Category: Archive – 2015

GRTU has expressed its concern to the Superintendent of Public Health within the Ministry for Energy and Health with regard to the implementation of policies related to fines and penalties for smoking in entertainment and leisure premises.

GRTU appreciates the efforts undertaken by the Health Ministry over the years to promote a healthier lifestyle without smoking. Nevertheless, a growing concern for GRTU members remains over the implementation of fines and penalties to compliant business owners in the relevant industries, such as nightclubs and bars, which are unnecessarily burdened with fines. We need to ensure that such a positive policy is implemented proportionally and in a manner that makes sense.

GRTU has in the past worked closely with the respective health directorates to ensure that cooperation by owners is encouraged and rewarded. An example of such has been the involvement of GRTU in an information dissemination campaign related to No Smokingsigns in the leisure and entertainment premises and related public areas.

GRTU is referring to a reported increase of hefty fines being imposed on owners where there is no unreasonable doubt that the owner may not have himself allowed or entertained such smoking on one’s premises, or was not in a position to prevent such smoking. We have in the past reached an understanding to approach such cases in a logical manner.

Establishments that cater for hundreds of clients, that have clear signs that the premises are non-smoking, and take active measures to enforce this policy with their customers (such as with security personnel asking smoking tenants to leave the premises; have removed all forms of ashtrays within the premises), should not be held responsible and fined if a client has been found smoking within the premises with the owner and staff unaware.

It is clear that by smoking the client is breaching not only the law but also the policy of the establishment and the owners do take action to dissuade such behaviour. It is therefore illogical and unfair that the host is fined. The owners are not enforcement officers but they are happy to do their bit. GRTU believes that it is important that all the stakeholders cooperate to reach this common goal but this taxing attitude will simply be counterproductive with the owners that have always tried their best to cooperate.

GRTU will be seeking to ensure that the implementation of policies at hand, whilst beneficial from a public health point of view, do not create unnecessary and illogical burdens to compliant business owners.

 

On 11th February GRTU Deputy President Philip Fenech attended a Malta Council for Economic and Social Development (MCESD) meeting addressed by the Minister of Tourism Dr Edward Zammit Louis. During this meeting the Minister discussed the draft National Policy for Tourism for the years 2015 – 2020.

In the course the meeting, the Minister of Tourism Dr. Edward Zammit Lewis explained that tourism is the main pillar of the economy. He also mentioned that during the last years, there has been a high level of development and radical changes in this sector. This evolution has created the need to update the national policy for tourism, so that there is a better preparation 

for these new challenges which can unlock better career opportunities in this sector. 

When asked for comments, GRTU Deputy President Philip Fenech explained that GRTU members fall under different sectors thus at GRTU we believe that a marketing mix of tourism is essential as it effects a lot of different segments that continue to need fine tuning to create higher value added services that cater to over 1.6 million tourists. He also explained that between November and April there still is an excess capacity and the concept of cultural tourism prevails more during those months as an attraction for tourists beyond the sun and sea client.

Philip Fenech also mentioned that in the case of Malta’s National Airline it should continue to encourage different air linkages that have proven positive results by introducing the market to different nationality tourists. GRTU believes that Airmalta should focus on emerging markets rather than promoting travel destinations that are already served by our national carrier.

 

GRTU has this week held a consultation meeting with the private operators interested in the new measure announced in the Budget that announced the phasing out of the eco-contribution on electrical and electronic equipment and the implementation of the Waste of Electrical and Electronic Equipment (WEEE) Directive on all such goods.

In general the WEEE Directive covers all products that are plugged to the electricity supply or work with batteries. These are grouped under 10 categories: Large household appliances, Small household appliances, IT and telecommunications equipment, Consumer equipment, Lighting equipment (with the exception of household luminaires), Electrical and electronic tools (with the exception of large-scale stationary industrial tools), Toys, leisure and sports equipment, Medical devices (with the exception of all implanted and infected products), Monitoring and control instruments and Automatic dispensers. A full list of products can be found on page 17 of the following link: http://bit.ly/1zT54V3. The measure as announced in the Budget requires that all operators introducing such products for a commercial purpose in the Maltese market register with a compliance scheme that will take care of the collection of such goods and their further handling (dismantling, recycling, etc…) as required by the Directive. Such operators are also given the option of presenting a detailed plan of how they intend to comply with the requirements of the Directive on their own. This must be done by end June 2015. Government is committed that only once everything is in place and working correctly will the eco-contribution be removed as of 1st September 2015.

