Category: Archive – 2008

It has been brought to our attention that sofa products manufactured by the Company Linkwise of China may have been treated with pesticides to inhibit the growth of bugs.

This pesticide has affected users of these sofas causing them injury. As far as is known, no such injuries have been reported in Malta.

 

Should your company retail, import or distribute the product in question, you are requested to advise the GRTU without undue delays about this, so as to take the necessary actions as soon as possible.

If you are aware of any person or company who is retailing, importing or distributing this product, please also advise the undersigned to enable the said person to be contacted.

Please ensure also that all products placed on the market are safe. We remind you that the person placing a product on the market is to ensure that such products are safe. Moreover, no person may place a product on the market if he/she is aware that such product is unsafe.

Should you require further information or have any queries, please do not hesitate to contact Abigail Mamo @ GRTU.

 

The US Travel Insurance Association is advising travellers to check their health insurance policies before travelling abroad.  According to a recently released study, traditional domestic health insurance, including Medicare, may not provide travellers abroad with the comprehensive medical coverage that travel insurance does.

 

The study concluded that most traditional domestic health insurance plans:

typically limit coverage for out of country medical expenses to emergency-related costs;

have high deductibles and co-pays for emergency treatment abroad;

do not cover out-of-country emergency medical transportation  in cases of emergency  or life threatening illness where medical evacuation may be required. Fifty percent of Medicare recipients may not be covered abroad. The study revealed that 50% of people insured under Medicare may not have out-of-country coverage.  All standardized Medicare Plan C and some higher standardized plans,  representing 50% of Medicare policies, typically provide coverage for medical expenses outside the U.S. However, Medigap C coverage and other applicable policies are normally limited to 80% of emergency treatment costs, with a $250 deductible.

Medical Costs and Care
'Travelers may mistakenly believe they are covered for healthcare abroad, and potentially encounter a situation such as a severe illness or injury which could cost them thousands of dollars," says Ed Walker, UStiA president.  "An air medical evacuation alone could run $50,000 or more," he points out.  According to an earlier UStiA Consumer Study, the vast majority of people are unaware that medical evacuation is often included in comprehensive travel insurance policies.
Standard comprehensive travel insurance policies provide a shield against the unexpected,  covering hospitalization abroad, providing medical evacuation where needed, and reimbursing co-payments and deductibles not covered by a patient's healthcare policy.  Additionally, should a traveller need to return home early due to illness or injury, non-reimbursable travel expenses such as hotel and airfare are covered. There are other concerns that travellers may not anticipate, cautions Walker.  These include quality of care issues, communication and financial matters.

Other sources of aid
Should you or a loved one become ill there are other sources of aid, but none provide the array of coverage under one umbrella that a comprehensive travel insurance policy does, the UStiA study concluded.  U.S. embassies do provide a level of emergency travel assistance to citizens, and, under most conditions U.S. embassies will assist in arranging return transportation.  However, the embassies will not pay for medical transportation.
The study also found that certain credit cards do provide some emergency travel and medical assistance such as finding referrals to doctors and health services.  However, the vast majority  of  credit cards do not provide coverage for emergency medical costs.  While a few credit cards provide medical coverage for an additional fee, only one of the credit cards reviewed in the study provided medical transportation and evacuation, and this card carried a high annual fee. Unlike most typical travel insurance policies, none of the credit cards reimbursed for travel expenses lost due to illness or injury.

Source: FATTA

GRTU had, during this time last year, complained with the authorities that policeman were going round shops asking for presents.

Now that the festive season is approaching the matter was brought to the attention to the Police Commissioner who from his side issued a circular to all the policemen, CHQ Circular No. 154/08.

The circular said:

''It is however to be stressed that no sort of soliciting from firms or individuals for cash or kind is to be made in organizing such parties.

Serious disciplinary action will be taken against anyone who abuses in this respect''

In this regards Members can report such happenings to the GRTU as no policeman has any right to ask for money or presents for Christmas parties. This is both applicable if the policeman is wearing a uniform or not.

This is a police Directive, which if broken must be reported.

GRTU as an organisation will not be participating in the demonstration organised by the Trade Unions on Friday @5.30pm.

Members of GRTU, self employed and SMEs may however decide on their own initiative whether to participate or not.

