Category: Archive – 2013

In order to
adapt EU payments market to the opportunities of the single market and to support
the growth of the EU economy, the European Commission recently proposed new
rules that will bring more competition to the electronic payments market,
providing consumers with more and better choices between different types of
payment services and service providers.

For
example, during the past years new actors have emerged in the area of internet
payments offering consumers the possibility to pay instantly for their internet
bookings or online shopping without the need for a credit card (around 60% of
the EU population does not possess a credit card), establishing a payment link
between the payer and the online merchant via the payer's online banking
module.

These
innovative and often less costly payment solutions are already offered in a
number of Member States (e.g. Sofort in Germany, IDeal in the Netherlands,
Trustly in Scandinavia). However, these new providers are not yet regulated at
the EU level.

Furthermore,
the new rules will contribute to the reduction of charges paid by consumers for
card payments. The card charges imposed on merchants will be capped and
merchants will no longer be allowed to surcharge consumers for using their
payment card.

Consumers
will also be better protected against fraud and other abuses and payment
incidents through improved security measures.

Commissioner Antonio Tajani (DG Enterprise) and the High
Representative for Foreign Affairs and Security Policy, Baroness Catherine
Ashton, will be leading a business delegation to Thailand, Vietnam and Myanmar
from 12 to 16 November 2013.

The aim of the mission is to bring together political
and business leaders to explore business opportunities. The sectors targeted
for this mission will be: tourism, energy and infrastructure, business
environment support services (including distribution services and retailing),
agri-business and manufactured goods.

More information can be found here: http://ec.europa.eu/enterprise/initiatives/mission-growth/missions-for-growth/antonio-tajani/asia/vietnam-myanmar-thailand/index_en.htm

If you are interested in joining the mission to one or more
countries, please do not hesitate to contact us. You can also express your
interest directly to the European Commission .

N.B : the topics energy and infrastructure and business
environment support services (including distribution services and retailing)
will only be addressed on the mission to Myanmar and not in Thailand and
Vietnam.

Following
Vice-President Tajani's successful Mission for Growth to Peru in January 2013
and as a concrete follow-up to this Mission, Director-General Daniel Calleja
Crespo of Enterprise and Industry Directorate-General will lead a technical
mission to Peru with a European business delegation of around 30 entrepreneurs
between 2 and 5 December 2013 in order to discuss with politicians and
entrepreneurs of Peru how to foster our industrial cooperation.

As for
our previous Missions, this visit will have the objectives to:

–  promote European business policies and to develop ties between
Peruvian and EU companies by organising an interesting program for companies
who accompany us (e.g. match-making events, discussions with investment
agencies, etc.).

–  initiate, with the Government representatives at high level,
discussions on monitoring the Memoranda of Understanding signed by
Vice-President Tajani during his January 2013 Mission.

Moreover,
from 2nd to 5th December 2013, the Government of Peru will host the 15th
session of the General Conference of the United Nations Industrial Development
Organization (UNIDO) in Lima. The mission therefore intend to participate at
this very important event.

Key
industrial sectors to target during this visit should be Machine
tools/industrial machinery; Key enabling technologies; Construction and
engineering; Mining and raw materials; Consumer goods; Tourism.

Expressions
of interest for the Mission can be made on:

http://ec.europa.eu/enterprise/initiatives/mission-growth/missions-for-growth/index_en.htm

This B2B
Mission will target numerous industry sectors; however, innovative and
environmental technologies will be crucial topics on the agenda since the
Mission will be organised in conjunction with the Water Technology &
Environment Control Exhibition and Conference in Tel Aviv 22-24 October 2013
(www.watec-israel.com).  The delegation
will be led by EU Vice-President Antonio Tajani.

The
Mission has the objectives to help Maltese and other European SME companies to
operate in Israel by participating in matchmaking events with local
entrepreneurs.   The main industrial
focus will be on the following sectors:

Environmental technologies: water management, water treatment,
soil management, renewable energy, including solar panels, etc.;

Key Enabling Technologies, machinery and machine tools, ICT;

Raw Materials;

Space Technologies;

Homeland Security;

Processed Agricultural Products (PAPs);

Fashion & High-end industry;

Automotive
Industry;

Venture Capital.

Applications
from

SMEs to join the Vice President's delegation will be accepted until 30
August 2013. Early applications will increase your chances to become part of
the Vice-President's official delegation.

Citizens of the
EU do not need a Visa to enter Israel; however a passport valid for a minimum
of six months from the date of entry is required.