The shift from eco-contribution to WEEE is however very complex. For one it will introduce an environmental contribution on many products that were not subject to eco-contribution, therefore this effects hundreds product types. Also to consider is the fact that the implementation of the Directive will on average reduce the environmental contribution on products that were subject to eco contribution but it might also increase such contribution on a few of the products. An additional element that requires assessment is the level of preparedness of local service providers carrying out the requirements of the Directive and the role our limited economies of scale (cost advantageous linked to size), in comparison to other larger countries, plays in the level of prices for a particular service.

During the meeting various options were discussed and members were asked for their feedback on a number of ideas presented by the GRTU of how the Directive could be implemented.

An area of great concern is the lack of faith of members in enforcement by the Authorities. While members have all the good intentions of adhering to the requirements of the Directive they are very concerned about free riders and the lack of enforcement by MEPA in this case. Our experience with the Waste Packaging Directive is not a very positive one and the biggest issue is lack of enforcement by MEPA. Unless MEPA is serious in its enforcement efforts and guarantees are put in place in this regard, the implementation of the Directive will not be a successful one and as frequently happens the few will end up carrying the burden for the rest.

This was the first of many meetings and consultations to be held as GRTU wants to give its members the full opportunity to participate. GRTU wants to make sure the new system is a fair one, does not overburden operators and does not negatively affect their competitivity.

Members can obtain a more detailed set of minutes of the meeting by sending an email on .

 

Since there are still various wines on the market which were being sold prior to 1^stJanuary 2015, the Customs Department is going to be distributing banderols (stickers)that have to be fixed onto bottles/containers with a volume of 0.375 litresor more.

Between the 18^thFebruary 2015 and 14^thMay 2015, Customs Department representatives will be present in the following localities according to the following schedule to supply the banderols (stickers) to traders for existing stock:

 

Localities Covered	DistributionVenue	Dates
Birkirkara; Santa Venera	Birkirkara Local Council (8am – 3pm)	18th, 19th, 20thFebruary 2015
Gozo and Comino— Fontana; Għajnsielem; Għarb; Għasri; Kerċem, Munxar; Nadur; Qala; San Lawrenz; Sannat; Victoria; Xagħra; Xewkija; Żebbuġ	Customs Office – Mġarr Marina Gozo	23rd, 24th, 25th February 2015
Birżebbuġa; Marsaxlokk	Marsaxlokk Local Council	26th, 27th February 2015
Dingli; Mdina; Mġarr; Mtarfa; Rabat	Dingli Local Council	2nd, 3rd, 4th, 5thMarch 2015
Mellieħa; Għadira; Manikata; Għajn Tuffieħa	Mellieħa Local Council	6th, 7thMarch 2015
Floriana; Valletta	Floriana Local Council	9th, 10th, 11th, 12thMarch 2015
Tarxien; Żejtun	Żejtun Local Council	13th, 14thMarch 2015
Mosta	Mosta Local Council	16th, 17thMarch 2015
Gżira; Msida; Ta’ Xbiex	Ta’ Xbiex Local Council	18th, 20th, 21stMarch 2015
Pembroke; San Ġiljan; San Ġwann; Swieqi	Pembroke Local Council	23rd, 24th, 25th, 26thMarch 2015
San Pawl il-Baħar; Buġibba; Qawra; Burmarrad; Xemxija; Salina; Wardija	San Pawl il-Baħar Local Council	6th, 7th, 8th, 9thApril 2015
Attard; Balzan; Iklin; Lija	Iklin Local Council	13th, 14thApril 2015
Marsaskala; Xagħjra; Żabbar	Marsaskala Local Council	15th, 16thApril 2015
Għaxaq; Gudja; Luqa	Gudja Local Council	17th, 18thApril 2015
Għargħur; Naxxar	Għargħur Local Council	20th, 21stApril 2015
Bormla; Fgura; Kalkara; Isla; Birgu	Kalkara Local Council	22nd, 23rdApril 2015
Ħamrun; Marsa; Pieta’	Pieta’ Local Council	24th, 25thApril 2015
Kirkop; Mqabba; Qrendi; Safi; Żurrieq	Żurrieq Local Council	27th, 28thApril 2015
Raħal Ġdid; Santa Luċija	Santa Luċija Local Council	29th, 30thApril 2015
Qormi	Qormi Local Council	4th, 5thMay 2015
Siġġiewi; Żebbuġ	Siġġiewi Local Council	6th, 7thMay 2015
Sliema	Pembroke Local Council	11th, 12th, 13th, 14th  May 2015

