Category: Archive – 2015

This year’s World Tourism Day Theme is “One Billion Tourists, One Billion Opportunities”. GRTU is a great believer that tourism creates opportunities not just for the traditional tourism dependent sectors but for businesses in general. This has never been more pronounced than in the last years.

Today’s typical tourist no longer resides in a hotel and goes out only on excursions or to eat at a restaurant. Many tourists today stay in alternative types of accommodation, rent cars to go around the island and make their own visiting plans at their own pace. They buy food and nibbles from grocers and supermarkets to eat on the way to their destination and enjoy that odd relaxing eat in after a day of running around.

Today’s tourists seek the road less travelled and to spend time in our quiet villages and chat and eat with the locals. They look for the authentic Maltese experience.

In its 2016 Budget proposals GRTU is calling for the generation of increased economic activity in our localities. With our country’s small size it makes all the more sense to maximise our space potential and build on the concept of community tourism. Alternative forms of accommodation should be encouraged and incentivised. The popularity of staying in boutique hotels, small guest houses, hostels and even host families has soared drastically in recent years and Malta should be able to cater for such a demand. It is still tourism of high quality and value added but whose priority is the authenticity of the experience.

The value added in the utilization of available resources that could easily materialise with the right incentives. The ripple effect this would have on our economy as a whole could be remarkable. Cafés, Restaurants and retailers will benefit if tourists accommodation spreads from the traditional tourists areas to the localities. The package of incentives should focus on facilitating access to finance, which includes grants, tax credits and advantageous loans. Licensing and standards should also reflect this shift.

World Tourism Day is celebrated every year on the 27 of September. It is a global celebration that highlights tourism’s social, cultural, political and economic value.

#1billiontourists#WTD2015

 

GRTU President Paul Abela has called on the Minister for Finance to reduce electricity prices for SMEs by 30% in the next Budget. Mr Abela made his request directly to the Minister during a business breakfast held earlier this week.

Mr Abela started off by replying to the Minister’s comments during a Budget related public event where it was reported by the media that the Minister 

expressed his amazement that the GRTU had not made such representations when the PN was in Government and the prices of electricity were high. The GRTU President assured the Minister that GRTU is not politically affiliated and said that the papers he was waving in his hand were two press releases issued by the GRTU where it had heavily complained with the Government, at the time a nationalist Government, about the high utility prices.

‘This year GRTU’s proposals are targeted at increasing the competitiveness of our enterprises and in this respect the price of electricity is key. Through workings GRTU has carried out it transpires that the international oil prices have on average halved and the price at which Malta is buying electricity through the interconnector is mostly between 4c and 6c. In addition millions were being saved through the efficient operation of the BWSC. With all of these factors combined GRTU estimated that electricity prices need to be reduced by another 30% and in saying this we are being conservative.’ Mr Abela invited the Minister to engage independent auditors to assess how far the prices of electricity could be reduced. He also said that the supplier of electricity is a dominant player and therefore could not choose not to pass savings to its clients. Mr Abela said that the MCCAA should investigate the price mechanism on the basis of competition rules.

In reply the Minister assured GRTU that he had not made such comments about the GRTU and his criticism was targeted at the opposition. He also said that Enemalta was badly in debt and these had to be paid for.

Following the Minister’s reply two other interventions were made from the floor that supported GRTU’s energy claim. One of the interventions was by the Chamber of Commerce, Enterprise and Industry.

 

 

GRTU President Paul Abela and Council Member Karmenu Vella have this week met with Maltese MEP, Roberta Metsola. During the meeting, GRTU and Dr Metsola discussed various concerns that are currently affecting local business and SMEs. These issues included matters of unequal terms that SMEs face due to unfair competition. 

Paul Abela highlighted the importance of thinking small first and how policy-

making needs to be implemented with the smallest businesses and self-employed in mind. Dr Metsola acknowledged the role that SMEs and micro-businesses play in the EU economy but also in Malta. Dr Metsola expressed the importance for policy-making to maintain closer cooperation and dialogue with businesses. She outlined that Malta’s businesses have a lot to contribute. The right balance between safeguarding consumers’ rights and not increasing unnecessary bureaucracy or unfair burdens on small businesses needs to be found.