Il-GRTU Malta
Chamber of SMEs ilha tishaq is-snin li kull meta jitfassalu jew jinbiddlu
il-pjanijiet ta' Progetti Pubblici in-negozji fil-Lokalita' ghandhom ikunu
ikkonsultati. Il-GRTU insistiet biex fl-Att dwar in-Negozji Zghar (Small
Business Act) jidhol specifikament id-dritt tan-negozji li jinsistu fuq il-kejl
tal-impatt ekonomiku fuq in-negozji taghhom f'kull decizjoni tal-Awtoritajiet
Pubblici li taffetwa l-andament tan-negozji taghhom.

Is-sidien tan-negozji ma
jircievu assistenza, sussidju u kumpens m'ghand hadd, hlief f'kazijiet
eccezzjonali, u kull meta jinghalqu t-toroq, isiru ix-xogholijiet, jinbiddlu
il-pjanijiet ta' Progetti, jew jintilfu il-postijiet ta' parking, it-telf  ta' negozju ibatuh huma. Il-GRTU kitbet
lill-Gvern fejn ghamlet accenn partikolari ghall-bidliet fil-pjanijiet dwar
il-progett tal-Belt, l-eghluq hesrem tal-Family Park f'Marsascala u il-waqfien
tat-Time Managed Parking Scheme fin-Naxxar.

Is-Sidien
tan-negozji tal-Belt ilhom isofru ghal zmien twil hekk kif kien miexi
il-progett kbir tad-dahla tal-Belt u kienu qed jittamaw illi flok ir-ritmu
tax-xoghol jitnaqqas, ir-ritmu jigi mghaggel aktar, halli il-progett jitlesta
kemm jista jkun malajr, inkluzi ukoll ix-xogholijiet fil-kumpless kummercjali
tas-City Gate Arcades. Is-sitwazzjoni illum hija li issa gie imhabbar bla ebda
konsultazzjoni li t-tmiem tal-progett ser jiggebbed b'sena ohra u dan ifisser
li d-dannu li qed isofru in-negozji ser jibqa jiggebbed. Ir-rizultat ser ikun
illi aktar negozji fil-Belt jiddeciedu li jcekknu l-operat kummercjali taghhom
biex inaqqsu l-ispejjez u dan sfortunatament dan ifisser telf ta' impjiegi.

Id-decizjoni
li jinghalaq fl-aqwa tas-sajf il-Park tal-Familja f'Marsascala hi decizjoni
b'impatte negattiv fuq hafna negzoji. Dan hu progett li kien qed issir dejjem
aktar popolari ma' hafna familji Maltin, b'impatt pozittiv fuq hafna negozji
fil-madwar. Issa id-decizjoni ta' waqfien hesrem qed ikollha impatt negattiv
fuq hafna negozji u hwienet f'Marsascala. Din ukoll hi decizjoni li b'konsultazzjoni
setghet ittiehdet mod iehor u zgur li l-impatt ekonomiku fuq in-negozji ma giex
imkejjel.

Fil-kaz
tat-Time Managed Parking Scheme tan-Naxxar ukoll gew milquta hazin in-negozji
fil-lokalita'. Il-GRTU hija l-Ghaqda Nazzjonali b'rapprezentanza diretta f'kull
Lokalita' u tahdem mal-Kunsilli Lokali kollha u mal-Malta Transport biex
tinstab soluzzjoni, lokalita' b'lokalita', biex fl-ispazji limitati ta' parking
fiz-zoni kummercjali ma jkunux ikkapparati l-gurnata kollha tant li jaghmluha
impossibbli jew difficli li xerrejja jiefqu, jipparkjaw ghall-zmien qasir u
jinqdew bin-negozji. Il-GRTU issostni li hwienet u negozji ohra huma ta'
servizz kbir fil-komunita' u hu ghalhekk li tinsisti li jkun hemm koperazzjoni
bejn il-partijiet kollha u ma jittiehdux decizjonijiet hesrem u bla
konsultazzjoni mar-rapprezentanti tan-negozji fil-komunita'.

Il-GRTU
tappella lill-Awtoritajiet kollha u lill-Kunsilli Lokali biex ma jinsew qatt
l-obbligu taghhom li jkejlu l-impatt ekonomiku fuq in-negozji fil-komunita' tad-decizjonijiet
kollha li jaffetwawhom u li jzommu miftuh il-process kontinwu ta'
konsultazzjoni li jaffetwaw lin-negozji.

GRTU Malta Chamber of SMEs was very
satisfied with the meeting held last Wednesday with important leaders from the
new administration. GRTU was given the opportunity to voice its concerns and
proposals on various issues, many of which, we were assured directly by the
Ministers concerned, have already started to be tackled.

