Category: Archive – 2015

It has become very evident that a considerable number of foreigners, in particular Sicilians,have set up various cafeterias and restaurants in a number of touristic areas around Malta especially in the areas of St. Julians, Sliema, Valletta and Bugibba. The reason being that with the right of moving freely in the EU these individuals can come over to avoid the current financial crisis being experience in Sicily which is affecting their tourist and business sectors.

On the matter GRTU President Philip Fenech has expressed his concern that the products being sold from these businesses are not obtained from local suppliers but attained from Sicily. It transpires that through this practice these individuals may not necessarily be paying tax in both Malta and Sicily which is a detriment to local business as this creates unfair competition. One must also look into the notion that most of these businesses are employing Sicilians which may perhaps not be registered with appropriate authorities which could also affect the legitimacy of operations.

GRTU  urges authorities to carry out regular inspections to monitor any abuse that might be taking place.

 

 

In general GRTU sees the proposed changes as positive since no additional costs are envisaged and the proposal aims at minimising bureaucracy. Another positive proposal being put forward is that the time window for objections will be limited to 30 days, this we believe should accelerate the process.

GRTU has however also a number of reservations and feels that a number of elements require clarification.

BOARD

GRTU believes that the interests represented on the Planning Authority Board should be balanced. As such it is important that apart from eNGOs, there would also be members representing the interest of enterprises represented on the board. GRTU believes that an organisation such as GRTU should sit on the board because it represents a wide range of interests and users of the Authority’s service. These range from interests in normal commercial development, specific groups for which there are specific policies as well as horizontal issues such as renewable energy and energy conservation.    

PLANS AND POLICIES

It appears that the acts propose for the plans and policies to no longer be binding and the element of discretion is to become prevalent. GRTU feels this will drastically weaken the applicant position even when the case is taken to court.

It is important that businesses have a certain amount of assurance in the policies they are applying under and the human element is limited as much as possible in decision taking to avoid discrimination and injustice.

MERGER OF THE MALTA RESOURCES AUTHORITY (MRA) AND ENVIRONMENT AUTHORITY (EA)

The MRA/EA merger requires more clarity. From information gathered during the public consultation meeting it appears that this new merged authority will be an Environment and Resources Authority (ERA). This however  is not explained clearly in the acts.

GRTU feels that so far unfortunately, having the functions of a regulator and promoter of renewable energy within the same authority has not reached the desired results. Year after year Malta classifies in the last positions with regards to renewable energy levels as a percentage of total energy and compared with fossil fuel derived energy, in all forms and shapes. To make matters worse, not only has Malta been regressive enough to negotiate and lower its E.U. 2020 targets, but this year Eurostat has even reported an increase in emissions in Malta by 2.5%, 1 of only 6 E.U. countries to report a rise.

With supply and uptake of schemes repeatedly over-subscribed, it is clear the weak link is promotion of relatively new technologies such as Combined Heat and Power technology, heat pumps and Geo-thermal.

Promotion of the renewable energy sector has to be done in cooperation and partnership with the private sector (through a PPP for example) as the sector that constantly seeks to introduce innovative technologies and comes up with innovative ideas. When it comes to promotion we need to be proactive and stop hiding behind the bureaucratic structure. GRTU alone has been actively and successfully promoting the renewable energy sector for the last five years.

OUTLINE PERMITS

GRTU notes that the possibility to obtain an Outline Permit is being re-introduced. Whilst GRTU views this as a positive move, it has reservations regarding the weight being given to such permits. GRTU believes that once an outline permit is issued, this should become binding. The difference between the outline permit as proposed and a full development permit is just the fees paid to the PA. Therefore once an outline permit is issued, a permit upon which entrepreneurs might base important and costly decisions such as the acquisition of property, it should become irrevocable and the applicant should only be asked to pay the PA fees.

REGULARISATION

Regularisation is a very delicate issue and this should be implemented very carefully, through the most transparent and fairest methods.  GRTU believes that this should also be done in full respect to our cultural heritage.

CONFLICTING AUTHORITIES

It is being proposed that the PA may ignore negative recommendations made by other authorities such as the MTA, the Cultural Heritage Superintendent, the Environmental Health Dept. and other entities. GRTU would like a clarification on what happens when one of these authorities objects to a permit which the PA approves of. Will these authorities be obliged to issue their respective licenses for a business to operate?

Would the Cultural Heritage Superintendent, who has the power to stop a development even if this has the necessary permit by the PA be able to use this power?

NATIONAL INTEREST

In article 72 (3) of the planning and development act, it is proposed that the minister may override the PA if a project is deemed of ‘national interest’. GRTU is not in agreement that a Minister should have such powers.

 

GRTU is proud to announce its new collaboration with the high profile, market-leading publication, The Executive business journal. Through this new venture GRTU will now be extending the services it offers to its members with key contributions targeted at the Maltese business community through printed media.

The agreement was signed by GRTU’s CEO Abigail Psaila Mamo together with the group’s Managing Publisher, and Editor Jason Attard.

The signing of a collaboration agreement was witnessed by leading Maltese businessmen during an event organised by iMNG group, which consists of Effective Marketing Ltd and iMNG Ltd.

This synergy is set to strengthen both the publication distribution network as well as the branding and communication objectives of the GRTU.

The first issue of The Executive business journal where GRTU’s contributions will be featured is set to be released in September.

We urge GRTU members to support this collaboration. For advertising within the GRTU pages kindly contact Effective Marketing Ltd on 20107775or on .

 

GRTU President Paul Abela participated during a roundtable discussion held by the European Commission Representation in Malta regarding the EU 2020 Strategy. This key EU strategy seeks to drive smart, sustainable and inclusive growth across the European Union with flagship initiatives tackling the various policy areas concerned. The scope of the consultation was to discuss 

elements relating to the substance, the horizon, the delivery and the ownership of the strategy.