 

The GRTU has in recent weeks held a number of fruitful sessions attended by operators in the Passenger Transport Industry, consisting of (i) Providers of Chauffeur Driven Cars, (ii) Minibus Operators as well as (iii) Operators of Private Coaches.

The Passenger Transport Industry suffers huge drawbacks and inefficiencies 

due to several failures related to logistical ineptitude, road works, road closures, major arterial projects and conflicting permits granted to different entities to close public roads arbitrarily and most often without prior notice or visible signage as to what the alternative route for drivers is.

Moreover the Passenger Transport Industry also suffers considerable losses not only due to the aforesaid difficulties, but also due to changes in legislation that increase bureaucracy and reduce their efficiency; changes in policy affecting fiscal benefits that are lost or removed without prior notice resulting in less competitive rates for passengers; inexplicable decisions taken by the competent authorities concerning public roads, such as those taken in relation to Bus Lanes, which collectively result in astronomical levels of tension and frustration to passengers, drivers and operators alike.

Consequently the Independent Providers of Passenger Transport (IPPT) Section of the GRTU will be holding a number of further sessions for all chauffeur driven car operators, mini-bus operators as well as operators of private coaches in order to find solutions, draft proposals and meet the competent authorities particularly those having the ability to close public roads. Naturally these sessions are open to GRTU members as well as other independent providers of Passenger Transport that have their industry at heart as well as the vision of improving the logistics of our road infrastructure to the benefit of the whole country. Matters related to traffic and logistics are evidently effecting businesses, within or without this sector alike, and the general public directly. Through the support of operators with on-the ground expertise in the sector, GRTU is seeking to develop concrete solutions to address this matter of national concern. 

During the forthcoming sessions two main items will be discussed namely (i) the Kappara Roundabout Junction Project and (ii) the overhaul of the current BUS LANE policy.

The setting up of the IPPT Section complements GRTU’s representation within the transport sector such as cargo hauliers and gas distributors amongst many others. Acknowledging that transportation and traffic management have become core issues for the private sector and the general public alike, GRTU is placing transport as one of its major themes to be addressed in the upcoming Budget. The IPPT Section adds value and strength to GRTU’s efforts in serving as an effective transport lobby to put forward concrete proposals to address and improve the situation. 

For further details concerning the forthcoming sessions as well as membership information you are kindly requested to contact Mrs. Elizabeth Curmi Said on  or visit our offices at GRTU, Exchange Buildings, Republic Street, Valletta T: 21232881M: 79049409

 

 

GRTU representative Elaine Zammit has this week attended an information session focusing on the Interreg MED funding programme 2014-2020.

The Interreg MED funding programme is aimed to:

• support the sharing of experiences, knowledge and improvement of public policies between national, regional and local authorities and other territorial actors of the MED area eligible regions.

• Contribute to the long-term development of the Mediterranean area.
• Strengthen transnational cooperation between regions and participating countries.

It will also focus on 4 priority axis of which 3 can be accessed by private entities and SMEs. The priorities axis are as followed:

Priority Axis 1: Promoting Mediterranean innovation capacities to develop smart and sustainable growth

This priority axis targets projects based on blue growth, green growth, creative and cultural industries and social innovation. Projects under this category will increase transnational activity of innovative clusters and network of key sectors of the MED area.

 

Priority Axis 2: Fostering low-carbon strategies and energy efficiency in specific MED territories: cities, islands and rural areas

This priority axis will focus on projects targeting energy efficiency in public buildings to raise capacity for better management of energy in public buildings at transnational level, renewable local energy sources to increase the share of renewable local energy sources in energy mix strategies and plans in specific MED territories and sustainable urban transport to increase capacity to use existing low carbon transport systems and multimodal connections among them.

