Category: Archive – 2008

GRTU earlier this week wrote to the licensing authority with regards to two issues that have been intermittently cropping up during the last years and have not been tackled successfully.

The first issue being that of Saturday afternoon opening of pharmacies. There are pharmacies that see no business during Saturday afternoon, especially in summer, due to large population shifts towards summer residence areas in Malta. This is further being compounded by the fact that we are having difficulty in finding locum pharmacists to fill in the gaps on Saturday afternoon, especially in summer.

Discussions have taken place in the past on this issue without any agreement, it seems however that the Medicines Authority (MA) is corresponding with a number of pharmacy owners on this issue. GRTU had proposed that on Saturday afternoon, pharmacies should be free to open according to the Sunday’s roster, without restricting who wants to open. This will ensure a minimum service during Saturday afternoons, a fair solution. 

The second issue being that pharmacy owners who inform the MA that they will be closed during a certain period are being refused permission, this even though writing well in advance.

GRTU does not agree that all pharmacies in a locality must ensure all times coverage, there are enough pharmacies to ensure that whilst one is closed others are still serving the locality, with the notable exceptions of localities where there is only one pharmacy. Thus we do not find it acceptable that the MA is blankly refusing all permissions for pharmacies to close even for a short period of time.

Although the Licensing Authority is there to regulate, we are of the strong opinion that it should do so with full involvement of the social partners and their representatives. As such, GRTU has asked to meet urgently to discuss these issues and resolve them to the satisfaction of all concerned.

GRTU is also mindful of the needs of its members to enjoy their annual holidays with their families. Our pharmacies are giving a sterling service to the community, especially in the POYC areas. It is not right to deny them their means of rest.

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“We must keep the dialogue going and when agreement is reached all parties commit themselves to implement diligently and ensure that each side holds to what it promises. Unfortunately this did not happen with the CVA and that is why many people still feel so sore about CVA.”

“This time round it’s best everyone is clear on what is being proposed and that Government does not simply feel smarter and rather than create a new faze of enthusiasm for investment in the City it creates only additional costs to entrepreneurs who are already under tremendous cost burdens to manage profitably their Valletta enterprises”. Concludes Vince Farrugia.

GRTU’s Executive Council is being convened for next Wednesday 16th July and the most important item on the agenda is Government’s Commercial Property Rent Reform Proposal (CPRRP) . GRTU Council Members and Section leaders will be discussing a Motion addressing this issue.

A GRTU survey among members, from various localities and sectors of business including commercial, trading and craft enterprises, shows clearly that the Reforms being proposed by Government will affect negatively an extremely large number of businesses. It proves that Government’s strategy to rush through with the Commercial Property Reform’s piggy-back on the Reforms of residential properties is ill thought and poorly supported by facts and statistics.

The Motion presented to the GRTU Executive Council requests the Prime Minister to advice the Cabinet of Ministers to withdraw the CPRRP as presently constructed. The Motion states that the Proposals being rushed through by Government, even though still a White Paper proposals is already having a negative impact on many businesses. These are the businesses who over the years have paid rents which though today appear small, originally had their rents based on rates of return that equated very favorably with the cost of construction or purchase of the same properties.

Over the years many of these tenants paid hefty sums of money, most times as large or larger than the value of the property to obtain particular rights and ensure continuity or succession of their business.

The GRTU survey shows that many business owners occupying premises that fall within the reach of the proposed Reforms feel that who ever drafted the proposals had no knowledge what so ever of what really goes on in the commercial property market. It is indeed a market in which today the State is proposing to interfere in a way that the Motion presented considers to be grossly unfair.

The Motion suggests that the proposed Reforms are withdrawn and the current debate and consultations concentrates only on residential properties. This is already a big enough argument and Government is being advised not to distort the whole debate by continuing to insist on the reform of rent laws related to commercial properties. This since Government does not appear to be well informed of the facts and the potential negative impact of what is being proposed on enterprise employment and other third party interest which livelihood depends on the proper functioning of the private small entrepreneur.

The Motion in front of GRTU’s Executive Council describes the proposals as presented in the White Paper as being short sighted, badly constructed and based on no valid statistical and factual information that justifies the urgency for the recommended reform.

The Motion defines the reform as proposed in the White Paper as grossly unjust as they benefit the few and castigate many. GRTU in the past had instigated rules that protected small enterprise owners and their families who’s livelihood depended on business licenses in the same way that trade unions defended the security of tenure of workers. Government cannot now attempt to change the rules overnight and allow such a big issue that effects so many thousands of businesses to be camouflaged under the bigger issue of residential properties rent reform.

The proposed Motion states that Government’s reform proposals castigate the many honest business owners that have over the years toiled and invested to transform the Maltese economy to a level which today compares very favourably with that existing in many other European Member States. The few are being rewarded the expense of the many.

