Category: Archive – 2014

GRTU's Tourisms Hospitality and Leisure President Philip
Fenech welcomed the announcement made by the Government that Malta is fully
committed to the implementation of the Single European Sky.

GRTU is a prime
supporter of this EU proposal and feels that Malta has a lot to gain both as a
country and in businesses terms through its implementation. The Government
stated that Malta continues to affirm its ongoing commitment to tangibly
contribute to the realisation of an efficient and effective Functional Airspace
Blocks (FABs).

This follows a request by the Commission for Austria,
Bulgaria, Croatia, Cyprus, Czech Republic, Greece, Hungary, Ireland, Italy,
Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and United
Kingdom, members of six different FABs to improve their FABs, a common airspace
arranged around traffic flows rather than state boundaries. FABs are a crucial
step towards a more efficient, less costly and less polluting aviation system
in Europe.

Philip Fenech already made GRTU's position clear
during consultation meetings held on the subject that this is the way forward
and that implementing the Single European Sky would result in savings in both
time and costs which should positively impact tourism flows. This especially
for an island state like Malta.

GRTU has this week met MIP CEO Joshua Zammit and raised a
number of important issues which our members find problematic with the MIP EOI
for the installation of Photovoltaic Panels on factory roofs in Industrial
Parks in Malta and Gozo. This is not the first time GRTU had raised its
concerns on this EOI both with MIP and Minister Chris Cardona.

GRTU explained that a section meeting for the sector
was held and all the representatives present felt that they could not
participate because the cost to simply express their interest was too high, the
project has a high risk element and a number of important elements that impinge
on the cost of the service given were still too vague. GRTU emphasized that it
is very worrying that the absolute majority of the sector feel they cannot
participate.

Amongst the issues raised by GRTU was the study, the
performance bond, the one-time upfront payment, the feed-in-tariff and the end
of life of the system.

GRTU stated clearly it is not against the EOI because
the EOI presented a very important opportunity, especially considering Malta's
limited market and space but it needs to be adjusted to give local businesses a
real chance at benefitting from it. GRTU explained how with some adjustments
the EOI could improve drastically.

Mr Zammit informed GRTU that he had listened to all of
GRTU suggestions and will be giving each its required consideration and that we
will hear from the side of MIP. As GRTU now we look forward to a positive
response in everyone's best interest.

In a round table meeting organised by the European Commission
Representation Office in Malta GRTU CEO raised a number of important issues
which the Commission cannot ignore when it is highlighting certain deficiencies
that are hindering Malta's competitiveness.

One of the issues highlighted by the Representatives
of the Commission was tax compliance and curtailing evasion. GRTU CEO argued
that in saying this the Commission cannot disregard the situation of rampant
tax evasion that is occurring in Malta. Ms Psaila Mamo argued that a
significant amount of goods are coming into Malta through various channels and
totally avoiding the dues such as VAT, Excise Duties and Eco Contribution. The
representative of the Commission said that it is aware of the plight of the
GRTU but the Commission at this stage cannot intervene directly.

He stated that the Member State is obliged to ensure
that VAT is paid and take necessary actions to address problems but the method
of implementation is up to the Member  State.
The Commission also outlined that it is not in its interest to make it
difficult for the Member States to introduce measures to tackle abuse if the
measures are genuinely targeted at this scope and not at creating obstacles to
the single market. He further stated that the Commission is always open to help
Member States and provide guidance.

Another issue included in the CSRs for Malta was
Access to Finance and the Commission mentioned specifically that ‘the lack of
alternative debt financing leads to a high cost of funding for companies'. The
banks were very defensive on the issue saying that the their model was
different from that of the other Member States and it has worked for a very
long time and they see no reason to change it. They explained that there is a
risk involved and the banks calculate this risk, which is reflected in the
interest rates.

