Category: Archive – 2008

GRTU has taken once again the initiative and sent a formal complaint to Minister Tonio Fenech and Minister John Dalli on the current unacceptable situation revolving around employment and migrants. A number of GRTU members from the construction, repairs, and especially from the waste carriers sectors depend on the employment of migrants. Employers go to Marsa early in the morning, pick up the number of migrants they need and pay the price to each individual migrant; cash plus provision of food and drink. Many a time migrants object to the standard rate and refuse to proceed with work thus causing the employer to return to Marsa to bring another batch of workers.

The present system is causing unnecessary pressure on employers as they do not have the necessary cash to pay on a daily basis for employment service which effectively avails all other legal implications, most of all, the payment of social contributions.

The current system also discriminates against Maltese workers. Maltese workers are paid on a weekly or bi-weekly basis and receive no additional subsistence while the migrant worker get subsistence, lodgings and daily food and is paid cash on a daily basis.

GRTU has therefore proposed a system that removes the ugly and unacceptable daily scenes at Marsa and elsewhere were migrants congregate to seek employment.

The system that GRTU is proposing will regularise the system based on a temporarily casual work relationships and on effectively sustaining businesses who need a regular flow of workers, though not necessarily the same individuals, to meet their obligations under contract: This will effectively remove the uncertainty there exist both fiscal and security wise, and in terms of labour laws, even though the end result is costlier to employers represented by GRTU. It will regularise the issue of social contributions paid by migrants.

GRTU has requested an urgent meeting with the above mentioned Ministers last week, this to give us an early opportunity to discuss the matter further, we are still however waiting for a reply.

 

SME Forum: Adapting to Change

Tuesday 24th June – 09:00 to 16:00 – @ Radisson SAS Baypoint Resort

 

Among subjects that will be tackled are:

1. Government approach to SME's
2. Malta Enterprise's Support to SME's
3. The Small Business Act
4. The IT opportunities for small businesses
5. Reducing the administrative burden for SME's

You can also register for one of our very interesting workshops:

1. SME Access to Finance
2. Better regulations
3. Health and Safety
4. Consumer Acquis – A fair deal for Small Businesses

Registration with Carmen Borg @ GRTU on 21232881/3 or   is required

The ten year old campaign led by EuroCommerce, the European Federation of National Organisations representing traders, wholesalers, retailers and service providers of which GRTU is an active member, to cause the Credit Card operators to withdraw the exhorbitant charges imposed on retailers and service providers has resulted in another major victory.

 

Following the decision of the EU Commission of 19 December 2007 ordering MasterCard to withdraw the interchange charges they impose through the local banks on retailers who accept payments by customers on MasterCard, Credit Cards, MasterCard has now decided to comply with the European Commission decision of 19 December 2007 and completly withdraw its cross border interchange fees as of 21 June 2008.

MasterCard had appealed against the EU Commission decision of December and the Appeal Court is due to issue it's final decision on 21st June 2008. MasterCard has now accepted to comply with the EU Commission decision and has accepted to withdraw the charges they regularly impose on retailers and other service providers and comply fully with the EU Commissions Directive.

GRTU, as all other national organisations representing retailers and traders and service providers in EU member states, has been directed by EuroCommerce to commence proceedings with the Office for Fair Competition and the Financial Services Regulator. In Malta GRTU raised other issues with OFT and MFSA and the Office of the Prime Minister.  The Government of Malta through to the Minister of Finance took the decision to request formally the Malta Office for Fair Competition to investigate and decide on the matter. The implimentation of the decision to remove all MIF charges imposed by the Local Banks as Agents of MasterCards and Visa is now expected following the EU Commissions success with MasterCard.

"Following the decision of the European Commission and now the decision of MasterCard to comply, there is very little else the Local Banks as representative of MasterCard to do but to withdraw all MIF charges imposed on retailers, restaurants, supermarkets, shops and other service providers accepting MasterCard.  The European Commission decision also ensures that Banks will not try to circumvent this decision by imposing alternative charges on retailers to retain the excessive charges now imposed on retailers. The issue with Visa is equivalent and it will be obvious that Visa will also withdraw these charges" comments Vince Farrugia, Director General of GRTU who in Malta leads on this issue on behalf of Maltese traders, retailers and service providers.

"The issue, of course, will proceed at local level in Malta and the local Banks, HSBC, BOV and others operating Credit Cards are resisting the claims of GRTU, but we are in no boubt that sooner or later the Local Banks will have to follow the line decided upon the EU Commission. GRTU has been active on this issue both at Local and at EU Level and there is no way that we are going to abandan this issue now that it is nearing a happy conclusion at EU and International level", concluded Vince Farrugia.

GRTU has today written to Mr. Xavier. R. Durieu Secretary General of EuroCommerce congratulating him on the success of the campaign he is leading on behalf of EuroCommerce and European traders, wholsalers and retailers.

