Category: Archive – 2011

GRTU considers this Budget as being on the right track and one that continues to steer our county away from worries. This is a strong and determined Budget in the circumstances we are facing today. It continues to substantially invest in new capital and new schemes that enhance the productive ability of SMEs, while at the same time helping families and the vulnerable sectors. The focus on giving new stimulus to consumer confidence is particularly important at this time where the consumer is surrounded by negative news. 

Budget 2012 has a total expenditure of €3.106B representing 45% of the total Maltese GDP, an increase of 7.4% on the cost of last year. GRTU is pleased that Government stayed away from increasing public spending unnecessarily but GRTU believes that Government could have reduced it further. GRTU however is satisfied that finally the lowering of the deficit is being addressed.

The GRTU positively assess the number of schemes that the Government is maintaining and for which it is increasing allocated funds for the largest number of enterprises in Malta, the SMEs represented by the GRTU. The GRTU particularly expresses its satisfaction that Government accepted GRTU's key proposal to create a Government guaranteed bank loan scheme. This is an excellent scheme that goes beyond the limits of the Micro Credit Scheme as it allows more intensive borrowings that can be utilised not only for expanding operations but also to help a large number of enterprises get out from the enormous cash-flow problems they are currently in.

Budget 2012 also positively puts on the table a number of other schemes to boost different small sectors in the field of creativity and culture, information technology and other areas that continue fostering options of investment for SMEs. Government is increasing it's efforts to encourage people that could be productive to stay, enter or re-enter the labour market such as women, youths and seniors.

Something that therefore seems odd to the GRTU is that Government failed to take-up GRTU's request to relieve the elderly from social contributions to encourage them to stay in the world of work. On the same lines Government should also have accepted GRTU's request that those people whose work and productivity is required for the benefit of the country to pay only the 15% tax rate. 

In particular the GRTU expresses its satisfaction for the innovative scheme targeting parents to relieve them of some of the cost of raising children by reducing their taxes and therefore increasing their purchasing power.

GRTU in its proposals for Budget 2012 also presented a strong package on what should be done to assist the economy within the localities and in particular has pointed out at the use of many empty properties spread throughout Malta and regrets that Government took very little from these suggestions. GRTU however is satisfied that the Government is incentivising individuals to regenerate their property through tax advantages.

The strategy adopted by GRTU for Budget 2012 sought to boost the fixed capital formation essential for economic development. In this regard this Budget includes a number of interesting incentives to foster private sector capital investment. GRTU also emphasises that capital expenditure must continue to be specifically addressed to young entrepreneurs and not just to large contractors. This year many small contractors succeeded in winning works to be carried out on public roads and Government must ensure that this continues to happen. 

In its proposals GRTU also presented a set of proposals targeted at the creation of green jobs. GRTU in particular had called on Government to create the structures needed to operate the scheme that utilises electronic and electrical waste (WEEE) which would have served as a source of new and specialized jobs in the sector of Waste Management.

The GRTU also considers as positive the schemes that Government is operating for the replacement of high emission cars and another scheme that will hopefully put an end the history of unpaid licenses. The GRTU also congratulates the Government in finally stopping the imposition of a television license, something that GRTU has been insisting on for years. 

GRTU expects greater efforts in 2012 against the large number of free riders that are evading tax creating unfair competition.

Gas distributors will be taking action if Liquigas is allowed to embark on its own distribution system. Distributors have exclusivity, which Liquigas is bound to honour contractually.

Liquigas is however making several attempts to destroy the system which had worked well in Malta for years. Should Liquigas be allowed to impose its system under an excuse or another, trouble will follow. Liquigas had already tried to destroy its competitor and it is now turning on to the distributors.

The GRTU does not want to create trouble or hardship to consumers but if Liquigas were to do what it wanted, GRTU would have to issue the necessary directives to protect its members.

GRTU Director General Vincent Farrugia has today written to the Minister for Finance Mr Tonio Fenech regarding an urgent request to assist Maltese companies re-starting in Libya.Developments in Libya are taking place at a fast pace, and this is information that GRTU has learnt at first hand through its representative, Mario Debono, on the ground there. GRTU is currently pleased to witness a new Libya emerging. Businesses are slowly starting up again.

The banks are operating. Imports have started. Companies from around the world are already swarming the country and seeking to establish themselves as swiftly as possible.

GRTU told the Minister that he is abundantly aware what an important role Libya played for the Maltese economy and how important it is for a good number of Maltese companies, companies who have invested for years, through thick and thin, and have seen their life's work lost in a matter of days. These companies as a consequence are not strong enough to re-settle and re-start with immediate effect. Malta as a country however cannot afford to have the sectors and ground, which was once so cultivated by the Maltese, is taken by other foreign companies. The current moment is crucial and action is of utmost importance. We swiftly need to act to re-establish and fill in the old gaps, but more importantly, to fill the vacuum that the war has left. We strongly regret that in spite of our most active presence through our members in Libya, a presence which is recognized and regularly confirmed by all leading Libyan new authorities, Government fails to discuss in a structured way the way forward for Libya. It is in fact due to this lacuna that we present our views in writing.

Maltese companies need help, urgently. Malta will lose out unless Government is smart and quick enough to recognise what is at stake and set up a Libya Special Business Support fund to help businesses get contracts and mobilise. No Maltese company and consortium will be able to start in Libya unless they are backed up by a significant amount of capital. Even medium sized contracts are currently out of the reach of the Maltese companies as no Maltese company can rely on its Maltese borrowings and compete in Libya. Mobilisation costs for instance are simply too high. We must commence urgent discussion in relation to all options available to get this Fund in motion as a matter of urgency.

Government must react to this reality immediately and be aware what we would be losing. Libya as a country has sustained a lot of infrastructural damage, but therein lies the tremendous opportunities for our construction and civil augmenting contractors. Libya's people have billions hidden away, with nowhere to invest them in. These undeclared funds are estimated to total 13 Billion dinars in Tripoli alone. The Government is doing its utmost to attract these funds to the banking system, but no one in Libya trusts the banks. It's estimated that in the next years, the Libyan government has to provide at least 100,000 units of housing. With families having an average of 6-8 children, demand for housing has always been acute. As such, a classic property boom is in the making. Our Construction industry can have a role in both major infrastructural projects as well as residential projects, besides the oil projects opening up.

