Category: Archive – 2012

The Malta-EU Steering and Action Committee (MEUSAC) in collaboration with the Malta Environment and Planning Authority (MEPA) will be organising a consultation session on MEPA's proposal for an Environmental Permitting System with the aim of improving the current regulatory framework applicable for industrial activities of environmental significance. The proposed environmental permitting system will cover in particular:

Waste management installations e.g. inert waste landfills, material recovery facilities and civic amenity sites;

Sewage treatment plants;

Reverse osmosis plants;

Manufacturing plants;

Chemical and pharmaceutical plants;

Quarries;

Batching and asphalt plants;

Petrol stations;

Volatile organic compound (VOC) solvent activities e.g. printing, surface coating and drycleaners;

Shipyards, Marinas, sea ports, fish farms and airports; and

Hospitals and hotels.

Participants will also be given an update on the recent developments regarding the transposition of the new Industrial Emissions Directive (2010/75/EU). This Directive was already discussed during an information session organised by MEUSAC together with MEPA on March 21, 2011 for which relevant stakeholders were invited.

The session, which will be conducted in Maltese, is being held as follows:

 Date: Tuesday, January 24, 2012
Time: 15.00 – 17.00 hrs
Venue: 254, Europe House, St Paul Street, Valletta

Points raised during the session will be taken into consideration in the drafting and finalisation of the legislation.

Should you be interested in attending kindly confirm your attendance at your earliest on

Kindly further note that for security reasons, you will be requested to show your ID card at the Reception to be allowed entry. Kindly send me your ID card number when registering your attendance so that I can forward a list to the reception beforehand. This will save time when signing in at the reception. It is of utmost importance to bring your ID card with you.

Vince Farrugia-GRTU DG & EESC Employers Representative – When the global economic and financial recession first hit Malta in 2009 Malta was saved from greater economic damage as a result of a combination of four elements. In the pre-recession period when the World Economy was awash with speculative money that was pouring in those economies that did not block the flood waters like Ireland, Greece, Portugal and Spain, Malta had in force monetary and legislative firewalls that prevented this kind of money to reach us.

In the property market the only speculative moneys that moved in were the substantial funds owned by Maltese who previously, fraudulently,  evaded  income and other taxation  and foreign exchange controls, and which funds  were then allowed in under that horrible Tax, and I say, fraud, Amnesty. Otherwise the fact that we managed relatively well with our own local funds ensured that while we were not subjected to exceptional international pressure we could also manoeuvre out of the recession relatively unscathed. And this is precisely the second element. Our size and our control on our macroeconomic imbalances both internal (government financial deficit) and external (international, the balance of payments current account) protects us from the uncontrolled reactions of the global money market.

The third element is the way Government has been managing the economy. In brief this is a steering away from the pressures of the international money market, high pressure to turn the economy through various incentives towards new forms of investments based on the knowledge economy. The incentives package brought forth the quicker emergence of an economy based on transhipment, light knowledge based manufacturing, tourism all-year-round based on niche markets, specialised service enterprises like e-gaming and professional back office  and enterprise support quality services, financial services and quality conventions and conferences,  as well as international trading and logistics, warehousing and logistic.

The entrepreneurs operating on the local economy and depending on local private and public sector consumption and the derived demand of the enterprises with an international clientele are increasingly being supported together with exporters of goods and services with assistance programmes in favour of renovation, restructuring and resizing. I believe that this strategy should be intensified now that there is a threat of another round of recession. We need to concentrate more on the restructuring of our enterprises in favour of more innovation.

We also need to manage and control our Banks better. In this regard I continue to stress that access to finance remains the major  hurdle of Maltese enterprise as they seek to grow and restructure.. The loan guarantee schemes for which GRTU has worked so hard are essential. But Banks remain loaded with excess liquidity as the Maltese level of savings remains high but a big chunk of this liquidity is moving, and very fast, abroad to the detriment of Maltese entrepreneurship and to the absolute importance of rapidly increasing our national output. Finally our important fourth element: our ability to manage our National Accounts.

We can as a result of our size identify the problems faced by exporters, tourism operators and others and indicate in a short period of time effective remedies that can be implemented fast enough to keep improving our competitiveness and keep our international macroeconomic imbalances in check . We can also manage our government Financial Budget tightly enough to ensure that our Balanced Budget EU directed strategy is achieved even earlier than planned.

Government should also speed up its capital investment programme. Government should not wait for the second half of the year to really start spending as the delay may cost us dearly if the international situation worsens and finds us unprepared with a readily planned capital investment expenditure. This expenditure will balance any shortfalls in private expenditure by increased public expenditure not in useless current expense but in worthwhile investment projects. 

The last thing Government in 2012 should do is to panic and submit to negativism and to panicky austerity measures. Politicians will do the country honour if they stop the ugly scenes of infighting that destabilise unnecessarily the local economy and cause strain and fear among consumers. Consumer confidence is important. As for stakeholders, I say that we have enough fora and where to present arguments and solutions to actual and not perceived problems.

We at GRTU are proud of the volume of solutions we constantly push forward. We can shout and bang in camera, but let us all keep the people out there concentrated on improving overall productivity and keep their standard consumption going. Our economy is as resilient as we can make it. We can face the challenge if we all really want to.

'Considering the eurozone is likely to go into recession in 2012, what measures should the government and stakeholders take to ensure economic growth and job creation next year?' – When the global economic and financial recession first hit Malta in 2009 Malta was saved from greater economic damage as a result of a combination of four elements. In the pre-recession period when the World Economy was awash with speculative money which was pouring in those economies that did not block the flood waters like Ireland, Greece, Portugal and Spain, Malta had in force monetary and legislative firewalls that prevented this kind of money to reach us. In the property market the only speculative moneys that moved in where the substantial funds owned by Maltese who previously, fraudulently,  evaded  income and other taxation  and foreign exchange controls, and which funds  were then allowed in under that horrible Tax, and I say,  fraud, Amnesty. Otherwise the fact that we managed relatively well with our own local funds ensured that while we were not subjected to exceptional international pressure we could also manoeuvre out of the recession relatively unscathed.