 

Priority Axis 3: Protecting and promoting Mediterranean natural and cultural resources

This priority axis centres projects that target coastal and maritime sustainable tourism to enhance the development of a sustainable and responsible coastal and maritime tourism in the MED area and projects that focus on the management and networking of protected areas to maintain biodiversity and natural ecosystems through strengthening the management and networking of protected areas.

 

Priority Axis 4: Enhancing Mediterranean Governance

Projects under this category can only be submitted by the Government to support the process of strengthening and developing multilateral coordination frameworks in the Mediterranean for joint responses to common challenges.

Before an entity can consider applying for this programme, it is essential that certain minimum requirement are met. Such as the size of the partnership— at least 4 financing partner from 4 different countries must be included in the project. Additionally 3 of these partners must be located in the union part of the Interreg MED Programme area.

 

Project Budget — the budget must be structured according to the following budget lines:

• Staff costs (max. 40% of project total eligible budget)
• Office and administrative expenditure (15% of eligible staff costs)
• Travel and accommodation costs
• External expertise and services costs
• Equipment expenditure

 

The deadline for this application is on 2nd November 2015 at noon.

For further information and steps on how to apply, kindly visit: http://interreg-med.eu

 

 

 

 

 

 

 

 

 

 

The GRTU Executive Council met today to agree on its flagship proposals for Budget 2016.

GRTU believes that this year’s Budget should give utmost priority to the issue of enterprise competitiveness and GRTU believes that the cost of electricity impinges heavily on our enterprises’ competitiveness.

For a long number of years Maltese businesses not only suffered high electricity prices because of the international price of oil but also because they were asked to repeatedly sustain inefficiencies of the electricity supplier.

Now that the international price of oil has drastically gone down, there are substantial savings from the efficient BWSC operation and energy is available at significantly cheaper rates through the interconnector, we expect a significant reduction in the price our SMEs pay for electricity.

As such GRTU expects that as part of Budget 2016 the Government should reduce electricity prices for SMEs by 30%.

 

Retail sector employees attend cash handling training activities

On 7 July 2015 a ‘National Educational Programme for the Retail Sector’ was officially launched through a press conference addressed by the Governor of the Central Bank of Malta, Professor Josef Bonnici and the GRTU President, Mr Paul Abela.

The Programme entails detailed training meant to enable cash handlers in the retail sector interpret the various security banknote features at a glance.

Widespread training has already taken place in several retail outlets in both Malta and Gozo with over 100 training sessions provided by staff from the Central Bank of Malta’s Currency Operations Unit.

More than 800 employees, who handle cash as part of their daily duties, have attended these training sessions.

On 11 September 2015 employees from the various retail sector companies were presented with the Certificates of Attendance by Mr Alexander Demarco, Deputy Governor of the Central Bank of Malta and Mr Paul Abela, President of the GRTU. Certificates were also presented to the companies who have joined this educational programme.

The Central Bank of Malta and the GRTU endeavour to enhance and sustain their cash and other payment instruments’ related training and educational programmes, to ensure a wider reach with respect to employees in the retail sector.

 

Over the past eighteen months, GRTU – Malta Chamber for SMEs, has been actively involved in an initiative to give a national platform to bring forward Corporate Social Responsibility (CSR). This initiative has been formed jointly with all other major employers’ representatives in a bid to bring together all forms of businesses, small and large, in promoting CSR as a core concept for businesses. It is aimed at promoting initiatives and to serve as a network for cooperation in CSR.

CORE – Corporate Citizenship for Responsible Enterprises has been launched this week under the auspices of the Office of the President of Malta Her Excellency Marie Louise Coleiro Preca. Her Excellency highlighted how corporate social responsibility has been implemented by Maltese companies over the years but it was high time to promote it on the national agenda and to offer the space to bring all actors together. Companies realised that the implementation of a business that was responsible towards society was a crucial ingredient for sustainable development. Its founding President shall be Helga Ellul whilst GRTU nominee Carmen Borg shall serve as Secretary.