GRTU's CEO said that irrespective of the model used
and the way risk is calculated, the bottom line is that access to finance in
Malta is very expensive and this impinges heavily of the competitiveness of our
businesses compared to their counterparts in Europe. Malta is not the only
Member State that survived the crises well but the banks in most of the other
countries still manage to give finance at lower rates. Ms Psaila Mamo argued
that the banks should not exclude the possibility of changing their model but
because they are doing so well they do not feel the need to. She continued
saying that it would be beneficial to know how the banks calculate their risk
and that they would explain this to their clients so that the system is
transparent and the client would be able to understand how they can reduce
their risk potential and benefit from cheaper rates. The JEREMIE scheme was
also mentioned and that there must be a reason why it did so well. This in
itself is evident that lower interest rates and collateral requirements and in
high demand.

The European Commission services have launched a consultation on the
potential economic consequences of country-by-country reporting (CBCR) under Directive 2013/36/EU (Capital Requirements Directive IV).

The purpose of this
consultation is to collect information and obtain input from all interested
stakeholders on the potential economic consequences of public disclosure by
banks and investment firms, on a country-by-country basis, of their profit and
loss before tax, tax on profit or loss and public subsidies received. These new
tax reporting rules are foreseen in Directive 2013/36/EU, together with the
obligation for the Commission to prepare a report on this matter which it
should present to the European Parliament and the Council by 31 December
2014. The consultation will run until
12 September 2014
and its responses will be taken into account in the preparation of the report.

This consultation can be accessed at:

http://ec.europa.eu/internal_market/consultations/2014/country-by-country-crd4/index_en.htm

What is  Horizon 2020? Horizon
2020 is the EU Framework programme for research and innovation. It is the
financial instrument implementing the Innovation Union, a Europe 2020 flagship
initiative aimed at securing Europe's global competitiveness.

Horizon
2020 will run from 2014 to 2020, with circa €80 billion budgeted for its 7
years duration. This new programme aims to contribute to the creation of growth
and jobs in Europe in response to the economic crisis and is expected to
address peoples' concerns about their livelihoods, safety and environment. In
turn, it will strengthen the EU's global position in research, innovation and
technology.

Horizon
2020 combines three separate programmes:

1. The Research Framework Programme (FP)

2. Innovation-related aspects of the
Competitiveness and Innovation Framework Programme (CIP)

3. The European Institute of Innovation
and Technology (EIT)

Horizon 2020 will be composed of three main pillars with mutually
reinforcing priorities which have clear EU added value.

These are:

Excellent Science

Societal
Challenge

Industrial
Leadership

Why should you participate in Horizon 2020?

Horizon 2020
provides a unique opportunity to share knowledge, experience and facilities
across Europe.

It finances your research idea

It increases
your international networks and contacts, thus creating synergies and learning
from international arena of other excellent partners

It enables
research institutions to gain a competitive edge through translational knowledge

It offers
researchers the opportunity to tackle global research challenges

It offers
individual researchers the chance to take advantage of development
opportunities

It enables you
to widen your field of expertise, which gives you access to new technologies

It helps you
get your first pick at licensing patents since all knowledge generated by you
during the project is yours!

For further
information on horizon 2020, visit:

http://ec.europa.eu/programmes/horizon2020/

The European
Union provides funding and grants for a broad range of projects and programmes
covering areas such as education, health, consumer protection, environmental
protection, rural and regional developments and humanitarian aid.

EU
funding is complex, since there are many different types of programmes managed
by different bodies. Over 76% of the EU budget is managed by the member
countries. This includes structural funds – which finance regional policy,
social and training programmes, as well as agriculture (including support for
farmers). LIFE, on the other hand, is managed directly by the European
Commission and its Agency for SMEs (EASME).

LIFE has
a well-defined focus on addressing the specific needs relating to the
environment and climate action. Nevertheless, given the interrelationship
between the environment, climate action and other policy areas, there is still
a certain overlap in scope between LIFE and other RU financing programmes. In
particular, applicants may hesitate between making a submission to life or the
Horizon 2020 programme. Applicants may also find it difficult to distinguish
between the various components of new LIFE 2014-2020 programme.