 

And this is precisely the second element. Our size and our control on our macroeconomic imbalances both internal (government financial deficit) and external (international, the balance of payments current account) protects us from the uncontrolled reactions of the global money market. The third element is the way Government has been managing the economy. In brief this is a steering away from the pressures of the international money market, high pressure to turn the economy through various incentives towards new forms of investments based on the knowledge economy. The incentives package brought forth the quicker emergence of an economy based on transhipment, light knowledge based manufacturing, tourism all-year-round based on niche markets, specialised service enterprises like e-gaming and professional back office  and enterprise support quality services, financial services and quality conventions and conferences,  as well as international trading and logistics, warehousing and logistic.

The entrepreneurs operating on the local economy and depending on local private and public sector consumption and the derived demand of the enterprises with an international clientele are increasingly being supported together with exporters of goods and services with assistance programmes in favour of renovation, restructuring and resizing. I believe that this strategy should be intensified now that there is a threat of another round of recession. We need to concentrate more on the restructuring of our enterprises in favour of more innovation. We also need to manage and control our Banks better. In this regard I continue to stress that access to finance remains the major  hurdle of Maltese enterprise as they seek to grow and restructure.. The loan guarantee schemes for which GRTU has worked so hard are essential. But Banks remain loaded with excess liquidity as the Maltese level of savings remains high but a big chunk of this liquidity is moving, and very fast, abroad to the detriment of Maltese entrepreneurship and to the absolute importance of rapidly increasing our national output. Finally our important fourth element: our ability to manage our National Accounts. We can as a result of our size identify the problems faced by exporters, tourism operators and others and indicate in a short period of time effective remedies that can be implemented fast enough to keep improving our competitiveness and keep our international macroeconomic imbalances in check . We can also manage our government Financial Budget tightly enough to ensure that our Balanced Budget EU directed strategy is achieved even earlier than planned.

Government should also speed up its capital investment programme. Government should not wait for the second half of the year to really start spending as the delay may cost us dearly if the international situation worsens and finds us unprepared with a readily planned capital investment expenditure. This expenditure will  balance any shortfalls in private expenditure by increased public expenditure not in useless current expense but in worthwhile investment projects.  The last thing Government in 2012 should not do is to panic and submit to negativism and to panicky austerity measures. Politicians will do the country honour if they stop the ugly scenes of infighting that destabilise unnecessarily the local economy and cause strain and fear among consumers. Consumer confidence is important. As for stakeholders, I say that we have enough fora and  where to present arguments and solutions to actual and not perceived problems. We at GRTU are proud of the volume of solutions we constantly push forward. We can shout and bang in camera, but let us all keep the people out there concentrated on improving overall productivity and keep their standard consumption going. Our economy is as resilient as we can make it. We can face the challenge if we all really want to.

 

 

 

Gas Distributors are abliged according to the Social Contract approved by Governmenmt  to provide door to door distribution of LPG Gas Cylinders everywhere in Malta and Gozo and to the exclusion of no consumer irrispective of distance or any other hindrance. Under this obligation Gas Distributors  are also obliged to sell gas at the price established by the Malta Resources Authority according to a price methodology  established by the same Malta Resources Authority in June 2010. The approved mechanism also provide for price increases necessary when basic costs of distribution vary when taken as a national average.

 

Early in December Gas Distributors, members of GRTU, met Liquigas after Liquigas formally and in writing did not accept to include the costings  presented by Gas Disributors to prove that current price mark-ups do not cover increased costs of distribution. The costings presented by the distributors are within the price methodology as established currently by the Malta Resources Authority. Liquigas have always sold their LPG cylinders according to the maximum price established by the Malta Resources Authority until Easygas Malta Limited came along with a cheaper price. The competitive structure of the market forced Liquigas to reduce also its recommended price to consumers. When competition was absent Liquigas simply held to the maximum price issued by the Malta Resources Authority. It is an obligation under the price settlement mechanism to take into consideration the actual costs of distribution on a door to door basis. The maximum selling price authorised by MRA include a margin to cover also increased cost of distribution. The prices at which Gas cylinders are being sold today by distributors to consumer include this approved margin.

When Liquigas changed its recommended prices the company however failed to meet the increasing costs of distributors like increase in fuel prices and increased wages for themselves as self employed and for their employees in addition to other expenses. The Malta Resources Authority were informed of this situation so that the matter could be managed according to established procedures. This was done during a meeting held at the Authority's offices in December.

The prices at which Distributors are selling to consumers do not exceeded the prices set by the Malta Resources Authority and the statement issued by Liquigas is  therefore incorrect and only represent another miscalculated action by Liquigas to create unnecessary conflict with the gas distributors who serve the community.  GRTU objects strongly to this attitude as it represents a silly way to conduct industrial relations.      Liquigas efforts to place the distributors in a bad light with end consumers reflects badly on Liquigas itself.

Whilst Easy Gas Malta Limited has agreed with individual distributors in respect to any acceptable cost increases effected as long as they are within the MRA established parameters, Liquigas stabornly persist in their desregard of their legal obligation as issued by the Malta Resources Authority in respect to LPG and Propane Price Mechanism (June 2010)' issued by the same Authority.

 

GRTU appeals to Liquigas to meet Gas Distributors representatives and settle this issue through the proper regulatory channels and not through uncalled for public announcements that result only through poor judgment and  are only fruit of their own failure to act according to their obligations and approved procedures.