Category: Archive – 2010

GRTU this morning attended to the MEUSAC Core Group meeting, of which it is a member. A presentation of the 1st Water Catchment Plan for Malta was delivered by Ms Yvette Rizzo at MEPA.

She explained that the Water Catchment Managment Plan (WCMP) stems from the Water Framework Directive (WFD). WCMP closes the first fase of the WFD and reports on the implementation, it also opens second fase of WFD.

WCMP for Malta is applied as a River Basin Managment Plant. WCMP is developed by MRA for ground water and by MEPA for coasts, ghadajjar, etc… It covers all types of water and imposes a minimum level of protection that must be reached by authorities. It also establishes the good status that needs to be reached and indicators to be checked and by which Government has to abide. It also offers exemptions where there would be disappropriate meausres needed compared to the objectives of the Directive. It transpired that Malta has applied for such exemptions in various areas. It was expalined that even though Govenment is taking action to ensure no further environmental deterioration takes place it is impossible to reach the set target till the 2015 deadline as the environment needs more time to go through the process naturally.

The WCMP deals with coast water, ground water, etc. The studies carried out on them are explained and their state and the action that will be taken is also outlined.

Please contact GRTU for a copy of the document and presentation.

Following complaints made by the GRTU regarding problems encountered with the introduction of the new software system used for processing of customs declarations. GRTU received the below clarification from customs:

We realise that there regrettably were, and to an extent still exist,  problems with the implementation of the new system and we are working hard to overcome these last errors and to provide a platform for the Maltese traders themselves and for customs agents to enable them to compete to offer their services to any registered trader in the EU.

It should be noted that we had in fact sent notices to trader associations (including the GRTU) and also directly to all registered users of the system several days before the start of operations to inform them of the prospected three day deployment shutdown. Also we had some weeks ago published on our portal downloadable details of all the changes that were to be implemented together with manuals for using the export and import systems.

To explain a little; we needed to enhance our applications for several reasons, to come in line with the latest EU directives regarding data harmonization and information exchange, to upgrade our system to take note and correct the weaknesses in the original design and business workflow that had been identified both by ourselves and the trade, and to provide new features that benefit traders by making our system more ‘open' for goods exiting or entering the European union. Among other things the latest system makes available to authorised declarants the possibility to declare simplified or incomplete declarations, to submit declarations from their own proprietary systems and to print out the declaration in the standard SAD format. The systems also utilises the full EORi database of European traders, so the local representatives may make customs declarations on behalf of any EU trader registered with customs in any member state (obviously subject to certain legal constraints).

All these were very complex tasks and the there have been some hiccups along the way which we are doing our best to overcome, and we believe that within the next few days we will have a system running all involved can be satisfied with. Where there are problems we are always there to help traders to process their declarations as quickly as possible to avoid delays.

We will keep members informed when we have more information.

Estonia is one other small EU country where SMEs are striving hard to win the battle against the economic recession and surge ahead in the development of new business opportunities.

The President of our counterpart in Estonia – EVEA – The Estonian National Association of SMEs, Martina Kaas, and member of UEAPME will be meeting interested businesses at GRTU on June 30th at 15.00. President Marina Kaas will meet all who are interested in Estonia.

If you are interested in developing or establishing new business with Estonia please let us know by return so we can ensure you have a networking appointment.

Fl-Ahhar laqgha li l-GRTU kellha mal-membri taghha fin-Naxxar, gie deciz li jinhatar Kumitat sabiex jirraprezenthom fil-laqghat mall-Gvern u Awtoritajiet ohra koncernati. Waqt din il-laqgha, Michael Galea, Vici-President Lokalitajiet informa lil dawk prezenti li l-GRTU ghan nom tas-sidien baghtet l-objection lill-MEPA dwar dan il-progett.

Il-MEPA permezz ta' korrispondenza infurmat lill-GRTU li ser tkun involuta u infurmata b'kull process dwar din l-applikazzjoni. 

