Category: Archive – 2012

"GRTU's
estimate of how much the public bureaucracy costs to business was always high
but this figure has exceeded our expectations, we are however still not
surprised. Government bureaucracy has never stopped increasing, if it was
physical it would be another Maghtab. you're doing a great job in identifying
the measure of the problem but not as good in monitoring and enforcement.The
mechanism is simply not there.

You still are afraid to publish the list of new
bureaucratic measures and with whom you say you have consulted. The message out
there is still bad. You forget that it is not only what you do that matters to
the public but what you appear to be doing. To our people you appear to be
doing very little." Sated GRTU DG Vincent Farrugia at this morning's
Malta EU Steering and Action Committee (MEUSAC) Meeting Chaired by the Hon
Chris Said and Head MEUSAC VanniXuereb, with the attendance of MEUSAC members.

The main item on the agenda was a
presentation on the technical study conducted by the Management and Efficiency
Unit (MEU) presented by CEO John Aquilina and Managing Consultant Dr Paul
DeBattista and this sheet was presented.

During their analyses of all pieces of
existing legislation the MEU found 400 laws and 2500 Legal Notices effecting
businesses and from these they grouped them into those which were correctly
transposed from EU legislation, those that were transposed incorrectly or ‘gold
plated' (national additions going beyond the scope of the Directive), which
amounted to 15% of total legislation, and the purely national legislation,
which amounted to a staggering 45% of total legislation. Their analyses
targeted both the 15% and the 45% with a total of 60%.

By following the standard cost model
the MEU was able to cost how much the burdens emanating from this 60% were
costing businesses financially. This costs the private sector €116,240,594, the
net contributors being VAT, Company Law and Environment.

Efforts to reduce these burdens have
already been enacted amounting to €8.5 million (278,450 man-hours) p.a. These
mainly are the result of further ICT development where returns under Company
Law and VAT and reporting requirements for the Inland Revenue can now be
submitted online. The burden of statistics was also reduced with shorter
surveys and reduction in the sample size.

By the end of 2012 another €9M worth of
bureaucracy will be reduced. This will reach Malta's targets of reducing 15% of
nationally emanating bureaucracy by 2012. The areas from which these reductions
will be taken are the Environment, Public Procurement, Working Environment,
Food Safety and Pharmaceutical Legislation.

GRTU Director General Vincent Farrugia
thanked the MEU for the hard work and stated that this is the starting point
and will provide a necessary guidelines for the work that is to be carried out.
There is obviously a long way to go but much more effort should be done to
inform the business community and the public in general of the work being
carried out. It is not what you are doing but what you are appearing to be doing,
Mr Farrugia emphasised, and the message is not seeping at ground root level.

In addition, even though Legal Notices
are accompanied by a Legal Notice check-list GRTU is certain that GRTU is
consulted on a very very small percentage of the long list of Legal Notices
published DAILY. This includes the ‘consultation' emails we receive. Somehow
the Legal Notice check-list confirms that GRTU was consulted when GRTU hasn't
hared a word, or email on it. There is however no way for us to check how GRTU
was consulted, who they spoke to and what presumable feedback we gave as the
Legal Notice check-list is only Cabinet information and a constituted body like
GRTU and social partner at law has no right to know how we are said to be
consulted. If these Legal Notice check-lists are so great and work so well why
are they so sensitive that they cannot be published? Why is the process not
transparent and accountable? The reason is only known to those public servants
that think so highly of this secret legal notice check-list.

The MEU has a lot of good intentions
but lacks legislative power that would give it teeth to intervene where it
feels it needs to intervene. The MEU want to reduce bureaucracy but the pile
keeps increasing daily, and the reason is simple, no Government department or
public servant that in the morning legislates on what he dreamt the night
before has an obligation to take the Legal Notice to the MEU to have checked if
the consultation and impact assessment were really carried out and measures to
reduce and not increase bureaucracy have been enacted.