GRTU agrees with the aims of the organisers of the demonstration but it is not our standard practice to participate in similar activities.

GRTU will however be directing its members not to pay the full new electricity bills based on the tariffs announced by Government.

GRTU will be challenging these tariffs in front of the public regulator, the local courts, the European Commission and the European Court of Justice. This because GRTU believes that the imposition of these charges is illicit.

The pre-budget meetings have been useful as GRTU was pleased to note that several of the incentives given by Government in Budget 2009 were proposals made by the GRTU during the pre-budget meetings. Amongst which:

Support to start-ups

The introduction of the Small Business Act

The launch of the General Accounting principles for SMEs

The speed up of the work for the establishment of a one-stop-shop

The strengthening of the department for Fair Competition

Revision of the penalty and interest system

Host Families get an amount of non-taxable income

Improvement of the coastal areas of St. Paul's Bay and Qawra

Increase in the financial help to Local Councils

An incentive scheme for enterprise investment in the localities

Distribution of energy vouchers to families for energy saving lamps

Solar Water Heaters scheme

Photovoltaic scheme for families and incentives for companies

Introduction of energy performance for businesses

Energy audits for families

Energy campaign

Aid to industry in energy efficient investment

Removal of VAT on registration Tax for vehicles

Vehicles bought from 1st January 2008 can opt for the new taxation regime

Introduction of the end of life vehicle concept

Widening of the Tax bands

Our proposals were prepared in the form of a Manifesto with the target to be achieved in the next 3 years. The checklist of proposals was this year exceptionally long and therefore we thought it best that every section leader would give directly his views following consultations with members on Budget 2009. GRTU's proposals would not have cost money to Government and this is why we believe there was a good uptake.

With this in mind a press conference was called this morning where GRTU's section leaders expressed their remarks.

In his opening speech GRTU's Director General, Vincent Farrugia, addressed the press by saying that the Budget laid bare what the situation in the country is. The country's spending in the past made us unprepared for a rainy day, days such as today. 

GRTU did however find the Budget to lack the necessary boldness and too positive than the situation really is. The Budget does not target the grave situation we are experiencing and the one yet to come. It should have prepared Malta with a good package and not we after have turn yet again to bight into what is left in our pockets. We cannot keep on making ends meet like this and widen the deficit.

An instance are the Utility Tariffs. Government insists on getting 59m from the industry and get €123m more than last year from Government revenue. This is a perfect example of what not planning ahead and not taking care of our inefficiencies costs us. If Government's revenue targets are not fulfilled there is nothing to fall back on anything other than people's pockets. Postponing with the Drydocks decision has cost us millions.

We are easily asked to pay for the inefficiencies but we seem to be not good enough to be involved in discussions. With Prime Minister Gonzi's method we always arrived to reasonable conclusions. There is no where to go. The Utility Tariffs have to be reviewed. Our country cannot handle it and because of it the Budget was thrown over board and was not given the importance it deserves.

GRTU is thankful for this single reason alone that Malta joined the EU. Now politicians that think they can continue abusing of their position have a watch dog and GRTU will make sure the watch dog is warned when something is not as it should be. The EU has helped us a lot, being also in the EuroZone, through the financial crises. The GRTU is not like other unions, a strike will not increase our member's pay, so this has proved a good door to knock.

The Director General concluded by saying that we are not negative on the Budget but we are on the Budget strategy. He than passed the word to Mrs Josette Vella, GRTU's Council representative of St. Pauls' Bay, Qawra and Bugibba businesses.

Mrs Vella explained that she is pleased that Government has put St Paul's Bay project on the Budget agenda it is a very good tourist initiative, for which the section had been waiting long. She however explained that dates are as important and we want to start seeing tenders coming out. GRTU knows the funds have arrived so we want the project to start as soon as possible. St Paul is loosing tourists not only to other countries but also to other localities as they are saying it has become shoddy.

GRTU sent its proposals on the areas prior to the election. This included a strategy for the empty apartments. These apartments should pay a pro-rata licence for the period rented and the tax should be 5% as that of the Hotels. These should also be included in the MTA website so that a pack is given. In addition the polluter pays principle is good by there are not enough bins and enforcement needs to be strengthened with wardens. GRTU would have liked to see them included in the Budget proposals.

