Category: Archive – 2012

GRTU Director General and EESC Employers
Representative Vincent Farrugia has this week attended the Section for Economic
and Monetary Union and Economic and Social Cohesion. A major opinion was
discussed in this week's meeting on a macro-regional strategy in the
Mediterranean.

The EESC believes that funding sources in the form of
the considerable resources that have already been committed by the EU for
measures and programmes through the structural funds and the financing
instruments of the EIB represent adequate means that must be used transparently
as well as flexibly. It also advocates the setting up of a Euro-Mediterranean
investment bank through the EIB, as well as an open policy on funding from
various financial.

The report particularly makes mention that Cyprus and
Malta will play a particularly important role in any new strategy framed by the
EU, as will all the islands of the Mediterranean, which face a very difficult
situation owing to their poor connections and communications with the
continental EU countries. The EESC believes it is necessary to generally
improve maritime and air links between the countries of the Mediterranean and,
more broadly, with the rest of the EU.

GRTU Director General Vincent
Farrugia has this week represented UEAPME, the European Association of Crafts,
Small and Medium Enterprises, in the negotiations for a Framework of Actions
for Youth Employment. Leading discussions on behalf of employers are UEAPME and
Business Europe.

In his address Mr Farrugia said that
"it is extremely important to define first what kind of jobs youths in Europe
today really want. A lot of the proposals that are being made are top down and
not enough consideration is given to bottom up proposals from youth
representatives that in their majority seek jobs that relate to the kind of
professional  courses they are following
in university and technical collages of specialization. The end result is that
jobs are created that do not reflect the kind of jobs that youths are seeking.
Jobs that youths are seeking are also being created in areas and regions where
supply is bigger than demand and Europe has not taken sufficient cognizance of
the removal of obstacles that slow down the mobility of youths willing to move
from zones of poor employment prospects to areas where jobs are more abundant".

It is becoming easier for immigrants
outside the EU to take up the jobs being created than for youth within the EU
to move out of their region and seek the jobs that are being made available
elsewhere within the EU. Vince Farrugia appealed to employers` associations and
trade unions to work together and assist more micro and small enterprises to
create the jobs that the youth of today are seeking.

He continued citing the case of Malta
where the development of new courses and studies in the establishment of MCAST
work hand in hand with the new policies of Malta Enterprise and of Government
to create the new jobs in IT technologies, financial institutions and a wide
cross section of services to enterprise such as -gaming and services related to
tourism and internationalization. The end result is that Malta has one of the
lowest levels of youth unemployment. Statistics also show that where economic
policies are geared to create the jobs that youths really prefer, including the
promotion of entrepreneurship in support of new initiatives by newly qualified
young persons, and when the educational establishments operate in close
cooperation with organizations representing business, the level of unemployment
remains low.

GRTU
has invited importers of PVs and key components originating in China to discuss
with GRTU and Government officials the investigations launched by the EU
Commission and how these will affect them. The aim of the meeting was to inform
interested operators of the possible upcoming changes and give direct feedback
to Government in order to reflect the views of SMEs when presenting Malta's
views and arguments.

What
products are concerned?

The Economic Policy Division
explained to importers of the European Commission's plans on introducing both
an anti-dumping and an anti-subsidy duty on imports of solar panels and their
key components, i.e. solar cells and solar wafers. In order to produce a solar
panel, solar wafers are converted into cells and then cells are assembled
together into modules, i.e. panels. Some producers have integrated production
covering all three segments, whilst others produce only wafers, cells and/or
modules.

The
products concerned are classifiable under the following Combined Nomenclature
(CN) codes: 85414090; 85013100; 85013200; 85013300; 85013400; 85030090;
38180100; 38180010; 8501 33 00; 85016120; 85016180; 85016200; 85016300 and
85016400.

Origination
of complaint

The
investigations were launched late this year following a complaint by EU ProSun,
an ad hoc association representing more than 20 European companies producing
solar panels and their key components. Their collective output represents more
than 25% of Union production. EU ProSun claims that solar panels imported from China benefit from unfair government
subsidies and are sold at a cost lower than the market price in order to
enter the European market at prices below market value, making their prices
much lower than those of the EU industry and gain a dominant position on the
market. In terms of import value affected, this is the most significant
anti-dumping complaint the European Commission has received so far: in 2011,
China exported solar panels and their key components worth around €21 billion
to the EU. 