We are fed up of the lot of usual
rhetoric. If Government really wants to make regulation work for business it
has to enact a transparent system where MEU can act as a watch dog on better
regulation, where departments and public servants are accountable and have the
MEU breathing down their necks if they are not business friendly. Public
servants have been trained and guided, now we expect a return on investment. We
are paying experts at the MEU to do guide the public service into doing better.

We have to start with making the Legal
Notice checklist public and make it obligatory for any new Legal Notice or even
a change in the legislation to go through the MEU for scrutiny. This is the
challenge GRTU is proposing to the regulators that really want to enact a
pro-enterprise environment and help Malta gain its competitive edge. Let's see
who believes in the system enough to take up GRTU's challenge.

Hybrid taps & faucets – GRTU has been contacted by the Israli company Madgal Ltd.
A member of the Tel-Aviv Chamber of Commerce. Madgal specializes in producing and exporting Hybrid
taps and faucets.

Madgal is looking to expand its business around the
world after a great success in North America, and for that purpose is looking
for distributors in each country to partner with them.

For further information please contact Mr. Avi Albert,
International Sales Director, or visit their web site: www.madgal.co.il

The business community in various localities in Malta is
suffering a series of power outages practically every day, some for a few hours
others for days. The amount of complaints received in the last few weeks
was incredible. In Valletta only reports of power outages started in June
sometimes leaving business people with no option but to close their
shops/restaurants/coffee shops and send their employees home.

It is very
depressing for these people who have already too much on their plate such as
the outside City Gate project, embellishment works, road works etc taking place
in our Capital City.

GRTU has viewed all the excuses given by Enemalta and by
the Malta Resources Authority and
is not convinced. Business pay and pay at high rated to be served and served
all the year and all the time. Using the  period of high temperatures as
an excuse is simply not acceptable. It's a question of professional management.
Either the people in Enemalta and at the Public regulator's office know what
they are doing and they are capable of a professional performance required by a
modern economy or else they leave and pass on the job to others better
qualified and more capable. This is the language business understands. The
crucial point is that when a report to the Authority concerned is filed the
information of how long the power cut will be is most of the time misleading.
Most of the time GRTU is informed that it will be only for a couple of hours
which in particular cases results in days.

Enemalta is even unprofessional and incompetent at
handling consumer affairs.

In today's day and age business people who are also tax
payers expect to get a better deal. We expect Enemalta to be more proactive and
understand that our members cannot sustain such continuous losses. GRTU is now
confident that under the new Collective Redress law that the matter of
compensation will now be addressed by the Courts. Business cannot continue to
suffer losses due to the incompetence of others.

While most EU Member States (MS) and the European Commission itself bickers, the Maltese Parliament and the Cabinet of Ministers, on the recommendation of Minister Jason Azzopardi, approved on June 19th 2012 the Collective Action Act. This marked a sad day for business.

GRTU, together with other national organisations representing business members of EuroCommerce, and as active participants in the Employers Group at EESC through Director General Vince Farrugia, has staunchly supported the view MS should not rush in the approval of this measure prior to an agreement on the necessary safeguards that would not make this additional consumer protection measure an additional burden and threat to existing enterprises and a threat to new investment.

The Commission and all participants in the negotiations on the introduction of a Collective Redress mechanism in those European countries that have opted not to have such legislation have all agreed that this measure will not increase one single job to the already difficult employment situation in most EU countries.

During the only brief consultation session held in Malta on this issue GRTU presented its objections. Primarily these emphasised the irrelevance of this measure for Malta as consumers in Malta are already sufficiently protected. Indeed GRTU believes that if anything it is the Commercial Community that in Malta is today disadvantaged I f one where only to study the numerous judgments of the Consumer tribunals. GRTU also insisted on specific safeguards to ensure that there is no discrimination against business owners and against organisations like GRTU representing enterprise owners. Such discrimination already exists under the already activated Consumer protection legislation where business enterprises face heavy costs while consumers practically pay nothing, inspite of the costs, actual and commercial, that firms suffer as a result of frivolous legal action or spiteful requests.

