Category: Archive – 2010

As in any other business sector ICT is a sector dominated by SMEs, SMEs that perform ICT related services for the local, SME dominated, business community and therefore if the local business community is affected adversely, the ICT sector will follow as the local business will cut down on use of these services and function on what is extremely essential. Budget 2011 has little specifically aimed at the ICT sector. There are no tangible measures geared towards helping the sector grow and perform better and, as for all other sectors, Budget 2011 fails to put money on the table for ICT.

What GRTU expected this time round in Budget 2011 was for Government to inject funds directly or providing bank guarantees. We expected Government to give a flexible financial solution that would fit any SME project and liquidity problem. SMEs needed a revenue neutral exercise that would give SME start-ups unparalleled opportunities and existing SMEs the initiative to innovate and expand their operations.

A year after its announcement, Budget 2011 only mentions the Micro Credit Scheme briefly stating that it should be launched shortly. The announcement of this Scheme was very timely however implementation should have been as timely. During all this year Government has failed to make a commitment to an indicative date by when the Scheme will be launched and it has once again failed to do so in Budget 2011. Year after year we await Budgets eagerly to tell us what we don't know, to reveal Government's decisions and not state the obvious and what we have been listening to already too often.

On the other hand the initiatives aimed at creating a better business environment for SMEs are certainly welcome although some of them had already been tabled in last year's budget and implementation was either extremely slow or started on the eve of the Budget. The "SME test", the "College of regulators", the "SME Consultative Body", the "Clearing House" and the "Sunset Clause" are all good ideas, proposed by GRTU Budget after Budget, that if implemented properly should result in an environment which businesses can feel more confident operating in. The 9 million euro investment into Malta Enterprise is also certainly welcome and we at least expect ICT companies to benefit from these funds.

One issue which is and has been adversely affecting SMEs in the ICT sector is Eco Contribution. Eco Contribution rates are very high on several ICT products and further amplified when taking into consideration defaulters an unfair competition. These are all factors unnecessarily raising the price of ICT products. We have been constantly placing pressure on Government to find solutions and properly implement the WEEE directive, but again, Budget 2011 does not even mention WEEE although we see that the Government is expecting to collect substantially less Eco Contribution next year. If this is going to happen because of implementing the WEEE directive is anyone's guess.

In spite of the austerity Budgets and financial cuts of 81,000 million sterling, the British Government still found funds to assist the smaller firms….But not on Malta.

GRTU has been striving hard since Budget 2007, as the recession was still on the horison, for Government to introduce in Malta the Enterprise Finance Guarantee Scheme. This is the scheme that would have made the difference for small businesseas as they suffered the squeze of substantial drop in sales and a more stringent attitude from the commercial banks while Public authorities competed among themselves who would burden small buisinesses most with increased bureaucracy and additional bills.

An Enterprise Finance Guarantee Scheme would have lended money to firms that cannot obtain funds elsewhere. Another proposal made by GRTU that should have gone hand in hand was the Regional Growth Fund aiming to boost job creation and provide fiscal advantages for enterprises in the locality.

The EU Court of Justice held that copies of records distributed for free as part of the group's promotional activities can be likened to "samples" and consequently exempted from VAT payment. 

The dispute between EMI and the tax authorities, brought before the VAT & Duties Tribunal for England and Wales, concerns interpretation of Article 5 of the Sixth VAT Directive (77/388/EEC), as amended in 2006 (2006/112/EC), which exempts from VAT payment "applications for the giving of samples or the making of gifts of small value".

To promote its new music releases, EMI distributes anywhere from 2,500 to 3,750 free copies of each new record to journalists and other persons in a position to influence consumer behaviour. These 'pluggers' (promoters), who pass on the records to their own contacts, can receive up to 600 free copies for redistribution.

The court interpreted the concept of 'sample', which is not defined in the directive, along lines favourable to EMI. The ruling states: "That term cannot be limited, in a general way, by national legislation to specimens presented in a form which is not available for sale or to the first of a series of identical specimens given by a taxable person to the same recipient, unless that legislation allows account to be taken of the nature of the product represented and of the specific business context of each transaction in which those specimens are distributed".

The court also interpreted the concept of 'gifts of small value' found in the directive, but in this case along lines favourable to the UK authorities. It held that by setting a limit of £50 per year for the value of gifts made to the same person, the regulation does not overstep the margin of discretion granted to EU member states.

