Category: Archive – 2008

Presently GRTU is receiving hundreds of calls a day from members asking us on the new tariffs and complaining that they are being charged an unknown amount for what they consume. Rightly so our members feel these practices go against their rights as users, what they do not know is that there is a regulator that should be safeguarding their interests. The regulator is the Malta Resources Authority (MRA).

GRTU has last Wednesday written to the MRA as GRTU feels these practices are abusive and consequently infringe consumer rights. It is the responsibility of the MRA as the lawful regulator.

In addition upon request of a new installation, Enemalta charges the installation rates according to the new tariffs. However, unless a Legal Notice is issued that puts in place any new tariffs which have been already agreed upon by the MRA as the regulator, these tariffs are unlawful.

GRTU is keeping MRA as the regulator responsible for this illegality and responsible for the refund of the overcharging to consumers.

In addition the GRTU maintains that it is highly unjust that consumers are charged for different prices to those related to the date of the consumption, apart from such practice being in breach of the Laws of Malta.

The GRTU told MRA that it is only just that any new tariffs charged should be effective as from the date of the first reading and not after the actual consumption without previously informing the consumer.

GRTU to date has so far not received an acknowledgement.

As European Governments are doing their utmost to support enterprise to enable employers to fall drastic negative effect of a rapidly encroaching of an extensive economic recession the Government of Malta continues in its strategy of imposing more and more pain on more and more small businesses.

The next of the chopping block are small businesses operating from a rented commercial property and who do not have the necessary contractual protection.

 

Once the rent reform bill, even as amended, is approved by parliament these businesses have no option but to plan their own closure and on how to recuperate something from the demise of the death of their business.

These are traditional businesses who have served their local community faithfully and who now rather than gratitude face the chopping block.

GRTU is doing its utmost to continue to fight for the rights of these deserving small entrepreneurs. GRTU is however facing Ministers who are determined

GRTU on behalf of the Auto Dealers Association, as members of GRTU,  has written to Hon Minister Fenech regarding the new vehicle Licences introduced earlier this month in Budget 2009.

GRTU explained that it is presently very uncomfortable with the new licence scheme. Following a meeting held with the Ministry of Finance, the Economy and Investment, GRTU has submitted its counter proposals to the scheme introduced in the Budget, with the aim of ameliorating what GRTU considers as inappropriate.

GRTU's proposals are aimed at relieving car owners who have already suffered the registration tax and VAT from the double burden of increased road licences.

This because GRTU is against too heavy a burden on car owners to change older cars at a relatively short period of time as this will have an unnecessary pus with its adverse trade balance negative impact as well as its negative impact on our car garage servicing traders. Indeed the proposal as currently presented are unti-social as it is mainly middle income earners and pensioners who tend to retain cars for as long as possible.

These proposals also relieve the pressure on our local automobile dealers members who otherwise would have to suffer heavy devaluation of their existing stocks.

Presently second-hand auto dealers are experiencing continuous hardship. The uncertainty in the used car market has been with us for quite some time. In the last months customers have been visiting showrooms, mostly asking for information when the new tax system will be put in place and what will its pricing method be.

The new tax mechanism has been launched, but our members are still not in a position to figure out what the new pricing will be.

GRTU will be discussing its counter proposals with the Ministry of Finance later next week, in the hope of finding an understandable solution.

GRTU is organising a general meeting for all the bakers.

Date: Sunday 23rd November 2008

Time: 10.00 am

Venue: GRTU Office, Exchange Building, Republic Str, Valletta

The agenda that will be discussed is the following:

Restructuring in the Bakers Cooperative Committee

After several meetings held between the GRTU and the Bakers Cooperative it has been seceded that the cooperative is to become affiliated with the GRTU

Discussion on the flour and fuel subsidy situation

Other business

 

It is extremely important for all the bakers to attend

Concerned about the employment situation in the European automotive sector CARS 21 stakeholders have met for a High Level Conference and agreed on conclusions on how to foster a competitive European car industry. All participants shared the need to position European car industry as global leader in clean, safe and affordable vehicles as the way ahead for safeguarding jobs and living up to the climate change challenge. The conference underlined that carmakers in the EU's need to be able to compete on fair terms in international markets. A task force to promote "green" cars will be set up, which should bring together all relevant stakeholders to explore technical, regulatory and economic hurdles and suggest ways forward for such vehicles.

