Category: Archive – 2008

 

GRTU's Director General, Vincent Farrugia, addressed the European Conference for Crafts and Small Enterprises, organized by the French Presidency of the European Council and led by the French Minister for European Affairs Jean-Pierre Jouyet. 

Mr Farrugia emphasized the importance of the European Commission coming up urgently with an assistance programme for small enterprises so that they are not rendered helpless under the problems faced when Europe goes into an economic recession. 

He mentioned what happened in the recession at the beginning of the eighties and nineties, where not only where small businesses not given any support but were left to carry most of the load because the governments where only interested in safeguarding financial institutions and large industries.

The European SME Envoy, Madame Francois La Bail Commission, revealed that in 2 weeks the European Commission should publish a programme that will deal with most of the points discussed by Vince Farrugia.

The Director General referred to Malta's current situation, where the Government has killed off communication with social partners recognized by law and imposed, by means of state monopolies, tariffs for water and electricity which effectively chastise small enterprises and make them subsidize large industries from their own income. 

Vince Farrugia appealed to the UEAPME, the European federation for SMEs and Crafts, of which GRTU is a member and which has held its Annual Conference together with this European Conference for SMEs, to insist with the European Commission to condemn actions similar to those happening in Malta. 

He explained that the Commission has to act not only on proposals but also ensure that the member governments act in a way that does not worsen the situation for small enterprises. 

UEAPME promised to discuss the issue directly with the European Commission even in the contest in which GRTU has already discussed when the capping was imposed and Government denied GRTU statement, when today in 2008, the Government publicly admitted that small enterprises are truly subsidizing large industries.

In his closing speech the French minister for the SME's and self-employed, Mr. Herve' Novelli, assured all the delegates that the French presidency will conclude its presence with a decisive programme that is advantageous not only for European economies in general but which assures that small enterprises are not affected by the negative economic trends.

Vince Farrugia and President Paul Abela are attending the European Conference for Self Employed and Small Enterprises and UEAPME's Annual General Assembly in Tours in France.

 

GRTU has been contacted by an Italian company that produces wine in the centre of the classical Soave region. The philosophy of the company stands in the product's quality, typicality and genuinesse. The company's dedication ensures that the wines are placed amongst the best of the Soave and are exported to several counties around the world.

To this objective the company has requested the help of the GRTU in making contact with Maltese companies interested in importing wine.

 

GRTU believes this is a very good opportunity for its members in this sector therefore we urge you to give this opportunity your attention.

Should you be interested you are kindly asked to contact Abigail Mamo @ GRTU.

 

GRTU has received an invitation for our members to participate in an International Conference with the theme ‘REACH-ing Industry – The New European Chemical Legislation'. The aim of this conference is to inform stakeholders about the legal implications of the new chemical legislation which entered into operation on 1^st June 2008.   We have the pleasure of inviting you to participate in this conference. The registration fee for the registration to the conference is of €30.

Should you be interested please contact Abigail Mamo@ GRTU for an agenda and registration form.  The seminar will be held on Friday 28^th November 2008 between 0830 hrs and 1300 hrs. 

Government's decision to disregard MCESD is a very serious development. GRTU considers the new rates for both electricity and water as unreasonable, given the current market and economic situation in Malta and in all the other countries on which Malta is dependent for exports and tourism.

The situation in Malta today dictates unity as vital for us to face the difficulties facing us as recession hits our most important markets and government needs the full cooperation of MCESD leaders to lead the country through the difficult years ahead. As things stand conflict is inevitable.

Analysts lead by Goldman Sachs who only earlier this year raised the prospect of oil at $200 a barrel are now saying it could drop to $50. Prices of electricity and petrol are also going down across Europe. In Malta, rather then facing up to the economic challenges, Government is raising prices of essential utilities as if the world out there is of no interest to us.

