made available on GRTU's website: www.grtu.org.mt. 

 

 

                                                     GRTU and Forum Malta Fl-Ewropa are organising an event which will mark Malta's SME Day. The event will consist of a half day conference entitled "SME Forum: Adapting to change". We will touch upon various topics which we believe are important for Malta's SMEs. The opening address will be given by Hon Tonio Fenech, Minister for Finance, Economy and Investment.

 

The aim of the event is to promote debate about Malta's small and medium-sized enterprises, helping to create the right business and regulatory environment for them – and therefore Europe – to prosper. It will bring together small business and innovators, entrepreneurs and government officials to discuss the key drivers for economic competitiveness.

The event is meant to provide a forum for European and Maltese policy-makers and entrepreneurs to discuss how to improve innovation and growth among small and medium-sized businesses, paying particular attention to SME access to finance, better regulations, health and safety, and the new development on laws for the consumer.

Most importantly, GRTU and Forum Malta Fl-Ewropa are organizing this event to show that the private sector has its part to play in driving SME growth; while policy-makers provide a framework for spurring innovation.

The SME sector is the engine of the economy, and that is where we all need to invest in order to drive growth and benefit everyone. Ninety-nine out of 100 European businesses are SMEs. Almost 120 million Europeans work in an SME, a huge market.

What is good for SMEs is good for the European economy. In short, SMEs are the heart and the lifeblood of the European economy and we all have a contribution to make to ensure that heart is healthy and beats strongly.

The European Union has rightly identified the small and medium-sized enterprise sector as the "backbone" and "growth gene" of the European economy and has launched a series of measures in favour of SMEs. But private companies also have a role to play in supporting SME growth and innovation.

Participation is free of charge, but prior registration is required in view of seating restrictions. A registration form can be obtained from Forum Malta Fl-Ewropa on 25909101 and registrations should reach Brian Pace at Forum Malta fl-Ewropa by not later than noon of Friday 20th June 2008 by email to .

 

 

 

Government extend 0.99c euro per day Computer Purchasing Support Scheme

Government has accepted GRTU's demand to extend the scheme till the end of the Trade Fair.

Hence, the closing date for eligibility for the 16% subsidy is extended to Sunday, 6^th July, 2008.

 

Applicants must send the 16% subsidy form (for new PCs bought not later than 6^th July) by not later than Friday 11^th July, 2008 to PC for 0.99c euros per day, PO Box 43, Qormi Road, Marsa. Application forms will be available from Maltapost branches.

Those resellers that want to collect Government 16% subsidy application forms to distribute to their clients can pick up application forms from Maltapost branches or email on () or phone 21255495.

 See full story below!

   

The European Commission has adopted a new Notice on state aid in the form of guarantees.

The text sets out clear and transparent methodologies to calculate the aid element in a guarantee and provides simplified rules for SMEs, including predefined safe-harbour premiums and single premium rates for low-amount guarantees.

 

Competition Commissioner Neelie Kroes said "The new Notice is a significant move to allow for a more transparent use of guarantees, especially in order to facilitate financial support for SMEs".

State guarantees are an important tool to support the development of companies and to facilitate their access to finance. This is of particular importance for SMEs. They can increase private loans notably for SMEs without requiring immediate contribution by the State, as the payment of the guarantee is only needed in case of default.

Simplified possibilities for SMEs

Guarantees are of particular importance for SMEs, as they often have low share capital and a lack of stable resources. Therefore, the new Notice sets out particular rules for SMEs which will allow them to assess the aid element of a guarantee in a simple way:

Predefined safe-harbour premiums based on rating classes are considered to be market-conform and thus free of aid. They can also be used as a reference to calculate the aid equivalent in case of lower premiums. The safe-harbour-grid is a simplification tool. Member States may decide not to use it if they believe they can demonstrate that lower premiums are market-conform;

A premium of 3.8% per year is applicable, even in the absence of rating, for example for start-up companies;

A single premium can be applied across the board for schemes, when the guaranteed amount remains below €2.5 million per company. This allows for a risk-pooling effect in favour of low-amount guarantees for SMEs.

 

 

  

One cannot say that surcharge on water and electricity is one of GRTU's most favourite topics. GRTU has objected to the way the surcharge operates since its inception.

It's simply not true that GRTU has at MCESD or elsewhere ever approved the way this surcharge is operated.  It's a hideous little bit of bureaucracy with devastating negative effects on many small businesses and there is no way GRTU can ever approve this little monster.