 

 

 
The Local Councils took to cameras like a duck takes to water. Suddenly they started to sprout everywhere, hanging like some kind of grotesque mushrooms from every pole. Popular establishments and shops, who hitherto enjoyed a roaring passing trade, suddenly found cameras in front of their establishments.

 

 Now wardens could ticket people by remote control, from the comfort of their office, whilst sipping on their tea and biscuits. Wardens moved out of the village cores, waylaying unsuspecting motorists like modern day Robin Hoods  on the highways outside towns and villages. Again, legislation was amended to still any protests. Other suggestions followed, like turning previously free parking areas into paid ones, complete with barrier and attendant, and wardens accompanying every crane or any works being performed by anyone in every street. Soon, the green uniformed genies became as much part of the Maltese landscape as bajtar tax-xewk. There was only one problem. It proved to be costly and problematical to book litter louts. So they were also "allowed" to turn a blind eye to that.

Don't get me wrong. Local control and enforcement is a must. But I am concerned that the whole system seems to be run by one hegemonistic company like some kind of Maltese Blackwater.  Too many businesses are having their vehicles booked because they don't have the time to go and contest the many contraventions filed. Too many businesses are having their passing trade ruined because some council or other suddenly "amends" the parking in front of the shop and puts up a surveillance camera. Speed cameras are another joke. They are set too low and can go up by another 10KPH on main roads.

 

But in this country no one speaks about this. And no one does anything. We suffer in silence. Or should we? Let's hope the new Governments reforms deeply the system. We cannot go on like this. GRTU will continue making sure those wardens and their employers do not abuse the system. Businesses need a firm but tolerant attitude, not some green nemesis behind every corner.

 

Next week:  How we are missing the boat in Yacht Tourism

 

 

GRTU and Forum Malta Fl-Ewropa is this year celebrating SME Day on the 24th of June 2008. A one Day Conference with the theme SME: Adapting To Change is being organised for Maltese business owners. Key note speakers include the Hon. Tonio Fenech, Hon Chris Said, Alan Camilleri new Malta enterprise Chairman, Mr Luc Handricks, Senior Advisor at UEAPME the European SME Federation.

GRTU National Executive Council, has today, issued an invitation to Dr Joseph Muscat MEP the new Leader of the Malta Labour Party to meet GRTU Counsellors and GRTU Sector Leaders at earliest opportunity available and explain to them his views on the solutions that he is ready to propose to remedy the problems faced by SME's in Malta.

 

GRTU identifies the poor economic growth and the increasing bureaucracy and cost burdens suffered by SME's as issues that should dominate Dr Joseph Muscat's discussion with GRTU Leaders. GRTU stated this in its letter of congratulations to Dr. Joseph Muscat following his Election as the new Leader of the Malta Labour Party.

 

Vince Farrugia, Director General GRTU, Tuesday, made a strong appeal to Mr. Zoltán Kazatsay, EU Commission, Deputy Director General, Energy and Transport to seek a solution to the problem caused by the high cost of diesel.

 

The increase in the price of diesel has had a 15% rise in the cost of distribution and transport to the retail trade sector across the whole of the EU with the result that traders, wholesalers and retailers had to put up prices to meet the extra cost. The increase in distribution costs is in addition to the increase in prices for food and other daily consumption items and it adds to the increasing inflationary pressures suffered by the EU member states.

In the meantime governments of all EU Member States continue to impose taxes, excise duty, and VAT on top of these taxes, that pushes the price of diesel to the distributive and Transport trade by up to 50% of what the price per litre could be without the taxation burden. The Commission imposes a minimum excise tax and member states are forced to top up the already high price for every litre of diesel with this additional tax burden. The high increase in the price of diesel is therefore also a EU imposed one. The level of taxation imposed by Member States governments varies. Malta stands at a 19^th position with 8 Member states carrying a lesser Tax burden while 18 countries carry a higher Tax burden per litre of fuel. This taxation element is reflected in the 15% increase in the higher costs of the distributive trades and represents an additional burden that the Commercial Sector has to suffer or impose on retailers and onwards on the consumers. "The COMMISSION should immediately, and substantially, lower this minimum taxation level to mitigate for the sharp rise in the price of diesel and direct Member States to reduce additional taxation and the double sufferance of Vat on fuel taxation".  Recommended GRTU's Director General.

"It is right for the EU Commission to strive to take measures to ensure more energy saving, less CO2 emissions, seek alternative energy provisions and achieve greater use of public Transport and to fight inflation, but action is stronger than words. The reduction of taxation per litre of fuel used in transportation and distribution is direct action that is within the control of the COMMISSION and Member State governments. Consumers everywhere expect prices to come down but they will not unless direct action is taken to reduce the burdens imposed on the distributive and retail trade" concluded Vince Farrugia.

He was addressing the Annual Conference of EuroCommerce in Brussels Tuesday 10th June 2008 after Mr. Zoltàn Kazatsay addressed the Conference on the Program of the EU COMMISSION to reform the transportation and logistics sector in Europe to meet the new energy saving and efficiency criteria to meet the targets for 2020.