GRTU CEO Abigail Psaila Mamo expressed the importance of identifying what is already being done in practice. She outlined that at least 94% of business in Malta are micro-enterprises and therefore one cannot expect that the attitude towards promoting CSR with the largest of companies, can be transposed onto small businesses. Firstly one needs to acknowledge what is being done by understanding how each business is contributing responsibly towards society through the processes it has already in place. This has to be then be amplified by facilitating cooperation with each other in specific initiatives or through ameliorating business processes to achieve better results. Each business can be contributing to CSR but if the concept remains intangible and unreachable it cannot reach out to smaller businesses, which are in fact the absolute majority of businesses in our economy. A bottom-up approach has to be adopted in promoting what each businesses can be doing better to be more efficient and give something back to society, rather than having this the other way round.

Daniel Calleja-Crespo, European Commission General Director of Environment, expressed the EU’s support to such a positive initiative and outlined how CSR is being put at the forefront on the EU agenda. It is important to understand that the linear model of production has to shift towards the circular economy where businesses attempt to maximise the use of resources through re-using and recycling the supply chain eradicating all forms of possible wastage.

The launch brought together the various stakeholders in the chain of CSR. Various NGOs and businesses were present, with a number of GRTU members participating in the panels and activities during the launch – exposing their work in terms of CSR. During the panel discussions it was outlined that CSR should not be seen as a peripheral activity such as a financial contribution at the end of the year, but it should constitute a core principal within the processes of a businesses.

It is about management practices and employee engagement. It is futile for a business to simply give a monetary contribution to a charity if it is not respecting the environment in its production or respecting health and safety at the place of work for instance. Businesses also stand to gain from engaging in CSR. Businesses are expected to become more efficient and their customers hold them in higher esteem if CSR principles are implemented. It is a question of human resource management, quality and sustainability.

Sustainable Development Minister Leo Brincat, Social Solidarity Minister Michael Farrugia as well as Shadow Minister Marthese Portelli participated in the afternoon panel of the launch. They jointly expressed the Government’s and Opposition’s commitment towards supporting CSR as an essential facet of any business model. The launch was also attended by GRACE, the Portuguese CSR Network, which signed a cooperation agreement with CORE Malta at the end of the event. CSR Europe, which is the network for CSR organisation across the EU was also present. CSR Europe committed that it would re-open its membership in order to allow CORE Malta to be part of it as a full member.

It shall therefore be the mission of CORE Malta to network the already existing CSR initiatives to find possible scopes for cooperation to reach goals which otherwise cannot be achieved. It is also important to reach out to small and micro businesses to support them in adapting their practices as well. Micro businesses would not have the resources and time to set up CSR departments or foundations as their larger counterparts would – but they are the backbone of Malta’s economy and contribute greatly to society already. It is because GRTU endorses the idea of businesses being about positive change in society that it is four-square behind the CORE initiative. GRTU is committed to participate actively in CORE whilst promoting CSR across the board.

 

During a high level meeting with Commissioner Karmenu Vella and the European Commissioner Vice-President responsible for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen, GRTU President Paul Abela called on the Commission to go beyond measures and assess what is really happening on the ground and how effective the measures really are.

During the event that focused on The Investment Plan for Europe, Mr Abela stated that policies are still not sufficiently targeting SMEs and that the think small first principle is still more a paper than a practical measure.

Mr Abela said that access to finance is still a problem for small businesses most especially. To encourage access to finance the European Commission should not stop at issuing the opportunity but should strive to make it as accessible as possible by providing it through a number of banks and adapt the requirements and terms and conditions for small companies. The event was held as part of the roadshow to promote the Investment Plan for Europe. Vice-President Katainen said: “As the Autumn approaches, we are starting to see the Investment Plan coming to life.

Already a number of large infrastructure projects across the EU have received the green light for financial backing and can start construction. And the European Investment Fund has signed more than a dozen agreements with intermediary banks which have the support of the EU guarantee meaning small businesses and start-ups can start to benefit from this extra line of finance.” Commissioner Vella said:”There are 29,000 SMEs in Malta. What they need to be successful is good access to financing and good infrastructure to deliver. The Investment Plan, as shown with the SME initiative agreed with the Maltese government in July, is designed to help achieve this.”