Category: Archive – 2013

New measures to strengthen the rights of passengers:
this is the objective of the biggest reform of EU rules in the field of air
transport presented on last 13 March in Brussels. According to the document, subject to the approval to
Member States and the Parliament, the new laws are due to come into force in
early 2015.

In particular, if the flight is more than 12 hours
late or is cancelled, the airline must book passengers on other carriers if
they cannot offer the service with their aircraft within 24 hours. Under the changes, airlines might also have to pay for
a maximum of three nights hotel accommodation. Airlines will be obliged to give passengers
information about why their flight was cancelled within 30 minutes of its
scheduled departure.

"Passenger rights may very well exist on paper but we
all need to make use of these rights when they are most needed, ie, in the
event of a problem, "says the European Commissioner for Transport Siim
Kallas.

He adds: "We are aware that the real priority for
stranded passengers is simply to go home, and that is why we focus on
information management and service and boarding on an alternative flight when
staying on the ground".

Besides, the new rules also clarify what is considered
"exceptional circumstances". Technical problems on board an aircraft
shall not be regarded as exceptional circumstances for example but natural
disasters, strikes or air traffic control are.

There are also news regarding complaints; airlines
will have to respond to passengers within tight deadlines (one week to
acknowledge receipt of the complaint and two months to provide a formal
response).

If there are disputes, passengers can turn to court
bodies responsible for the management of complaints to settle the dispute
(simple and inexpensive).

European SMEs' confidence declined for the fourth
semester in a row as a downturn due to a sluggish internal demand is feeding
through all Member States, according to a survey conducted by UEAPME, the
European craft and SME employers' organisation, and its members.

All economic indicators declined further in the second
half of 2012, with the recession striking SMEs even beyond their already
negative expectations.Smaller enterprises in the sectors most reliant on
internal demand, such as services and construction, were the hardest hit.
European SMEs predict a stable negative situation also for the first half of
2013.

Confirming a long-standing trend in the survey,
medium-sized enterprises' performance was superior, although still negative at
-4.7. These data show that the current recession is caused by internal demand
problems, which struck smaller SMEs in the services and construction sectors
harder than medium-sized SMEs more active in manufacturing and more exposed to
external shocks.

With no expectations of a real recovery, the outlook
is very gloomy", said Gerhard Huemer, Director of the UEAPME Study Unit, which
issues the "Craft and SME Barometer" prior to the EU summits in spring and
autumn.

Prices also reached their lowest level since 2009, a
clear sign of the downward pressure applied by the crisis.

For the first half of 2013, SMEs anticipate a stabilised
negative situation. For the second half, expectations are subdued, particularly
on turnover and on investments.

Against this background, UEAPME called on policymakers
to stabilise financial markets, implement structural reforms and support
growth. Finally, on the ongoing fiscal consolidation, UEAPME recommended
allowing "automatic stabilisers" to come into play in the short run to avoid a
further economic contraction and more negative effects on consumption.

GRTU
Executive Council has yesterday held a very successful meeting with the new
Minister for the Economy, Investment and Small Business, Dr Chris Cardona, and
Parliamentary Secretary for Competitiveness and Economic Growth, Dr Edward
Zammit Lewis at the GRTU office, where GRTU presented a Dossier.

GRTU
President Paul Abela welcomed the Minister and Parliamentary Secretary saying
GRTU was pleased of their nomination and of having given us an early
opportunity to meet the Executive Council. He explained that GRTU has undergone
a drastic change since Malta joined the EU and has now become very active and
very supportive to its members in this way. We have become pro active and
constantly reacting, presenting proposals and making opinions. GRTU is today
represented strongly at EU level.                                                                   

Hon
Minister Cardona expressed his pleasure at meeting GRTU officials formally for
the first time. This he said however was not the first time we met and the
Government wants to keep close contact. Government targets to start
implementing the electoral manifest in the shortest time possible. The Minister
said that the sectors represented by GRTU are priorities for Government and we
appreciate the importance the of the sector also for job creation. Dr Cardona
emphasised again that not only will regular contact with stakeholders be held
but they will go to stakeholders and not make them come to them. They will keep
this commitment with GRTU apart from the regular meetings that will be required
during this legislation. Parliamentary Secretary Zammit Lewis continued on the
Minister's remarks and reemphasised that support for small businesses will be a
priority for the Ministry as the creation of employment opportunities is the
main priority.

GRTU's
Director General Vincent Farrugia stated that we have vast experience and GRTU
can be of service to this Government to report what was working and what was
not working. He reminded the Hon guests that employment is highest amongst
small and micro enterprises. A main problem that exists in the better
functioning of the labour market is that adequate matchmaking of skill needs.

The
first issue discussed was the rent reform, which has been almost 5 years at the
top of the agenda for GRTU. GRTU once again emphasised what an unjust situation
this has created. To start solving the situation Government has to issue the
property market value index. Protection for enterprise must come first and
foremost. It is unacceptable that after such long years of building a name for
themselves they are just thrown out. 