Petrolvalves Import Export Ltd. Company

A young and dynamic company, consisting of 30 employees, professionals, with experience, specialized in providing professional recruitment services for the workforce demands of our customers. The company has achieved a turnover of 1,700,000 Euro during 2009, and is in the process of expansion. The company's portofolio of services:

Equipments:

Industrial valves (we represent Petrolvalves Italy in Romania);

Hydraulic equipment (API SpA Italy);

Outsourcing – (provides to companies specialized services for human resources at low cost and marketing – OMA GROUP Company is one of our clients who we offer marketing services);

Temporary Employment Agent – (we have the capability to employ the specialists required by the client and placing them to the clients' sites for particular activities within the projects);

Permanent recruitment (Our company supports national and international companies who are looking for personnel for long or unlimited term employment);

Consular services support – (Obtaining a visa for a particular country is sometimes a problem for the applicants and therefore we are happy to help them by giving them all our support in this process).

Consultancy:

Activities related to Human Resources: (Specialized consultancy regarding personnel structure, organization, selection and recruitment Consultancy related to the documentation and standards needed to obtain work permits for countries in Europe, Middle East, Africa etc.., countries where we have gained experience over the years)

Activities related to Industry: – (Specialized consultancy related to the establishment of companies in the industrial field in Romania; Consultancy and specialized expertise related to the acquisition of industrial properties in Romania)

• Ability to provide specialist staff to cover all stages of project implementation, namely:
  Engineering Construction Installation Commissioning and operation

Successfully apply our experience in the fields of:

Civil engineering (buildings, roads, bridges, highways)

Power generation

Oil & Gas Industry, including refinery

Petrochemical Units

Offshore Rigs

Construction and rehabilitation of mines

Our company currently provides highly specialized personnel such as:

Inspectors (QA / QC, welding, NDT, I & C);

coordinating and supervising engineers (civil, mechanical / piping, electrical and instrumentation, welding);

Administration staff;

Foremen / skilled technicians to coordinate the execution of works

Qualified for execution (construction, mechanical fitters, pipe fitters, fabricators and steel erectors, carpenters, electricians, instrument fitters, qualified for civil);

OMA GROUP

An Italian company with private capital. Expanded into the Romanian market in 2006, headquartered in Giurgiu.

The company activity is in constant expansion, now reaching a total of 850 employees.

The company operates in several areas:

Steel Structures: Procurement, Construction, & Erection

 Pressure Parts: Supply and Construction

Pipes: Supply, Construction & Erection

Mechanical: Erection and Commissioning (reactors, columns, vessels, pumps, etc.)

Accumulated skills and experience expanded activity in several sectors of industry:

Oil & Gas; – Refinery – Chemical – Power – Cement – Ecology – Glass – Steel Mills

Global Services of Maintenance:

Refinery

Chemical Plant

Power Plant

Cement Plant

OMA GROUP has a Quality Assurance system consists of a certificate and procedures manual, approved by ISO 9000/2000. OMA GROUP operates on the basis of specific quality control procedures.

If interested in these two companies kindly contact: Nicoleta Datcu – Marketing Department

T + 40 21 410 70 10        Email:

Medica Group

Launched an international promotional campaign on over 900 nutritional supplements many of them innovative and widely awarded in many European countries, leading to a rapid expansion of international business by offering products and services at the highest quality standards to the European community.

External Business Development is currently one of the points of reference of the corporation Medica Group. We adapt permanently our strategic objectives according to the needs of our international partners and together we identify new solutions to the international community in order to provide a healthy life, in a more proactive way.

Improving quality of life for all our consumers around the world means more to us than offering innovative nutritional products. The mission of Medica Group refers to social responsibility; our purpose is to improve the quality of life for communities all around the world by supporting them through our work both as an organization and as individuals.

The International Brand Pro Natura with numerous recognitions at the international fairs of innovation and invention offers over 900 supplements, 100% natural products, dedicated to improve quality of life, presented in all forms of conditioning (capsules, tablets, powders, ointments, gels, teas, syrups, tinctures, eye solutions, nasal solutions, vaginal solutions, sprays etc).

Pro Natura's current portfolio includes a full range of Para-pharmaceutical products which are targeting all ages and physiological stages (pregnancy, menopause, physical and intellectual stress) but also many pathological conditions (respiratory, cardiovascular, digestive, uro-genital, weakened bones, diseases of joints etc).

The company is either interested in a Product partnership all over the world:

Distributing products under our Brand or private label. Additional marketing support to facilitate the sales process can also be provided by –this support would be granted through a partnership agreement.

