Category: Archive – 2014

GRTU has welcomed Government's intention to re-introduce
incentives that will encourage local businesses to set up an online selling
platform. GRTU has been calling for another scheme since the closure of the
previous, successful scheme.

Experience with the previous scheme will ensure
that the new scheme functions better and that the funds will reach the sectors
where they are most needed in line with Government's mandate. Following
thorough consultation with its members, GRTU has presented a comprehensive set
of proposals in line with the eCommerce strategy consultation launched by the
Government late last month.

Online selling still presents a significant challenge for the
majority of Maltese enterprises especially the smaller ones and we estimate
that around 30% of business in retail is being lost to online sales from other
countries it is therefore no longer an option to opt out. Figures show that the
online sales market has been progressing at a fast pace and businesses need to
adapt to this new reality as otherwise they will eventually be forced out of
business.

Many Maltese businesses seem to wish to invest in this medium
and we have identified a number of issues that are holding them back. GRTU has
put forward proposals that build and improve on the previous scheme and
mitigate issues that had arisen.

Government should move from a higher tax incentive to a lower
capped grant that covers all or a large percentage of the whole investment.
Together with this, Government would abolish the three quotes requirement as
going for the cheapest option is not always in the interest of quality and
business.

Clear and transparent criteria for the adjudication and a
point system to prioritize which enterprises need most help according to size
and sector amongst others. These criteria should be designed with the input of
the stakeholders and should be made public.

The assistance would ideally be segmented to cater for the
needs of the enterprise and not just limited to the setup of the eCommerce
site. Upgrading of already existing websites, initial setting up costs such as
consultancy, data inputting and translation services, online marketing strategy
costs, search engine optimization, eCommerce enabled mobile apps, upgrading of
Points of Sale and Stock Control Systems to link to eCommerce sites, should all
be considered for possible assistance.

Reimbursements to the enterprise would be made within strict
deadlines.

MCA would manage a
list of approved service providers that would simplify and fast track the application
process.

A directory of
enterprises having an eCommerce site should be created which would include the
possibility for customers to comment and leave reviews thus promoting a Peer
review mechanism similar to what is being used by major players in the
industry.

The scheme should
consider that Web Development companies might be inundated with orders and
should therefore stagger the assistance over an applicable period of time.

The inclusion of
all business sectors even if purchases cannot be effected online as is the case
with real estate and restaurants. These sectors were excluded under the
previous scheme but still have a lot to gain from a website even if online
purchases are not possible for these kinds of businesses.

There are other factors that are penalizing Maltese
enterprises and holding them back from investing in this medium. The archaic
Eco Tax regime is one of them. This tax is imposed only on Maltese originating
sales and therefore local businesses are at a significant disadvantage. A
Maltese entrepreneur would have to add €35 plus VAT on a tablet that costs €50.
This means that on some items the tax component amounts to half the value of
the items. GRTU has spent a number of years pointing this out. Unless this is
tackled with urgency, it is useless advertising assistance because effected
sectors simply cannot compete. GRTU members have also expressed their concern
on courier costs which tend to be much higher for Maltese businesses.

GRTU augurs that these proposals are taken up and that the
plan is put in action in the very near future as Maltese enterprises have a lot
to catch up on. GRTU will continue supporting its members in their adaptation
to help them increase their competitivity.

A public
consultation to address the issue of junk mail is in the pipeline, Environment
Minister Leo Brincat has announced.

The
issue of an excessive amount of unwanted mail could not be tackled overnight as
it impacted on various stakeholders.

(The
previous government had proposed a 1 cent tax on every 80g of paper delivered
for free on a door-to-door basis. However this was only to apply if more than
half of the publication's contents consisted of adverts. Magazines handed out
for free in newspapers were also be subject to this tax.)

Mr
Brincat made this announcement during the launch of a lottery aimed to raise
awareness on hazardous waste by encouraging people to take spent light bulbs to
civic amenity sites. According to a recent study carried out by WasteServ only
17 per cent of Maltese are aware that that bulbs are considered as hazardous
rubbish. 43 per cent dispose of them in black garbage bags used for mixed
domestic waste.

Through
this initiative people disposing of light bulbs at civic amenity sites will be
given lottery tickets.

A
similar initiative has already been launched for plastic bottles, resulting in
the collection of some a million bottles.

GRTU met with
the Malta Competition and Consumer Affairs Authority (MCCAA) to discuss the
EU's new Food Labelling Regulation that will generally have to be complied with
as of 13 December 2014.

During the meeting it was stated by both parties that
food and beverage manufacturers need to be made more aware of the changes that
should take place under this Regulation, and must be informed well in advance
so as to give them ample time for preparation.

Both parties highlighted the
fact that smaller companies may find more difficulties in complying with the
new Regulation due to a possible lack of resources. Therefore it was agreed
that organising information seminars will take place in due course, for both
smaller and larger companies, that shall provide an explanation of the
amendments that must be implemented.

Bank of
Valletta has announced the extension of the BOV ECO Personal Loan – GRTU Special
Scheme up to 31st December 2014.

Customers who want to purchase photovoltaic equipment and solar
water heaters from one of the participating retailers under the Special Scheme,
may take out a loan whereby the interest element is discounted by Bank of
Valletta and paid by the retailer. Customers availing themselves of this offer
will pay the loan amount through 36 easy monthly payments without incurring any
interest. 