GRTU insists that the Government sets up a Special Guarantee Fund of at least €50M solely to help Maltese companies with funding to invest in Libya. It is also time we set up a venture capital bank. We must discuss with urgency the options available to Government and the private sector that enable the financing of this Special Fund. An option may be the floatation of a Libya Fund on the MSE in order to help Maltese companies with their capital requirements in Libya.

Libya may be the salvation of our excess business capacity and the best opportunity to start new ventures. This is however bound by a time-frame and action that is not immediate will have devastating effects.

We are seriously concerned that if the Government fails to help Maltese companies with funding, many efforts at establishing businesses in Libya will fail. Business in Libya is not the start up of a small enterprise, but the establishment of well planned and well capitalised enterprises will be able to make use of Maltese expertise, knowhow and natural affinity with Libya to form consortia to bid and take on the really lucrative projects. With the meagre "cautious" borrowings in Malta, they can never hope to compete with French and UK companies who have the benefit of venture capital and access to capital markets to help them do business in Libya.

Experience has shown that our Banks are too reluctant on their own to invest their excess liquidity as loans to businesses wishing to trade or do business overseas. But this is a hurdle that we must overcome. Vincent Farrugia concluded by urging Minister Fenech to give the matter his most urgent attention.

Il-GRTU tqis dan il-Budget bhala wiehed fit-triq it-tajba u li jkompli jbeghdna mill-inkwiet. Pajjizna m'ghandux jibqa' aktar imsallab b'budget deficit li ingibuh b'idejna, ghaliex kulhadd hekk irid u jippretendi mill-Gvern. Pajjiz li jghix bid-dejn sena wara sena ghax jonfoq aktar milli jdahhal hu pajjiz fjakk u din id-debbolizza tidher bil kbir fl-isfond taz-zona Ewro. Il-GRTU tqies il-Budget 2012 b'sahhtu u determinat fic-cirkustanzi tal-lum, u mmirat biex ibeghdna mill-inkwiet li sabu ruhhom fih bosta pajjizi ohra taz-zona Ewro. Budget 2012, bla ma jdahhal awsterita', li flok li tkattar il-gid tifni u ccekken, qed ikompli jinvesti sostanzjalment f'infieq kapitali gdid u fi skemi godda li jsahhu l-kapacita' produttiva tal-intraprizi zghar, esportaturi, turizmu, fil-waqt li jghin haddiema bil-familji u setturi vulnerabbli. Il-GRTU tqis li dan il-Budget ghandu jaghti stimolu gdid lill-consumer confidence li huwa mportanti f'dan iz-zmien fejn il-konsumatur qed jircivi wisq ahbarijiet negattivi min barra, u meta f'pajjizna ghadhom jiccirkulaw wisq frazijiet negattivi li inaffru u mhux jinkoraggixxu lill-konsumaturi. Il-GRTU ghalhekk tifrah lill-Ministru tal-Finanzi li Budget 2012 evita ghal kollox l-awsterita' u qed juri determinazzjoni li jnaqqas bis-serjeta' l-budget deficit u jistimola t-tkattir ekonomiku b'incentivi godda u tkattir sostanzjali tan-nefqa kapitali.

Il-Budget ghal 2012 iwassal ghal nefqa pubblika ta' tlett elef u mija u sitt miljun (3.106B) ewro li tirrapprezenta 45% ta' dak kollu li taqla' l-ekonomija Maltija fis-sena (GDP 6.776B) ewro. Din in-nefqa turi zieda ta' 7.4% fuq in-nefqa tas-sena l-ohra fi zmien meta l-ekonomija ta' pajjizna qieghda taht il-procedura ta' l-Unjoni Ewropeja ghal deficit eccessiv. Ghalkemm il-GRTU thoss li l-Ministru f'dan il-Budget qaghad relattivament lura milli jkabbar bla bzonn in-nefqa pubblika, il-GRTU xorta temmen li l-Ministru setgha irristringa aktar in-nefqa pubblika proposta kif jitolbu ic-cirkostanzi imwergha tal-lum. Seta', il-GRTU issostni, llimita z-zieda ghal wahda li tirrapprezenta biss ir-rata ta' inflazzjoni. Zidiet ohra kellhom isiru biss bit-tnaqqis ekwivalenti minn spejjez li setghu inqatghu. Id-Dhul totali tal-Gvern se jammonta ghal elfejn disa' mija u wiehed u sittin miljun (Ewro 2.961B) li juri deficit ta' mija u hamsa u erbghin miljun.

Il-GRTU tesprimi sodisfazzjon li finalment din il-marda tad-deficit qed tigi indirizzata pero' kienet tkun aktar sodisfatta kieku ntweriet aktar dixxiplina, ghaliex il-krettu li Malta tista' takkwista fis-swieq internazzjonali hiwa kbir wisq imqabbel mal-vantaggi fl-ekonomija interna li ngawdu mit-tigbid ta' din il-pjaga tad-deficit. Dan ghaliex l-ekonomija taghna hija wahda mill-aktar miftuha fid-dinja u niddependu l-aktar minn kif id-dinja tivvalida il-krettu taghha.

Il-GRTU tivvaluta b'mod pozittiv in-numru ta' skemi li l-Gvern qieghed ihaddem biex jghin lill-akbar numru ta' intraprizi f'Malta, dawk zghar u medji irrapprezentati mill-GRTU. Il-GRTU tesprimi ukoll sodisfazzjon li l-Gvern accetta il-proposta ewlenija tal-GRTU biex il-Gvern johloq skema ta' garanzija fuq self bankarju li l-intraprizi jitolbu minghand il-banek. Dan mhux biss ghas-self li kienu ntitolati ghalih taht il-micro credit scheme imma ghal self aktar intensiv li jservi mhux biss ghall-intraprizi li jridu ikabbru l-operat taghhom imma ukoll biex jghin numru kbir ta' intraprizi jinqalghu minn problemi kbar ta' cash flows.

Ir-ricerka tal-GRTU uriet li din hi problema qawwija fost in-negozji z-zghar u l-Gvern ghamel sew li sema' mill-GRTU u accetta din il-proposta. Il-GRTU tesprimi s-sodisfazzjon taghha ukoll ghall-iskemi li toffri l-ETC biex tghin lill-intraprizi z-zghar jaqtghu parti mill-infieq fuq salarji ta' impjegati godda u fuq tahrig ghall-impjegati taghhom. Il-Budget ukoll qieghed joffri numru ta' skemi ohra li jaghtu spinta lill-setturi differenti ta' intraprizi zghar specjalment fil-qasam tal-kreattivita' u l-kultura, tat-teknologija tal-informatika u f'oqsma ohra li jkomplu jkattru l-ghazliet ta' investiment ghall-imprendituri z-zghar. Il-GRTU ukoll turi sodisfazzjon li l-Gvern qieghed izied fl-isforzi tieghu biex aktar nies li jistghu jkunu produttivi, specjalment nisa, zghazagh u anzjani, jkunu mhajjra jippartecipaw fix-xoghol produttiv bhala rizultat ta' agevolazzjonijiet fit-taxxi li dan il-Budget qed jindirizza lejn setturi differenti.