 Drawing on this CARS 21 process, the conference agreed on a report and on a set of recommendations, such as:

– Supportive regulatory framework and better regulation: Specific attention needs to be paid to lead times, legal coherence, cumulative cost as well as effects on affordability, employment and international competitiveness. The Commission's policy of international harmonisation is considered a success, and it should be continued in order to create a level playing-field globally and promote the uptake of European standards internationally.

– Fuel efficiency, energy and environment: The future policy to reduce CO2 emissions from road transport should be based on an integrated approach involving motor vehicles, fuels, consumers/drivers and infrastructure. In order to support the development and the broad use of modern fuel efficient "green" cars and accelerate the renewal of the existing fleet, a dedicated task force has been set up. In addition, the conference suggested to revising the New European Drive Cycle in time for the next generation of CO2 standards. For the long term, all actors in the integrated approach should take steps to enable road transport in Europe to be largely decarbonised by 2050. Stakeholders agreed that R&D efforts should concentrate on the most promising future technologies: hybrid- and electrical vehicles as well as hydrogen (and fuel cell) vehicles.

-Trade and overseas markets: There is strong commitment to increase trade liberalisation, provided this is achieved on the basis of mutual benefit for the parties concerned. Focus should therefore be retained on achieving a multilateral trade framework as well as pursuing selected bilateral trade agreements, particularly with India, ASEAN and Mercosur. Further efforts with regard to China are also required. The need to continue protecting intellectual property rights continues to be stressed.

– Future development of a coherent automotive regulatory structure: Given that the combination of energy-, environmental-, industrial- and transport policies will play an increasingly important role, it is recommended that in the future CARS 21 is converted into a broader forum involving a wider range of stakeholders.

The full report lists 16 recommendations, covering also road safety, improving the internal market (such as new type-approvals for electric vehicles), restructuring of the sector, taxation/incentives, vehicle repair information etc.

 

 

 

 

 

 

 It has been brought to our attention that the product described through the following link taken from Rapex may be available in Malta.

http://ec.europa.eu/consumers/dyna/rapex/create_rapex_search.cfm

Should your company retail, import or distribute the product in question, you are requested to advise Abigail Mamo on or by calling GRTU without undue delays, so as to take the necessary actions as soon as possible.

If you are aware of any person or company who is retailing, importing or distributing this product, please also advise the to enable the said person to be contacted.

 

GRTU continues to insist that the Electricity tariffs as given to MCESD Social Partners on 23^rd October 2008 and as finally stamped by Government on its Press Release of 28^th October 2008 continue to include cross-subsidization.

Despite stating that the capping of 5.2 million to large industries will now be taken on by Government, the tariffs in themselves show no changes from one document to the other. This clearly shows that such tariffs, as outlined on 28^th October 2008, include cross-subsidization and capping will be paid for by SME‘s.

GRTU continues to stress that the matter will be taken to Local Court and the European Institutions to make sure that the interests of its members, amongst which restaurants, supermarkets and mini-markets, bakeries, commercial garage owners, sprayers, pharmacies, IT retailers, beauticians, importers and distributors and frozen foods, fish shops, butcher shops, small hotels, bars, importers of wines, spirits and beverages, white and brown goods importers and retailers, confectioners, take-aways, entertainment industry clubs and discos, are safeguarded accordingly.

GRTU insists that no cross subsidization is acceptable and that no back dated payments will be acceptable either. The truth is that SMEs will pay 39%, 52%, 65% more than those users utilising over 5 million units and worse still there is discrimination between enterprises within the same category of business so that effectively one smaller enterprise is subsidizing one larger enterprise in the same category of business.

This cross-subsidization affects over 39,000 non-residential account holders. GRTU is absolutely confident that the vast majority of business owners in Malta from all categories will obey its Directive not to pay these excesses were these tariffs to be imposed without amendments agreed with GRTU.