Paul Fenech took the floor as one of our active member who wanted to have his comments heard on the Budget. He, in line with GRTU's position, totally disapproves that companies that provide services are made to subsidise industry. He emphasised that the service sector employs a large number of people, he himself employs 120 persons. The Maltese economy is changing and Government keeps on focusing on factories, this is not Malta's only future. Mr Fenech emphasised thst companies are going through a very difficult time and selling is stale.

Another important development in Budget 2009 was the change in the way vehicles are taxed. Michael Galea, president of the Autodealers Association, who are also members of the GRTU, explained that his section is extremely disappointed with the Budget as their agreement with Government was that the prices for second-hand cars had to remain the same for at least 15 years. Some licences have however gone up by 93%. This section has suffered throughout the year from uncertainty and still after the Budget the retail value is not clear which puts their sales in a negative position.

Together with the GRTU, the Auto Dealers Association had a meeting yesterday with the Ministry of Finance, the Economy and Investment and they have early today sent their position so that the market is not hit adversely by the new tax regime. The latest developments are very anti-social and will certainly hit the consumers hard both by devaluing the cars they own and putting up the licence fees.

Mario Debono, GRTU's Council representative of pharmacies and pharmaceuticals explained that the Health vote was a very good move and he is pleased to note that Government does not hold back when it comes to health. He explained however that there needs to be a cost control on certain aspects to avoid negligence and abuse.

GRTU is very disappointed that a success story like the POYC was voted less money than last year. The money voted for this year is enough to cover 19,000, while the POYC already serves 25,000 customers. There is no money to pay pharmacies for the service they give. GRTU is aware that abuses persist and we want to help in putting them to an end if Government is willing to let us. Also unfortunately through change in Minister the POYC is experiencing an injustice. When before the GRTU would sit with the Ministry to discuss, suddenly decisions are being taken without consultation and the Government wants to change the agreement between himself, the GRTU and the Chamber of Pharmacies. Both GRTU and the Chamber found the change unacceptable.

Green policies are high on GRTU's agenda and Mr Joe Attard, CEO of Green MT, addressed the issue. Joe Attard welcomed the fact that Government took up many of GRTU's suggestions on energy incentives. However disappointment is also present as Government ruled out the exemption from eco-contribution to companies members of schemes but also increased its revenue from eco-contribution. He explained that it is possible that Government has a different strategy which he has not made us aware of, even though he is sceptical. He explained that companies will not pay twice to have what they introduce in the market disposed of.

GRTU's deputy president and vice president of the Tourism section took the floor and explained that the Budget is positive because it has voted money and identifies important aspects such as marketing, product development in tourist areas and more money for low cost airlines. It is also positive that SAS will be starting two flights a week from Malta Stockholm and that there is a call for 3 new destinations Leads, New Castle and Bristol.

It is also positive that Host families will have their burden alleviated through a €3,500 non-taxable turn-over. The problem Mr Fenech saw in the Budget is that it does not sufficiently calculate the forecast of the international crises that will be hitting us hard like everywhere else. IATA has said that by the end of the year the aviation industry world wide would have lost 5b dollars and 35 airlines would have collapsed.

Other observers are saying that as many as 5-6 EU airlines could go bankrupt between now and Christmas. Eventually British Airways, Lufthansa, AirFrance and Ryanair will survive in Europe, meaning that Malta being an island economy with no mainland tourism, loosing accessibility and linkage is inevitable. Tour operators and airline companies are repositioning themselves to consolidate or retrench and downsize to combat the crises. Every linkage that is lost Government should do its utmost to replace so that the industry can remain sustainable and enjoy the growth we had been experiencing before the crises. He concluded by saying that it lacks an economic stimulus pact for tourism to face the challenges ahead.

Marcel Mizzi, GRTU's Council Member responsible for the IT section welcomed the new investment in enlarging MCAST Campus and the setting up of the ICT faculty at the University of Malta, a long overdue step that we feel Malta should have taken years ago in view of our plans of becoming a centre of IT excellence in Europe.  He also welcomed the E-learning initiative but advised caution in the hope that these funds will have a direct effect on the results being obtained by government schools in preparing their pupils for further learning.