GRTU
also stated that while welcoming the 45 year lease extended to commercial rents
in Valletta it was however very negative that Government left out those areas
where it felt it could get a better deal. If Government knew there stood a
chance that the situation for certain business would be compromised because of
their location it is even more important that they are given rights to be
safeguarded. Similar is the unjust situation with the City Gate shops where
only one was granted a long lease, the others were left with a 6 month renewal.
GRTU called on the embellishment of city gate which would not cost millions but
would at least get it out of the sorry state it is in as there is such room for
improvement.

When
it came to schemes GRTU stated also that the Micro Guarantee has not started to
work yet due to bureaucracy and business first should be better able to guide
businesses and make more effort to ensure businesses are helped and follow up
is made after the service. The Business First Council, set up to analyse
progress and tackle problems only met once after the opening of Business First
and no communication after that was ever made. Also GRTU members were eager to
see the Employment Aid Programme and the Training Aid Framework reinstated and
called for the e-commerce scheme to also be reopen.

An
important point mentioned was the potential for internationalisation as the
Maltese market is very limited. GRTU emphasised that we need a new strategy for
Libya and Government needs to start believing in business in Libya and urge
banks to help Maltese businesses in Libya. China was also an important market
as they are very keen on anything to do with the Mediterranean. More support
should be given by Government in this regard. The Minister stated that
improvements could be done in both our internationalisation efforts and the
branding system. Whereas before branding was fragmented by the different Authorities
the Government will attempt to make branding more value for money by combining
more areas of interest.

The
unfair competition created by goods coming through the catamaran which evaded
VAT and Eco Tax is something which needs to be tackled with immediate affect.
We want strong enforcement officers to tackle this unfair situation. Likewise
the Eco Tax system should be revised as this is also grossly unfair. There are
many other products that could be included in the Eco Tax system to better
spread the burden on all products and alleviate the burden on some products
that carried a very high Eco Tax, an Eco Tax much larger than that in the rest
of the EU.

GRTU
also argued that it is very difficult for farmers and fishermen to have
sufficient income to sustain themselves all year round. It is therefore
acceptable for them to have some type of other income to sustain themselves.
Today however a farmer and fisherman who has another economic activity looses
the opportunity of having a low income tax rate on the income related to
agricultures because he looses the status of full time farmer. This system is
unfair and a farmer or fisherman who's main income is derived from his vocation
as farmer and fisherman should not loose the fiscal advantage. GRTU also argued
that farmers and fisherman should be regarded like other self-employed and
enterprises when it comes to Malta Enterprise schemes as far as they do not
benefit from the same incentive from somewhere else.

The
situation of Ta` Qali was also mention, a situation that persists after 25
years. The current state is that some operators have signed while some have not
because of many reasons but it seems there are still more problems.

GRTU
also mentioned the unfair competition coming from free riders that compete with
established businesses that without any license fill a van with goods according
to the occasion, such as selling flowers on valentines day and mothers day, and
go around all of Malta and sell these goods at the detriment of establishments
that pay licences, permits and undergo regular checks to ensure
standardisation.

Here is the new 5 euro, in
circulation as of May. Retailers having cash authentication machines should
start to prepare and upgrade their machines to be able to accept the new
banknotes. The European currency is renewed. As of next May 1st
the new € 5 euro will enter into circulation.

There are many innovations introduced with this new
banknote: 

New graphics – First of all, the new 5 euro is the first of the
"Europa series". It shows the hologram and watermark portrait of
Europe, a figure of Greek mythology.

Europa was the Phoenician king's daughter. She was
seduced by Zeus in the guise of a bull, who is said to have carried her off
bringing her in Crete.

Ancient Greeks use "Europe" as a
geographical term, from which our continent takes its name. On the back of the
new banknote, there is a map of Europe, which incorporates now also Malta and
Cyprus, amongst the new Member States that have joined in the EU.

The new Europa series banknotes will feature the
architectural styles throughout Europe's history, leaving out monuments or
bridges that used to be featured in the first series. The styles are:

€5: Classical

€10: Romanesque

€20: Gothic

€50: Renaissance

€100: Baroque and rococo

€200: Iron and glass architecture of 19th century

€500: Architecture of 20th century

An independent designer based in Berlin, Reinhold
Gerstetter, was selected to refresh the design of the euro banknotes.

Why new banknotes? – The new banknotes are innovative
in terms of technology, one can spot new features which provide higher
security.

The amount of research carried out and eventual
development of the Eurosystem aims to make the euro banknotes so safe that they
actually constitute a deterrent to counterfeiters.

Credit institutions, professional cash handlers and
citizens should be better able to recognize counterfeits with the new tools
that have been introduced in order to improve the security of banknotes in the
Eurosystem.

It will be easy to use the simple "FEEL, LOOK,
MOVE", without special training.

The banknote, in fact, has got some particular
characteristics related to sound and texture. The novelty is that one can
perceive a series of dashes  to the left
and right margins .

Looking at the banknote one can also see a neat
picture which is a reference to the value of the banknote.

Another novelty is the ‘€' symbol that appears in the
security thread where the silver strip on the right of the banknote shows both
the amount of the value and the € symbol.

