Category: Archive – 2011

Why did you become an entrepreneur? To be my own boss and nobody bothers me

How have you come to chose your line of business?Other than my family renewable energy is the love of my life, ever since I can remember as a kid I had an interest in energy generation and things of that sort. My mother has some interesting stories to tell!

Where did you go on your last holiday?

Australia and the thing that impressed me most was the ocean

What is your earliest memory?

We were in the car with my father and he was driving and was going to crash. I remember him very clearly saying to the man in the other car he was going to crash into "nigi u naqlghalek il-mustacci!!"

If you could chose to be someone famous who would you be?

Richard Branson- He is hard working, earns money and has a good life.

This week I participated in a number of meetings related to tourism where we discussed the success industry enjoyed throughout this year and also went into detail on how to face next year's challenges due to the economic turbulence that is around us.

As President of the GRTU hospitality and leisure division I emphasised the point that many a time the statistical contribution of tourism is calculated mainly through hotel and restaurant activity. The effect of tourism is however in reality so broad that it literally affects almost every economic sector, in Malta. An example for instance is, when a factory is producing food some of the goods go towards tourist consumption, this but does not show in our national figures as tourism consumption, so is the case for other economic activities as boutiques and other shops of giftware, etc.. A very interesting presentation of the overall situation in tourism was delivered by Hon Mario De Marco and his team at MTA in an MCESD meeting.

Another separate meeting was also held with Hon George Pullicino and Hon Mario De Marco together with various stakeholders in the area of Paceville. The discussion focused on the fact that Government would be embellishing the main area in Paceville, where a lot of private investment was occurring and the embellishment would actually support this investment. Another important aspect discussed was pedestrianisation of the centre of Paceville and other issues related to logistics of the works that would be carried out. I emphasised on the importance that in the period during which works are carried out, every business would still be able to operate due to the fact that it is a high cost area, with retailers paying very high rents and compliance costs together with the large numbers of staff that they employ. Paceville also provides services in general to the local and tourist community. I made it clear that for all these reasons we cannot afford for even one establishment to close of have his operations limited at any time during the works. For this reason each area for which work is to be carried out a plan should be clearly laid out so that every establishment will be accessible to the public for normal trading businesses.

The GRTU would like to thank Transport Malta for a fruitful presentation held at Transport Malta Offices on Tuesday 22nd November 2011 informing all concerned with the phasing and the traffic management for the Triq Dicembru 13 to Menqa Roundabout Marsa Ten T Project commencing shortly.

GRTU on behalf of all stakeholders concerned informed that it continues to support the projects being carried out but would like to bring to the attention of the Authority their concerns and what the GRTU is proposing on their behalf;

Road works in Triq Patri Felicjan Bilocca, Marsa

• GRTU requests Transport Malta to re-consider the decision to commence the imminent road works scheduled for the above road and postpone the commencement date by a month till Monday 26^th December 2011.
• The planned road works and restriction to one-way traffic will seriously impinge on the logistics of the three to four daily container and trailer loads servicing the business community.
• One must also take into consideration the concurrent exit on a daily basis of many heavy vehicles distributing goods to vari-

ous outlets around  Malta and Gozo with deadlines, many of which are perishable goods and need to be refrigerated immediately not to break the chill chain.

Due to the festive season ahead these retailers are also responsible for the delivery of thousands of pre-ordered Christmas hampers and during the coming month these are expecting thousands of customers who purchase pre-packed or customised Christmas hampers from their premises which is open on a daily basis, including weekends.

While GRTU as agreed during the meeting held on Tuesday 22nd November 2011 offered its full support once the project commences, it urged Transport Malta to take into consideration our concerns and that works will be postponed by one month as requested.

VAT Exemption Number Requirement for Points of Sale other than Cash Registers – Any retail operation that opts for a computer based or other touch screen style point of sale system needs to be in possession of an exemption number from the VAT Department.