Nota li pero tistona' hafna ghall-GRTU hi li l-Gvern m'accettax it-talba tal-GRTU li jehles lill-anzjani li jridu jibqghu jahdmu wara li jkunu wasslu fl-eta tal-pensjoni mill-hlas tal-kontribuzzjoni socjali. Dan huwa hlas ingust ghax dawn huma ndividwi li hallsu kollox bhala kontribuzzjoni socjali u issa messhom thallew igawdu l-frott li ghalieh hadmu tul hajjithom. Il-Gvern kellu wkoll jaccetta t-talba tal-GRTU li dawk il-persuni li x-xoghol produttiv taghhom hu mehtieg ghal-pajjiz jintalbu ihallsu biss ir-rata ta' 15% bhala taxxa li jkun appikabbli ghal xoghol part-time anke jekk huma jahdmu full-time. Is-sitwazzjoni tal-lum hi li dawn il persuni qed ikunu skoraggati milli jahdmu u ghalhekk mill aspett ta' taxxa u produzzjoni, l-alternattiva hi telf biss u ghalhekk il-Gvern kellu jaccetta' l-proposta tal-GRTU.

B'mod partikolari il-GRTU tesprimi s-sodisfazzjon taghha ghal iskema nnovattiva li tghin lil faxxa ta' familji fejn iz-zewg genituri jahdmu u ghandhom infieq kbir fit-trobbija tat-tfal biex dawn jiffrankaw mit-taxxa u jkunu agevolati fil-purchasing power taghhom. Il-membri tal-GRTU kienu qed jirrapportaw li dan is-settur kien kawza ewlenija ghaliex il-Gross Private Consumption fil-pajjiz u l-volum ta' bejgh mill-hwienet ma kienx qed jiccaqlaq possittivament f'dawn l-ahhar snin, ghalhekk kull ghajnuna barra z-zidiet fil-pagi hija ta' boost importanti ghal qasam tar-retailer.

Il-GRTU ukoll ipprezentat pakkett qawwi ta' proposti dwar x'ghandu jsir biex tkun assistita l-ekonmija fil-lokalitajiet u b'mod partikolari jkun incentivat l-uzu tal-hafna propjeta' vojta mifruxa ma' Malta kollha u jiddispjaciha li l-Gvern ha ftit wisq min dawn is-suggerimenti. Pero' hu ta' sodisfazzjon li l-Gvern qed jaghti spinta biex min ghandu propjeta' qadima jkun incentivat jizviluppha u ma jhallihiex vojta u jpoggiha fuq is-suq jew ghal bejgh jew ghall-kiri b'vantaggi fiskali.

Il-GRTU fl-istrategija' li pproponiet ghal Budget 2012 riedet li tinghata spinta akbar ghal fixed capital formation element essenzzjali f'kull zvilupp ekonomiku. Dan il-Budget jinkludi numru ta' incentivi nteressanti biex is-settur privat ikattar l-investiment kapitali tieghu u barra min hekk l-Gvern qed jivvota s-somma ta' erba' mija u hamsa u ghoxrin miljun bhala vot kapitali, nefqa li turi zieda ta' 37% fuq l-ispiza kapitali attwali tas-sena 2011. Ghall-GRTU din hi zieda mportanti u min issa qed tappella lill-Gvern biex jizgura li din id-darba n-nefqa kapitali tintefaq kollha ghaliex matul l-ahhar snin kien qed jigri li n-nefqa kapitali vvutata ma tintefaqx kollha. Hawnhekk, il-GRTU trid tenfasiza ukoll li l-infieq kapitali jibqa' jkun indirizzat ukoll lejn imprendituri zghar u mhux biss lejn kuntratturi kbar. Din is-sena kienu hafna l-kuntratturi zghar li hadu xoghol fuq it-toroq u l-Gvern ghandu jkompli jizgura li dan ikompli jsehh. Il-GRTU hawnekk tenfasizza li hafna min dawn il-fondi ghal infieq kapitali gejjin min barra, min fondi Ewropej ghalekk limpatt tat-tkattir fuq l-ekonomija huwa hafna ikbar u huwa ghalhekk essenzjali li l-fondi jintefqu kollha. Il-GRTU tixtieq li tara aktar firxa f'dan il-qasam.

Il-GRTU fil-pakkett ta' proposti li pprezentat qabel il-Budget ghamlet enfasi qawwija fuq il-htiega ta' agevolazzjonijiet biex jinholqu aktar green jobs. Waqt li l-Gvern ta widen ghal certi proposti tal-GRTU, il–Budget baqa' lura wisq fl-introduzzjoni ta' mizuri li jkattru n-nefqa pubblika li kienu izda joholqu atmosfera hafna aktar possittiva ghall-holqien ta' Green Jobs. Il-GRTU xtaqet b'mod partikolari li l-Gvern johloq l-istrutturi mehtiega biex tithaddem l-iskema li tutillizza l-iskart elettroniku u elettriku (WEEE) li ghandu jservi ta' fonti ta' impjiegi godda u specjalizzati f'dan is-settur partikolari tal-Waste Management. Mhux sewwa li n-negozji li jimportaw dan il-materjal qed ihallsu t-taxxa ta` l-Eko Kontribuzzjoni waqt li fl-istess hin ihallsu wkoll lill-iskemi awtorizzati biex jingabar dan l-iskart, spiza doppja li fil-bicca l-kbira tal-kazi qed ikollu jgorrha l-konsumatur u l-pajjiz mhux qed jiehu l-vantagg ekonomiku ta' holqien ta' mijjiet ta' green jobs ghal nies li jitghalmu jzarmaw dan l-iskart. Illum dan l-iskart qed ikun esportat u l green jobs flok Malta qed jinholqu barra. Dan ghaliex Budget 2012 baqa ma holoqx l-incentivi mitluba mill-GRTU. Il-GRTU tqis bhala pass pozittiv il-holqien ta' Producer Responsibility Monitoring and Enforcement Committee. Din ukoll kienet talba tal-GRTU.