The general feeling
was that the Prime Minister and his Ministers understood and appreciated the
views presented and therefore we are confident that the outcome was a positive
one. GRTU officials will now follow up on the implementation.

This was the first formal
meeting with the Prime Minister since the change in administration; in the run
up to this important meeting GRTU has however met the Ministers, Parliamentary
Secretaries and the Principal Permanent Secretary individually. Last Wednesday
the GRTU Executive Council and top officials met not only with the Hon Prime
Minister Joseph Muscat but also the Minister for the Economy, Investment and
Small Business Hon Chris Cardona, the Minister for Sustainable Development, the
Environment and Climate change Hon Leo Brincat, the Minister for Energy and the
Conservation of Water Hon Konrad Mizzi, the Minister for Finance Hon Edward
Scicluna, Parliamentay Secretary for Competitiveness and Economic Growth Dr
Edward Scicluna  and Chief of Staff Keith
Schembri.

GRTU's
Introduction

GRTU's introduction was made
by President Paul Abela who thanked the Prime Minister for this opportunity. He
stated that today GRTU has a wide range of experience and the administration
appreciates the valid input GRTU gives. Mr Abela called on the Prime Minister
to generate more work in the Localities and incentivize the use of empty
buildings. He also called on the implementation of the Small Business Act
principles to the full benefit of SMEs, especially because the public service
still has a very negative attitude towards the private sector. He reminded the
Prime Minister and members of the Cabinet that 98% of Maltese enterprises are
micro and small and together employ 77% of the workforce. Mr Abela said the
GRTU believes in the Prime Minister's personal enthusiasm towards SMEs and
therefore he appealed to the Prime Minister to change this mentality and that
GRTU will be right behind him to do that.

Mr Abela also expressed his
concern on the current developments which picture employers as abusers of
employment regulations. He appealed to the Prime Minister not to allow negative
campaigns and ones which create uncertainty. Everyone is very concerned with the
influx of illegal immigrants coming to Malta, but there is another influx that
should also concern us, the numbers of qualified Europeans coming to Malta to
seek jobs. In the sectors GRTU represents there are more job vacancies than
individuals with the right set of skills and qualifications wanting to work in
these jobs. There is an enormous skills mismatch that needs to be addressed.
This is why GRTU has been arguing for the setting up of Sectoral Skills
Councils.

There is also the problem of
the budget deficit and GRTU asked MCESD to convene with urgency and discuss the
European Commission report on Malta. MCESD unfortunately seems not to be seeing
this urgency and we feel it has not yet started working properly. There are
also very important Boards such as the Employment Relations Board which have
not yet resumed. It is important that the institutions are driven by capable
individuals that see the sense of urgency. Mr Abela's final remarks were that
there is a lot that needs to be done and GRTU intends to support the Government
throughout. GRTU is not afraid of the challenges that lie ahead.

The
Prime Minister's reaction

The Prime Minister thanked
President Paul Abela and he explained that he asked a number of members of the
Cabinet to be present in order to better tackle the issues GRTU presents. Hon
Muscat stated that he himself has not been the biggest fan of the
administration and agrees that the public sector those not really appreciate or
understand the private sector. He stated that the public sector is however
gradually changing its culture, attitude and mentality however they are still
afraid of change and innovation. The Prime Minister mentioned that the
Commissioner for Bureaucracy has been appointed also to have one single point
where to direct also suggestions and ideas. Dr Muscat re-emphasised that at no
time will he be defending the status-quo but he will be aggressively and
continuously attempting to introduce positive changes.

The Prime Minister described
the first Budget of this Government as an important element that will see the
increased engagement of the Private sector. Work on the Budget has already
started and they envisage that it will be in the form of a green paper,
something more practical and short. He also referred to the issue of the high
electricity and water tariffs and the water project that is being studied to
reduce these tariffs which should have a positive effect on consumers and
business owners.

On the issue of skills
mismatch the Prime Minister stated that we have vacancies but we also have
jobless which underlines this problem. Many vacancies are being filled by
foreigners. We need to help our youngsters build careers where it is required.
The Government has started working on guiding youngsters better. Hon Muscat also
mentioned the introduction of an employability index which will help guide
youngsters without denying them any opportunity of studying what they want.
Vocational Training will also be tackled through the youth guarantee. The
Government is looking at best practices from Germany and Austria.