It is not enough to have purchased the software or hardware which a trader utilizes in his retail outlet from the list of suppliers approved by the VAT Department. The system needs to be registered with the VAT Department which in turn will issue an exemption number. Such number moreover needs to be correctly indicated on the fiscal receipt being given to consumers.

VAT Inspectors are heavily enforcing this requirement and several retailers are being arraigned in court charged with having deficiencies in their systems, with fines starting from €700.00.

Moreover in the case of more than one outlet operated by the same Company or trader, a separate exemption number needs to be applied for related to each and every outlet.

It is every trader's responsibility to provide a valid fiscal receipt bearing an exemption number unless the receipt is issued by a regular cash register. In the event of any issues that a trader may have with his point of sale system or fiscal cash register, it is always advisable to have the manual VAT receipt books available at hand, not to get caught out.

Every trader and retailer needs to be aware of the exorbitant penalties being imposed by the Court of Magistrates in the event of any VAT related breach or default. Moreover Chapter 406 of the Laws of Malta (the VAT Act) makes it highly unlikely for a trader to justify any VAT shortcomings when arraigned in Court.

The GRTU advises all members to take the necessary measures immediately in the event of any allegations of breaches or shortcomings following VAT Inspections, by contacting the GRTU or otherwise seeking advice from respective legal advisers.

The GRTU has this week participated to a consultation session organised by MEUSAC on the multiannual financial framework (MFF) for the period 2014-2020 presented by the European Commission on 29 June and entitled "A Budget for Europe 2020", which will be decisive for the implementation of the Europe 2020 Strategy in general but also to determine the possibilities the European Institutions will have to support Crafts and SMEs in Europe.

The EU Budget exists to fund activities and projects of common interest to the Member States (MS) such as the Common Agricultural Policy (CAP), regional development, the environment, climate change etc… This also so EU action in these areas would be unified. The commitments are divided under a number of headings:

• Smart and inclusive growth
• Sustainable growth: Natural resources
• Security and citizenship

Global Europe

• Administration

The total commitment is of 1,025B, funds which are also targeted to help the MS meet the targets set out in the EU 2020 strategy.

GRTU's general assessment of the MFF proposal is that compared with the needs of the SME sector we find it quite positive:

• Orientation to support the Europe 2020 Strategy;
• More coherence between the different programmes;
• It includes a dedicated programme for SMEs (Competitiveness and SMEs);
• It Includes SMEs as a specific target group for regional policies supported by European Funds.

Furthermore, the proposal states that the access to all programmes relevant for SMEs should be facilitated by simplifying rules, reducing costs of participation, accelerating award procedures and providing a "one-stop-shop" to make life easier for beneficiaries of EU funding.

However, the real results from the MFF for Crafts and SMEs in Europe will strongly depend on the specific programmes, which will be elaborated on the base of the framework, and on their concrete implementation. Both will be decisive to assess how much SMEs will profit from the MFF.

The main aspects as regards these questions – which have to be followed-up carefully  are:

• How much money in the different budget lines will be really dedicated towards Crafts and SMEs?
• Will the promised simplification really facilitate the up-take of the programmes for smaller companies?
• Will the representative Craft and SME organisations be involve sufficiently in the elaboration of concrete programmes at all levels in the framework of good partnership governance, notably at regional level?
• Will the diversity of SMEs be taken into account when the programmes are designed and implemented

The Commission proposal in general goes in the right direction – it "ticks the right boxes", but there is still a long way to go to make these proposals a reality for our Crafts and SMEs.

The GRTU would like to inform its members BURDNARA that Transport Malta is at present  carrying out road works at Triq L'Iljun Marsa. A notice on the Government Gazette has been issued followed by various adverts published on local papers for Trailers not to park on the road. To date unfortunately GRTU is informed that trailers are still being parked there and Transport Malta is being forced to remove on a daily basis. It would be appreciated if trailers are not parked while works are being carried out especially now that  asphalt works will commence in the coming days.