 

 

 

Mario Debono, president of the pharmaceutical and trade sector, addresses the GRTU price monitoring council: "The news that food prices in Malta have risen is not so surprising, considering that they have been doing so all over the world. Oil has reached new heights, crops for growing biofuels have taken over food crops, and the dollar's fall doesn't seem to have reached the bottom yet. Sterling is also at an all time low against the dollar. The news isn't good, my friends and its getting worse every day.

 

People are also blaming the Government here as well. GRTU feels that the price of diesel is a significant contributing factor. And so it is. We import everything; food, clothes, medicines, whatever we need. But not many people realize the problems businessmen face in order to get the products we need.

First off, Malta is a small country with the population of a large market town in the UK. Our buying power is very limited, because we cannot take advantages of the economies of scale that others in mainland Europe can. Secondly, it has become increasingly difficult to find the freight service to bring it here. Our Freeport may be a success, but that success came at the detriment of our local freight services. The space for Malta bound goods is just not there. Airfreight is also expensive and limited in capacity. It does get better in summer with more flights but prices do not come down. Thirdly, importers need to store goods, keep temperature control in their warehouses, freezers and cold rooms, and lastly they need to sell and distribute their products. This means fuel, and lots of it. It means electricity, and lots of it. And whatever the cost, it has to be paid for. No mistake about it.

The bottom line is that it costs more to import products into Malta than it does in other countries. I'm not surprised that prices have risen by so much in comparison to other EU countries.

The  one area that the EU was right about is that food in Malta is marketed by a few large importers who, because of their clout, make it very difficult for others to enter. When they do enter, they use any means to stop them. That's where the Office of Fair Competition should take a long hard look.

We have had reports of individual supermarkets importing directly (and parallel trading) being threatened by the large importers with various reprisals. This has to stop. Competition should flourish. The failure of the OFT to act on cases like these means tacit protection is being offered for those who will abuse of their dominant position.  Why we are not surprised about this?

We might all gripe and grumble that our purchasing power is getting worse. The reality is that it will get much worse. Yesterday the Minister of Finance expressed concern that the price of food is rising. GRTU has been going on ad nauseam that part of the solution is for Government to shift its glance at the taxation not at the price of fuel. Diesel is heavily taxed in Malta, plus that VAT is paid on it.

This is a reality all over the EU, and GRTU is not alone in calling on Governments to reduce this tax.  For reasons best known to itself, no one is taking heed. The standard excuse it that any tax reduced has to be taken from somewhere else. This is partly true. So what's the solution? Robbing Peter to pay Paul by increasing VAT slightly?  The options are limited. The only way to increase revenues for Government is to foster business. And more and more of it.

Our people are fantastically inventive at finding ways to earn money, even by venturing afar and  We need to find ways together, stop this political bickering, and get on with it. Government is there to provide the soil where the seed of opportunity can grow. Frequently it's hampered by the empire building of its very own civil servants. And while we are at it let's together have a look at Government induced costs and get rid of them. The shameful warden "service" is a case in point. But I will write about that later on.

We are at a quiet and defining moment in our history. The future looks bleak. Rising prices will bring rising demands on wages and I shudder to think what demands will be made on businesses come next budget. Then the bleeding hearts will expect us not the raise prices. We will have to. No mistake about it.

Government's efforts at stemming the rise in prices will ultimately fail, and the opposition should realize that instead of beating its heart out every time it happens. What does it expect Tonio Fenech to do?  Don a suit of armour from the Palazz and go and fight the importers, bending them to his will? Let's stop this political opportunism and get real!

GRTU does not profess to have the solutions. But what we do have is a body of people representing the widest cross section of businesses imaginable in Malta. Our hand of co-operation is stretched out to the Government (who should listen more), the opposition (who should also listen more), our fellow constituted bodies. But it's time for Realpolitik now. The dreams of the past have been shattered. The rise in oil prices have seen to that. Our only defence is a national effort, with decisions being taken collectively instead of by government to counter the rise in costs. Is anybody out there?"

 

 

 

 

 

 

One of the schemes in support of the construction industry proposed by GRTU prior to the last budget was the financial support scheme encouraging first home buyers to purchase their first property.

GRTU strongly believes that the first home buyers is an important element in the market for new property and an encouragement to the developers to supply the market with affordable housing.

 

This scheme has not only made it possible for first home buyers to enjoy an effective reduction in the market price of property but also encouraged developers to ensure that low lost housing is available to alternative locations as demanded by first home buyers.

The scheme uses an intelligent approach to direct capital investment to meet social needs. Why on earth has Government decided to stop the scheme is another of those mysteries that only Government Ministers understand.

The construction industry is facing difficulties as a result of the fall in demand for new building and developers are withholding their construction plans as the demand for housing subsidies.

GRTU would have expected Government to enhance and extend the scheme further not to stop it out right.

In a strongly worded appeal to the Minister of Finance, the Economy and Investment, GRTU has demanded an extension of the scheme for at least another year.