Gradual introduction – The new series will be introduced gradually over
several years, starting from the € 5 banknote in May 2013, followed by the € 10
banknote a year later.

Each country has its own "cash cycle" and
the rate of substitution of coins will not be homogeneous across the euro area.
The first series of €5 bank notes will still be in circulation and gradually
faced out.

As of 1st May 2013 therefore both series will be legal
tender and will circulate in parallel. This means that they should be treated
and accepted as equals.

Curiosity about € 5 – The €5 banknote was very commonly used last year
(2012) and the amount of €5 banknotes produced is equivalent to the distance
between the Earth and the Moon.

"The euro-notes are a great success", said Mario
Draghi, President of the European Central Bank. "They represent the unity
and diversity of our continent. They are the most visible symbol of European
integration".

The EESC Plenary on 21st March 2013 approved an Opinion
on the ‘Abuse of the status of self-employed'. Vince Farrugia as Malta
Employer's representative made a long list of amendments ensuring that the
Opinion reflects the objection of genuine self-employed against the abuse of
their status by two different groups:

1. The employers who continue to recruit workers
in precarious conditions to offer cut-price services against competitors who
abide by labour laws and respect the ILO resolution of the 15th June 2006 which
advises Governments to take action to suppress this abuse of the status of
self-employment.

2. Free riders who under the guise of
self-employed act in direct competition with genuine self-employed without
abiding to tax, standards and other licensing and wages regulations. These free
riders succeeding in eating away substantial ratio of markets at the expense of
the genuine self-employed who abide by all applicable laws.

Among the proposals adopted by the EESC in its important
Opinion is the amendment of Vincent Farrugia that states that when considering
the employment status of a person who is nominally self-employed and is prima
facie not considered as an employee, it can be presumed that there is an
employment relationship and that the person for whom the service is provided is
the employer if at least five of the following criteria are satisfied in
relation to the person performing the work:

(a) s/he depends on one single person for whom the
service is provided for at least 75% of his income over a period of one year;

s/he depends on
the person for whom the service is provided to determine what work is to be
done and where and how the assigned work is to be carried out;

(c) s/he performs the work using equipment, tools or
materials provided by the person for whom the service is provided;

(d) s/he is subject to a working time schedule or minimum
work periods established   by the person
for whom the service is provided;

(e)  s/he cannot sub-contract his work to other
individuals to substitute himself when carrying out work;

(f)  s/he is integrated in the structure of the
production process, the work organisation or the company's or other
organization's hierarchy;

(g) the person's activity is a core element in the
organization and pursuit of the objectives of the person for whom the service
is provided, and

(h)     s/he carries
out similar tasks to existing employees, or, in the case when work is
outsourced, he performs tasks similar to those formerly undertaken by
employees.

Experts of renowned organisations have joined forces
last August to address food safety challenges through the global integration of
food safety research, training and policies. 
The initiative, called Collab4Safety (www.collab4safety.eu), received
funding by the Seventh Framework Programme of the European Union.

As part of this work, a searchable database of food
safety actors working world wide was created. This platform aims to build a
community that can contribute to more sustainable international food safety
cooperation at a long term.

This database had over 200 registries from more than
60 countries in just a couple of weeks. The registration is free. In order to
search in the database, register: http://web.spi.pt/collab4safety/user/register

 The Institute of
Financial Services – Malta (ifs Malta) and Creditinfo are jointly offering a
course on how to develop and improve credit policy. Entitled "Developing an Effective Credit Control Unit"
(whilst avoiding a trip to the Coronary Care Unit), the course is aimed
at professionals and has been specifically designed to encapsulate the levels
of risk involved in providing credit and to establish a better understanding of
how this can be mitigated.

The objective of the
course is to enable participants to understand the risks involved in extending
credit terms, develop a strategy to mitigate credit risks, apply an assessment
on financial statements to assess credit worthiness, understand the risks
involved in international trade transactions and the role banks play and gain insight
on personal skills used for collections.

This training
programme is not only beneficial to the financial services sector but also to
key personnel within businesses who are involved in negotiating credit terms,
collection of debts, and risk assessment / credit scoring.

ifs members registered for the
CPD  may claim learning credits (Category
5) for attending this course. Members of the Malta Institute of Accountants
attending all sessions will be accredited with 12 hours of structured CPE
(incl. 9 hours and 3 hours for the attainment of Professional Development and
Core Competencies respectively).

For further details
and registration kindly contact CreditInfo Malta on telephone 21312344 or
email: .

The latest available Europe-wide testing programme of
pesticides in food has found that over 97% of samples contained residue levels
that fall within permissible limits, said the European Food Safety Authority
(EFSA). The EU Report on Pesticide Residues in Foods also assessed dietary
exposure and concluded the chemical residues on the foods analysed did not pose
a long-term risk to consumer health. The evaluation of short-term dietary
exposure excluded a risk to consumers from 99.6% of food samples. The full
report can be found: www.efsa.europa.eu/en/efsajournal/pub/1646.htm