GRTU continues to insist that these tariffs are simply not acceptable. At a time when the EU Commission is doing its utmost to support SME's, in Malta a horrendous proposal is being imposed which contradicts all that we are supposed to achieve by the new Small Business Act, so highly emphasized by the Commission.

Most retailers especially food stores, grocers, mini markets, supermarkets and vegetable and fish sellers have for long requested GRTU to cause Government to legislate against the practice of shop owners of giving plastic carrier bags for free to customers.

Rather than simply banning plastic bags Government has now imposed an Eco-Tax of €0.15c on each carrier bag and banned the free dispensing of carrier bags to customers.

GRTU has today held the first meeting with Senior Government officials to decide on the best practical way for government to impose this new system.

GRTU is insisting as follows:

Government proposed that each retailer registers for this purpose separately. We believe retailers are not to be forced to register specifically for this purpose, they are already registered for the VAT purpose, an should not be burdened with an extra registration. GRTU strongly believes in the "once only" principle: if already registered, why register again.

Importers and producers of plastic carrier bags will need a specific registration. Retailers who are caught with plastic carrier bags and cannot show evidence (through an invoice) of purchase will, after the appointed day, be subjected to the specific registration. Plastic bags today are subject to eco-tax and VAT at 18% and unless evidence is shown of purchase, retailers will be in breach of both eco-tax and VAT

After the appointed date Retailers will sell the plastic carrier bags in the same method selling is done on other products i.e. cost of sales, eco-tax (now 15cents) and VAT. The only difference is that carrier bags have to be itemised separately and clearly marked as paid. Retailers will if inspected need to supply evidence of purchase from registered suppliers. It is important for retailers to ensure that whoever supplies plastic carrier bags is registered as liability. Registration will otherwise fall on the retailer with all the resultant additional bureaucracy.

Retailers will not have to keep separate records as the VAT records are enough.

Serious problems will arise if retailers distribute plastic bags for free or sell plastic bags without punching the sales.

Importers and producers of will be liable to charge the VAT and Eco-Tax and to supply returns to the Commission of VAT/ Eco-Tax as is done today. The Commission will use all the new powers at law to ensure that the abuse of illicit importation and distribution of plastic carrier bags is held under strict control.

The Commission has the power at law to stop any vehicle in transit outside. Port Areas request documentation for all merchandise. The new law will impose stiff fines and confiscation of when plastic carrier bags are not backed by the correct documentation.

These rules apply only to carrier bags and not to packaging bags used for items like cheese, ham, fish, bread, etc… as long as these bags have no handles and cannot be termed as shopping carrier bags but wraps.

GRTU is continuing discussions to finalise an agreement that creates a fair level ground for retailers and producers but GRTU is determined not to accept that bona-fide retailers are loaded with additional costs and additional bureaucracy.

GRTU seeks any advice or comments in addition to what is being said here.

Although the Government has just given guarantees on Bank deposits like they have never seen before, the Maltese Banks are holding back from giving their clients what is rightfully theirs and what is required by the European Central Bank and the Maltese Central Bank.

The GRTU feels it is shameful that in such difficult times, when all European governments including the Maltese Government, are doing whatever possible for the financial system to be sustained and the burden on industry and commerce are not burdened by it so that in the shortest possible time economies are revitalised, the Maltese Banks are more interested in greater income rather than their clients' best interests.

This is the second consecutive time in a short period where the European Central bank has imposed on Banks to reduce the base interest rates. The banks have however chosen to ignore the instructions and to only pass a part of the reduction rather than the full amount that was ordered. 

GRTU must once again therefore appeals to the Ministry of Finance, Chairman of the MFSA, the Governor of the Central Bank and the Director of the Office of Fair Trading to investigate how at a times where people's taxes are being use d to guarantee bank deposits, banks are not giving to their clients what they should be given by right, also in the interest of the Maltese Economy.

Interest rates are going down so that industry and commerce are better able to sustain themselves through the recession treat, a treat that would harm every party.

The GRTU therefore appeals to all the Maltese commercial Banks to give priority to the Maltese economy. GRTU expects Government not to tolerate the Maltese commercial Banks` negative attitude.