 

It is a schemed designed to support large businesses from certain economic sectors at the expense of all others from other economic areas. Small businesses are forced to subsidies larger businesses irrespective of the level of electricity they consume to provide the goods or service their enterprise provide and there is no relief whatsoever.

Supermarkets, mini markets, confectioners, bakers, restaurants, hairdressers, sprayers, mechanics, tool shops, craftsmen, all those who use electricity as an essential input to their production suffer the full cost as capping is restricted to the few.

GRTU calls this gross discrimination and believes it to be in breach of the EU electricity Directives as it provides a crude form of cross subsidisation, indeed the crudest, as the small are forced to subsidise the large.

Again GRTU went to the EU Commission for relief and raise the matter in the EU Parliament, but who out there wants to listen to the small Maltese businesses. It's all talk bla, bla, bla and nothing else.

GRTU again raised the surcharge issue at MCESD. The system is wrong whatever else the designers of this crude bit of imposition love to say. They don't want to listen, but we won't stop complaining either.

 

 

 

GRTU as active members of UEAPME, the European federation of national representative organizations representing SMEs has been on the lobbying front for five years demanding the reduction or removal of the high taxation on every litre of diesel.

 

GRTU in Malta has persistently raised this issue and has brought together transporters on more than one occasion threatening to get all transporters: burdnara, coaches, busses, distributors, road haulage, minibuses and waste carriers to protest publicly if Government refuses to act.

Now the pressure is again on GRTU to take the lead.  This time round it won't be easy for government to keep GRTU away.

All transporters are self employed. The stiff increases in diesel prices have eaten away the self-employees' take home income irrespective of what sector they operate in. Most of them cannot simply put up prices to cover the loss of income and it's grossly unfair that all the operators continue to suffer when Government continues to benefit each time the price of diesel goes up.

It's easy arithmetic: as the price goes up and the 18% VAT is charged on the full price of diesel including government duty tax of €0.34c per litre and the profit margin of Enemalta, Government pockets in more when we suffer further dips in our pockets. GRTU believes that reason must prevail.

 

At the end of last week GRTU took once again the initiative on behalf of our members and wrote to Hon Tonio Fenech,  Minister for Finance, the Economy and Investment, to bring to his attention that it is indeed sad that the 16% rebate and bank finance support scheme on purchase of new computers will be stopped.

 

GRTU first of all pointed out that this scheme has been very successful and GRTU is indeed very please with the take up. GRTU however pointed out that there is however still much scope for it to continue to operate as our ratios of computer home penetration is still low.

GRTU complained that the scheme took too long to really get off the ground and GRTU, directly and through its members, the majority of computer retail outlets, campaigned extensively to get it moving.

We also mentioned that we feel this scheme should actually be represented as a best practice now that the uptake became so extensive.

It is indeed sad, and lacks logical sense, that government is now closing the scheme as of the last day of May 2008. In the first instance demanded its extension up till the end of July to cover the Trade Fair period, but it makes even more sense if the scheme were to be extended to end of October to cover the pre and early schools starting period.

Our main recommendation was that the scheme is extended further till such time as the computer household take-up ratios are at par with the targets of the Lisbon Agenda.

GRTU sincerely asks what is going on. New shops have opened lately selling goods at prices that clearly demonstrates a taxation rip-off.

These shops have been opened with the full blessing of Government and with that of senior politicians. 

GRTU members are not stupid. We believe the Commission for VAT and Eco-contribution is not stupid either. We do not believe the Director of the office of fair trading is stupid. Then how is it that goods are being sold at prices below cost of the product or of the service?

Unless, of course, one managed to find the way to invent micro-waves, fridges or other electronic equipment in an abracadabra way. Our members however import these items and the cheapest are brought here from China.

The Commissioner of VAT and Eco-taxation does not have to be an Einstein to estimate the minimum price, ex-factory, the cost of freight and insurance to Maltese and cost of haulage to store, the retail cost, the cost of VAT, the value of taxation and the thinnest of profit margins; in order to establish the minimum at which an all tax included product can sell in Malta.

If a product is selling at a price which can not even cover VAT and Eco-taxation, isn’t it obvious that tax evasion is bluntly manifest? Does it have to be every time GRTU to wake up the authorities?

Eco-taxation and VAT evasion may please the consumer as he/she pays less, but is this now officially sanctioned. Who’s holding our enforcement agency from checking? The message that the authorities want to deliver is: charge the least even if this means that you cheat on Eco-tax and on VAT.

If Government has gone bonkers it is good for our members to know. We don’t like it but its not fair that few are blessed in their rip-offs and the rest pay the price.