The new law has at least incorporates some objections made by the GRTU:

• The clause exempting Government Institutions from having action taken against them was not included

• The new act does provide for collective action to be instituted also by organisations like GRTU representing business enterprises.This is a big breakthrough for GRTU as GRTU faces tremendous problems under the interpretation that MCCAA gives to existing legislation when it comes to the right of the business community and individual businesses to be represented by their chosen organisation.

A gross discrimination however remains. While consumers and consumer associations can raise collective redress action without any expense, a constituted body like GRTU representing businesses can only act if it accepts to pay all expenses without exception. Consumers and consumers associations also benefit from a maximum of payment on any losses they may suffer in cases lost at Court. Bodies representing businesses on the other hand have no form of relief from expenses and penalties. GRTU intends to take legal action against this discrimination.

Furthermore there is no threshold as GRTU had demanded. Any firm, micro, small medium or large, can face a class action. In addition it is not abundantly clear as to what extent local firms that are in representation of other EU originating firms are liable to class action.

 GRTU will be providing more specific details as the law comes into action.

Surprisingly, Minister Jason Azzopardi announced that the law will be effective as from this August. The first indication GRTU has from the first survey conducted among members is that this came as a total surprise to all. At EU level discussions have been going on for at least six years and in 2008 a Green Paper was published by the Commission, to which our EU organisations submitted reactions, and the EESC also produced an interesting Opinion on the matter (produced by our own Edwin Calleja, EESC member at the time).

GRTU is advising members on the implications of this very serious addition to the anti-business baggage of laws. Members are advised to inform GRTU of their views and experiences. A special Committee has been set up to monitor this issue.

GRTU
National Executive Council on Wednesday passed a resolution of thanks to
Richard Cachia Caruana, former Ambassador of Malta to the EU, for the great performance
he did on behalf of Malta in the first eight crucial years as Malta's first representative
in Brussels and for the excellent work he had also previously done as Malta's
chief negotiator for accession to the EU. Malta in the EU owes a lot to Richard
Cachia Caruana.

GRTU
had an excellent working relationship with Mr Cachia Caruana in his role as
Malta's representative. A relationship that has been further strengthened since
Vince Farrugia, Director General of GRTU Malta Chamber of SME's took up his
role in representation of Maltese Employers at the European Economic and Social
Committee (EESC), in Brussels.

GRTU
National Executive Council also expressed its great satisfaction at Marlene
Bonnici's elevation to Malta's Representative in Brussels. GRTU warmly welcomes
Marlene Bonnici to her new highly important role and extends on behalf of all
GRTU members its congratulations. All at GRTU are convinced that under  MsBonnici's
guidance Malta's interests will remain well guarded and Malta will continue to
preserve the high reputation for professionalism that our representation in
Brussels in the various EU institutions has acquired since Malta's accession to
the EU.  GRTU also expresses its
gratitude to MsBonnici for the excellent work she performed as the first Head
of the Planning and Priorities Coordination Division with overall responsibility
for EU funding to Malta and also recently in her role as Permanent Secretary on
EU Funds within OPM. GRTU looks forward to a renewed happy relationship with
MsBonnici.

Researchers from Aarhus University and EUFIC have analysed nutrition knowledge of food shoppers from six EU countries: UK, Sweden, France, Germany, Poland, and Hungary. Main findings include social grade, country of residence and age to directly influence participants' nutrition knowledge. Furthermore, older people, women and respondents of a higher socio-economic status showed a more active interest in healthy eating.

Overall, the UK had the highest nutrition knowledge, which was expected due to its number of nutrition education campaigns. One exception was knowledge about the sugar content of foods, which was higher in Germany, Hungary, and Poland.

In conclusion, consumers are aware of nutrition recommendations but less familiar with technicalities such as types of fat or the link between salt and sodium. Higher social grades have higher nutrition knowledge likely because of higher education. In general, all shoppers had trouble determining the calorie content of certain foods.

Each country differed in its strengths and weaknesses – differences which are likely due to different cultures and foods as well as the number and type of nutrition-related public health campaigns. In each country there are also different industry and retail initiatives that can affect nutrition knowledge.