Timeline

The investigation takes 15 months but
if the Commission investigation concludes that the situation is leading to
injury of the EU industry and that the imposition of measures does not go
against overall Community Interest, provisional measures will be implemented
within 9 months of the initiation of the investigation (6th June 2013 for
anti-dumping measures and 5^th August 2013 for anti-subsidy
measures). If the Commission decides on imposing definite measures,  both anti-dumping and anti-subsidy measures
would be imposed on 5^th December 2013 these would be applicable for
5years (6th June 2013 for anti-dumping measures and 5^th August 2013
for anti-subsidy measures)

Duties

As
soon as the measures are imposed, imports, whether from China of from the EU
which are China originating, will become subject to a duty on import making
such products much more expensive to sell and possibly unsustainable.
Information to date is that anti-dumping duty will amount to 60-70% for
modules, 70-80% for cells and 80-90% for wafers.

Maltese
Imports

Maltese imports of such systems
originating from China are significant and amount to over 30% of total imports
which amounted to almost €3 million in 2011.

Position of
Importers

Importers acknowledge the price
difference between EU and China originating PVs and the absolute majority of
importers of China originating systems also import EU originating systems in
order to offer products at different prices, provide more choice to the
consumer and be more competitive. There is a concern among importers of such
systems that should the duties be imposed, consumers that afford to spend less
will have very limited choice or will have to choose not to invest in such
systems because they would be too expensive for them.

Importers also reported that their EU
suppliers tell them that in order to remain competitive and maintain presence
in the market they sell at low profit prices and sometimes even at a loss. If
the duties are imposed China originating systems will probably become more
expensive than EU products and the EU industry will most likely increase their
prices to a level with which they are more comfortable. It is pertinent to note
that this is already a relatively expensive technology and further increases
will mean that consumers will get smaller systems and lesser return for the money
they invest compared to today.

The duties will not only be imposed
on finished systems but also on parts and components such as wafers. This rules
out the possibility of at least having the assembly of PVs taking place in the
EU, which Maltese operators would be very interested to look into. The process
of producing the wafers involved high energy consumption, thus manufacturing
such parts in Malta would be unsustainable simply due to our high electricity
rates and burden our energy providers.

GRTU
and its members believe such impositions are not in the interest of the local
industry and consumers. Any duties imposed would mean unnecessary extra costs
upon EU consumers and these would outweigh any benefits to European producers.

Background

China is the world's largest producer of solar panels.
Approximately 65% of all solar panels are produced in China. The EU is China's
main export market, accounting for around 80% of all Chinese export sales. In
terms of import value affected, this is the most significant anti-dumping
complaint the European Commission has received so far: in 2011, China exported
solar panels and their key components were worth around €21 billion to the EU.

"Lili personalment u lill-GRTU ittina sodisfazzjon kbir naraw lil Jean
De Valette jirritorna fil-Belt Valletta. Il-GRTU ilha s-snin tippromwovi
il-progett ta' bini ta' monument xieraq lil De Valette fil-Belt li mhux biss
bena u assigura li tkun Belt fortifikata gawrha li hi imma wkoll li taha
isimha. Kien ghajb ghalina lkoll li l-Belt Valletta ma kellix il-monument
xieraq tal-fundatur taghha", jghid Vince Farrugia id-Direttur Generali
tal-GRTU.

Il-GRTU ma tistax ma tiddeskrivix
is-sodisfazzjon taghha li l-Gvern matul dawn l-ahhar snin iddedika fondi rekord
u implimenta progetti li bhalhom hadd qabel ma kien biss holom li ghad xi darba
isiru, ghad baqa' hafna xoghol xi jsir pero' il-GRTU sodisfatta u konvinta illi
meta l-maggor parti tax-xoghol ikun lest, il-Belt Valletta tkun lahqet
il-livell li verament jixirqilha dik ta' Belt Kulturali ta' stima. Is-settur
kummercjali hallas il-prezz qawwi tieghu ukoll matul dawn is-snin ta'
rikostruzzjoni u tisbih u hu ghalhekk li l-GRTU qed tipproponi aktar
inizjattivi mill- Gvern biex is-settur li investa issa jkun f'pozizzjoni li
jgawdi minn tant infiq pubbliku li sar u minn tant sagrificcji li saru.

Il-GRTU tirringrazzja lill-Gvern
ghal-monument li sar f'isem Jean Parisiot de la Valette u taghtih merhba
kbira  li rega' qieghed fostna fil-Belt
Valletta.

World Bank's IFC speaks at
CREDITINFO's 10 th Anniversary celebrations – Mr Fabrizio Fraboni, principal
Operation Officer and Credit Bureau specialist with the International Finance
Corporation (IFC), a World Bank Corporation, who was the main speaker in a
conference organised by Creditinfo Malta, dealt at length on Harnessing the
Power of Credit Reporting within a Credit Bureau model.

