Category: Archive – 2013

GRTU, Malta Chamber of SMEs, is
Malta's registered national employers' organisation with the largest number and
array of micro and small business employers of members. GRTU strongly objects
to the new imposition on Public Procurement as evidence in all public tenders
issued by the Contract Committee over the last several weeks.

GRTU's objections are based on
two cardinal issues:

1.    
Public Procurement of goods and services should
aim at the procurement of most optimal quality of goods and services at the
best available, competitive prices. This is the role of the National Public
Procurement Agency (The Contract Committee). It is not the role of the Public
Procurement to be Czar for Social Justice Enforcement, whether this refers to
employment conditions, environmental issues, health and safety and any other
enforcement whatsoever.

There
are other appropriately established public institutions directly responsible
for the enforcement of laws enforcing labour, health, safety, environment,
standard, and any other condition. The National Public Procurement Agency
should not be subjected to the inspectorate of other public sector institution
because of any clauses imposed on Public Procurement documents.

The
Director of Employment Relations, for example, has enough legislation and resources
to ensure that all employers, and not just government contractors, abide by
Malta's high quality labour protection laws. There is nothing that precludes
the Director for Labour to act against any employer who has been found to be in
abuse of labour laws. But the Director for Labour should not expect the
National Public Procurement Agency to do his work for him. The director for
labour and his labour inspectorate should never be given power over the
execution of contracts worth millions if not tens or hundreds of millions
euros. When the National Public Procurement Agency "subcontracts" its own enforcement
powers to other institutions it allows public procurement to become wide open
for abuse, corruption and incompetence.

2.    
Public Procurement should be accessible to all
who can compete. This is how the Private Sector Procurement is done and Public
Procurement should follow the efficiency of the Private Sector. There are firms
who are competent administratively and financially to bid for public contracts.
These are specialist contractors who are not necessarily big. There are other
firms, however, who prefer to specialize in supply of services and to operate
as sub-contractors to the former. It is fallacious for anyone to state that
contractors are more efficient and that they can provide a more cost effective
higher quality service if all specialists and workers are directly employed by
the Tendering Contractors. On the contrary there is ample evidence to prove
that most suppliers of specialize services, most times offer higher quality at
lesser cost and that they can attract and incentivize better quality specialist
and service providers than contractors with directly employed individual. It is
inconceivable that a national public procurement agency is denied the services
of miscellaneous specialists who prefer to work as sub-contractors.

Malta
cannot and should not have Public Procurement that denies sub-contractors. It
is bad for Public Procurement. It is inefficient and opens wide the opportunity
for abuse. It loads the National Public Procurement Agency with unnecessary bureaucracy.
But most of all it is bad for small businesses. It represents the greatest blow
suffered by small business ever.

The European Commission will not impose provisional measures
in the anti-subsidy proceeding concerning solar panels, cells and wafers
originating in the People's Republic of China. The anti-subsidy investigation
is running parallel to the EU's anti-dumping investigation on solar panels and
was initiated on 8 November 2012 upon a complaint by the Union industry.

The
European Commission can, within a period of 9 months, decide to impose
provisional anti-subsidy duties. However in this case, the investigation will
continue without provisional measures and the Commission will continue working
actively on the case in order to arrive to definitive findings that are due at
the end of this year.

As any injury to the Union industry has already been
removed, at the preliminary stage, by the provisional anti-dumping measures and
the price undertaking on the same products, this decision does not have an
impact on the protection of the Union industry against unfair trade practices.
The decision not to impose any provisional anti-subsidy measures does however
not, in any event, prejudice any subsequent decision which may be taken at the
definitive stage of this proceeding.

When the Commission finalises its analyses in both the
anti-dumping and anti-subsidy cases, the findings will be disclosed to all
interested parties for comments. When the comments submitted are fully analysed
and considered, the Commission will issue definitive findings in both
investigations. The deadline for the imposition of definitive duties in both
cases is 5 December 2013.

The Commission also currently conducts an anti-dumping
and anti-subsidy investigation concerning imports of solar glass from China,
one of the raw materials used in the production of solar panels. This case is
however independent and is not subject to findings in the solar panel cases.

Protection of consumer rights still varies greatly between EU
countries. Only 35% of Europeans are confident buying online from sellers in
other EU countries and seven out of ten consumers do not know what do to when
they receive products that they did not order.

These are among the results of the 2013 Consumer
Conditions Scoreboard published by the European Commission. The results show
that a fresh impetus is needed to ensure that consumers can buy with equal
confidence and ease across the EU, whether online or offline. One key finding
is the decrease in consumer trust matched by an increase in the use of redress.