Il-GRTU ukoll tqis bhala pozittivi l-iskemi li qieghed isostni l-Gvern ghat-tibdil ta' karozzi b'emissjoni qawwija ghal ohrajn li jhammgu anqas u ghall-iskema li ghandha tizgura li tispicca l-istorja ta' licenzji mhux imhallsa. Il-GRTU ukoll tifrah li finalment il-Gvern qed itajjar il-licenzja tat-televizjoni, haga li l-GRTU ilha tinsisti fuqha s-snin. Il-GRTU sodisfatta li Budget 2012 qed jaghti spinta ohra biex tissolva l-problema mposta fil-passat fuq dawk li jircievu pensjoni tas-servizzi Inglizi. Haga tajba wkoll hi li Budget 2012 qed jghin il-faxex ta' persuni vulnerabbli bhall-anzjani li jghixu wahedhom u nies b'dizabilita'. Il-GRTU tqis ukoll bhala b'sahhitha iz-zieda fic-children allowance. Hawnekk il-GRTU tinnota b'sodisfazzjon s-success ta` l-isforzi li qed isiru biex ikunu mrazzna l-abbuzi fil-hlasijiet taht l-iskema tas-servizzi socjali. Il-GRTU tistenna wkoll sforzi akbar f'dan il qasam fis-sena 2012 flimkien ma attenzjoni partikolari u deciziva kontra n-numru kbir ta' free riders li bla ma jhallsu taxxa qed joholqu kompetizzjoni mill-aktar ingusta lill-kummercjanti u self-employed onesti.

Il-GRTU tinnota b'sodisfazzjon il-vot qawwi ta' tlett mija u disa' u hamsin miljun ghall-edukazzjoni ghaliex dan huwa qasam li fih Malta bilfors trid tibqa' tinvesti bil-kbir jekk is-success li s'issa pajjizna akkwistat fl-istrategija mhaddma mill-Gvern biex isuq dejjem aktar lejn the Knowledge-based economy jibqa' jinzamm.

Dak li qed jigri madwarna b'mod partikolari fil-Grecja, fil-Portugal u fi Spanja u issa b'mod car fl-Italija, jurina kemm hu mportanti li din l-istorja negattiva tad-deficit u taz-zieda fid-dejn pubbliku ghandha tinqata' ghal dejjem. Ir-rata ta` 68.9%, li jirraprezenta' dejn pubbliku bhala proporzjon tal-Prodott Gross Domestiku, hi rata qawwija wisq ghal-pajjiz zghir b'ekonomija miftuha bhal Malta, u ghalkemm dan id-dejn huwa kwazi kollu kemm hu dejn mizmum mill-Maltin u istituzzjonijiet finanzjarji f'Malta pajjizna mhuwiex mirhun mill-barrannin u Malta lanqas m'ghanda zbilanci eccessivi ma barra (macro economic external imbalance) li jikkawzaw il htiega ta' dejn barrani qawwi biex jaghmel tajjeb ghal dawn l-izbilanci. Xorta wahda Malta ghandha taghmel sforzi ikbar halli fl-iqsar zmien possibli nnizlu d-dejn ghall-kriterju accettabli ta' tlieta u sittin fil-mija. Pajjizna m'ghandux ikun mhedded iktar minn zbilanci finanzjarji interni (budget deficit), kawza ta' mmanigjar hazin tal-finanzi pubblici u min zbilanci esterni ghax ma nkunux kapici naqalghu min barra bizzejjed biex naghmlu tajjeb ghax-xiri kollu li rridu min barra. Huma dawn l-izbilanci li jgieghlu lil pajjizna li jkun mhedded kull meta jkun hemm krizi bhal ma bhalissa hemm fiz-zona ewro.

Budget 2012 qed jaghmel sew li jiffoka aktar fuq li jghin lill-industrija kbira u zghira li trid tfittex swieq barra minn Malta u li jimmira biex jattira mhux biss investiment dirett barrani f'oqsma bhal manifattura imma ukoll f'oqsma godda bhas-settur finanzjarju u s-settur tal- elettronika u kreattivita' u servizzi godda bhal game directors u designers u l-attrazzjoni lejn Malta ta' persuni bi kwalifiki f'oqsma godda ta' innovazzjoni li pajjizna jrid johloq. Il-GRTU tinnota wkoll b'sodisfazzjon li l-firxa ta' investimenti godda li qed jimmiraw il-quddiem f'qasam gdid u interessantissimu ghal-pajjizna, nhal dak tal-BioMalta Campus. Dawn huma oqsma li jgibulna qliegh gdid min barra u li jghinuna biex l-izbilanc ma' barra ikun dejjem pozittiv.

Ghal aktar informazzjoni zur is-sit www.budget2012.com.mt

Budget 2012 must be targeted at increasing growth through the utilisation of unutilised economic resources, economic resources such as access bank liquidity, building stock, alternative energy possibilities, and underutilised potential improvement of waste management. The Maltese banks have excess liquidity far beyond that they need but also within the limits of what Maltese SMEs need. Under current tight credit rules banks have no urge to go beyond standard security requirements and most small businesses cannot come up with additional collateral and be able to guarantee the loans they need to make their business grow, refurbish and renovate or move from a dying line into more attractive business opportunities.

The recession has eaten away most reserves and the properties they have for use as collateral for extensions are either empty or currently unsalable. Government must incentivise the banks through enhanced loan guarantees beyond the restricted conditions and limits of the micro credit schemes so that businesses can plan ahead, invest and grow. Small businesses represent 98% of Maltese enterprise. If they all make one step further, our GDP will grow ten steps forward.

The owners of the empty buildings spread all over Malta need incentives to use the excess building stock for business and household expansion. Government must guarantee the fiscal incentives to encourage business growth in the localities. Women want to work but they want to work closer to home so every hour available is used economically and not wasted travelling around Malta. Enterprise can be encouraged to move back office work to our villages through schemes that encourage empty blocks to be used as additional office space. Many businesses want to buy new premises to expand. Many empty blocks can be changed from apartments for sale to old age retirement homes, new self catering tourism accommodation or lodging for tourists or students.

We have enough resources for growth. Government needs also to speed more our capital investments in the infrastructure. Too much of the infrastructure is old. Spending on capital investment not only creates growth but makes the country more comfortable.

