Author: SME Chamber

There is no question of whether improvements in the safety standards of entertainment establishments across the islands are necessary or urgent.

The current scenario that we have on our hands today was created by a 

number of contributing factors emanating from the industry, the authorities and also, to a certain extent, the individuals that frequent these areas of entertainment.

Most of what we know today is no news but realization about the real underlying issues were brought about by an unfortunate incident that shook the country and placed everyone in a sudden state of urgency. The reactions have been immediate and in certain cases rash, but everyone needs to take his own responsibilities with regards to the current state of affairs. Pointing fingers will only cause further deterioration and will not contribute to the vision we collectively aspire to.

What is of paramount importance is that the areas that are mostly frequented by our youths are safe. But let us not fool ourselves into thinking that this starts and ends with stricter compliance on the establishments. The security issues that exist require a wider approach that necessitates that all the stakeholders work tightly together.

GRTU has brought the main parties together to initiate dialogue and consultation. This we believe will address both the immediate issues and also help us reach the medium to longer-term goals we should aspire for in the future.

The reality is that tourism is a main contributor to Malta’s GDP and while safety can never come second to anything, a sudden aggressive and blanket approach can harm the industry that is a main tourist attraction significantly.

The goal must never change but there are different ways how to get there. The quick and rash can be shortsighted.

In a dialogue session organized by GRTU with Minister for Home Affairs and National Security Carmelo Abela, the Minister stated that while we need to send a serious enforcement message on Paceville, to succeed all stakeholders involved including the private sector must act in unity.

This followed another meeting organized by the GRTU between the MTA and the private operators related to compliance issues and licensing.

From the sessions held it became evident that both the industry needed a better understanding of the laws they are subject to and how they can comply and also that the regulatory framework needs clarifying and strengthening.

Through these meetings, GRTU is enhancing the effectiveness of a platform which sees policy makers and the people that work on the ground, working together to understand each other’s realities and devise a way forward.

Underage youths

GRTU feels that Government has so far only tackled the easiest way out by drastically increasing the fine on the establishment when underage youths are found inside. GRTU once again believes that the responsibility must be a shared one.

From a regulatory aspect, the licensing regime is in need of an overhaul because, for instance, while underage youths cannot enter a nightclub, they can enter a bar as long as it doesn’t serve alcohol.

There is also an issue of controlling demand. A deterrent needs to be placed at both ends, not just on the establishments that are trying to keep underage youths out but also on the underage youths themselves that are trying to get in. Both need to have something at stake and made to carry the responsibility of their actions. This we believe will be much more effective.

Self-regulation

The industry has not been indifferent. The incident itself served as a wake-up call for many entrepreneurs in the leisure industry, lending to a new wave of self-regulation. Self-regulation does not mean doing away with neither regulation nor inspections but it focuses on empowering those that need to comply with the laws with the necessary knowledge, skills and resources to be successful in their daily business activity.

GRTU believes that, even though important, enforcement is both difficult and costly. A self-regulatory approach would lead to fewer requirements for enforcement and the industry and the authorities  would work closer together.

Upgrading security measures

GRTU is helping the industry explore new avenues that would help them in their compliance and minimize human involvement and error though the automation of systems. This would not only greatly help the industry in coping with the influx of people and being better able to control the numbers more effectively but also help the authorities with issues such as headcounts, etc…

• Chauffeur-Driven
• White Taxi Service
• Coaches (Unscheduled Bus Service)
• Cargo Hauliers
• Express Freight (such as Courier Delivery Service)
• Airfreight Forwarders
• (Essential) Goods Distributors (such as Gas, Milk, Bread)