We believe that the continued investment in the My Potential II scheme should continue having the desired effect, that of steering our youths into the ICT field. The 9 million euro investment in innovation, the 2.5 million in small startup schemes, the 3.5 Million in grants for R&D as well as the continued investment in the business incubation centre should all have a positive effect on the proliferation of ICT in Malta. He continued by explaining that we expect a number of new companies will benefit from these initiatives.

 

 

 

 

 

GRTU Director General, Vincent Farrugia, criticised Budget 2009 as being too short on SMEs. Mr Farrugia said that it is fallacious for Government to continue to finance simply through current account revenue.

The Economic situation Malta is facing is the result of exceptional circumstances in our leading markets over-seas and the financing to sustain inactive packages for the economy to continue to grow should have been sought through extraordinary financial means.

He quoted as an example what the UK Chancellor Alistair darling has just proposed this week to boost small businesses. The UK's small and medium businesses stand to benefit from up to £4bn in funds from European-backed loans.

Ministers have struck a deal with the European Investment Bank (EIB) to bring forward the funding to help small companies weather the economic crisis.

However, it will be up to each bank to decide whether to apply for the funds – £1bn a year for the next four years.

At Commons question time, the Chancellor is reported to have said: "It doesn't mean that everyone who comes through the front door of a bank gets what they want on the terms they want.

"But I really do think it is important that British banks play their part. We, on behalf of the taxpayer, have put a lot of money into the banking system because we recognise its importance.

"They, in turn, have to recognise the importance, not just to the country but to banks themselves, in ensuring that small and medium-sized enterprises get the support they need."

GRTU has already presented its proposal, based on facts, case studies and consultation with members.  Unfortunately, this cannot be said for the way the White Paper was drawn up.  This White Paper is a big disappointment for GRTU especially at a time when the European Union is implementing the Small Business Act aimed primarily at issues safeguarding the interests of small enterprises in relation to other economic factors that hamper their growth and development, which gives major importance to enterprises and the emphasis of each Directive is built on the "think small first principle".

The 1995 reform gave Malta the most liberal rent law in the whole of the EU. Today however, while other Member States fought first and foremost to safeguard the interests of enterprise owners, thus recognising that security of tenure is important for the encouragement of entrepreneurship and the generation of productive work, the Maltese Government accepted that the rights of property owners are superior to those of investors in enterprise whether commercial, craft, services or manufacturing.

 

GRTU has studied the rent laws for commercial establishments in other countries, including that of the country presently holding the EU presidency, France.  The rent law in France is a good one and of advantage to all the parties concerned.  While France's Act provides just protection for all those who rent, it also provides specific protection for those who rent.  For this reason, we appeal for the study of France's law because many of its essential measures are missing from the White Paper.

GRTU believes that the approach adopted by the French Government and by other Governments in other Member States is the line to take. They give tenants rent for their furthering of an economic activity on assurance of security of tenure for a long enough period to enable the recuperation of investments in rented business premises. The French law also gives the opportunity to trace compensation for the goodwill and investment made during the period of rent in the case of its termination after the stipulated period established at law.

In France the stipulated period is 9 years. In Malta GRTU would have been happy to sit with Government and other stakeholders to establish what period is appropriate for Malta, given the level of development of the economy and the limited supply of land particularly in areas suitable in investments in economic activities through rented properties.

GRTU firmly believes that the basic framework should have been agreed upon first. An exercise would have been developed so that post 1995 and pre 1995 agreements on rented commercial properties would have been placed within one legal framework.

What GRTU is now proposing is that the Ministry of Finance would issue appropriate fiscal incentives so that all tenants in pre 1995 are encouraged to buy the property rented to them. This together with positive fiscal incentives such as suspension of all taxation due, on property transfer and tax on income, from such transfer to owners of properties who accept to sell their pre 1995 tenants.

After the lapse of the fiscal holiday period which GRTU proposes to be 5 years, Government would than allow a minimum period of 10 years to all tenants who fail to take up the special buying concession to continue to enjoy the tenancy under the terms of whatever contract they are bound under. After the lapse of the 10 year period the new Rent law will become applicable to all contracts of rent of premise from which to render an economic activity and not a residential activity.