This week GRTU's Director General and EESC Maltese Employers representative also participated to the working breakfast of the Employers' Group with Commissioner Kristalina Georgieva on Cooperation with European Businesses in Humanitarian Aid, Crisis Response and International Cooperation – 22 November 2011 at the EESC.

It was proposed to establish a link between the Employers' Group initiative on "Ethics" and the EU initiatives in the field and initiate a project of a Communication Platform between private sector and the Humanitarian Aid department of the European Commission (ECHO). There is much to be done to better match business innovation and creativity with new demands for humanitarian aids and urgent responses to more complex conflicts and sudden crises outbreaks in the EU and throughout the world.

Mr Farrugia had the opportunity to speak in detail about the work carried out by Malta during the Libya crisis. He emphasised the tremendous efforts made by Maltese entrepreneurs during the worst of the war to ensure that the Libyan people and the liberation forces continued to have the necessary supplies of medicines, surgical supplies, food and water in spite of the great dangers involved. Vince Farrugia highlighted the current problems as Libya faces the arduous task of establishing genuine democratic institutions during periods of harsh economic necessities and in the absence of all necessary expertise and institutional support. Vince Farrugia and Commissioner Georgieva agreed that GRTU would present to her a memorandum as to who are the entrepreneurs currently operating in Libya and with direct contact on the field with the true Libyan situation. Detailing how they perceive the situation and the specific needs that the Commissioner needs to address with urgency in Libya so that the situation is favourably developed in the spirit of democracy and solidarity.

"As we celebrate 20 years of structured social dialogue in Europe is it worth emphasising during this time of euro crisis that while the ship Europe hit the iceberg it did not go down, and will not go down as a result of the strong social dialogue fabric of which the European Union is made".

Vince Farrugia as delegate from UEAPME, the European Federation of SME's, was speaking in the first session of this Special Polish Presidency led initiative by the EU Commission to celebrate 2O years from the Amsterdam Pact establishing the concept of structured social dialogue agreements. Other delegates came from Business Europe, CEEP, ETUC and EuroCommerce among others.

"The widespread system of social dialogue agreements at European, National, regional, sectoral and company level has provided a large network of support that made it possible for the system not to collapse under the pressure of the financial markets due to the undisciplined disregard of politicians in a number of countries and of the EU Council's disregard of the terms, conditions and obligations of member states under the Stability and Growth Pact. It is important now, as the two main political leaders in Europe today deliberate on action to be taken to safeguard all that we achieved in these last 20 years, that we highlight again the importance of social dialogue in opposition to imposition and intervention in the domestic democratic choices in individual Member States by those who perceive themselves bigger and stronger in the democratic than the free choices of the peoples of Europe. Democracy and social dialogue are the distinctive features of the European model. Even in times of the crisis, indeed even more so, this has to be emphasised, as unfortunately  some people who ought to know better are today sounding as if the means justify the end. There are never any undemocratic means that are justified" warned Vince Farrugia, GRTU representative in the Board of Administration of UEAPME.

Il-GRTU twiddeb lill-Liquigas u lill-Gvern biex ma jcahhdux lill-konsumaturi minn sistema' tad-distribuzzjoni tal-gass li dejjem hadmet. – Is-Sistema' tad-distribuzzjoni tal-gass li ghandna f'pajjizna hi unika ghal Ewropa. M'hemmx Gvern iehor li impona fuq id-distributuri li jridu jqassmu c-cilindri tal-gass l-obbligu li jqassmu u jbieghu lil kull familja tghix fejn tghix, fil-widien, fuq l-gholjiet, fl-isqaqien, fit-toroq bit-turgien, u dan bla ebda hlas zejjed. Id-distributuri huma wkoll obbligati li jbieghu c-cilindri ta' kull fornitur, hemm kemm hemm suppliers fis-suq, dejjem skond l-ghazla tal-konsumatur. Il-kundizzjonijiet li l-Gvern ghabba fuq id-distributuri hi pacuta bil-patt li jkunu huma biss esklussivament li jqassmu c-cilindri.