Mr Fraboni, went on to explain how
Malta, as a result of such a Credit Bureau, would improve its world ranking in
the credit sector from its current 102 position.

Creditinfo Malta, organised a
mini-conference entitled "Credit
Bureaux – Reducing Risk by Collaboration" at Corinthia Hotel, St
George's Bay, last Wednesday, 14th November as part of its 10th Anniversary
celebrations.

Mr Simon Camilleri, Country Manager for
Creditinfo Malta, opened the conference by introducing Mr Reynir Grétarsson,
the founder of the Creditinfo Group and Mr Almar Hilmarsson, the CEO of
Creditinfo International GmbH.

Mr Paul Randall, Head of Business
Development of Creditinfo International GmbH, described the workings of a
Credit Bureau and its Concept and the relative Data Sharing complexities within
Credit Bureaus. The importance of Data Quality and its three levels of
strategy: Education and Awareness, Prevention (Data Verification and Data
Input) and Periodic Reviews where also touched upon as well as how in-depth
Data Analysis of the data would eventually lead to Fraud Detection or attempts
thereat.

Finally, Ms Maria Rachel Pullicino,
Credit Scoring Analyst at Bank of Valletta plc, explained how credit scoring
was one of the earliest developed financial risk management tools. Many
financial institutions, being aware of the tremendous benefits credit scoring
provided, including predictive possibilities, incorporated it in their internal
loan assessment procedures.

Following, the conference, the
participants were invited to a reception, also held at the Corinthia Hotel,
where Mr Reynir Grétarsson cut the 10th Anniversary cake.

Large European companies will now be
required to have higher female representation on corporate boards following the
European commission's approval of a proposal which requires that women account
for 40% of non-executive directors listed on EU stock exchanges. Private companies will have until
2020 to achieve this goal, while public companies will have until 2018.

European justice commissioner Viviane
Reding had to postpone the launch of the policy last month when warned by EU
lawyers that compulsory quotas might not be enforceable, while others are
arguing that the directive had been watered down and would be largely ignored.
While the new EU-wide plan however does not in fact set mandatory quotas, as an
early draft proposal suggested, it will introduce a range of administrative
burdens to coerce companies to abide by the guidelines.

Companies will have to prove they are
trying their best to increase the number of women in top management positions
by setting their own transparent mechanisms for selecting new board members and
reporting annually on their progress.

Not all Member States and
stakeholders agreed with this proposal arguing that the way to do this is not
through special treatment or regulation like the European commission's quotas
idea, which patronises women and undermines the business case. It is about
removing the barriers to achieving women's goals, so that women are supported
all the way from the shop floor to the boardroom.

Apprenticeships are the key to a
highly skilled workforce. Apprentices learn through a combination of on-the-job
and off-the-job training. The theoretical tuition is provided to apprentices by
the Malta College of Arts, Science and Technology (MCAST) or by the Institute
of Tourism Studies (ITS), depending on the chosen career path. While
on-the-job, apprentices work alongside experienced staff to gain job-specific
skills. An apprenticeship gives you an opportunity to train prospective
employees.

The Employment & Training
Corporation (ETC) is currently assisting a number of apprentices to find a
training placement with an employer in the automobile industry. Should you be
interested to employ an apprentice or would like further information kindly
email or contact the apprenticeship section on 22201302.

The European Central Bank (ECB) and
the national central banks (NCBs) of the Eurosystem are to introduce a second
series of euro banknotes. Announced on 8 November, the new "Europa" series
notes will include enhanced security features and a portrait of Europa in the
watermark and the hologram.

As part of the Management
Partnership between the Malta-EU Steering and Action Committee (MEUSAC) and the
European Commission, MEUSAC is currently implementing a series of information
sessions, themed ‘EXPLORE', focusing on the new EU funding opportunities for
2014-2020

Date:
Thursday, March 27, 2014 | Time: 17:00 hrs – 19:00 hrs

Venue: The Waterfront Hotel,
Gżira

Social Inclusion will be
the fourth ‘EXPLORE' session of a series of six information sessions, each
targeting a different thematic area. This session will be promoting EU funding
programmes related to the social aspect. All non-governmental organisations
(NGOs), businesses and local councils that are interested in any project
related to the social sphere, are invited for this session.

This session will include
a number of presentations by various Managing Authorities and National Contact
Points responsible for different funds under the Multiannual Financial
Framework 2014-2020. Participants will also have the opportunity to participate
in a brokerage session, whereby the representatives from Managing Authorities
and National Contact Points will be present to answer queries on a one-to-one
basis. 

Should you be interested
in taking part, kindly register at by not later than Monday, March 24, 2014.