If the economy grows the deficit will fall as a ratio of GDP and if the small businesses grow and young families are encouraged to buy new homes, the Government will also earn more as an average out of every €100 increase in GDP, 20% goes in increasing labour income, 40% goes to Government as an additional tax review and 40% goes to enterprise to cover all enterprise costs and profits less wages.

Main points

Reduction of Public Deficit

At 68% of GDP Malta's Public Deficit is too high for an open economy like Malta, Economic imbalances, both internally and externally are worse than for other economies with large internal markets. Government should in Budget 2012 take serious action to reduce the deficit in Public Financing.

Productivity

GRTU supports all schemes that improve productivity. Productivity is the result of greater and higher quality investment in all sectors, increased labour economic contribution and investment in new technological systems, innovation and better management of resources.

Unutilized Resources

The Maltese economy still suffers from excess capacity and oversupply in various areas. The total result is that important resources like land, human capital and financial resources remain idle or unutilized and thus fail to contribute to GDP Growth.

Capital Investment

Government should not in Budget 2012 increase current expenditure not only because of its negative impact on the deficit in Public Finances but also to avoid unnecessary inflationary increases. Government should reduce expenditure on non-productive sectors but heavily increase capital expenditure on capital investments. The Capital Budget as planned for the next 3 years should grow substantially and be used as a tool to further strengthen the infrastructure and the enhancement of Malta's potential as a modern knowledge-based economy.

Growth

GRTU expects a smart budget that emphasizes capital investment, better utilization of economic resources, new incentives to encourage and promote the growth of internal economy through greater private sector capital investment incentives and incentives to enlarge mobility of labour towards more productive sectors, reduction of costs for enterprise and the promotion of new financial instruments that encourages the better utilization of financial resources held by the banks and by the private sector.

Specific proposals and incentives

1.      Encourage capital investment in the infrastructure

Government did well to accept GRTU's proposals on Public Private Partnership to increase the capital funds available to Government and Local Authorities. Government should now provide structures and incentives so that the private sector funds are directed towards new Capital Infrastructural projects that are needed to re-innovate Malta' ageing infrastructure in various sectors and to create new opportunities for investment in the harbours, in manufacturing, in logistics operations, in Green Jobs and the Environmental projects and in areas related to the knowledge-based economy.

2.      New investment in the small enterprise sector

Today, 98% of Maltese enterprises are micro and small in spite of the recession that has affected Malta deeply in 2008-2010, the self-employed and micro and small business owners have retained their level of employment at a heavy price to enterprise reserves and profitability. The micro-invest scheme and the micro-credit were only employed belatedly after strong pressure by GRTU and though successful, on their own they are not enough to face the challenge ahead. The export, tourism, gaming and financial services sectors may face greater difficulties in the months ahead as the international economic and financial crisis drags further on, so it is essential that Budget 2012 promotes greater capital investment at the micro and small business sector. GRTU proposes a new SMALL ENTERPRISES FINANCE GUARANTEE (SEFG) scheme supported by a Fund of € 50,000,000. The Fund should be financed through the issue of capital guaranteed special Projects bonds. This Fund could be managed by Malta Enterprise but ideally it should be managed by a separate organization. The Fund will only issue loan guarantees. The SEFG Scheme will be a targeted measure intended to facilitate additional commercial lending that could not otherwise be available by providing lenders with full or partial guarantee.

Decisions on the use of SEFG, eligibility and lending terms in individual cases will rest with lender, there will not be an automatic entitlement to receive a guarantee loan and there should not be any pre-qualification process. Loan applications will first be assessed via the lender's own commercial criteria before any consideration of SEFG eligible criteria. Government agrees with the financial institutions who accept to operate the scheme on the terms and conditions of lending that qualifies for loan guarantees under SEFG. Businesses would than approach and discuss their borrowing requirements with the approved lending institutions. The list of accredited SEFG lenders will be published.

SEFG will issue loan guarantees on lending repayable over terms between 3 months and 10 years accept where indicated on all or any of the following loan facilities:

o       New term loans (unsecured or partially secured)

o       Re Financing of existing term loans

o       Conversion of an existing overdraft into term loans

o       Invoice finance guarantee (available for terms of up to 3 years)

o       Over draft guarantee (available for terms up to 2 years)

The precise nature in terms of any facility made available by individual lenders will vary in accordance with that lender's standard, commercial lending criteria.

SEFG will be intended to support lending to viable business that can ultimately re-pay the loan in full. Lenders are allowed to require personal guaranteed security where available (except the borrowers principal private residence) in line with the standard normal, commercial lending practices, the Government guarantee will be a guarantee to the lender covering loans that would otherwise not have been made available given the borrowers available security. The Guarantee will not provide insurance for the borrower in the event of default. The borrower remains fully liable in the event of default.  Loans for most business purposes to enterprises in most sectors will be eligible.

Businesses will need to provide all the information normally required by a lender in connection with a loan application including:

o       Current Business Plan, including details of the purpose for which the loan is required in details of other investment in any financial commitments of the business

o       Financial Projections

o       Historic Trading Figures

o       Statutory and Management Accounts – (especially drawn statements will be required by sole traders)

o       Information on any other publicly funded support received by the enterprise within the past 3 years.

Another incentive in support of small businesses that GRTU is seeking is a complete exemption from property taxes on the purchase of property by new business start-ups or businesses employing less than 10 persons on properties bought for use as business premises. This incentive should be given in addition to the Small Enterprise Finance Guarantee.

3.      In support of Localities

The level of economic activity in the localities can be improved. Back office work is still concentrated in specific localities in Malta and while Malta continues to attract back office work from foreign countries Malta has still not provided an effective incentive package so that employees in back office work, especially women will not have to waste hours and additional expenses on unnecessary travel. The excessive and unplanned building boom of past years have left many buildings empty and the only solution Government misguidedly accepted is that of encouraging foreigners through tax advantages to be attracted to purchase these properties. GRTU's proposals are first and foremost to cause a change of view of reuse of these buildings so that more empty buildings can be used for back office work or for other activities of an economic value. Tax incentives and even grants should be provided for more office space to be created in the localities and tax incentives given to employers who are willing to transfer back office work to the localities. In the first instance, Government should cause Public Authorities themselves to make use of the incentives offered.

Many of the available empty buildings can also be incentivized for use for other purposes more as specialized homes for the elderly. Retiring persons prefer to live in their localities but not necessarily on their own and it makes a lot of economic and social sense that once empty buildings are available owners of suitable buildings are given the incentives to utilize these premises as retiring homes.

