Category: Archive – 2015

GRTU President Paul Abela has welcomed the candidate for the position of Honorary Consul Martin Ramusch from Austria. Mr Abela initiated the discussion by explaining how GRTU reaches out to its members to provide assistance and information on various issues that affect local business. As the Chamber for SMEs, GRTU has grown into a leading social partner represented on national fora such as the Malta Council for Economic and Social Development whilst maintaining a central role in EU policy through its active membership in UEAPME and EuroCommerce.

 GRTU is central to Mr Abela continued by emphasising that GRTU holds a healthy relationship with government as well as with the opposition. This allows GRTU to advocate its members concerns with directly policy makers and decision-making fora. GRTU is also engaged in providing services and support to its members allowing it to act as a business partner to its members.

It was also discussed that Malta has already taken the opportunity to invest and do business with Austria. This fact alone continues to encourage strong ties and investment between both countries. Austria places itself as one of the most advanced economies in Europe and Malta’s fast developments and flexible growth places both countries as ideal partners to allow business growth and cooperation. Exchange of business practices, models as well as resources, can serve as channels to broaden and deepen cooperation initiatives for mutual benefit.

Members are hereby informed that by virtue of the Budget Measures Implementation Act, 2015, enacted on the 30^thApril 2015 but coming into force retroactively, importers of the relative HS Codes indicated hereunder are not to fill in and submit any Eco Contribution Returns to the VAT Department in relation to such products for goods imported after the 18th November 2014 that have now become liable to Excise Duty by virtue of the same Act.

These amendments to the Eco Contribution Act also confirm that there is no legal liability for producers to pay Eco Contribution on such products imported after the 18th November 2014.

Extract from the Budget Measures Implementation Act, 2015:

PART XXXV

Amendment to the Eco- Contribution Act [Cap. 473]

162.        

(1) This Part amends the Eco-Contribution Act and it shall be read and construed as one with the Eco- Contribution Act, hereinafter in this Part referred to as “the principal Act”.

(2) The provisions of this Part shall be deemed to have come into force on the 18th November, 2014.

163. In the First Schedule to the principal Act, the following tables shall be deleted:

“AMMUNITION”

9306 Cartridges, whether or not filled with ammunition, excluding:

i) cartridges for riveting or similar tools or for captive-bolt humane killers;

ii) cartridges, filled with lead pellets of a maximum weight not exceeding 24 grams €0.05 per piece

 “TYRES FOR MOTOR AND COMMERCIAL VEHICLES, UNDER THE FOLLOWING HEADINGS:

4011 New pneumatic tyres, of rubber, not including tyres of heading 4011 50 €4.66

4012 Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, of rubber €4.66

“PETROLEUM OILS, UNDER THE FOLLOWING HEADINGS:”

Lubricating oils; other oils:

2710 19 71 For undergoing a specific process €0.23 per litre

2710 19 75 For undergoing chemical transformation by a process other than those specified in respect of subheading 2710 19 71 €0.23 per litre

For other purposes:

2710 19 81 Motor oils, compressor lube oils, turbine lube oils €0.23 per litre

2710 19 83 Liquids for hydraulic purposes €0.23 per litre

2710 19 85 White oils, liquid paraffin excluding heavy liquid paraffin BP/USP 6360 qualifying as a food grade product €0.23 per litre

2710 19 87 Gear oils and reductor oils €0.23 per litre

2710 19 91 Metal-working compounds, mould release oils, anticorrosion oils €0.23 per litre

2710 19 93 Electrical insulating oils €0.23 per litre

2710 19 99 Other lubricating oils and other oils €0.23 per litre

GRTU hosted an information session on Legal and Commercial Guarantees. The focus was to explain to business-owners the obligations that arise from guaranteeson sale of products, as well as explain the differences between the legal guaranteewhich emanates from EU legislation, and the commercial guaranteewhich is a contract which may be entered into by the seller and the customer.

The session was chaired by GRTU Vice-President Finance & Administration Mr Marcel Mizzi. It was addressed by Dr Irene Bonello from the Malta Competition and Consumer Affairs Authority (MCCAA) who focused on consumer protection and traders’ obligations, and by Dr Nadine Sant from the Ministry for the Economy, Investment and Small Business (MEIB) who focused more on the business-to-business aspect.