Pro Natura is also interested in a Strategic partnership:

Joint venture Agreements (including research projects, clinical studies etc)

Commissioning contract

Contact:

Dr. Ionut MORARU

T: (+40) 021. 351.47.77  M: (+40) 0729.777.898

E-mail: ">http://us.mc1144.mail.yahoo.com/mc/compose?to=

http://www.pro-natura.ro/

http://www.medicalab.ro/

Following a complaint put forward by the GRTU  to Ing Anthony Rizzo, CEO of the Malta Resources Authority, and reported in the GRTU newSTRING of the 27th of August 2010,  Ing Rizzo requested a reply from Enemalta on GRTU's complaint. Reply Below:

"Following discussions with ARMS Ltd please note that ARMS Ltd will be taking the following actions:

They are reviewing all accounts t ensure that the bills are issued to cover past consumption. Where the consumption billed is for 6 months or more they will be granting consumers 120 days of credit rather that the usual 45 days. The consumer is being informed by arms Ltd through a letter issued with the bill/s.

At present they are taking the measure to come in line with the billing schedule thereby issuing bills on a bi-monthly basis. They are expecting to achieve this for all accounts by end of this year or earlier depending on the billing schedule for the particular locality."

GRTU met Mr Acisclo Valladares Urruela, candidate for Hon Consul in Guatemala. Mr Urruela is Guatemalan by nationality and is married.  He has a Masters in Business Administration and also a Masters in Laws. Ha has in the past worked as Chief of Corporate Affairs, Legal and Inter-Institutional Affairs Director- Comcel, External Relations Department Manager for Central America- The Procter & Gamble Company, Associate Attorney and Migrant Affairs Delegate. His areas of expertise are in Corporate law, Contract law and civil litigation, Infrastructure project finananced, International Business Transactions. He speaks Spanish, English, French and Italian. Mr Urruela's interests are to travel through the world.

In Guatemala the distribution of income remains highly unequal with more than half of the population below the national poverty line. In recent years the exporter sector of non-traditional products has grown dynamically representing more than 53% of global exports. Some main products for exports are fruits, vegetables, flowers, handicrafts, cloths and others. Mines produce gold, silver, zinc, cobalt and nickel. The agricultural sector accounts for about ine-fourth of GDP, two-fifths of exports and half of the labour force. Organic coffee, sugar, taxtiles, fresh vegetables, and bananas are the country's main exports.Tourism has become an increasing source of revenue for Guatemala.

Mr Urruela said he is very familiar with the port of Guatemala and that this is presently owned by the state. GRTU representatives and Mr Urruela spoke in length on the possible privatisation of the port of Guatemala and GRTU gave him an explanation of the Maltese case. He said that currently there isn't the political momentum that is needed for privatisation but it will be something that will happen in the near future and that the port needs an investment of around 3 million to become competitive.

GRTU also explained opportunities of warehousing in Malta as a hub and a stepping stone to Europe. Currently there is no tourism flow between Malta and Guatemala, we have no Guatemalan vessels registered with the Malta Maritime Authority and we have no companies registered with MFSA with Guatemalan shareholding.

TRADING
LICENCES REGULATIONS S.L.441.07
(http://docs.justice.gov.mt/lom/Legislation/English/SubLeg/441/07.pdf)

Between 1
November and 7 January of the following year, both days included – Mondays to
Sundays 4.00a.m. to 10.00p.m.

Private public consumption in Malta has still not reached the levels of annual growth that were registered up to the end of 2007. Since the economic recession started in 2008 total private consumption has moved forward only slightly or not at all.

The situation today is still not comfortable as 50% of retailers have not reached previous figures as total private consumption growth is very marginal and the consumption of the public sector is being restrained due to pressure to cut the public sector financial deficit so that the short fall in total private consumption so necessary to sustain retail sales remains unsolved.

The globalised world has made life difficult for the general store. The smaller retail outlet that specialises in the servicing of clearly identified niches in the market, even in a limited market like Malta, has an excellent future. The small general store will, however, have to be intensely competitive in the provision of a speedy and quality customer service if it wants to survive in a highly competitive market.

All attempts for smaller entrepreneurs to team up to be able to pool resources and be able to come up with an innovative marketing plan to move in this direction, at least in Malta, have failed. By nature, the smaller business operator is extremely independent-minded and, for this reason, he is the least likely to make a cooperation exercise work. We as an organisation strive hard at national and EU level to obtain funds to assist new start-ups in the retail and services sector. We also offer assistance programmes through a number of private organisations with whom we coordinate special deals and rates for our members.