There are other economic uses that empty buildings can be used for including the lodging of tourists. Other services in the localities like Cafés and Restaurants and many retailers will benefit if tourists accommodation spreads from the traditional tourists areas to the localities. Incentives should be provided so that owners of large homes and owners of a large block of empty apartments are encouraged to transfer them into boutique hotels or bed-only tourist accommodation. The spread of tourists amongst Malta's localities will ease the increasing pressure on the infrastructure resulting from a necessary increase in tourists flow to Malta needed to enhance tourism's contribution to Malta's GDP. GRTU continues to believe that Malta's tourism carrying capacity should at least reach a target of two million by 2015 and the utilization of empty available resources in the localities can make this possible without undue pressure on the environment if the right incentives are provided. The value added in the utilization of available resources that could easily be transformed with the right incentives for tourism purposes could be remarkable.

Host Families for instance are a valuable resource. These are dedicated individuals which open their homes to total strangers and welcome them and do their best to provide cheap lodging at a good standard while providing the experience of the Maltese way of living. The GRTU knows of minor shortcomings in the sector however the whole cannot be made to suffer for it. GRTU therefore proposes to further incentivise the sector and help it become more competitive. GRTU proposes the reduction of the Host Family licence per bed which would equal the licence per bed paid by hotels. The hotel industry and the host family sector are currently in competition and we think that it is only fair that they compete under the same rules.

Valletta

Over the last three years the Retailers in Valletta have been drastically affected by the continuous works of regeneration and also paving, other then a number of construction projects in the city and city parameters. This has brought about a negative income to the retailers in the locality and despite this they have kept the same level of employment and provided the same services. This also despite the heavy recession faced by these SMEs in the last two years.

GRTU recommends the following proposals in order to compensate partially the said losses:

• A revision of the CVA legislation in place. GRTU is requesting that CVA will only be charged between 9am and 1 pm only
• A relief in parking places, namely by the elimination of parking spaces currently taken up by Parliament and changing Green spaces to more blue spaces and changing blue spaces to white
• A special tax reduction for Valletta based Commercial Establishment taking into consideration the last three years
• Currently it is those who have not invested a cent in Valletta that are reaping the benefits from the current situation. The Retailers in Valletta require substantial investments to make sure that the established businesses continue to survive

The above are temporary measures which would alleviate the current problems faced by the Retailers in Valletta.

4.      Families and young couples

The oversupply of empty apartments throughout many localities in Malta offer excellent opportunities for young couples to purchase houses at affordable prices for families with young children to have an opportunity to purchase a new and modern apartment. GRTU proposes that a property tax holiday is provided for the purchases of properties by home-owners and young families and that additionally a special loan guarantee should be provided to cover up to 50% of the security requested by lending institutions to cover the loans needed to cover such purchases. The advantage of such a scheme is to encourage more families to invest in home ownership without a negative impact on their purchasing power as households.

5.      Reducing private debt

Besides a problem of a growing National debt due to mainly an unsustainable public sector financial deficit Malta is also suffering from a growing, and in many cases unsustainable high household level of indebtedness. This is a situation that is putting many families' especially young couples in dire straits and this is having a very negative impact on private consumer spending. Malta is one of the few countries in the EU that have not taken steps to cause the banks as agents of leading credit cards and as dominating in the market for loans to households to reduce the cost of credit to families and individuals. GRTU strongly advises Government to cause the financial institutions and other credit awarding facilities to promote a reduction in the costs of credit to households.

6.      Recruitment assistance

Too many small businesses are finding difficulty to employ additional Maltese workers and the schemes operated by ETC are increasingly bureaucratic in their implementation and reimbursement procedure. This is causing more and more small enterprises to seek the employment of other EU Nationals either on casual work bases or on seasonal and even short-term employment.

Unfortunately many small businesses faced with the bureaucratic hurdles are taking the risk to employ without due consideration to fiscal Laws. GRTU is proposing a practical remedy to this situation. GRTU's recommendation is that all EU Nationals employed on a temporary bases are immediately registered electronically and that such employees would suffer a deduction of 15% – 20% from their wages withheld by the employer as payment due as income tax and social contribution. This will in itself provide incentive to employers as the cost of such labour will be in turn deductable under standard income tax procedures and will provide Government with additional income necessary to cover social and medical costs of these registered employees.

7.      Increasing female participation in the labour market

GRTU agrees fully that the participation of women in the labour market is critical for economic success. GRTU believes that more women will be encouraged to participate in the economy if:

• Women are aware of their rights and obligations and the different schemes of assistance that already exist. It is clear and apparent that information is lacking and that a PR campaign is required. This campaign should also highlight the importance of women participating in the labour market and should attempt to bring about cultural change in this regard.
• The present tax benefit scheme for those benefitting from child care facilities should be extended to cover child minding in a home setting. A register of professional child minders should be set up and those child minders offering home service should be in a position to issue receipts which can then be used to claim back tax benefits. This measure will encourage women to recruit home help and at the same time this will free women to participate in the economy particularly during hours of after school and during hours when the child care facilities are closed.
• Proposed child care centre standards should be revisited particularly if we want to encourage the setting up of child care centres in areas of high population density or in areas such as Floriana and Valletta where many offices are located. Here GRTU refers for instance to the requirement of having 20% outdoor area for a licence to be issued. This requirement is making it impossible for anyone to set up a child care centre in the zones just mentioned. The MEPA requirement that premises have to be fully accessible for persons with mobility issues is also creating problems for those interested in setting up of child care centres particularly in areas were only limited development is allowed such as village cores and areas in Floriana and Valletta that have old buildings which need modification. While the GRTU agrees that new buildings should be fully accessible for persons with mobility issues, a degree of flexibility should be applied in all other cases.
• The present tax credit scheme should be extended for those women who need elderly care workers to assist in the care of dependants. GRTU proposes that a register of elderly care workers and workers with qualifications related to the care of disabled persons is created and those offering services in private residences would be allowed to issue fiscal receipts that will be used for tax credit purposes.

8.      Better packaging directive enforcement

To many SMEs environmental legislation and Corporate Social Responsibility (CSR) may not be the primary issues on their agenda however, there is now a growing awareness within the SME sector that unless they become conformant to environmental legislation and carry their responsibilities, the sustainability of their future operations are in jeopardy. Furthermore there is greater consciousness that the green economy opens new opportunities for SMEs.