Michael Galea flimkien ma Dr Martin Fenech qablu li jigi iffurmat Kumitat apposta sabiex ikun jista` jirraprezenta` lis-sidien. Il-Kumitat jkun kompost  minn rapprezentant tal-GRTU flimkien mal-avukat u zewg rapprezentanti min naha tal-hwienet skond ic-cirkostanzi. Rapprezentanza ghan nom tar-residenzi issir apparti minn Dr Martin Fenech.

Giet diskussa ukoll il-korrispondenza li l-GRTU baghtet lill-Planning and Priorities Coordination Division (PPCD). Il-PPCD infurmat lill-GRTU li l-korrispondenza kienet ser tigi ipprezentata lill-bord li hu inkarigat min dawn il-progetti sabiex tingibed l-attenzjoni qabel ma jsiru aktar zviluppi dwar din l-applikazzjoni.

Michael Galea talab lis-sidien li jekk ghandhom xi proposti li jistghu jkunu validi ghal waqt id-diskussjonijiet iressquhom ghad-diskussjoni sabiex wara tigi diterminata strategija ta' kif ghandhom jimxu l-laqghat.

Fost id-diversi proposti li saru nsibu:

• Li l-GRTU titlob laqgha mal-Onorevoli Dr Chris Said u ohra mal-Onorevoli Jason Azzopardi wara laqgha li kienet ga skjedada mas-sidien, giet ikkancellata minghajr l-ebda raguni.

Din il-laqgha saret fis-16 ta' Gunju fl-Ufficcju ta' Dr Chris Said u kienet laqgha kordjali hafna fejn l-GRTU ghan nom tas-sidien ipprezentat it-thassib taghhom dwar dan il-progett. Dr Said ha nota ta' dan kollu li ighidnilu flimkien mall-korrispondenza li ghaddiet bejn il-GRTU u l-Ministeru. Dr Said ser jorganizza laqgha mall-Kunsill Lokali tan-Naxxar fejn wara jerga jiltaqa' maghna sabiex inkomplu niddiskutu.

GRTU is extremely concerned at the poor communications between Government and GRTU, as the National Chamber of SMEs, on what exactly is happening on the implementation of this important tool for support of SMEs.

Through UEAPME GRTU is participating in the mid-term review being conducted as part of UEAPME Enterprise Policy that aims to take stock of progress achieved in all Member States and by the Commission on the implementation of the Small Business Act (SBA). The exercise should lead to possible new actions that need to be introduced in the light of economic and social developments occurring in the current recessionary period. The exercise also tries to identify actions that need to be taken to meet clearly identifiable future challenges. GRTU leaders are insisting with the Permanent Secretary at the Ministry for Finance, the Economy and Investment to raise this matter to the highest level of Enterprise Policy in Malta and to include GRTU in the working Committee on SBA, as so far this Committee has been composed 100% of bureaucrats.

GRTU is extremely concerned that in spite of all our efforts and meetings with the Prime Minister, too many issues vital for SMEs in Malta, especially small and micro businesses, remain pending, months on end. "Really, what's going on with this government? It can't be that there's time to plan a White Rocks dream project and no time to conclude bread and butter issues effecting small businesses" comments Vince Farrugia after a high level meeting with Alfred Camilleri Permanent Secretary at the Ministry of Finance, the Economy and Investment. GRTU considers Mr Camilleri as the most effective Top Civil Servant and turns to him to get things done.

ECO Tax Exemption

Top of the agenda was the never ending saga of the implementation of the Exemption Orders from Payment of ECO Contribution for traders who are now registered with Waste Compliance Schemes. In the case of Green MT, managed by GRTU, Green MT has successfully collected and recovered more than 70% of the volume of packaging waste placed on the waste stream by Green MT members, and each member is now entitled for an exemption from paying ECO Tax. Instead of facing realities however, the Controller of EcoTax is forcing juridical action on all who do not pay even though they now pay for the collection of the waste to the Compliance Scheme. GRTU was once again promised an early solution. "For us early means today" emphasized Vince Farrugia.