"The BOV ECO Personal Loan – GRTU Special Scheme provides
affordable, customised solutions designed to help you nurture your home and
preserve your environment," said Edward Grech Executive Head Consumer Finance.

Bank of Valletta supports domestic home owners in financing their
investment in photovoltaic equipment and solar water heaters, empowering
customers to manage their utility bills in a sustainable manner whilst helping
in the safeguard of the environment for the benefit of humanity at large.

Full details about this new product from Bank of Valletta may be
obtained from any BOV branch or by calling BOVs Customer Service Centre on tel.
21312020 between Mondays and Saturdays, from 8am to 8pm (excluding bank and
public holidays).

GRTU Deputy
Vice President Philip Fenech has attended a public consultation with Home
Affairs Minister which focused on the increasing level of thefts within the
Sliema area. The meeting was attended by Home Affairs Minister Manuel Mallia
and Acting Police Commissioner Ray Zammit.

Throughout
the consultation a number of residents spoke of the trauma that they have
suffered after thieves broke into their houses to steal gold and money. These
residents have also hinted on the pattern that involved professional thieves
who could break into houses that were also equipped with strong locks.

Most
residents called for a greater presence of uniformed police officers in the
locality, others called for residents to be on the lookout for any suspicious
behaviour and report this to the police.

Home
Affairs Minister Manuel Mallia said the Sliema police station would be
bolstered by six newly reinstated police officers. He said patrols by plain
clothes police officers had been stepped up over the past months to counter the
spate of theft.

During
this meeting Philip Fenech asked Mr Mallia whether there is a sign that the
pattern of burglaries which occurred in Sliema is affecting retail outlets in
Sliema. Mr Mallia expressed that there were no reports of burglaries on
business.

There
were 29 reported burglaries from occupied dwellings in Sliema between January
and June, contrasting with 33 cases last year.

On receiving notification from the VGT that they intended to
increase the port tariffs GRTU immediately expressed its unequivocal opposition
to the increases. VGT's plans were to increase the tariffs from 1^st September 2014
to reflect changes in inflation.

Malta is already heavily disadvantaged with no cheap import
lines available which impinge heavily on our competitivess and result in
increased prices. With further increase in port tariffs enterprises have no
choice but to increase product prices both for imports and exports.

Before announcing any change in tariffs VGT must go to the
regulator and we expect that an economic and social impact assessment is
carried out to analyse the impact the changes will have on our businesses
competitiveness and consumers.

Cargo hailers are frequently blamed for high port charges.
The truth however is that the competition between the burdnara is strong and
healthy and burdnara have not increased their charges for a long time.

Government has committed itself, the Prime Minister himself
in fact, to increase Malta's competitiveness, also by reducing port charges and
GRTU welcomes this commitment and also the backing by Transport Malta as the
regulator for objecting to it.  

 

An MCESD meeting to discuss the important and delicate subject
of Libya was held last week. The meeting was called with urgency by GRTU and
was addressed by Hon Minister Chris Cardona and Head of the Public Service
Mario Cutajar.

GRTU President Paul Abela expressed GRTU's concern
with Libya. He said that we have a number of members experiencing problems
because of their operations in Libya. It is important that both organizations
like the GRTU and these businesses themselves are kept in the know and are
aided wherever possible. GRTU Vice President and Libya representatives Mario
Debono said that the situation in Libya is bad and the impact on business is
heavy but Libya will once again become a place to invest in even though this
might take longer this time. He emphasized that Libya is not a closed chapter
and we have to think also for when things stabilize.

Mr Cutajar explained the overall plan in place and
that up till now regular meetings are being held to prepare for any
eventuality. Hon Cardona said that the Government, mostly through Malta
Enterprise is in close contact with these businesses. Dr Cardona gave his
commitment that Government will speed up any payments due to Maltese businesses
involved in Libya , including VAT refunds, to help them in any cashflow
problems. In addition businesses will also be allowed more leeway in payments
they are due to make to the Government.

Businesses experiencing problems should contact GRTU.

Immediately following the power outage and GRTU's request for
compensation for loss of business, GRTU President Paul Abela met with Ministers
Konrad Mizzi and Chris Cardona as well as Chief of Staff Keith Schembri.

GRTU's argument was given due consideration and its
validity was acknowledged but compensation for businesses will be difficult.
GRTU however argued that this was no longer acceptable and it was agreed that
another meeting will be held next week to find a suitable solution for the
future. GRTU is currently looking into the limitations present in the Maltese
Law and also the possibilities provided in the English system and we aim to
push for legal changes as it seems that our energy supplier is protected from
seeking remedial action against it. Times have changed and entities must carry
their responsibilities.

In view of GRTU's protest Minister Mizzi confirmed
that better care and safeguard will be given to businesses in default with
Enemalta both when it comes to payments and interest. GRTU also requested a
specific professional customer care branch within Enemalta to deal with
businesses. A distinction should be made between businesses and other
customers.

On the 18^th of June, the
European Commission announced the possibility of withdrawal of the draft
maternity leave directive, in the context of the implementation of its
Regulatory Fitness and Performance programme (REFIT).

One of the main
objectives of this proposal is the extension of the maternity leave to 20
weeks, at a full paid salary, as well as the protection of women's rights upon
their return to work. The EU Parliament has adopted the draft directive in
2010, but it has never received the approval of the Council. For that reason,
in light of its smart regulation agenda, the European Commission has decided to
include the withdrawal of the maternity leave in the new initiatives for
simplification of EU. However, this proposal of the EU Commission has still to
be confirmed.