Dan biex l-ispejjez ta' tqassim jinfirxu bejn fejn hemm ftit tbatija u fejn hemm hafna tbatija u d-distributuri jkun jfendu ukoll ghax id-distributuri huma obligati li jqassmu ta' kulhadd hemm kemm hemm fornituri ta' cilindri. Dan il-ftehim kien sar originarjament mal-Enemalta bl-approvazzjoni u l-firma tal-Ministru, u wara li spiccat mil-gass, l-Enemalta ghaddiet dan il-ftehim u r-rabta kuntrattwali ma' kull distributur lil Liquigas li xtrat l-operat minghand l-Enemalta. Huma gew, investew, imma wkoll accettaw il-kundizzjoni li jhaddmu s-sistema tad-distribuzzjoni bieb bieb li ilha stabbilita s-snin u li l-konsumatur imdorri biha.

Issa Liquigas jidher li ma jridux aktar jonoraw dan il-ftehim, meta sa Dicembru tas-sena l-ohra argumentaw li mhux biss id-distributuri kienu marbuta maghhom imma li ma riduhomx ibieghu c-cilindri ta' haddiehor. L-ufficju tal-Kummerc Gust f'Dicembru tas-sena l-ohra ddecieda li l-obbligu tad-distributuri hu li jqassmu lil kullhadd u ta' kullhadd. Issa Liquigas jridu jkissru s-sistema li qdiet lil Maltin ghal tant snin u jridu bilfors idahhlu s-sistema taghhom b'kompetizzjoni diretta ma' l-istess distributuri li huma fil-fatt l-agenti taghhom stess u bil-kuntratt l-agenti ta' Liquigas stess. Dan qed isir f'attentat bla sens li Liquigas tahtaf  l-ftit profitti li jaghmlu d-distributuri.

Il-GRTU qed tigbed l-attenzjoni tal-pubbliku li dak li qed tipproponi l-Liquigas mhux gust u se johloq hafna inkwiet bla bzonn u hu ta hsara mhux biss ghad-distributuri u l-familji taghhom u ghal impjegati taghhon imma wkoll ta' hsara ghal konsumaturi. L-ewwelnett mhux gust li l-Liquigas qed taqbad u tinjora l-ftehim li wirtet minghand l-Enemalta fejn li kienet taf bih. It-tieni mhux vera li Liquigas ghandha licenzja li tista' taghmel biha trid inkluzi li tikkompeti direttament mad-distributuri fid-distretti taghhom. Dik il-licenzja hi l-istess bhal ma kellha Enemalta u hi licenzja li hi legalment sabrogata lid-distributuri. Din bhal dak li ghandu hanut u krieh lil haddiehor. Issa s-sid ma jistax x'hin ifettillu jaqbad u jmur imexxi n-negozju hu meta jkun krieh avolja tieghu.

Il-Ministru George Pullicino u l-Malta Resources Authority jafu li fl-irhula zghar taghna m'hemmx lok ghal tlett sistemi (u aktar jekk johorgu licenzji ohra) ta' trakkijiet kollha jigru u jqassmu c-cilindri bieb bieb. Is-sistema li ghandna llum u li ila tahdem is-snin twal tista' titranga imma li titkisser biex jitpaxxa Liquigas ghax xi hadd fil-Gvern m'ghandux hila jiddefendi sistema li l-poplu kuntent biha ma taghmilx sens, u l-GRTU qed topponi dan bil-kbir.