The current environmental legislation is of paramount importance and although considerable achievements have been made during 2011, the need to make sure that a fair and level playing field is maintained and is transparent is essential to ensure that the culture of abiding to such legislation remains an onus on all enterprises. Over the last year with the help of the Approving Body and MEPA, through coordination from MRRA and OPM, a fiscal regime was set in place to make sure that free riders to packaging waste legislation are addressed. This is an issue closely related to the elimination of the black economy. It's a vicious circle, a substantial number of enterprises evade on one fiscal measure then they get caught having to evade another.

There are currently just over 2400 packaging producers who place packaging waste in the market who are now financially paying Schemes in return for carrying out their environmental obligations in respect to LN 277 of 2006. These place just over 35,000 tons of packaging waste on the market, compared to the 90,000 tons which are currently estimated that are being placed in the market. Taking into consideration, conservatively speaking, that another 10,000 tons of market placement are self compliant, the estimate is that the free riders displace over 45,000 tons implying that another 2,400 enterprises remain within the black economy on this issue.

GRTU believes that if all enterprises comply and the authorities continue to strive for full enforcement, all the costs per enterprise will go down and beside the overall advantage to the community in general there is an actual cost cutting that can be enjoyed by enterprises. As things stand today the complying enterprise is paying for the free riders. GRTU has over the last few years made sure that reports made by our members of non-compliance in respect to this issue are forwarded to the authorities concerned. The GRTU however feels that although a structure at MEPA is in place it needs to coordinate much better with the Schemes in order to increase the bid to find free riders. For this purpose GRTU proposes the setting up of a Producer Responsibility Enforcement Committee with the direct involvement of Authorised Schemes.

9.      Implementation of the Waste Electrical And Electronic Equipment Directive  LN 63 of 2007

The implementation of this Directive is years overdue in Malta due to the current Eco Contribution being paid by producers to Government in relation to EEE (Electrical and Electronic Equipment) placed on the market. We are attaching our feedback to the current consultation document issued by the Malta Environment and Planning Authority in respect to the implementation of this Directive in Malta. Its implementation would mean a reduction of €8million in Government revenue but it would also mean placing an onus on producers to work with authorised Schemes, making sure that Legal Notice 63 of 2007 is actually implemented.

The document entitled ‘GRTU WEEE feedback' is attached as Annex A.

10.             Creation of Green Jobs

Environmental legislation has brought about the need of more market driven incentives so that when Green jobs are created we would have the manpower readily available. ETC should set up courses, either themselves or through MCAST so that courses are introduced free of charge.

The following are our course proposals: environmental assistant, landscaping officer, community environmental officer, season material pickers (horticulture), schools environment project officer, eco councillors, green procurement officer, environmental journalist, emissions technician, waste management planners, environmental inspection officers, street enforcement officers, environment health and safety officers and waste recovery assistant. Job Descriptions for all the above can be provided by GRTU.

These are just a few which do not include greener buildings. This aspect alone can revitalise the economy, however it is of importance that if fiscal incentives to entrepreneurs are put in place, the workers to affect these trades are available to do it.

The regeneration of vacant property should be a certain measure to provide short, medium and also long term need for Green Jobs. The vast amount of vacant properties need to be regenerated to reach the obligations of the current Energy Efficiency in Buildings Directive.

GRTU proposes a stamp duty reduction for purchases of property which have been vacant for more than five years. Those purchasing these properties would be obliged to provide a final certification that the finished property conforms to the above Directive as being implemented by MEPA. This would provide green jobs in the renewable energy sector, insulation sector, light design, lighting suppliers, roofing suppliers, etc…

In addition to this we are at a time when a Green Economy Steering Committee set up by Government has for the last year been working to provide a final working document. GRTU duly notes that the educational institutions need to gear up faster to changing trends.  The setting up of these courses will enhance the sector. This is what can provide a win-win situation to enterprise in the long term.

11.             Improving Energy Efficiency

GRTU continues to be proactive in its approach to make sure that SMEs drive themselves towards both energy efficiency targets and also towards a carbon footprint which is acceptable and in accordance with the standard set by BSI, being PAS 2050. Government needs to realise that investing heavily now will result in long term decreased purchases of fossil fuels, a healthier lifestyle for people and accordingly an increase in a healthier environment. Government must carry out a swift assessment of the untapped potential in terms of energy efficiency that there might be in industry, in order to draw up further relevant measures to be adopted.

Government should set up a fund to provide loans for SMEs, to improve energy efficiency. The loans should be for capital purchases of equipment only, which will eventually reduce costs and reduce carbon emissions. Loans are to be unsecured, interest free and repayable over five years maximum. Loans would be provided up to Euro 50,000 for purchases of capital equipment such as:

• Euro 4 or Euro 5 Vehicles used for distribution industry and inclusive also for purchases of service vehicles
• Purchases of photovoltaic equipment
• Purchases of Solar Panels
• Purchases of Insulation Materials or systems
• Purchases of lighting fixtures which operate with sensing equipment

12. Lower emissions

It is a known fact that carbon emissions ensue both through the sale of a product or the provision of a service and this throughout the lifetime of the product and service and it is high time we realise this fact. When dealing with a product for instance, emission production starts from the raw material stage, the packaging needed to produce it, through to manufacture, transportation, sale to the end user, use and disposal.

In this respect Government should introduce a standard (in the UK it is Pas 2050) for businesses to achieve the standard set and then each business will be able to carry a Carbon Reduction Label. PAS 2050 provides a carbon footprint methodology which measures these emissions, leading to valuable energy and cost saving opportunities to businesses.

Government must be the one to set the ball rolling by firstly establishing a Standard, then providing an assessment of its own entities and thirdly provide SMEs with the infrastructure to have their own carbon footprint assessed.

Government should provide incentives to induce SMEs to incur less energy transport costs. GRTU suggests the provision of a grant to study the possibility of a logistical distribution centre for goods in the areas of Valletta, Sliema, Hamrun and other densely populated areas. It lacks sense for a small island like Malta to have hundreds of different delivery vehicles making their way within these dense areas and leaving behind them a chaos and excessive carbon emissions. Goods should be transported via a logistics centre and with approved electric vehicles. This will eventually also increase productivity for SMEs in the distribution sector and other sectors that provide distribution of goods. The study would include all stakeholders.

Registration tax on powered two wheel vehicles not exceeding 250cc is dropped completely and transferred

In presenting the survey, Tajani said that European SMEs are still largely focused on domestic markets and have failed to seize the opportunities created by the single market and globalisation.