The GRTU motion requests the Prime Minister to withdraw these proposals and present them again at a later stage after a thorough study of the whole commercial property market and the rights of operating enterprises is carried out by an Independent Commission that is technically capable and specifically detailed to study the matter in depth. The GRTU motion insists that GRTU as the representatives of the largest organised group of SMEs is allowed to nominate its technical representation on this Commission.

The general feeling at GRTU is strongly against Government’s White Paper.

 

Paying particular attention to the needs of SMEs, the CIP, which covers the period 2007 – 2013, aims to contribute to the competitiveness and innovative capacity of the Community as an advanced knowledge society, with sustainable development based on robust economic growth and a highly competitive social market.

Its overarching objectives are: fostering the competitiveness of enterprises, in particular, that of SMEs; promoting all forms of innovation including eco-innovation; accelerating the development of a sustainable, competitive, innovative and inclusive information society; and promoting energy efficiency and new and renewable energy sources in all sectors, including transport.

The CIP is composed of three specific pillars, each having their own specific objectives: the Entrepreneurship and Innovation Programme (EIP), the Information Communication Technologies Policy Support Programme (ICT-PSP) and the Intelligent Energy Europe Programme (IEE).

 

The Intelligent Energy Programme, which forms part of the CIP, encourages the wider uptake of new and renewable energies, improves energy efficiency and fosters compliance with the EU energy regulatory framework. It aims at accelerating action in relation to the agreed EU strategy and targets in the field of sustainable energy, increasing the share of renewable energy and further reducing our final energy consumption. It includes actions to:

(i) increase the uptake and demand for energy efficiency;

(ii) promote renewable energy sources and energy diversification, and

(iii) stimulate the diversification of fuels and energy efficiency in transport.

The 2008 call for proposals is the next opportunity to apply for Intelligent Energy proposals. Approximately €45 million are available, supporting up to 75% of eligible project costs. The main purpose of the IEE is to support non-technological actions aimed at reaching the EU’s sustainable energy goals in society and market barriers. IEE also aims to tackle market barriers and raise awareness of European energy policy and legislation among energy providers, promoters, advisors, trainees, agencies, policy makers and users. The benefit of IEE is to recognize the information that is available, but which is not being implemented because of the financial risk, planning and problems with reaching across the EU.

The IEE programme does not fund technical Research and Technological Development. It acts rather as a catalyst for socio-economic, market, regulatory, policy and institutional changes (e.g., international transfer of experience, promotion of best practices, education and training, institutional capacity building, information dissemination, creation of new standards and norms etc.). Each project requires a different set of partners with specific knowledge, capacities, roles and geographical location in order to be able to deliver its objectives. In most cases, successful proposals involve more than the required minimum number of 3 partners. Further information regarding successful projects can be obtained from http://ec.europa.eu/energy/intelligent/library/videos_en.htm.

The Eco-Innovation programme seeks to enhance the competitiveness of the industries while promoting eco-innovative market oriented activities. The Eco-innovation programme supports the first application and further market uptake of some of the best eco-innovative products and services in Europe, and helps to overcome those critical barriers that still hamper their commercial success. Eco-innovation is a relatively new business and technology area which may be described as the production, assimilation or exploitation of a novelty in products, production processes, services or in management and business methods, which aims, throughout its life cycle, to prevent or substantially reduce environmental risk, pollution and other negative impacts of resources use (including energy use).

This call is currently open and about €28 million are available for funding, covering up to 60% of the total eligible costs. The Call is open to all legal persons that are based in eligible countries but the priority will be given to SMEs. Clusters of applicants and projects which demonstrate a European added value and have a high potential for market replication are strongly encouraged.

There is a clear distinction of what can be funded under FP7 and what can be funded under CIP. The eligible costs that can be claimed via FP7 focus on research, development and demonstration, whilst in the case of CIP the eligible costs focus on the techniques, products or practices whose technical performances and economic feasibility have already been validated, but which have not yet been commercialized largely because of remaining risks or the need to adopt these technology. Call for proposals under the Intelligent Energy Europe (IEE) 2008 is now open. Further information can be obtained from MIMCOL on telephone 21497970 or email

Source: Funding 4 You—Forum  Malta Fl-Ewropa

 

GRTU published this week its comments on a proposal made by the European Commission for a regulation on cosmetic products. According to GRTU experts, the EC’s choice to move from the existing directive to a new regulation will be of great help in creating a level playing field and avoiding differences in national implementation.

A single, clear and coherent text will also contribute to reducing administrative costs for SMEs. However, GRTU sought clarifications on a number of points, for instance on the definition of “producer” used by the EC, which differs slightly from the terminology used by the profession.

Moreover, the Regulation mainly deals with “consumers” and mentions the professional use of cosmetics only in connection with the restrictions defined in annexes, while GRTU would prefer the term “users” in order to take into account the use of cosmetic products by professionals.