 

Electricity Tariffs

GRTU notes that from the document presented yesterday, no total recovery amount from tariffs has been outlined. However since there were no changes in the tariffs (electricity), it is assumed that the total amount to be recovered still stands at €305 million.

The total figure for projected cost of fuels for 2009 now stands at €223 million.

Government also outlined that a review will be held every six months, or in case of a spike of 15% in oil. No basis price was however given to this spike. Neither has the Government outlined that there will be a change to the price if the price of oil decreases by more then 15% from this untold price basis.

Extrapolation from figures shows that out of a total of €305 million, Non Residential will fork a total of €192,241,500 whilst the residential sector will fork out € 112,758,500

Enemalta will subsidize Public Service Obligation, Energy benefit to Families, and Cap to Industry totalling €21,100,000,. Are we to assume that these are to be deducted from the projected income of €305 million?

The capping of €5.2 million is now based on 26 receiving companies only. Without fail, small enterprises are still paying this capping figure which is not acceptable. Further more if small enterprises were before capping 78 industries and now the capping is for 26 companies, GRTU asks how come there has been no change in the tariffs from Proposal 6?. This only means that this is a media exercise only with non-residential needing to fork out the figures as presented on 23.10.08 at MCESD meeting.

Water

GRTU notes that after the proposed Option 6, Water Services Corporation reviewed their rates accordingly giving rise to another document forwarded to MCESD members last Monday 27.10.08. This new proposal now raises revenue from €50,787,633 to €53,697,286, thus raising also cost of potable water from €0.934m3 to 1.064m3.

The electricity portion now increases to €13,618,000 from €10,708,000. The target return on capital employed remains at €11.11 million which includes revenue for future investment.

The cost of electricity has been inflated by 69.3% from 2006. It is understood that 10% increase in Electricity raises costs by 2.4%, thus in quantifiable terms the increase of 69.3% in electricity should increase costs by 16.56%.

The variable portion of water sent out to consumers on the initial document stated billing at Euro 1.90 per m3 and now increases to €2.01 per m3.

Water: Accounts

There are 199,409 Residential and 43,059 Non Residential Accounts. 34,073 Accounts from 43, 059 relate to Commercial and Commercial Garages. Their bills will increase by 87 to 92%.  Cross subsidization is evident in the second and last proposal which is not acceptable to GRTU.

Any changes made were just cosmetic changes and the Schedule reflects that the final outcome is an increase of tariff well over those proposed in the first proposal.

Increased usage is also resulting in less payment and as such the pay as you use principle is being shelved for the purpose of these tariffs.

GRTU believes that these rates both for electricity and water will create hardships both to the Non Residential and Residential Sector. GRTU will now take all the measures possible to safeguard the interests of its members. GRTU will without fail be taking the matter up with the European Commission in respect to capping and cross subsidization of tariffs.

At a time when all Governments in Europe continue to discuss with all their social partners to find solutions to current economic crises, the Government has decided to go its own way and effectively disregard MCESD and also Small and Medium sized Enterprises.

GRTU demands a drastic change in Government's attitude and strategy; CHANGE in line with today ‘s economic reality, CHANGE in favour of Small and Medium sized Enterprises, CHANGE in favour of companies and unity.

 

 

 

 

 

An efficient payments system infrastructure is a prerequisite for a successful retail sector. In many member states, retailers do not currently have access to efficient payment systems and their businesses and customers suffer as a result through higher, undue bank charges. SEPA provides an opportunity to allow the most efficient and low cost payment systems become available to retailers and consumers across the EU.

The final objective of this paper is to avoid a situation where, from the start of SEPA, the card payments market is foreclosed to new payment models that are simpler and less costly than those presently envisaged by European Payments Council (EPC) and its members.

 

 

In addition, we would like to insist that this wish-list should be seen as a whole. Some of these expectations, taken separately, would not have the desired effect of achieving a real Single Market for Payments.