The new Rent law will give all tenants an automatic 10 year security of tenure which is theirs by right. At the end of the legally stipulated period, rent is either renewed for other periods, as agreed between the two parties, or if not renewed land owners will have to pay compensation for goodwill and improvements invested by tenants. A special Arbitration Tribunal will than decide the exact amount of compensation due when settlement is not reached by the two parties. The law will determine the criteria for the estimation of the compensation due so that evaluators will not decide arbitrarily or subjectively.

GRTU proposes that Budget 2009 should set the stage for the rent reform of rented commercial properties before any reform of commercial property is enacted. GRTU insists that the Rent Reform as currently proposed by Government should establish first and enact to satisfy the need for the Reform of Rented Residential Property and postpone the Reform of Rented Commercial Property for a period long enough to assess the impact of the fiscal schemes being proposed by GRTU.

The issue of rent of Commercial Property is fundamental for the strengthening, encouragement and sustainment of entrepreneurship of small and medium enterprises. In particular if Government erroneously in a mad rash to liberalise, regardless of the impact on employment of productive work and economic value added, will enact a reform which is not conductive by the generation of real economic growth.

An additional idea is a scheme for tax relief from capital gains so that the owner of the establishment is able to sell, this also being in favour of residential property.  With a grant of €25,000 on property of €12,000 and investing €12 million in this grant, a large proportion of property is removed from the market.  The Government still profits from the combination of stamp, income tax and VAT.  Each step taken towards this scheme would be one forward and not backwards.

GRTU's detailed proposals have already been published.

 

 

 

 

 

 

 

We would like to draw your attention to the issue of rechargeable batteries which have recently been recalled in the United States by the U.S. Consumer Product Safety Commission, in cooperation with Coby Electronics Corp.

According to the recall alert the affected products pose a risk of fire due to possible overheating of the rechargeable batteries. Four incidents have been reported.

The company informed that the recall involves batteries with serial numbers listed below sold with the TF-DVD 1020 portable DVD/CD/MP3 players. The battery's serial number can be found on a white sticker affixed to it. The product looks like a small laptop computer and has a 10" swivel TV screen. "COBY" is written on the front cover and under the screen. "TF-DVD 1020" can be found on the bottom of the unit.

Recalled Batteries Serial Number Ranges:
DG240043D503000001-1006
DG240006D503000001-400
DG240039D603000001-3000
DG240111D603000001-2000
DG240143D602000001-3000
DG240106D602000001-2000
DG240106D702000001-2000
DG240183D942000001-100
DG240071DB02000001-1400
DG240115D702000001-1726
DG240115D702000001-2500

Should your company retail, import or distribute the product in question, you are requested to advise the GRTU without delay, so as to take the necessary actions as soon as possible. If you are also aware of any person or company who is retailing, importing or distributing this product, would appreciate being advised.

Should you require further information or have any queries, please do not hesitate to contact us.

 

It is GRTU's pleasure to inform all pharmacy owners that following representations made by GRTU on Thursday 23^rd October 2008 with the Medicines Authority, and earlier on yesterday, the Medicines Authority has just informed GRTU that it will be accepting a declaration made by the licensee as regards the retail area of the Pharmacy.

There is no need for anyone to engage the services of an architect to certify the floor area of the pharmacy. This means that pharmacies will be benefiting from a substantial reduction in pharmacy license fees which issue has been negotiated to a successful conclusion solely by GRTU. A letter confirming this agreement will be sent from the Medicines Authority to this effect will be sent in due course.

 

Most pharmacies fall within the 200 meters squared area. They will now pay a trading licence fee of Euro 69.88. The previous regime meant that depending on the locality, pharmacies were paying a minimum of Euro 116.47 and a maximum of Euro 582.34 regardless of floor area. For example, a pharmacy in Main Street, Rabat, would be paying a fee of Euro 244.58 simply because of its location. Its licence fee will now be substantially reduced. The great majority of pharmacies will be paying the minimum fee, which is Euro 69.88 as many pharmacies do not exceed the 200mts squared area. Gozo pharmacies benefit from a further 25% reduction in fees.

GRTU would like to thank the negotiating team, made up of pharmacist and non pharmacist owners that successfully negotiated this measure and reiterates its commitment to continue safeguarding the sustainability of all pharmacies in Malta and Gozo.