The distribution will take place through the above-mentioned venues on the said dates for businesses operating in the specific localities. Unless otherwise specified, the times are: Monday to Friday 8am till 12pm (noon) and from 1.30pm till 4.00pm; and in cases of dates falling on Saturdays, 8am till 12pm (noon).

Traders need to take stock of the amount of bottles/containers of wine of 0.375 litres or more which are unmarked and need the banderols (stickers). A list of this has to be supplied Customs so that Customs may supply the necessary banderols (stickers). This stock should not include wine D.O.K. and I.G.T of local Maltese producers. However, table wine produced locally should also be included in the stock list. Traders will then have a maximum of five (5) days to affix the banderols (stickers) on their unmarked stock.

It is of utmost importance that business comply to this campaign since as from 25th May 2015 an enforcement campaign will be taking place and products found available in the market without the fiscal banderol will be confiscated and the trader may receive further legal action.

The Customs Department’s Excise Department is also extending its services on Saturdays (8am till 12pm – noon), whereby these fiscal banderols (stickers) may also be obtained.

 

GRTU has reacted to VGT tariffs in relation to Port Workers through communication with Transport and Infrastructure Minister Hon Joe Mizzi. GRTU believes that the reason the Port Reform was carried out was to decrease costs, which however, have not decreased in the last 9 years. The understanding was that the contract had to cover all costs and charges and therefore VGT should not be charging for the Port Workers’ Miscellaneous Tariffs. Since GRTU had protested against increases by the VGT, it is evident that alternative ways to increase charges are being sought. GRTU has received correspondence on the matter fromTransport Malta Chairman James Piscopo whereby GRTU has been informed that fees being applied have already been in place in the Port Work Regulations. This implies that these fees may not have been fully applied in the past but are being enforced today. In practice this may means a de facto  increase having been effected.  GRTU will be continuing with its campaign to see port charges reduced.

 

GRTU welcomes the announcement made earlier today by the Hon Ian Borg that around 845 SMEs will be benefitting from a new scheme that facilitates access to finance. GRTU understands this will be similar to the previous JEREMIE scheme, which was indeed very successful and popular with the smaller businesses, however this time under the new SME Initiative.

The JEREMIE scheme, GRTU believes, was successful mainly due to the additional advantages it offered, primarily more advantageous interest rates and collateral requirements. GRTU feels that these advantages should be even more pronounced this time round as they should reflect the ever increasing efforts of the European Central Bank with rock bottom interest rates and other advantageous conditions that prioritise lending, for increased investment and job creation.

Another positive element in the new scheme is that it will be offered by a number of banks, or at least those that choose to go for it. GRTU had highlighted the fact that JEREMIE was offered by only by one bank as a limitation, not because the bank acting as a financial intermediary did not deliver, but because SMEs should be free to do business with the bank of

their choice. This is also very healthy and GRTU looks forward to seeing most local banks not only sign up, to offer this renewed facility to their clients, but also competing between themselves by offering the most advantageous conditions.

GRTU thanks the Hon Ian Borg for addressing this limitation and we augur that this effort will result in real benefits for SMEs, equal to those that SMEs in other EU countries benefit from when it comes to access to finance.

 

During the MCESD meeting called by GRTU to discuss fuel prices, the Minister for Energy and Health, Hon Konrad Mizzi, thanked GRTU President Paul Abela for the suggestions he made for change in the hedging strategy. The Government had stated that lowering fuel prices in line with the global trend, to better reflect the current fuel prices, was not possible due to the hedging agreements in place. Through his experience Mr Abela suggested that the Government hedges while the international prices are very low and average out the difference in price so that a reduction can be instituted with immediate effect.