1. Retailers would like to get a SMART roadmap for SEPA

2. Involvement of users and transparency of the decision-making process

3. SEPA must allow for enhanced competition

4. Transparency and cost-based fees

5. Increased efficiency

6. Lower prices

7. Buying the most efficient payment services: real cross-border acquiring

8. Developing a basic payment service

9. Public open standards vs. privately owned open standards

10. SEPA achievements should be monitored

 

Following a meeting held with the Ministry of Finance the Economy and Investment (MFEI) GRTU was informed that in line with Better Regulation a study is being carried out to diminish the administrative burdens, originating from obligations of the VAT Department and Company Law, on companies.

MFEI has mapped out the extra obligations originating from Maltese Law, also known as gold plating, and these will be presented to you during the meeting. If you are however interested in having a copy prior to the meeting contact can be made on the details below.

GRTU is aware that many of our members have an interest in the subject and the valuable contribution they can give to. The meeting details are as follows:

Date: Thursday 6^th November 2008

Time: 14.00 – 15.30

Venue: GRTU office, Exchange Building, Republic Street, Valletta

Due to seating restrictions prior registration with Abigail Mamo (21232881/3 ) is a must.

GRTU is very active on the subject as we believe businesses today waste too much of their precious time complying with administrative requirements and government returns when they should be left to do business. By attending this meeting you will be joining our Committee to diminish the administrative burdens your business incurs.

 

Following a meeting held with the Ministry of Finance the Economy and Investment (MFEI) GRTU was informed that in line with Better Regulation a study is being carried out to diminish the administrative burdens, originating from obligations of the VAT Department and Company Law, on companies.

MFEI has mapped out the extra obligations originating from Maltese Law, also known as gold plating, and these will be presented to you during the meeting. If you are however interested in having a copy prior to the meeting contact can be made on the details below.

GRTU is aware that many of our members have an interest in the subject and the valuable contribution they can give to. The meeting details are as follows:

Date: Thursday 6^th November 2008

Time: 14.00 – 15.30

Venue: GRTU office, Exchange Building, Republic Street, Valletta

Due to seating restrictions prior registration with Abigail Mamo (21232881/3 ) is a must.

GRTU is very active on the subject as we believe businesses today waste too much of their precious time complying with administrative requirements and government returns when they should be left to do business. By attending this meeting you will be joining our Committee to diminish the administrative burdens your business incurs.

 

 

 

Investment in Education

Government's programme of investment in new colleges is attractive and needs to be speeded up. GRTU has been recommending since 2005 that Government should have a strategy for all the buildings falling under the Ministry of Education. Some of these buildings have now outlived their purpose as schools of education centers, occupying prime cites in most Localities. Government should devise a specific policy for the reuse of these sites both for social and commercial purposes. Government can generate new funds from the privatization of selected sites and the revenue can be utilized to speed up the building of new collages.

Many of the older buildings cannot be refitted for the standards and class room sizes and facilities of new educational establishments and most of the old sites are bad examples of efficient use of a scarce and costly resource like land in the town and city cores.

 

Supporting Families

Government spends €2,600 per student in state aided education. Parents who send their children to fee paying private schools are given only a maximum of €700 per child. GRTU recommends that families in fee paying schools receive the full educational charge of €2,600 as taxable deductions.

Pensions

Government should now move on to the second stage of the pension reform and hold discussions with GRTU and other private sector organizations to ensure that the self employed and workers employed by the private sector can contribute to the second pillar taxation schemes, in addition to the basic pension scheme under the national pension service.

Government must be willing to provide all the necessary tax relief to encourage the growth of new stakeholder's pension schemes.

 

 

GRTU insists that the business owner should be kept satisfied which in turn aids growth, investment and employment.  Unfortunately, after many years of talk, when weighing the burdens of form filling and time wasted on bureaucratic matters, we still find that owners spend more time doing this rather than focusing on their businesses and how to make them better.