1. Stronger consultation and planning to mitigate unnecessary burdens such as closing off periphery projects, widespread awareness of closures and diversion routes, and devising acceptable diversion routes for the duration of projects. 
2. Traffic has to be channeled to secondary roads to reduce clogging where possible. 
3. An ongoing stock-take of possible improvements and suggestions in various localities, including Paceville, Swieqi, San Gwann/Kappara, Qormi, Marsa, St Venera, Zebbug, Luqa.
4. Authorities that close roads need to communicate and coordinate together in practice. 
5. A Driver on Delivery Card similar to the Doctor on Call concept needs to be considered.
6. 24/7 Use of Roads and Off-Peak Times (Road works, landscaping works, waste collection and other)
7. Widespread Educational Campaign
8. Enforcement that ensures Loading bays are not left occupied, buses use the appropriate bus-stop stations and upgrading subways
9. Clearer understanding of the use of the newly installed Priority Lanes so as to ensure full usage by chauffeur-driven cars, white taxis, buses, coaches, motorcycles and even private vehicles carrying three or more passengers. 
10. Increase of Boarding / Loading Bays in key areas such as business hubs (Valletta, Sliema, Paola, B’Kara, etc.). 
11. Unused parking facilities and private parking facilities need to be put into use. It no longer makes sense to have development getting away with not planning adequate parking facilities. 
12. In view of the previously announced logistics hub concept, one may even consider organized local combined logistics as applicable. 
13. Incentivizing other methods of transportation rather than using one’s private vehicle needs to be taken from policy to action. This would include for instance increase of sea transport.
14. Smart Technology Systems would smart parking sensor to advise drivers if parking is available or not to avoid unnecessary traffic and time wasted looking for parking; adaptive traffic signals technology would improve efficiency. 
15. Encourage employers to invest in parking facilities and joint traffic solutions
16. The CVA system in Valletta has clearly failed and needs a complete overhaul. All stakeholders involved need to be brought together to steer a holistic revamp of the entire system to address the evident inefficiencies which are definitely not within the original spirit within which it was established. 

One of the biggest achievements of the organization during 2015 was the initiation of the abolition of Eco Contribution. After years of GRTU representation and complaining about the inadequacy of the law and its lack of logic, 2015 marked the year that started its abolition. GRTU has spearheaded this change and the journey was not an easy one as we faced 

significant impositions from Government due to the income Government derived from this contribution/tax. GRTU has been following the removal of this unjust tax very closely and there is an understanding that Eco-Contribution will be totally abolished in the coming years.

Another major win for the GRTU concerned its long standing crusade against excessive bank interest rates and charges. GRTU’s efforts have led to more affordable means of financing also through alternative sources that work independently of the banks as well as the Micro Guarantee scheme, another product that was developed by Malta Enterprise thanks to the efforts of the GRTU. 

Following insistence pressure by GRTU an investigation was carried by the MFSA as the regulator and the MCCAA as the competition authority that confirmed what GRTU has been arguing against for many years. The investigation focused on the bank’s level of profits, risk rating policies, financial literacy, interest rates and charges.

In 2015 GRTU has won EU funds to the tune of Eur 90,000.00, concluding its first ever European Social Funds project. The funds gave GRTU the opportunity to carry out a vast number of activities and reach beyond its usual capacity, increasing the exposure of the organization.

Thanks to this financing GRTU held two very successful conferences, one related to helping SMEs in reaching their online potential and another related to learning about and implementing the Budget measures. GRTU’s work and what it stands for were showcased through audiovisual tools, write-ups in popular magazines as well as tailor made publications. In addition GRTU also developed its first guidebook and online learning facility.

2015 was also a year were Government started taking concrete action against unfair competition. What has been achieved this year is far from being enough however it constituted an important first step because through intense pressure placed by the GRTU, Government’s policy shifted from one where it was arguing that goods coming from Sicily should be treated in the same manner as those coming from Gozo to one that involved a stronger regulatory framework and a degree of enforcement.

In addition, following GRTU’s campaign against the sporadic licensing of ‘occasional sellers’ Government abolished the exemption threshold of Eur 7,000. This will place the authorities in a position to be able to carry out checks that were impossible with the exemption.