The meeting helped clarify grey areas which arise from both the regulations emanating from EU directives as well as national legislation, whilst also promoting the notions behind these regulations which are not always necessarily fully or correctly applied, at times due to lack of sufficient knowledge. Regulations in force stipulate the minimum legal guarantees which the trader is obliged to fulfil towards his client. The commercial guarantee is over and above the legal guarantee and is intended to place the beneficiary at a better position than that through the legal guarantee. This should be set out clearly in writing yet commercial guarantees which would have been advertised, even if not written in the form of a contract, have to be fulfilled by the seller anyway.

In terms of latent defects, the seller is bound to warrant that the sold item against any latent (hidden) defects which render it unfit for the use for which it was intended or which diminish its value to an extent that the buyer would not have bought it or sought to pay less. The seller is not answerable for any apparent defects which the buyer might have discovered for himself and hence the importance to inspect.

The session went into the specific details of main issues that may require clarification explaining various points and interpretations including specific cases. A main issue raised concerned differences between wholesaler liability based on guarantees offered by leading international brands and legal guarantees which the retailer would have to carry responsibility for. Aspects of the Civil Code were also discussed in terms of how business-to-business transactions effect guarantee since the regulatory framework of legal guarantees is specifically set for end-consumer benefit rather than business-to-business matters.

Specific cases discussed during the session showed how the onus of proof for latent defects is usually a subject of possible disagreement. In the first six months it is assumed that the defect was present at the point of purchase, but beyond this clients are assumed to have to prove that defect originated at point of purchase. Clarifications were also made on the burden of transport and delivery charges for replacements.

MCCAA also provided attendees with guidelines on how to draw up a commercial guarantee. The presentation as well as the template can be acquired by contacting GRTU on .

GRTU was presented with the Equality Mark certification by Hon Minister Helena Dalli, during the NCPE 11th annual conference. This certificate is testament to GRTU’s commitment towards gender equality, certifying the organization as a true equal opportunities employer.

As a registered employers organization the GRTU felt it necessary to embark 

on this exercise to lead by example and also experience first hand how accessible such certification is, especially to the smaller businesses in our country – micro enterprises. Micro enterprises are businesses employing less than 10 employees and these make up 95% of total enterprises and employ 35% of the Maltese workforce.

Micro enterprises tend to find the acquisition of standards and certification more difficult because they have less human resources to dedicate towards such efforts. This does not however mean that they do not operate on the required principles, quite the contrary, such principles however tend to be applied informally and this would not fit the requirements. Employing just 8 employees GRTU can easily be compared to any micro enterprise in Malta and GRTU’s experience with acquiring the Equality Mark was indeed very positive and accommodating to its working principles and needs.

Employing equal opportunities principles and flexible working arrangements is good for the company and good for the employee. A gender balanced workforce meets more successfully its customers’ needs and expectations due to its reflection of the market. In addition giving employees the needed flexibility encourages worker loyalty and increases retention rates.

Together with the GRTU another 11 companies and organizations were successfully certified with the Equality Mark. Applying and acquiring the Equality Mark carries no fee.

• All Valletta Government owned retail outlets that are operated by tenants both under a title of lease (kera) as well as emphyteusis (cens), will now be eligible to submit an application under the SHOPS SCHEME. The Hon. Falzon said that applications will be open on Monday 11th May 2015 and will offer the opportunity for tenants to use their shops as security when they seek finance.  A €500 non-refundable administration fee will apply. GRTU proposed that this fee should be deductible as an expense in the tenant’s income tax return for the following year, however this is still to be confirmed.
• Applicants will benefit from a term of emphyteusis (cens) of 45 years;
• Government will accept applicants who can provide either a clear root of title of how they possess the premises or in lieu thereof, an affidavit detailing their acquired rights over the premises;
• Government will not accept conflicting applications over the same premises;
• Government will grant tenants the right to enter into the deed of cens as a limited liability company where the tenant is a private individual, and vice versa without the payment of a laudemium;