 

The Small Business Act (SBA) as has been proposed by the European Commission is a further step in the right direction. Europe needs the best possible framework conditions for small and medium sized enterprises (SMEs). But to get these conditions it is high time that words are matched by action.

Eight years have passed since the Heads of States and Government of the European Union declared that the EU should become a world class environment for SMEs. The truth is that today progress is still very modest, as the Commission itself acknowledges.

Apparently it is very hard to shift a policy making machine that is biased towards large enterprises to a policy making machine that takes due account of the needs of SMEs.

 

The Commission is correct in emphasising that a thorough implementation of the SBA is of primary importance and requires the full commitment of both the Commission and the Member States. Against this background GRTU fully supports the proposed annual implementation reports by Member States and the Commission and the review of progress by Heads of States and Government at every Spring Council.

However, GRTU warns that the raft of measures that the Commission has proposed risks spreading efforts too thin. “We would be in favour of focussing on those targets that are measurable; no vague goals, but concrete actions, e.g. ensuring that SMEs are paid on time both in private and public procurement contracts”, said EuroCommerce Secretary General Xavier R. Durieu.

GRTU believes that a set of maximum 10 targets on which Member States and European Commission should report on an annual basis would work best. Emphasis should be on less burdensome regulation, more legal certainty, better access to finance, better  and simpler access to public procurement and better access to state aid, especially in fields like innovation, energy and environment.

 

Directive 89/398/EEC concerns foods intended for particular nutritional uses which owing to their special composition or manufacturing process are intended to satisfy the particular nutritional requirements of specific categories of the population.  People with coeliac disease are a specific group of the population suffering from a permanent intolerance to gluten.

The food industry has developed a range of ‘gluten-free’ products.  Because the removal of gluten from gluten-containing grains presents considerable technical difficulties and economic constraints, the manufacture of totally gluten-free food is difficult.  Consequently, many foods for this particular nutritional use on the market may contain low residual amounts of gluten. 

An increasing number of foods are described in the Community as ‘gluten-free’.  Differences between national provisions concerning the conditions for the use of such descriptions may impede the free movement of foods and may fail to ensure the same high level of protection for consumers.  For the sake of clarity and to avoid confusing consumers with different types of descriptions of products at national level, the conditions for the use of the terms related to the absence of gluten should be laid down at European level.

A revised Codex standard for foods for special dietary use for persons intolerant to gluten was adopted in [July 2008], with a view to enabling those persons to find on the market a variety of food suitable to their needs and to their level of sensitivity to gluten.  These rules should be taken appropriately into consideration for the purposes of this Regulation.

Wheat (i.e. all Tricum species,  such as durum wheat, spelt and kamut), rye and barley have been identified as grains that are scientifically reported to contain gluten.  These grains can cause adverse health effects to persons intolerant to gluten and therefore should be avoided by them.

Most but not all people with intolerance to gluten can include oats in their diet without adverse effect on health.  However, a major concern is the contamination of oats with wheat, rye or barley that can occur during grain harvesting, transport, storage and processing.  Therefore the risk of gluten contamination in oat products should be taken into consideration.

Different people with intolerance to gluten may tolerate different amounts of gluten within a restricted range.  In order to enable individuals to find on the market a variety of food appropriate for their needs and for their level of sensitivity, a choice of gluten-free products should be possible among products with different gluten content.

Foods for particular nutritional uses which have been specially formulated, processed or prepared to meet the dietary needs of people intolerant to gluten and marketed as such should be labelled as “very low gluten” or “gluten-free” in accordance with the provisions laid down in this Regulation.

Article 2(3) of Directive 89/389/EEC provides for the possibility for foods for normal consumption which are suitable for a particular nutritional use to indicate such suitability.  Therefore, it should be possible for a normal food which is suitable as part of a gluten-free diet because it does not contain gluten to bear terms indicating the absence of gluten.  A long as such a statement does not mislead the consumer by suggesting that the food possesses special characteristics when in fact all similar foods possess such characteristics.

For the full text please contact Abigail Mamo on our numbers or on . Comments should reach GRTU by the 10th of July 2008. 

GRTU leaders this morning addressed the media together with Dr Attard Montaldo, Member of the European Parliament, to add pressure on Government to take action to reduce the excise tax on diesel. He is a member of the European Parliament Committee on Industry and Energy and of the Committee of Transport and Tourism.

GRTU supports the lobbying and pressure organized by the International Roadtransport Union (IRU), to which GRTU members from the passenger coaches and trailers` sections belong, and of UEAPME (the European Association of Craft, Small and Medium Enterprises) for the reduction of excise duty on diesel or alternative measures to reduce the price of diesel.