On working conditions the
Prime Minister said further discussions with the GRTU are needed. He said that
the reality is that the majority of employers are law abiding and therefore the
Government does not want them to be at a disadvantage and suffer unfair
competition. Government wants a level playing field both when it comes to
industrial relations and unfair competition in tendering for example or other
abuses. This, the Prime Minister stated, included having everyone paying
eco-tax. Dr Muscat said the Government knew about the abuses that were taking
place and was looking into a solution that abided with the EU law of free
movement in the single market.

The
issues

GRTU's  Director General Vincent Farrugia presented
the Prime Minister with a Dossier of issues which were very important for GRTU
and on which immediate Government action was required . GRTU officials went on
to present the issues that are very important for GRTU members:

Crafts

GRTU said that the Crafts Village
is in a bad state. Many operators that used to work on genuine crafts have been
abandoned and neglected for many many years and have gradually left the
village. Thanks to the efforts of GRTU the operators within the crafts village
have once again become united within GRTU and an MOU was signed however we have
heard nothing since the change of Government. GRTU called on the Government to
help the crafts sector as it was very difficult for them to operate
sustainably. The Government stated that Ta` Qali is a priority but they need a
bit more time to find the best solution, we will start seeing tangible work on
the project by next year. The Government is now tapping EU funds for the
village. The aim is very simple, that of having a crafts village like all other
EU countries.

Audits
on micro companies

GRTU complained that micro
companies should not be required to submit yearly audits. It is a very large
administrative burden and cost on micro businesses and should Government do
away with such a requirement it would show a clear commitment to eradicating
excessive bureaucracy. The Government said it is working on this.

Contraband
Diesel

GRTU said that sale of fuel
has been reduced and we feel the main reason for this is due to contraband
fuels. There are ways to check this and track the source but raids are being
carried out in the wrong places, those that are already abiding by the law.
Government recognized that this is a problem and in fact they have         already found some sources and action
has been taken. More in this regard is planned. Any abuses in this area should
be reported directly to Minister Konrad Mizzi.

Port
Operations

Following GRTU's insistence
operations at the port are smoother however operators still have a lot of
problems with the CITIS office that opens just twice a week for few hours which
delays clearance. GRTU is also calling for Government to introduce a single
pass for operators to be able to go through all port facilities. Currently each
area or facility requires a different paper or pass.

Industrial
areas under Malta Enterprise

GRTU explained how difficult
it is for many SMEs to be awarded a large space from Malta Enterprise within
the industrial areas which they need for their work. Government said that the
law will be changed shortly as currently the guidelines are old and the
realities of the private sector today are very different and many sectors today
fall outside this scope. In addition Government said that industrial areas
falling under Malta Enterprise will have changes within that area falling under
the competence of Malta Enterprise and involve MEPA to a much lesser extent.

Water
consumption

There are a number of private
sector operators that are high consumers of water, amongst which are laundries.
These should be helped to reduce such consumption through schemes encouraging
change in machinery and other projects. Government said that a consultation is
currently underway and invited GRTU to submit its comments. In addition to this
a meeting will also be held with the Minister concerned.

Parking

Parking is the cause of many
problems and lack of business in many localities. GRTU explained it is very
hard for business in the main localities as their customers and employees
complain of lack of parking, loading and unloading is very complicated, deliveries
are very time consuming and wardens are on the watch eager to give fines. GRTU
mentioned that something needs to be done in these localities and Valletta
especially with all the complications of the CVA, coloured and reserved parking
spaces. Government said it is currently looking into ways in which the CVA
could change as well as other solutions for parking issues in the locality, an
example that was mentioned was the 15 minute parking on double yellow lines
being introduced in the UK.

Tourism

The localities should be given
center stage on this issue. There is a lot the localities can offer to tourists
and having such a small country is the main reason why tourists should not be
concentrated in the main tourist localities. Incentives for alternative types
of lodging in other localities must be incentivized. The same principle goes to
more work and childcare facilities in the localities. This will give new energy
to our localities and alleviate traffic congestions. GRTU also mentioned that
we feel the need to have our voice within the MTA.

IT

GRTU said that the taxes on IT
equipment are very high and evasion is rampant. The system needs to be revised.
GRTU called on the e-commerce scheme to be relaunched, it was a very good
scheme which should be reopened. In addition many students studying IT do not
continue studying because they cannot afford it. The schemes available are very
good but they require you to fork out the funds in advance. Government agreed
that a grant scheme must be introduced that will help student study without the
need to take out a loan.

Student
cards

GRTU called on revamping the
system as it is not clear and carries a high liability for owners of the retail
outlets as they are directly responsible for sales their sales people make. The
2% charged on goods bought with the smart card is too high. Retailers which are
a big stakeholder are not represented in the board determining the system.
These should be revised.