The Malta-EU Steering and Action Committee (MEUSAC) and the British High Commission in Malta are organising a Public Dialogue with the Rt Hon. David Lidington MP, Minister of State at the Foreign and Commonwealth Office of the United Kingdom. Mr Lidington will be in Malta for talks with the Maltese Government.

Addressing a meeting of the UK and German EU Affairs Committees in London on June 25, Mr Lidington described the challenges and opportunities in the EU today:

promoting growth through increased competition and better targeting of EU structural funds;

completing the single market, particularly in the digital and services industries;

generating employment;

promoting free trade and research;

reducing the regulatory burden, especially for small and medium enterprise;

regulating financial markets;

a range of global issues, such as tackling climate change and encouraging sustainable development.

The Public Dialogue will be held on Tuesday, July 17 at 10am at the Vassalli Hall of the Mediterranean Conference Centre in Valletta. Mr Lidington will deliver an introductory speech that will be followed by a Question and Answer session with those present. The event will be recorded and transmitted on TVM 2.

To register kindly send an email on by not later than Monday, July 16.

The time has once again come to start thinking about fiscal proposals and schemes that we can propose to be included in the next Government's Budget. These can include proposals related to:

– pensions – taxation – schemes for childcare, environment and energy efficiency – boosting customer spending

– lowering running costs for business – simplifying rules and laws – funds for business and many more!

We want to hear from you send us your complaints and ideas and we will turn them into GRTU proposals. Send your comments on

Organisations representing the retail sector jointly announced their continued commitment to pursue dialogue and actions to bring a culture change and ensure the fairness in business relations in the supply chain.

At the Expert Platform on business-to-business contractual relations on 4 July, 10 European Trade Associations representing the various links in the food supply chain, including retail, presented the outcome of their discussions to establish a framework for the implementation and enforcement of principles of good practice in vertical relations in the food supply chain. These organisations worked hard, as a group and with their respective members, over the past 7 months to achieve a compromise that would bring a culture change in business-to-business relations along the entire food supply chain.

The scheme is based on the voluntary registration by companies in the food supply chain with specific commitments to respect and integrate the principles into their daily business practices. In particular, the framework foresees a procedure to handle disputes through a choice of options and taking into account the need to reassure the complainant that he will not be subject to commercial retaliation.

The four retail organisations believe that the proposed framework represents a robust and cost effective solution, which will bring a culture change ensuring the fairness of relationships in the food supply chain.

Background note

In November 2011, the High-Level Forum on a better functioning food supply chain warmly welcomed the set of principles of good practice for vertical relations in the food supply chain. The principles, agreed by all multistakeholders in the food supply chain, represent an understanding of fairness in business-to-business relations. The document also includes a list of examples of fair and unfair behaviour.

Subsequently, the High Level Forum has asked those organisations "to continue their dialogue in order to consider possible implementation and enforcement tools as well as the pros and cons of such tools with regard to effectiveness, costs, monitoring, transparency, credibility and any additional criteria that would be deemed of importance, with a view to agreeing on a preferred solution by June 2012 at the latest."

Since November, the 10 organisations met on a regular basis to establish a framework for the implementation and enforcement of the principles. Their European representatives have approved the framework that was presented today at the Expert Platform. The basic features of the voluntary framework are the following:

• It is a voluntary web-based registration system open to companies operating at all levels in the food supply chain
• When registering, companies carry out an internal assessment of their procedures and undertake a number of commitments on which they will have to report.
• The core commitments are to translate the principles into company culture, to train commercial teams (buyers and sellers), to follow a process for dispute resolution based on a specific choice of options, to communicate their registration to their commercial partners and to report on their activities as part of the framework through an annual survey.
• A governance body composed of representatives from the various links in the food supply chain would be responsible for overseeing the proper functioning of the system. It would not intervene in the adjudication of disputes so as to avoid conflicts of interests.
• The remedies, sanctions, and/or penalties for non-compliance with the principles of good practice would be determined by the dispute resolution bodies at national level according to the applicable law. Communication to the EU Institutions and the public is foreseen on an annual basis. A review clause would enable the governance body to review the principles and the operation of the framework as needed.