Proposals:

Corporations and departments falling under separate budgetary votes will suffer an annual penalty should they fail to markedly reduce administrative burdens. Similarly additional bonuses will be paid to corporations and accountancy units, within the whole public sector, where measurable reductions of bureaucratic burdens are registered.

Funds available to departments and corporations for economic impact assessments should be clearly earmarked and departmental heads must, on a 6 monthly basis, publish reports on how these funds have been spent and publicise copies of the resulting impact assessment analysis report.

The Malta Accounting and Reporting Standard for Smaller Entities (MARSSE) is not simple enough Government had promised to do away with the legal necessity for annual audits of small firms and GRTU continues to insist that this promise should be implemented. Small businesses should be given the option to produce a simple financial statement that tallies with the regular VAT returns. GRTU believes that the returns submitted to the income tax department and the VAT department are sufficient to enable a proper audit trail and all excessive returns should be eliminated.

Government will, whether for NSO or other, be prohibited from seeking information from businesses when this information is already available in the annual returns for Income Tax and VAT. Enterprise owners will be requested to authorise the use of these returns in spite of the choices they have under the data protection act.

The principal secretary will publish a quarterly report on all consultation conducted and also publish all mitigation plans resulting from such consultations for every new public service initiative that will infringe on enterprises.

Government will ensure that all fines resulting from fiscal or administrative contravention will be of a civil and not of a criminal fine, recoverable only through civil juridical action.

Government should conduct an exercise to ensure that all environmental and planning regulations imposing administrative burdens are rationalised and simplified.

The multitude of inspectorates and enforcement officers emerging from different legal positions should be unified into one focal inspectorate and enforcement regime. It is no longer feasible, and it is an absolute abuse of free enterprise, to have a multitude of inspectorates and enforcement agencies visiting enterprises and premises with complete disregard to the integrity and rights of individual business owners.

GRTU is in favour of the empowerment of this unified inspectorate and enforcement agency to act in a professional manner to eradicate all forms of illicit trading and unfair competition resulting from law evasion. GRTU recognises that the licit and professional enterprise owner is under constant and increasing treat as the level of illicit trading, law evasion and standards abuse continues to grow unhindered.

Malta Financial Services Authority (MFSA)

GRTU recommends that MFSA drastically reviews its forms and penalty structures for enterprises that do not meet the stringent deadlines imposed by MFSA. GRTU also recommends that all pending fines become applicable on the new agreed rates.

Energy efficiency and climate change issues have become increasingly intermingled. The European Commission, in response to many calls for better energy efficiency, is currently working on eco requirements in the design of a wide range of products – ranging from common household goods to office equipment and even street lighting.

It wants to ensure that products are from the initial stage designed to be efficient in terms of energy consumption.

 

Importers of products originating in third countries will have the same responsibilities as manufacturers. Retailers will have certain responsibilities too.

A briefing session is being organised for stakeholders on the current issues relating to eco-design, the discussions currently taking place at EU level and developments to be expected in the near future.

The seminar should be of particular interest to:

Importers, manufacturers and retailers of white goods (especially domestic electrical appliances, televisions and other sound/vision equipment; and personal computers

Contractors and engineers involved in designing and erection of commercial and electrical installations

Importers, manufacturers and retailers of sound / visual equipment

Importers, manufacturers and retailers of electronic equipment that requires an external charger or power supply (eg laptops/ notebooks, mobile phones etc)

The session is being held as follows:

 

5 November 2008

Time: 0900 – 1100 hrs

Registration: 08:45 hrs

 

The main speaker will be Ing. Joseph Micallef, from the Regulatory Affairs Directorate (MSA). He will tackle the issue of how implementing measures are developed, current and expected developments, the implementing measures on the products in question, and the relationship with the energy labelling directive.

There will also be time for discussion and questions from participants. Participation is free of charge. Registration is highly recommended In view of seating restrictions. Those interested should contact GRTU offices by not later than 31^st October.