• The rates will be calculated on actual floor space therefore excluding columns, shafts etc;
• The rates will increase by 10% every five years. This increase is a flat rate and will not be subject to any cost of living adjustments;
• Future transfers of the title over the premises will be allowed against the payment of a laudemium to Government equivalent to one year’s cens;
• Government reserves the right to refuse any application at its sole discretion;
• Transfers by inheritance inter vivos/causa mortis will not attract a laudemium;
• Any existing leases or cens having rates higher than those introduced by the Scheme will remain unchanged, in the sense that the Scheme will not be used as a means of reducing the rate of lease/cens previously contracted;
• Properties subject to the conditions of the agreement with the Holy See (Vatican/Joint Office) will remain subject to those conditions in the new deed of cens;
• The premises can be subdivided (split) solely following the consent by Government;
• Tenants will have to provide Insurance cover for the cost of reconstruction and contents;
• The Scheme will be open for 12 months;

1. City Gate Arcade;
2. St. John’s Cathedral proximity;
3. Old University Building;
4. All kiosks (not only City Gate but anywhere in Valletta);

• Government will endeavor to facilitate the relocation if possible of any shops in these locations which will need to be relocated, most significantly those in the proximity of St. John’s Cathedral. 
• Government at this stage will nonetheless not be granting any compensation to tenants who will need to be evicted due to impending projects.

• Every employer has a legal obligation to manage occupational Health and safety to ensure appropriate measures are in place at all times, whatever the type or size of the company.
• Every employer must carry out a risk assessment to identify hazards in the workplace and remove these hazards.
• Every employer needs to consult with his workers on issues that could affect their health and safety at work.

These were the issues that were discussed in during a seminar that was presented by Occupational Health and Safety Authority.

Risk assessments are an obligation and part of the law. Experience shows that proper risk assessment is the key to healthy workplaces. Yet carrying out risk assessments can be quite challenging, particularly for micro and small enterprises which may lack the resources or know-how to do so effectively.  To facilitate the process, EU-OHSA has developed a comprehensive yet easy to use and cost-free web application, the OiRA an Online Interactive Risk Assessment that will help solve this issue. OiRA helps micro and small organisations to put in place a thorough step-by-step risk assessment process – from the identification and evaluation of workplace risks, through decision making on preventive actions and the completion of these actions, to continued monitoring and reporting.

One can use this system to start their risk assessment by registering on: www.oiraproject.eu

If you need any information regarding this programme, you can send an email to: .

Tourism Minister Edward Zammit Lewis, with the contribution and participation of social partners involved directly with the tourism sector, launched a Report on Tourism in Malta and its relationship to our economy. The Minister stated that the tourism sector experienced steady growth over the past years with continuous diversification to become one of the fastest growing industries world-wide. Nationally, it has developed into a major contributor towards Malta’s economic growth and therefore a detailed study on the industry’s input to the economy has been commissioned to solidify the cause of success and base the way forward for further growth.

One of the major variables which the report identifies is how the tourism industry in Malta has contributed towards growing employment opportunities. Tourist arrivals reached over 1.7 million in 2014 sustaining 20,500 direct jobs in the sector and an estimated 7,500 which are engaged indirectly. The Minister added that tourism provides one out of every five jobs in Gozo. This report substantiates the importance of having a clear policy for tourism as published through the National Tourism Policy in recent weeks.

GRTU’s Deputy President Philip Fenech, responsible for GRTU’s Leisure and Tourism section, commented on how over the past years our tourism sector has become more accessible to our arrivals potential through ever-increasing linkages to our island. Low-cost airlines showed their mark by encouraging the building up of the independent traveller aside to the already existent tour-operator market. Online sources have also been and important source for growth. In parallel to this, Malta’s business sector has continuously supported the developments to increase receptiveness and potential. The atmosphere for growth has been set and private investment has instilled confidence in tourism growth. It is expected that the public sector should also match the pace with that of the private sector if sustained growth is to be ensured. Infrastructure is one of the areas which remains behind.

Our tourism sector has taken shape from a mainly colonial tourist to a more diversified sector having developed through various niches. This gives a sense of security as the sector departs from resting on only one type of tourist market. These new segments also need to be developed further by tapping into emerging markets every year. The challenge is now how to refine the segments to optimise influx whilst monitoring that one segment does not override other existing or emerging niches.