The trader is geared for the electronic change that has happened and will continue growing with the introduction of e-commerce up but the people in state authorities are not so geared up. The new Government financed system supported enterprises that choose an e-commerce option but this is not fair for small businesses. It is using Government aid to distort the market against small businesses as it supports larger firms who circumvent the whole system to out-price smaller retailers out of the market. State aid should never be used to disadvantage micro firms. On the contrary, state aid should be used to level out what is competitively unlevelled.

The money that small businesses were promised to help them reinvest and improve their efficiency to cope better in a more competitive market has not materialised and the general level of earnings in the economy has not boosted household's income sufficiently to push demand. Unless action is taken to boost consumer purchasing power the situation will remain worrying for many retailers for at least another six to twelve months.

GRTU Council Member Silvana Aquilina Naudi participated in the third regional Conference entitled ‘Establishing a European Network for Anticipating Skill Needs in the Commerce Sector' as part of an EU funded project in Athens 27th September 2010, following invitation by EuroCommerce.

Participating Countries included Greece, Turkey, Italy, Malta, Cyprus, France, Spain & Portugal.
Opening Speeches:
Constantine Michalos, President of ACCI, gave his welcome speech on behalf of Athens Chamber of Commerce.

Alexandra Palli, Secretary General of the  Athens of Commerce and Industry and Vice-President of  EuroCommerce spoke of the difficulties that Greece is currently facing. She spoke of the huge gap that exists between people emerging from their studies and jobs available. These gaps are evident in nearly all sectors.

Thanos Vasilopoulos, Secretary General, OIYE  said that the hugh majority, 70% to 80% of all business in Greece are SMEs, thus representing 800,000 persons in the entire work force. He also spoke about the low quality of educational system at all levels and the gap that exists between the education and labour force, as mentioned also by the previous speecher.
Status Quo Content of Vocational Training

The main topic discussed in this group was the lack of training, qualifications and skills. The work force is under educated, under skilled and also under trained. The Greek speakers insisted that more importance needs to be give to foreign languages. It was also noted that a lack of ‘training culture' is evident and that employers see training as a COST rather than an INVESTMENT. Daria Banchieri from Filcams-CGIL, IT also spoke of how different working conditions are needed for employees. Whilst, Yasin Uygur from Istanbul Chamber of Commerce, Turkey spoke of how this Chamber had embarked on a Leonardo Da Vinci Project as a lifelong learning programme ‘ Training SMEs on E-Commerce'(Kobetic).

Innovation of Vocational Training
Do NOT see just the trees see the whole forest. It is very important that if we (Europe) as a whole is to come out from the grips of the recession, we need to look at the whole picture (Europe) rather than individual economics alone. We need to re-invent ourselves and acknowlege that our workers do their jobs well. Non formal education is to be acknowledged and embrace the notion that employers are the NO 1 providers of non formal education.

The New skills for new jobs initiative:link with our project and next steps
The speakers in this group spoke of the EU 2020 Strategy- Condition of Success which includes employment, productivity and social cohesion. They also of a European Skills Passport, whereby workers across all Eu states would have their formal/nonformal/informal skills recognised in all relevant states. Modernisation of VET was also discussed and the importance of  NQF.

National Coordination of Vocational Training
This section focused on the need of Vocational Training and re-training. Each country needed to look in a see where re-training was needed. Companies needed to see this training as an investment rather than a burden. Leonidas Paschalides, Cyprus Chamber of Commerce and Industry insisted that in a small country like Cyprus, centralisation of resourses makes it more efficient. HRDA(Human Resources Development Authority) was established to help SMEs with training and subsidised 75% of costs, whilst the other 5% was paid annually by means of a levy on all companies.

International Coordination of Vocational Training
This section focused on Immigration. The importance of integration and training of these Immigrates. Various European countries are experiencing an influx of immigrates from different countries around the world. These immigrates do not only originate from Eastern European countries like Romania but also include South America, North Africa and the whole of Africa. Full integration into the work force needs training, such as in language, IT and Retail. Cristina Dimas, CECOA, Portugal, spoke on how the SMEs in Portugal are benefiting from RECOMFOR – Network for Vocational Education and Training in Trade Sector. The aim of the project is to create a European training network (level 4 and 5 EQF) dedicated to the Trade sector, and in a first moment, specifically to the International Trade. It aims at opening a European training space in which mobility (both in training in training centers and in work placements in companies) is an essential component, in accordance with ECVET principles. I wish to note that I am aware that Malta Qualifications Council is also working towards this aim.