Liquigas kemm ilha f'Malta s'issa problem wahedha – daqqa m'hemmx cilindri, daqqa m'hemmx valvi, daqqa regolaturi zbaljati u daqqa skuza ohra. Issa jridu jkissru lid-distributuri u jcahhduhom mill-qliegh gust taghhom. Dan ghaliex it-teritorju li kull distributur ghandu hu zghir wisq biex jinqasam bejn tlieta jew erbgha sistemi paraleli. Liquigas fasslu fuq il-karti progett b'ghaxar distretti. Din storja bhal tal-Arriva. Pjanta fuq il-karta li x'hin tithaddem zgur li se ggib konfuzjoni. Il-GRTU m'ghandiex dubju li bhalma Liquigas flimkien man-nuqqas ta' sorveljanza adatta tal-awtoritajiet tal-Gvern huma responsabbli ghal mod esagerat ta' kif fi ftit snin ghola l-prezz tal-gas u baghta l-aktar il-konsumatur, hekk wkoll jekk titkisser is-sistema ta' distribuzzjoni mdorrijin biha u li hadmet u qed tahdem, mhux biss jitkissru u jfallu lid-distributuri, imma jbatu l-konsumaturi, l-aktar l-anzjani u dawk li jghixu fl-imbieghed, u dan kollu biex jizdiedu l-profitti ta' Liquigas.

Il-GRTU qed tghid dan kollu pubblikament ghax jekk Liquigas se tithalla timponi s-sistema taghha qisu xejn mhu xejn, jew xi skuza ta' xi Unjoni Ewropea, skuza li mhix valida zgur li gej l-inkwiet ghax il-GRTU mhu se taccetta qatt li grupp zghir ta' self employed kopert b'kuntratti miftehma jigu kkalpessati qishom huma u l-familji u l-impjegati taghhom mhuma xejn. Kienet Liquigas li sena ilu holqot l-inkwiet ghax ippruvat tkisser lil kompetitur milli jikkompetilha billi juza l-istess sistema stabilita ta distributuri tal-gas. Issa kif bdiet il-kesha Liquigas qed tipprova tohloq problema ohra bl-ghan car li xxewwex lil konsumaturi kontra d-distributuri. Il-GRTU ghalhekk qed tappella lil pubbliku biex ma jiccappsux ma din il-loghba jekk mhux b'xejn, b'rispett lejn id-distributuri li dejjem garrewlhom fuq darhom u sa biebhom ic-cilindri li kellhom bzonn, u li hekk jixtiequ jkomplu jaghmlu.

Il-GRTU qed tavza lill-Gvern li mhux se toqghod ghar-rikatt tal-Liquigas u mhu se taccetta qatt li kuntratt li jiddefendi l-ghixien ta' grupp ta' self employed jitkisser b'kapricc u l-Gvern jibqa' jhares. Is-self employed irid jigi protett bis-serjeta u bil-fatti. Il-GRTU tistenna li l-Gvern li kien hu li ghadda r-responsabilta ta' prodott essenzjali bhal ma hu l-gass lil Liquigas, li issa jizgura li ma jhalliex lil Liquigas, ghax ghandhom kwazi monopolju, li jharbtu s-sistema ta' distribuzzjoni ta' gass li l-poplu Malti mdorri biha.

Il-GRTU zgur li ma tridx inkwiet u ma trid l-ebda strajk u l-ebda tfixkil lill konsumaturi. Izda jekk Liquigas se jithallew jaghmlu li jridu l-GRTU mhux se toqghod ghaliha u tohrog dawk id-direttivi kollha mehtiega lill-membri kollha taghha biex Liquigas tigi mizmuma milli timponi r-rieda taghha. Dan il-GRTU qed tghidu pubblikament ghax kif jidhru l-affarijiet, u bil-mod kif l-awtoritajiet qed jahslu idejhom minn din il-kwistjoni, li gej l-inkwiet biex min hu responsabbli jfittex jirranga s-sitwazzjoni hazina li holoq u jzomm lil Liquigas milli tivvinta inkwiet bla bzonn li la hu fl-interess taghha bhala kumpanija kummercjali  li verament trid thares il-quddiem lejn snin twal ta' relazzjoni industrijali u kummercjali gusti, u zgur li mhux fl-interess ta' konsumaturi u ta' pajjizna.