Therefore
the following aims to highlight some of the key elements of LIFE, and of some
of its components, in order to help applicants identify the most suitable
potential source of funding for their project proposals.

The LIFE
programme is divided into two sub-programmes. These priority areas include a
LIFE sub-programme for Environment and a LIFE sub-programme for Climate Action.
A application must be submitted under a ‘priority area' in one of these
sub-programmes.

General common features of the sub-programmes

Stakeholders
may include private companies (mainly SMEs), NGOs, and public administration
active in the field of environment and climate protection

The application must emphasis
geographical scope of interventions and origin of beneficiaries

Emphasis on transferability and long
tem sustainability of the project results

Projects must not focus on research

It must not focus on large
infrastructure nor rural or regional development (agricultural, structural
funds)

There will be support and monitoring
from EASME or Commission and external monitoring team

Funding co-financing rates

Traditional Nature and Biodiversity
projects received 60% co-financing but 75% for projects targeting priority
habitats and species

Integrated projects, preparatory projects
and technical assistance projects benefit from 60% co-financing

All other projects i.e., traditional
projects under the sub-programme of Climate Action and traditional projects
under priorities Environment and Resources Efficiency and Environment Governance
and Information projects in the sub-programme for environment

60% co-financing during multiannual
work programme (2014-2017)

55% co-financing during multiannual
work programme (2014-2017)

Before you
submit an application, it is important to keep the following points in mind:

Identify the environmental problem
you wish to address

Determine whether LIFE is the right
type of funding for your project

Check whether your project fully fits
the priority project topic, or will receive fewer points

Read the documentation

Decide the scope of the project

Put together a project team

Carry out a project development
exercise

Remember that the selection procedure
of LIFE is a very tough, thorough and detailed one which can be time consuming

Indicative schedule

03rd September 2014: Publication of call

15th October 2014: Deadline of submitting proposals

February 2015: Notification of
results

February/ March 2015: Revision and verification period

Closure of the
selection round and dispatch of grant agreements to successful applicants April 2015

For further
information on the programme, visit:

http://ec.europa.eu/environment/life/

Directive 2012/17/EU on the
interconnection of business registers entered into force on 7 July 2012.
Member States have had two years to adapt their national laws to introduce the
first set of provisions in the Directive, including a new obligation on
business registers to make available documentation submitted by limited
liability companies normally within 21 days of receipt.

The European Commission published a
questionnaire which aims at providing it with experience-based evidence of the
remaining obstacles to a fully functioning Single Market for services. It
targets all companies, especially SMEs, which provide services cross-border,
have established a business in another Member State, have purchased
cross-border services, or have tried to do so but have failed for different
reasons.

This includes activities carried out online. It is also an invitation
of recipient of such services, consumers or other business, to provide
feedback.

The questionnaire includes the
following sections, which should only be filled in if they are relevant for the
respondent dependent on his case

1. Information
about the respondent

2. General
questions to respondents doing business in or buying services from another EU
country

3. Specific
questions to respondents doing business in another EU country

4. Specific
questions to respondents not doing business or buying services in another EU
country

5. Specific
questions to respondents buying services from another EU country

The questionnaire will also serve as
a basis for discussions in local stakeholder workshops to be organised in the
Member States in the context of the Single Market Forum 2014/2015. Such
workshops will take place in autumn 2014.

The
questionnaire can be directly accessed through the following link:

http://ec.europa.eu/eusurvey/runner/internal-market-services-businesses?surveylanguage=en

GRTU Deputy President and Tourism Leisure and Hospitality
Section President Philip Fenech this week met with Mr Ramon Deguara, Head of Cleansing,
and his team and together walked around the Paceville area and spoke to a
number of entrepreneurs and identified specific areas were more attention was
needed. They identified places where litter bins could be utilized and also
agreed on cleansing logistics for the better management of the area.