"It's important for our smaller businesses to improve their performance in cross-border and international trade transactions in order to reinforce growth, enhance competitiveness and support the long-term sustainability of companies," Tajani said.

The survey found that those SMEs that trade internationally create more jobs than those producing exclusively for their home market, and that they are more innovative. Sluggish growth within the EU has reinforced the imperative of helping EU firms expand into new markets, says the Commission.

The European Commission will very soon launch its most concerted attempt to date to help small and medium-sized enterprises to sell their goods and services outside the European Union. The Commission's strategy for helping SMEs break into foreign markets is to be adopted by the college of commissioners next week (9 November). 

The strategy, entitled "Small business, big world", will be put forward by Antonio Tajani, the European commissioner for industry and entrepreneurship, whose department has drafted it, together with the Commission's department for trade.

Tajani will propose to step up the provision of free business-support services to European SMEs in important non-EU markets. In addition to existing support in China and India, the Commission is considering launching business-support services in Brazil, Japan, Russia, South Korea and Ukraine.

Such services will be based on a needs assessment in each foreign market, which is supposed to identify the main obstacles facing European SMEs and the existing support structures, to avoid any duplication of effort.

A model for the approach are the EU business centres in China and India, which were set up after adoption of the EU's Small Business Act in 2008. They provide advice to EU firms on market access, protection of intellectual property rights (IPR), standards and regulations, and other issues that are relevant for European businesses.

In China, the Commission has also been funding a help-desk on questions of IPR, with offices in Bejing and seven other cities. IPR protection is a priority concern of European businesses in China.

A survey by the Commission, published last year in preparation for the strategy, showed that just one-quarter of SMEs in the EU sell their products beyond their national frontiers, and only 13% export to markets outside the EU.

GRTU has been informed by the Malta Competition and Consumer Affairs Authority about the information below:Regulation (EC) No 661/2009 lays down basic requirements for the type approval of motor vehicles of categories M2, M3, N2 and N3 with regard to the installation of advanced emergency braking systems (AEBS). It is therefore necessary to set out the specific procedures, tests and requirements for such type approval.

Regulation (EC) 661/2009 provides that the Commission may adopt measures exempting certain vehicles or classes of vehicles of categories M2, M3, N2 and N3 from the obligation to AEBS under certain conditions. An analysis of cost/benefit and of technical and safety aspects has demonstrated that more lead time will be necessary before wide ranging requirements for AEBS can be applied to all types of vehicles of categories M2, M3, N2, N3. In particular attention has to be given to the braking technology and rear axle suspension system used on those vehicles when specifying detailed rules concerning the specific test and technical requirements for the type approval of those vehicles with regard to their AEBS. It is therefore appropriate to implement those requirements in 2 stages, starting with an approval level 1, which contains appropriate collision warning and emergency braking requirements for types of vehicle of categories M3 and N3 as well as types of vehicles of category N2 with a gross vehicle mass greater than 8 tonnes, provided that these types of vehicles are equipped with pneumatic or air-over- hydraulic braking systems and with pneumatic rear axle suspension systems.

Those requirements should be further extended and complemented in a second stage, through an approval level 2, to also apply to types of vehicle with hydraulic braking systems and non-pneumatic rear axle suspension systems and to include types of vehicle of category M2 and of category N2 with a gross vehicle mass equal to or less than 8 tonnes. The timing for implementing level 2 should provide sufficient lead time for gaining further experience with those systems and enable further technical developments in this field, as well as for the UNECE to adopt international harmonised performance and test requirements for the types of vehicle of the categories concerned. Therefore, no later than two years before the implementation date for the approval level 2, the Commission shall adopt the warning and braking activation test criteria for types of vehicle of category M2 and of category N2 with a gross vehicle mass equal to or less than 8 tonnes, taking into consideration the further developments at UNECE level on this issue.

The cost/benefit analysis has also demonstrated that the mandatory application of AEBS would generate more costs than benefits and proves therefore not to be appropriate for the classes of vehicles of category N2 tractors for semi-trailers with a gross vehicle mass between 3.5 and 8 tonnes, categories M2 and M3 vehicles of Class A, and articulated buses of category M3. In addition, technical and physical constraints make it impossible to install the collision detection equipment in a way that would ensure their reliable functioning on certain special purpose vehicles and off-road vehicles. Vehicles of those categories should therefore be exempted from the obligation to install AEBS.

Attached to this Information document please find the draft Commission Regulation for your perusal.

This draft Regulation is still being discussed at Commission level. Therefore interested parties are encouraged to send their comments/feedback regarding the draft Regulations by 21 November 2011.

For your reference, please find below the link to Europa website – Published Directives and Regulations – Motor vehicles

http://ec.europa.eu/enterprise/sectors/automotive/documents/directives/motor-vehicles/

Should more information be required and for the whole document kindly contact GRTU.

The Market Access Regulation permitted 36 ACP countries to access the EU market at preferential tariff rates. This Regulation was intended as a temporary and bridging solution until the Economic Partnership Agreements are negotiated, signed and ratified in order to avoid trade disruption. However, the Commission believes that it is time to bring this temporary instrument to a close by withdrawing the Market Access Regulations.

From all the ACP countries, 18 (Caribbean, Madagascar, Mauritius, Seychelles and Papua New Guinea) have taken the step to ratify the Economic Partnership Agreements signed with the EU. Another 18 countries have not signed the Agreement and are still not applying it. This is an unfair situation towards those countries that have already taken the necessary steps and other developing countries which do not get duty-free quota-free market access to the EU. The EU position in relation to the current Market Access Regulation of non-EPA countries could be contested in the WTO.

As a consequence those ACP countries that have not signed and ratified would need to ensure that steps are taken to ratify their EPA or conclude new regional Agreements with the EU before 2014 if the proposal is adopted. Most would still benefit from preferential market access to the EU from the EBA, GSP or GSP+ systems if these countries fail to ratify the EPA. As Burundi, the Comoros, Haiti, Lesotho, Mozambique, Rwanda, Tanzania, Uganda and Zambia are LDCs, these would benefit from the Everything But Arms system. Cameron, Fiji, Ghana, Ivory Coast, Kenya Swaziland and Zimbabwe are low-income or lower middle income countries which could benefit from the GSP regime, which is less advantageous than the market access in the EPA. Finally, Botswana and Namibia will not benefit from any preferential treatment if their status of upper middle-income countries is confirmed for three consecutive years.