GRTU’s sections have also been very active during 2015 and one of the most active and dynamic sections was the Renewable Energy Section. GRTU has successfully reached an agreement with Government in relation to the allocation of land for PV investments by the private sector. This will help Malta reach its EU 2020 targets and will help the sector through the supply of additional work that is not related to the schemes issued by Government. GRTU will be coordinating the project through a Public Private Partnership.

Apart from working relentlessly for the betterment of its members GRTU has also worked to improve the organization itself. In 2015 GRTU was awarded the Equality Mark by the National Council for the Promotion of Equality. This award is testament that GRTU is an equal opportunities employer and that its employment and working practices are gender neutral and fair.

The application process involved the development of an equality and sexual harassment policy, appointing an employee as an equality representative and implementing family friendly measures and work life balance options.

GRTU has this year also returned to printed media through its collaboration with the business journal – The Executive. This helped GRTU in widening its reach through an already established distribution network and a professional publication. The feedback received on the publication is very positive.

The GRTU Executive Council took the bold decision to relocate its headquarters, for the first time placing the GRTU in a position of directly owning the property it operates from. This we believe will drastically increase the value of the organization.

The private sector’s role to raise standards in Paceville is pivotal

“We need to send a serious enforcement message on Paceville, but to succeed all stakeholders involved including the private sector must act in unity”, This was stated by Minister for Home Affairs and National Security Carmelo Abela during a meeting held with the Chamber for Small and Medium Enterprises in Malta on the issue of the amelioration of Paceville entertainment zone and surrounding areas.

The majority of entertainment operators in Malta and Gozo were present for the meeting including a high number of owners of establishments in Paceville. 

“Government is committed to see immediate improvements when it comes to the issue of safety and security in Paceville”, Hon Abela told those present. He noted Government is currently reviewing regulations that permit a stronger regulatory framework marking clearer responsibilities, for enforcement in the area of health and safety. The increase of fines as a deterrent which is currently under review was also discussed. 

GRTU Tourism President Philip Fenech said that GRTU was working closely with private operators to raise standards in the sector. “Together with the authorities we are taking a constructive approach and making advancements” said Mr Fenech. He noted that through these meetings, GRTU was enhancing the effectiveness of a platform which sees policy makers and the people that work on the ground, working together to understand each other’s realities and devise a way forward.

The private operators raised a number of concerns that they encounter. Amongst the challenges mentioned were the anomalies in the licensing regime and the difficulties with fake and stolen Identity Cards. Others remarked the unlevel playing field created by one off events and by some establishments that are utilised for entertainment purposes but fall within a different licensing category. The need to strengthen the training of a number of security personnel was also pinpointed. 

GRTU stated that this meeting followed the one held recently with the Malta Tourism Authority related to licensing and compliance. In this meeting, they were represented by Tourism President Philip Fenech and CEO Abigail Psaila Mamo. Accompanying the Minister for Home Affairs and National Security Carmelo Abela was Mr Joe Bonello, Policy Advisor 

1. Micro Investment of a maximum tax credit of €50,000 over a three-year period, naturally subject to Malta Enterprise’s terms and conditions;
2. Legal and Accountancy advisory services up to €2,500 over a five-year period;
3. Assistance for Arbitration sittings;
4. Education and training for owners and their employees of up to €1,000 annually per family business;
5. The positive consideration of lease renewals occupying government premises;
6. Loan guarantees of up to €500,000 per business for the purpose of acquiring the business or parts thereof;
7. When a registered family business is occupying industrial government premises or land on lease or emphyteusis (cens) and subject to the business satisfying all the conditions of the tenancy agreement that has lapsed, the Regulator shall recommend to the Malta Enterprise and/or Malta Industrial Parks to renew the tenancy. 

1. Duty on Documents on immovable property being transferred between family members of a family busiess shall be chargeable on the first €500,000 of the value of the property transferred at the advantageous rate of 3.5% or part thereof;
2. In the case of Duty on Documents payable on the transfer of shares of a family owned company between family members, or interests in a partnership, trust or foundation, no duty will be chargeable on account of the first €150,000 of the value of the shares or interests in a partnership, trust or foundation transferred.