The Maltese seen to engage a lot in cross-border
e-commerce but are not that happy with how their complaints are dealt with.

Neven Mimica, European Commissioner for Consumer
Policy welcomed the Scoreboard and said "There has been progress notably
in the spread of e-commerce but improvements are needed in other areas. The
Scoreboard shows us where we should focus our efforts. It is our window on the
market. Its outcome will be reflected in my future actions such as setting up
the online-dispute resolution platform or better enforcing rules against unfair
commercial practices."

The largest absolute increase in e-commerce between
2008 and 2012 (of more than 20 percentage points) has been noted in Belgium,
Slovakia, Malta and Sweden. In Luxembourg, Malta and Cyprus, more consumers
engage in online cross-border shopping than domestically (the respective
percentages are 60% vs. 22%, 38% vs. 7% and 19 % vs. 4%).

The proportion of online cross-border shoppers has
grown in all countries since 2008. The largest increases are observed in Malta
(21 percentage points), Luxembourg (17), Belgium (16) and Finland (15). The
highest proportions of businesses (over a tenth) that engage in cross-border
sales were found in smaller countries: 13 % in Malta and Ireland, 12% in
Belgium, Lithuania and Czech Republic, 11% in Luxembourg.

At country level, web sales to consumers represent
over half of the overall turnover from the web channel in Malta (81%),
Lithuania (77 %), Bulgaria (60%), Ireland (56 %), Portugal (54 %) and France
(53%).

The majority of consumers do not agree that retailers/providers
comply with consumer legislation in the following five Member States: Greece
(60 %), Czech Republic (58 %), Bulgaria (56 %), Cyprus (54 %) and Malta (51%).

The highest level of satisfaction is noted in Sweden
and in Finland (both 77 %), Germany and Slovenia (both 75 %) while, at the
other end of the scale, less than half of consumers are satisfied with how
their complaints are dealt with in Malta (36 %) and Spain (48 %).

The Commissioner for Children Helen D'Amato in collaboration
with MCCAA, on Thursday 8th August 2013, launched a  draft document with regulations for indoor
play facilities. 

The standards are
intended for child entertainment areas used by children under 14 years, who may
be accompanied by adults. These areas exclude playgrounds, swimming pools,
child care centres, schools or areas which have an educational scope.
Minister for Social Dialogue Helena Dalli described
the standards as a positive initiative as it is essential to have full safety
in play areas. Dr Dalli said that after the regulations are set, she will make
sure that they will be legally binding.

Mr Marcel Pizzuto, Chairman of MCCAA said that the
indoor play facility regulations follow 2010 Standards for Playing Fields which
resulted in a huge improvement and less incidents. This led the Children's
Commissioner to propose standards for indoor play areas which were drawn up by
the MCCAA.

The public consultation will take two months during
which stakeholders, especially parents, are encouraged to submit their views.
Following this, and once recommendations are considered, the government intends
to introduce these regulations in law.

Mrs D'Amato said works on such standards has been
ongoing for a year-and-a-half during which she, together with the MCCAA had
discussions with several entities including the Health Department, the
Occupational Health and Safety Authority, the Trade Department, the Social
Welfare Standards Department, the GRTU, the KNPD, the Chamber of Commerce,
Enterprise and industry, Mepa and the Building Regulations Office.

Mrs D'Amato emphasized that  the right for children to play is
fundamental. She highlighted the document focuses on safety and she too
believes the implementation arm should come next.

The document may be downloaded from the Malta
Competition and Consumer Affairs Authority website: http://mccaa.org.mt/ and feedback can be sent through the website or
on email:  .

The National
executive Council of GRTU are alarmed that Government has ignored the warnings
expressed by GRTU and has arbitrarily changed the rules of the games in Government
procurement. It has limited the participation of small enterprises and
consultancies with the introduction of a clause in the declaration companies
need to sign in order to apply for a Government tender that ‘no part of the
service to be provided under this contract shall be sub-contracted'.

The
absolute majority of small firms do not have the full capacity to implement
tenders. These however used to team up with other small firms or a
subcontractor and carry out the full requirements of the tender without abusing
of the system in any way and fully abiding with employment regulations. This is
the normal business practice internationally and this was the norm up to
recently. In the EU 420,000 small businesses apply sub-contract in public
tenders as is their right across member states and here the Maltese Government
is prohibiting sub contractors from working in their own country.                          