Currently GRTU members in the waste logistics sector have not been paid for collection of recyclables since January 2010.

Micro Credit for SMEs

GRTU couldn't not discuss with Alfred Camilleri the endless delay in the implementation of the Micro Credit Scheme promised in the last Budget. Micro Finance has been in discussion for years. In the recent past, intelligent schemes were being operated such as the one after 1996 when an excellent Bank Guarantee Support Scheme was introduced by Government to help firms meet the impossible problems caused by the removal of the old Levies` protective mechanism, behind which many local enterprises depended. "We want a similar scheme to get SMEs moving. Micro Credit and Micro Financing Schemes cannot be left pending. All the talk about how important smaller SMEs are mean nothing if decisive action is not taken now" emphasised Vince Farrugia with Alfred Camilleri. "We cannot start talking about new proposals for Budget 2011 unless what was promised in Budget 2010 is implemented without further delay". A program of action was agreed with Alfred Camilleri and GRTU now expects progress in the next few weeks.

While at the UEAPME Administration Council meeting in Vienna discussing Access of SMEs in Localities and Regions to EU Funds and Financing Programmes, following the address by Commissioner Johannes Hahn, Vince Farrugia Director General GRTU, raised the issue of the low level of funds reaching business in the localities to help them finance trade missions and marketing in the rest of the Internal Market and on Internationalisation.

"Last year Commissioner Kroes told us in an answer to my question that 95% of State Aid in all of the EU goes to large businesses and not to SMEs, who represent 98% of all enterprises in the EU. Now the recession has thought many businesses who are traditionally depended on local markets to look elsewhere but if we look at the Internal Market we still find burdens that the Commission is not successfully overcoming.

Indeed the Monti Report on the Development of the Internal market is an exercise that leads from somewhere to nowhere and leaves much to be desired. Businesses in the localities want action to enable them to really enjoy the benefits of the large internal market. There is tremendous potential for internationalisation. I speak with my experience of leading business delegations seeking new opportunities in countries outside the EU. The money spent on supporting SMEs to find new markets is money well spent but we need more funds and we need to improve accessibility to funds and support through mentoring to help firms acquire the skills needed to expand and reach out to new markets" explained Vince Farrugia on behalf of SMEs in the Regions and Localities.

Training Aid Framework (TAF)

The Training Aid Framework (TAF) is a financial instrument that can be utilised by SMEs (self-employed businesses or with one or more employees) to partly finance staff training costs. Applicants are required to complete applications at least three weeks before the commencement of the training programme.

The eligible training can be classified as following:

General Training – Involves tuition that is not only applicable to the employee's present and/or future position within the company but can also contribute to the qualifications obtained being transferable to other companies or fields of work.

Specific Training – Involves tuition that is directly applicable to an employee's present or future position in the company and providing qualifications that are transferable to other firms or fields of work.

The objective of the TAF is to support the private sector so as to address the challenges for firms to maintain their competitive streak within the global economy through the financing of the training of employees, with a view to achieve higher productivity and enhance adaptability.

The TAF provides training towards the fostering of a lifelong learning culture in the private sector. This is financed through the European Social Fund under the European Union's 2007-013 Cohesion Policy.

Areas that may be funded

Trainers' Personnel Costs

Training can be either carried out by external or inhouse trainers. In the case of external trainers, the costs will be on the basis of rates charged by the trainer whilst costs of inhouse training will be calculated by multiplying the hourly rate by the duration of the course.

Trainers' and Trainees' Travel Expenses

Travel Expenses are eligible when the training is held in a foreign country other than that of employment.

Ineligible Travel expenses:

Commuting from place of accommodation to training venue and vice versa;

Taxi fares

Consultancy services

Costs incurred in relation to guidance and business advice related to the training project. Service provider shall not be an employee of the Applicant claiming aid and is to be qualified in the area in which guidance and consultancy services are being sought.

The eligible cost for guidance and counselling-services fees cannot exceed 50% (up to a limit of €2,500) of the actual cost incurred.