In today’s media event Vincent Farrugia, Director General of GRTU, gave details of the discussions held with the Prime Minister last Wednesday, when GRTU’s claim was at the top of the agenda. Vince Farrugia also explained that though the Prime Minister confirmed that Government was willing to discuss GRTU’s proposals for the relief of unnecessary costs and pressure on transporters, Government was not prepared to intervene through a reduction of taxation on diesel.

 

GRTU insists that it is not true that Government is being restricted by the European Commission not to reduce the level of taxation per litre of diesel. The minimum taxation imposed by the EU is €302 per tone, while the level of taxation in Malta is €320 per tone. It is true that the minimum level of taxation should go up to €330 per tone by 2010 but the imposition of this high taxation level is being argued against by road transporters, industry and commerce at European level. Road transporters and the commercial sector through EuroCommerce, of which GRTU is also a member, are making pressure on the European Commission to retreat from the obligation it is imposing to raise the minimum level of taxation from €302 to €330 per tone.

GRTU further contends that the Government of Malta has between 2006 and 2007 increased its annual revenue from excise duties on fuel by €25m and this year government estimates to collect €90m from excise duty on fuels. This in addition to the other €80m on transport such as annual road taxes and registration taxes.

Vincent Farrugia insisted that Government is overloading the transport sector unnecessarily with taxation. Government has ample financial revenues collected from vehicle owners, according to the 2008 Financial Estimates, Government expects to receive €90m from excise duty on fuels, €30m from vehicle and driving licenses and €49m from vehicle registration tax, a total of €169m in just one year. GRTU expects Government to relieve transporters from the excessive tax burden they are carrying to mitigate for the increase in price of imported fuels, the easiest solution is for them to pass on the additional expense to commercial and industrial users and consumers in general.

“Economically, this is a very slippery road to follow”, Vince Farrugia emphasized, “Malta is already suffering from a cost-push inflation of 4.7% according to the HICP Index. GRTU believes that Government should be taking remedial action to calm the inflationary push and mitigating for the increased fuel cost to transporters is one effective action GRTU recommends Government to take”

Dr Attard Montaldo explained that he has offered to help GRTU because he, as a member of two important sub-committees of the European Parliament, is in a position to confirm that what GRTU is saying is not only correct but also just, in a European context. Malta as an island suffers greater pressure as a result of the increase in fuel prices than other larger countries. He together with the other Maltese MEPs is constantly reminding the European Union that an island economy like Malta cannot sustain the level of minimum taxation which is acceptable for other larger countries on important imported products such as fuel for transport and distribution.

Dr Attard Montaldo insisted that his presence at the GRTU conference was precisely to confirm that what GRTU is demanding on behalf of its members in Malta is also what is being discussed at European level. The crucial point is that the Governments of Member States must react positively to the transporters` demand, especially in a island economy like Malta, where the cost of fuel and transport compared to the average income is high and where transport costs highly effect the competitiveness of goods and services.

The conference was also addressed by Ms Sylvia Gauci, a Council member of GRTU and one of the two Maltese employers representative at the European Economic and Social Committee (EECS). Sylvia has just presented an own initiative paper, which will be discussed in the EESC plenary session this week precisely emphasizing the need of the European Commission to give greater importance to the problems suffered by island economies particularly due to the rising costs of fuel and energy products.

Concluding the conference, GRTU President Paul Abela, said that the GRTU approach is to raise issues that are relevant to GRTU members and to the economy in general and to convince Government to act effectively to resolve the problems. When the dialogue is correct it should lead to remedial action without the need of public protests as is occurring in other European Countries.

 

GRTU together with EuroCommerce welcomes the political agreement reached yesterday on the longstanding issues of the Working Time Directive and Temporary Agency Work Directive at the Employment and Social Affairs Council in Luxembourg. GRTU agrees with the terms of the accord, which foresees a 12-month reference period to calculate the average 48-hours week. GRTU also regards as positive the compromise on temporary agency workers, which provides a satisfactory balance between flexibility and security through equal treatment.

"Finding a political agreement on such important and sensitive issues is indeed a plus for the commerce sector", declared EuroCommerce Secretary General Xavier Durieu. "It is clear that Europe needs rules on working time which will provide legal certainty on this delicate issue. As far as the agreement on temporary agency workers is concerned, it is a welcome practical implementation of the flexicurity approach."

GRTU particularly welcomes the introduction of the possibility for member states to calculate the average weekly working time over a 12-month reference period. This solution is well adapted to the needs of the commerce sector for flexibility. The compromise was also made possible by finding an acceptable solution to the issue of the "opt-out clause", which will be maintained and regulated.

An agreement has also been found on the issue of the "qualifying period" before the agency workers can benefit from the same basic working conditions as the staff recruited directly by the company.

Both dossiers will be transmitted to the European Parliament for the second reading. "We trust that MEPs will back the compromise proposals, thereby solving these delicate matters and providing both employers and employees with a stable legal framework", said Mr. Durieux.