The new
rules have closed off the government procurement market for self-employed and
many small businesses, many of which depended on these tenders and will in time
have to shut down. This is a clause that has been imposed without having measured
the negative economic impact this will have on these businesses.

The
National Executive Council has discussed the issue directly with the Prime
Minister in last week's meeting and the Principal Permanent Secretary the week
before and we have been assured this was just a misunderstanding and
subcontracting is still allowed. The papers black on white say otherwise. This
is the most negative anti self-employed action on record. GRTU will take all
available legal methods in Malta and the EU to fight against this imposition.

GRTU
Malta Chamber of SMEs has also  always
stressed in all its presentations to Government, on behalf of small and micro
businesses, that the way forward on public contracts is quality standards and
approved skills. The problems with most public contracts are twofold: The
public sector pays very little on public contracts for cleaning, security,
health care, etc. The same goes for most construction projects. Government does
not insist on quality standards of services or where it does, it fails to
enforce.

Similarly,
skills standards are never ever enforced. The end result is that contractors do
their best to deliver a service within the bounds of the limited funds
available. The basic truth is that contracts that aim at high quality standards
of services through the engagements of approved standards and appropriately
skilled personnel are very expensive.

The
truth is that if Government wants to safeguard the community from abusive
standards, Government must be willing to pay more. The Government strategy to
cut out the self-employed and small businesses from all sub-contracting is in,
GRTU's view, completely wrong and an insult to qualified and hardworking
self-employed and small business providers.

This
strategy is particularly bad for Gozitan micro and small businesses whose main
participation in major Malta Government contracts is through sub-contracting.
Most Gozitan micro business owners do not even dream of becoming paid employees
of major Maltese contractors. It is even cruel for anyone to create a situation
where micro business owners are forced to become employees of other
contractors.

GRTU
urges Government to reverse this malicious strategy before it results in a
sharp increase in registered unemployment. The option Government is giving to
many self-employed depending on Government contracts is to close business and
register for work. A double punishment as it is in the nature of the
self-employed to be free and not to be forced to seek salaried employment. GRTU
still believes that reason ought to prevail and that Government will change
their dangerous strategy.

GRTU – Malta Chamber of SMEs expressed its concerns and the
concern of owners of entertainment establishments in Malta's entertainment
mecca Paceville to the most senior officers of the American Embassy in Malta
last Thursday, following the publication last week of the USA State
Department's advice to American citizens visiting Malta on what they perceive
as negative features of Paceville.

From the discussion it transpired that there was no
action from the Embassy in Malta that could have lead to such advise and on the
contrary the interest of the Embassy is to move ahead in the relationships
between the Maltese Government and the USA so that it may become possible for
American navy personnel in the Mediterranean sea to be able to again spend
holiday time in Malta and to have longer stay of American     personnel aboard navy ships in repair at
Malta   dry docks.

GRTU and the American Embassy officials also discussed
various possibilities on how to attract new business to Malta from the USA
particularly in the near future as Libya continues to reform and lead towards
new opportunity for foreign investment where Malta could play a pivotal role in
the settlement of business persons and families willing to do business in North
Africa and operation from residential and office base in Malta. The general
feeling acquired throughout the friendly discussion was that the American
Embassy will do its utmost to encourage the growth of American-Maltese business
opportunities, and their  advise
regarding  Paceville is that which is
normally stated about an active and popular entertainment  similar anywhere else in Europe.

Participating in the discussion from the US Embassy
were Deputy Chief of Mission Mr Michael De Tar, Consul Ms Beth Herbolich and
Regional Security Officer Mr Paul Margules, while Vince Farrugia Director
General and Philip Fenech Deputy President and President of the Hospitality and
Leisure division GRTU spoke on behalf of GRTU members.

GRTU had a very successful meeting with Honorable Anton
Refalo the Minister responsible for Gozo. The GRTU delegation lead by Director
General Vincent Farrugia presented the following points.

Capital
Financing for Gozo: The need
for separate project Capital Financing for Gozo projects through the issue of
special Gozo Development Bonds was one major suggestion. GRTU strongly believes
that Gozitan depositors should be given an enhanced Bond offer, open also to
Maltese and foreign depositors, to enable the creation of special financing
bonds that can be utilized for the promotion of Public and Private projects in
Gozo.

Better access to finance for Gozo private enterprises: GRTU is
proposing an agreement with the Commercial Banks so that an agreed ratio of the
total value of deposits by Gozitan depositors in Local banks is reserved for
utilization as the basis for advances for projects proposed by Gozitan
business.