VAT

GRTU complained on the way
inspections are carried out at POS. The system includes very high fines and for
every POS you have to apply separately to get an exemption, a complicated
process.

EU
funds

GRTU called on the launching
of employment and training schemes. These should be available constantly and
should not be bureaucratic so as to encourage employers to apply and be awarded
refunds. In addition all schemes should cater for handholding for applications
as many businesses fail over lack of paperwork or pictures.

Agriculture

Operators in the agriculture
sector need help. There are many issues that hamper them including the
administration of the pitkalija, incentives for investments and encouragement
of agriturism. Government said that it is currently working on an agriturism
policy and is welcoming feedback on the revision of the pitkalija.

Rent
law

GRTU explained that many
businesses that have been operational for years have suffered from this law. It
is an unjust law which disregards any payments made throughout the years, the
contract between the owners and the tenants, goodwill, etc… In 15 years nothing
will matter they will have to go out and give the keys back to the original
owners. This is a right they had and Government took from them.

Valletta
City Gate

GRTU called on Government to
take the city gate complex in hand and turn into something that merits such a
prominent position. The shops in city gate want something to be done, they want
to invest and have their mind at rest that their contract is a long standing
one. Government said it seeks to find a solution together with the shop owners.

GRTU requests early maximum
information on Budget 2014 Fiscal Strategy – During the MCESD meeting last Monday 22nd July
Director General Vincent Farrugia highlighted the importance that business
knows where Government is heading from now till October 15, 2013. That is the
date by which Government has to present to the EU Commission the Malta
Government draft Budget for 2014, incorporating new fiscal measures to meet the
new Budget Deficit targets.

No discussion has as yet been held at MCESD on
the most essential reports submitted by the EU Commission to the Maltese
Government incorporating preventive and corrective measures that Malta
Government is instructed to act upon, in reply to what the Malta Government had
presented to the EU Commission, under the Malta National Reform Programme and
the Stability and Convergence Plans. The Country Specific Recommendation to the
Malta Government are published as is published the 2013 Stability and
Convergence Programme Overview by the Commission.

GRTU expected these documents to be presented,
assessed in detail and recommendations made at MCESD level, so that the
Ministry of Finance will be in a position to draft Budget 2014 incorporating
what MCESD social partners propose. This discussion at MCESD had been formally
demanded by GRTU but unfortunately, rather than prioritising economic and
social issues as highlighted by the EU Commission, Malta's top priority agenda
of the new MCESD leadership for the last weeks was different and they preferred
to highlight other issues.

The situation now is that we are only ten weeks
away from the presentation of the first draft of Budget 2014 to the EU
Commission for approval. No Pre-Budget Document has been published in Malta
this year. Government has boldly stated that the Council of Ministers is
determined to put the Budget Deficit vs GDP ratio back to 2.7% by the end of
2014 to avoid further EU imposed punishment under the Excessive Budgetary
Procedure. Yet MCESD is completely absent. The pre-Budget in discussion still
in the air.

"Businesses enterprises cannot just plan in a
vacuum. They need to know as early as possible Malta's Government fiscal
proposals for 2014. It is important for businesses, large, medium, small and
micro to know as early as possible what measures and economic incentives
Government is launching to boost Government revenue, reduce public expenditure
and generate growth to GDP so that the targeted 2.7% deficit to GDP ratio can
be achieved. The sooner we know the better. Investment and generation of jobs
depend on future planning." Vince Farrugia emphasised at MCESD.

The EU's new chemical
requirements for toys, which are among the strictest requirements in the world,
have started to applied since 20th July 2013. 

Substances which are carcinogenic, mutagenic or toxic to reproduction as
well as 55 allergenic fragrances are now banned from use in toys, while
labelling is now required for 11 potential allergens.  Furthermore, strict limits apply for 19
so-called "heavy elements" (such as lead or barium).

The chemical provisions
which were applicable until now already included a large safety margin and
required that only safe toys were be placed on the market.  Nevertheless, the new requirements further
strengthen the high level of protection of children's safety in the EU.  European Commission Vice President Antonio
Tajani, Commissioner for Industry and Entrepreneurship, said: "Toy safety and
protection of children's health is one of the Commission's highest
priorities.  The Commission will continue
to follow up scientific developments to ensure that chemical requirements for
toys are swiftly adapted to scientific progress."

Up to €8.6 billion could be
saved by EU consumers by switching from their internet provider to one with
cheaper tariffs.  A new EU study
estimates that EU consumers could save, on aggregate, up to €8.6 billion per year
by switching their internet provider: The Staff Working Document published
yesterday examines consumer experience of Internet access and provision across
the EU.