Hon Mizzi said this suggestion was welcome and implemented with immediate effect and hence, following the new hedging, Government could announce an immediate reduction in fuel prices and that gradual and regular decreases will follow every month. The Minister also said that Government was using a short-term hedging strategy and this is the strategy it will continue using as it gives flexibility and the opportunity to react rapidly to changes in the market. In addition Mr Abela also put forward a suggestion of exploring the possibilities of introducing a stabilisation fund. This type of system was used to control price spikes for other commodities in the past. The Minister said he will look into the mechanism of the fund.

In addition Mr Abela also suggested that the Minister should come to MCESD to agree on a policy on fuel purchasing, while details were not necessary it would improve transparency and collective responsibility.

 

GRTU members feel very aggravated by the total inaction with regard to the amount of ‘occasional sellers’ that have literally set up shop, or better tents, in prominent areas to sell flowers and make the most of Valentine’s day.

GRTU has literally been showered by pictures from its members showing these individuals selling from underneath tents mostly just next to churches in the main square of the locality and other central areas such as roundabouts and other main streets.

Unfortunately this is a scenario GRTU was expecting and during the last months GRTU had stepped up its efforts to warn the authorities concerned and bring everyone around a table to find a solution so that this time round this yearly farce would be avoided. While the authorities have given the impression that they are trying to cooperate due to the intense pressure placed on them by the GRTU, they also clearly show an inability to take the necessary action. The authorities are caught up in the bureaucratic mess of uncertainty and unclear regulations they themselves created and in the most passive of approaches, feebly attempt to fire-fight when the building has already been burnt to the ground.

It is clear that these structures set up from the very early hours of yesterday to sell flowers do not hold permits issued by the Commerce Department, the single Department entrusted with issuing trade permits to anyone carrying out an economic activity. The Commerce Department assisted GRTU in reporting these operators, clearly carrying out an economic activity, to the Police Commissioner for immediate investigation.

The problem here is that while they will not have a trading license they will most likely have a permit issued by one of the Local Councils. GRTU contends these are abusive licenses and in no way can the Local Council take it upon itself to bypass the trading license and issue such permits. The only leeway given to the Local Councils is of issuing permits for stalls and kiosks in view of the religious feast and other special celebration within the locality. The Local Councils are however extending this abusively and the authorities are turning a blind eye.

How can Local Councils be permitted to license trade? What competence or remit does the Local Council hold to do this? How is it permissible that two weights and two measures are still accepted when there is a clear single authority to license trade? Will the police, as our enforcement arm in this regard, be well-briefed to know what to look for and not accept any kind of permit issued? The permits issued by the Local Councils by virtues of Legal Notice 119 of 2002 – Activities Requiring Permits by Local Councils – are inadequate for this occasion and should not be accepted.

We cannot help but feel the Authorities are simply playing around with time and simply putting on a show, and not a very good one at that, to appear they are addressing GRTU’s complaints. We all know what needs to be done. A simple clarification in the law is required and also that the authorities that are responsible to license trade take it upon themselves not to permit any bypassing through strict enforcement.

GRTU has called on the Minister for Small Businesses, Hon Chris Cardona, to stop this unfairness and it has copied him in all correspondence. This is unfair competition and the Minister must take the power he has in hand to effect the changes that need to be done. This is not a time for the Minister to distance himself from the situation but stand for and with small businesses on this issue and stop once and for all this yearly injustice.
 

Businesses and individuals importing goods from Sicily through the Catamaran that are meant for re-sale must declare the goods they are importing and pay the relevant excise and other taxes due according to the procedure below:

• Trader should register as an Excise Registered Consignee with Customs immediately. It is not a lengthy procedure and does not involve any expenses. In order to do so trader is advised to contact Mr Carmel Farrugia, Manager Excise, on 25685219.
• Prior departure to Sicily, trader is to inform the Excise Section (25685200) that he is travelling to another EU MS and will possibly return with excisable goods. Date of return is to be communicated to Customs.

• The Excise Section of our department will pass on the message to our Enforcement Section.    
• On arrival, trader should provide to Enforcement Officers a copy of the invoice pertaining to excise goods and exits the gate with the goods. The invoice will be immediately passed to the Excise Section the following day.
• Within 48 hours from arrival trader, or his representative, should call personally at the Excise Section’s offices, with the original invoice, in order to submit a formal declaration and pay the taxes due.