State Aid: GRTU is giving
all its support so that as soon as possible Micro Credit, Micro Invest and
Micro Gaurantee schemes are immediately revamped with the special enhanced
advantages for projects proposed by private entrepreneurs in Gozo.

Parking in Rabat: GRTU presented to the Minister proposals for the
better utilization of available parking spaces in Victoria until the Ministry's
proposed new Capital Investment in roofed parking is executed.

Parking in Xlendi: GRTU strongly urged the Ministry to take action
against the use of car parking places in the Xlendi Bay parking area by boat
trailers and boats and other non-car-parking. Too many parking slots are being
occupied by trailers etc… The parking area should remain for the exclusive
use of car owners making use of the services provided by the Business Community
in Xlendi.

Village Monti: GRTU stressed that too many unauthorized Monti
are opening up in various localities with Monti hawkers coming over
specifically from Malta together with an increase in the number of foreign
owned stalls. GRTU proposed that these Monti hawkers come under stricter
control as they provide gross unfair competition to licensed established
Gozitan retailers. This situation cannot be tolerated any further as these
hawkers are acting with complete disrespect to health, safety, food hygiene,
customer protection, guarantees, Eco Tax, Vat, and income tax laws.

Individual cases: GRTU informed the Minister that GRTU is
conducting on a regular basis a door to door business survey and will be
bringing to the attention of the Minister an up to date list of
individual complaints by Gozitan businesses seeking solutions to their
problems.

The Minister and his advisor Mr Frank Psaila gave a detailed
explanation of the work and planning on new projects being carried out by the
Gozo Ministry with the aim to advance the interest of enterprises in Gozo and
help sustain the viability of Gozo Enterprise, highlighting especially the
utilization of EU Funding. A number of specific proposals were also presented
for resolution of specific problems highlighted by GRTU.

GRTU is also insisting that Malta Enterprise should establish
a semi-autonomous Gozo Enterprise. Decisions on assistance to Gozo enterprises
should no longer be taken at Malta Enterprise in Malta. Gozitan enterprises
through Gozo Enterprise should be able and capable to take decisions affecting
Gozo enterprise directly. This includes any policies relating specifically to
Gozo.

The Honourable Anton Refalo was accompanied by Mr Frank
Psaila, his advisor while Michael Galea, Vice President GRTU and Mr Maurice
Borg, GRTU Council Member represented GRTU enterprises in Gozo.

It was agreed that the process of further structured meetings
will continue

The
Malta Resources Authority emotionally reacted to GRTU's public statement on
mixed diesel/bio diesel sold through independent private petrol stations.

GRTU
Malta Chamber of SME's on behalf of all private petrol stations just stated the
obvious fact: fuels provided by independent private stations are the direct
responsibility, in terms of quality, of the major distributors of fuels to
petrol stations. Petrol Station owners do not mix fuels and the modern petrol
station pumps clearly establish any default at the part of the petrol station.

What
GRTU state is the simple fact: Petrol station owners are not responsible for
the quality of the fuel delivered through their services. Any liability or
praise for that matter is due elsewhere.

Petrol
station owners stated this to avoid unnecessary references to petrol station
owners on matters of quality. It is their right at Law to state such a fact.

GRTU
Malta Chamber of SMEs has always stressed in all its presentations to Government,
on behalf of small and micro businesses, that the way forward on public
contracts is quality standards and approved skills.

Similarly,
skills standards are never ever enforced. The end result is that contractors do
their best to deliver a service within the bounds of the limited funds
available. The basic truth is that contracts that aim at high quality standards
of services through the engagements of approved standards and appropriately
skilled personnel are very expensive.

The
truth is that if Government wants to safeguard the community from abusive
standards, Government must be willing to pay more. The Government strategy to
cut out the self-employed and small businesses from all sub-contracting is in,
GRTU's view, completely wrong and an insult to qualified and hardworking
self-employed and small business providers.

This
strategy is particularly bad for Gozitan micro and small businesses whose main
participation in major Malta Government contracts is through sub-contracting.
Most Gozitan micro business owners do not even dream of becoming paid employees
of major Maltese contractors. It is even cruel for anyone to create a situation
where micro business owners are forced to become employees of other contractors.

GRTU
urges Government to reverse this malicious strategy before it results in a
sharp increase in registered unemployment. The option Government is giving to
many self-employed depending on Government contracts is to close business and
register for work. A double punishment as it is in the nature of the
self-employed to be free and not to be forced to seek salaried employment. GRTU
still believes that reason ought to prevail and that Government will change
their dangerous strategy.