Personnel costs relating to the employee

Costs related to wages paid (including NI contributions) to the participating employee throughout the duration of the training programme. The amount budgeted for personnel costs cannot exceed the total amount of the other eligible costs.

Ineligible Costs

Taxes:

VAT and all other taxes must be quoted separately by service providers. It is important to note that VAT is not an eligible cost.

Co-financing

The co-financing rate is dependent on the nature of training being given and the size of the undertaking.

Maximum & Minimum Grants

Maximum Grant

Each trainee may be allocated a maximum grant of €4,000 per annum. The ceiling may increase up to €10,000 should the training programme lead to an MQC (EQF) level 5 standard or higher. Individual companies may receive up to a grant of €250,000 per year.

Minimum Eligible Grant

The total eligible minimum cost per TAF application should be of €350. As an exception, beneficiaries categorised as a Micro Enterprise or a non-governmental organisation (NGO) registered as required by law and that carries out an economic activity for the purpose of Article 107(1) of the Treaty on the Functioning of the European Union (TFEU) may be eligible for higher grant levels.

Selection and Payment Process

The selection process is administered by a Selection Committee within the Training Services Division at ETC. Unsuccessful applicants will receive a letter from the Corporation informing them of the decision along with reason/s for refusal. Unsuccessful applicants may appeal against the decision taken by the TAF Selection

Committee, by submitting an appeal in writing within fifteen (15) days of issue of the refusal letter.

SMEs must pay the total costs from their own budget pending reimbursement.

Once the operation has been successfully completed, the applicant organisation is to present the necessary documentation to the TAF Unit in order to obtain the grant/s. The undertaking benefiting under the TAF is to keep all operation related Documentation for audit purposes until 2020.

From: Focus by MEUSAC

GRTU has written to Hon Jason Azzopardi Parliamentary Secretary for SMEs calling to revitalize the craft sector by revisiting laws and restarting measures. GRTU has done this as the national representative of craft at national, sectoral and EU level through our membership with UEAPME the European Association of Craft, Small and Medium-sized Enterprises.

Though there is no EU level definition of crafts we feel that it is high time that we reach a decision of how to define crafts within the local economic context. This is essential as we are committed to restart initiatives to help the craft sector.

We are not aware of any detailed and professional definition adopted by Maltese authorities. The only definition we are aware of is very simplistic. GRTU's definition in line with the general trend at EU is much wider:

Strong involvement of the owner or head of the enterprise in steps of the workflow (financial independence, strong personal responsibility)

Craft, technical and management competences (apprentices as one means of passing on those competences)

Active contribution to production of produce and services (in particular tailor-made and single-size products or in small quantities)

Proximity to the client and local activities

GRTU told Dr Azzopardi that traditionally the Ministry for Finance has looked at crafts as small firms and self-employed that produce traditional handy-crafts and we would like to move away from that idea to adopt a wider view. We include in our definition the schedule of crafts annexed to LN 158, 2001.

GRTU wants to restart an initiative where we revisit the situation of the crafts in Malta in line with the Commission's approach through this initiative we aim to:

increase the knowledge of the sector through studies, conferences, workshops and statistics

identify obstacles to the sustainable development of these enterprises and to prepare proposals to address them

enhance craft and small businesses' capacities for growth in the internal market, for instance through SME friendly European standards and better knowledge about them, through improved access to public procurement or through the promotion of innovation and research in micro- and craft businesses through cooperation, as well as

promote a more favourable business environment for craft and small enterprises through quality support services, better legal and fiscal environment, social protection of new entrepreneurs etc.

GRTU expressed its regret that there is no structured relationship between the Ministry, the Malta Crafts Council and GRTU as their representative. GRTU also offered our necessary support to organise this sector better.

We are convinced that Government is determined to support this large sector of mainly micro enterprises but unfortunately few if any in the sector feel that the message is coming through in a practical manner and with tangible results.

GRTU is awaiting a meeting to discuss the issue into more detail.