1.7 million is a large amount for our island which leads to near-saturation point in peak months. However, GRTU’s vision promotes extending focus onto the shoulder months, moving away from the traditional sun-and-sea tourism onto creating other types of tourists, such as the cultural tourist, with cultural events held throughout Malta’s mild winters. Such events need to be created and sustained consistently, plotting them against the international cultural calendar. Conference and incentives travel and wedding tourism are other examples of potential niches that need to be strengthened through the shoulder months.

In a meeting with the Opposition represented by its SMEs Spokesman Hon Robert Arrigo, GRTU President Paul Abela reiterated commitment to maintain an open and healthy relationship with both Government and the Opposition as it had done in the past. Abela explained how GRTU, as the chamber representing SMEs and self-employed, benefitted from funnelling its proposals and concerns to legislators to ensure that these are kept au currant with the priorities of GRTU’s members when policy is being prepared and implemented.

Hon Arrigo acknowledged GRTU’s important role in putting forward the interests of SMEs and self-employed in policy-making. This sector represented the vast majority of Maltese economic operators and their representation in decision-making fora was of essence. Hon Arrigo explained how the fact that he himself is coming from the business sector can serve to provide a stronger bridge between GRTU’s interest and policymakers. He explained how the Opposition would be ready to put forward proposals even in Parliament where social partners were of concern. The Opposition’s role was to become an alternative government and therefore needed to keep a constant relationship with major social partners such as GRTU in order to be able to build its policies around their concerns and priorities.

Hon. Arrigo elaborated on a number of ideas that the Opposition is preparing as part of its vision for the economy. The Opposition, he said, was pro-business and would be putting forward proposals that encourage an environment where everyone can work and business to prosper.

The GRTU council discussed a number of concerns touching upon the various sectors of industry which GRTU represents. Paul Abela explained how GRTU was involving itself in the discussions on the WEEE Directive which Malta is obliged to implement and which is to replace the Eco-Contribution Tax. The way the implementation would affect businesses needed to be studied closely to ensure that Maltese businesses catering for specific sectors would not suffer.

Other main areas of discussion raised included problems related to access to finance for small businesses whereby Maltese businesses do not find the necessary avenues in terms of resources to support them in growing or surviving through a difficult phase despite the provisions of the Small Business Act. Administrative procedures which lay unnecessary burdens on small businesses also remain a recurrent problem over the years whereby the public service or public agencies do not understand the implications of excessive bureaucracy on the self-employed or small business. GRTU council members also emphasized on the need to tackle unfair competition which puts genuine Maltese business, particularly in retail, at a disadvantage.

In this sense, both GRTU and Hon Arrigo agreed on the need towards taking on the necessary next steps to educate and implement a stronger digital approach in our business models. Despite a strong ICT infrastructure Malta still suffers in economic uptake of digital means through various sectors of industry. Businesses need to be supported to be able to shift towards a strong and constant online presence that can help them compete within the online market.

The National Commission for Further and Higher Education in collaboration with Ministry for Education and Employment launched two strategic policy documents addressing higher academic education as well as setting a vision for vocational education and training (VET).

The Higher Education Strategy builds on the Further and Higher education Strategy 2020 set by NCHE in 2009 and the Framework for the Education Strategy for Malta 2015-2024.It is based on four priority areas for action:

• Increasing participation and attainment;
• Reducing gender differences;
• Encouraging innovative content and programme design; and
• Increasing employability and entrepreneurship

The strategy seeks to increase the participation of underrepresented groups in higher education to ensure that higher education is inclusive and accessible to all. The relevance of higher education to both the individual and the labour market needs to be further addressed and increased. Another priority of higher education reform is to encourage innovative content and programme design even to make mobility more attractive and relevant.

On the other hand, the national VET policy shows what Malta has achieved in relation to EU developments and policies in the sector. The policy proposes projects 18 key policy proposals.

GRTU considers the bridge between education and the world of work as an essential stepping stone to ensure a stronger human resource based to reflect the needs of the economy. Quality-based vocational and higher education empowers Malta’s workforce by enriching the human capital in various fields which local businesses may require. A clear holistic direction is necessary to ensure a coordinated vision between education and the economy.