Malta’s country profile as reported in the latest state of play on the various targets of the EU 2020 strategy shows that Malta is still at the lower end of the score-sheets in a number of fields. Nevertheless it is also registering the highest in terms of improvements. The major targets are mainly based of the following sectors:

• Employment
• Research and Development
• Climate change and Energy
• Education
• Poverty and Social Exclusion

In its feedback, GRTU focused on how Maltese and Gozitan businesses have strived strongly throughout the economic crisis with Malta being one of the few to continue growing its economy during the crisis. Therefore all tools necessary need to be made available to our businesses and further open our doors without taking business for granted.

In relation to access to financegovernment has laid out its vision in last year’s budget. This vision needs to be implemented at a quicker pace for businesses to benefit. It was also highlighted that at European level, policy needs to brought down to the smallest business. Large-scale initiatives such as the Juncker Plan and TTIP negotiations need to be watered down to be felt by the man in the street.

In terms of unfair competitionMalta needs to support its businesses to be empowered through the online realm. There is untapped potential which needs support to make the necessary shift through resources and a culture change. Other initiatives which are clearly targeted to combat unfair competition such as the Guardia di Finanzi initiatives need to be activated as soon as possible. This implies that EU countries need to support one another on a closer level to ensure that there are no impositions of unfair competition practices upon operators across borders.

Commenting on education, GRTU outlined that one needs to see the positive effects registered by recent initiatives such as the alternative learning programme and the relaunched apprenticeship scheme. The vocational education sector has been rebuilt and improved over the years but now needs to be further linked tangibly with the world of work whilst promoting jobs in specific sectors which may not necessarily be high-skilled jobs yet are necessary and lacking in the current labour market. Entrepreneurship needs to be embedded across the board. The education system as a whole needs to be looked upon to address those students who are being failed by the education system itself from their earlier years and thus lose motivation on learning.

In relation to energy, GRTU applauded the initiatives related to the domestic sector but appealed for more flexibility in terms of overcoming bureaucratic hurdles to allow funding openings to achieve similar success stories in the business sector. This will in turn not only help Malta reach its targets but also support businesses in going green and become more and more efficient. A correct national energy mix is necessary whilst ensuring reliability.

GRTU described the strategy as a holistic one providing Europe with a vision, but perhaps needs to be translated in more practical terms. It needs immediate goals and plans that can be captured at shorter intervals to ensure that initiatives are steering towards the same direction. Member states are encouraged by the clear policy direction and can be further supported by funding initiatives which are targeted and on the ground, making the initiatives more accessible to end-users.

GRTU emphasized the importance of ownership. The initiatives and strategy need to be communicated and built around the respective stakeholders. Social partners need to be involved directly at every level as these can be the voice that make the strategy closer to the needs and goals of the people and then in turn sell the scopes of the strategy to the sectors they represent. A lot of talk has been said on thinking small first, but even at this level the EU strategies need to be analysed in terms of how the targets and their respective policies effect the smallest in society, the end-user and the smallest business.

 

TTIP is a wide-ranging agreement between the two largest economic blocs in the world which is expected to reduce trade tariffs and regulatory burdens for commerce between EU Member States and the US. The negotiations have reached the tenth round and have now focused on investment protection and investor-to-state dispute settlement.

The outcomes of the negotiation round concluded in July were presented and discussed at the MEUSAC Core Group. Apart from ISDS and investment protection, the discussions also ensued on market access as well as regulatory aspects in pharmaceutical, cosmetics, energy and SME sectors. A common online platform for business opportunities across the Atlantic for both EU and US companies to access is also envisaged to be developed. An SME Chapter as a key part of the TTIP negotiations was also reported to be providing positive developments.

The European Parliament’s position on ISDS was also highlighted whereby the EP is steering in favour of TTIP yet has raised concerns on the dispute settlement relating to: equal footing between domestic and foreign investors; cases not to be heard behind close doors for transparency concerns; the need for introducing a concrete appeals mechanism; and the need for assuring the independence of arbiters. It was outlined that there have already been similar structures in other agreements with other third-party countries and therefore these should serve as experience to construct an effective and efficient dispute settlement system.

Reacting during the Core Group discussion, GRTU representative Matthew Agius welcomed the positive achievements reported in the TTIP negotiations as this agreement is expected to provide ground-breaking openness and opportunity particularly for businesses from specific sectors by reducing tariffs and excessive burdens. Nevertheless he also accentuated the need for such high-level negotiations to be watered down to small businesses and the self-employed as otherwise any possible benefits and effects will not be tapped into by Maltese businesses. In so doing, Maltese businesses need to be equipped from day one when the agreement comes into force to be able to reap the investment potential alongside, or better still, before their European counterparts.

GRTU further added that it is essential to ensure that TTIP negotiations are undertaken through the perspective of small businesses. The details of these high-level negotiations conducted by the highest officials from both sides of the Atlantic will be affecting the micro-businesses which run our economy. It is essential therefore that such details being discussed about important matters such as dispute settlement are entered into detail and are addressed with this in mind. It is important to establish a fair and accessible system which will at the end of the day serve fair and just results rather than the purposes of multinational companies who afford to dedicate exhaustive resources into details against the interests of the smaller businesses.

 

The Ministry for Education and Employment has in the past years introduced the concept of Career Exposure Experience (CEE) for secondary school students. The idea is to provide one-week-long opportunities for Form Four students to undergo placements and be exposed to the world of work. The job profiles are matched with students to give them a taste of the labour market and particularly the type of job they are aspiring to seek in the future. This experience also supports students by providing them job-seeking skills as well as understanding what would be expected in industry whilst 

developing skills beyond what is learnt in the classroom, such as soft skills. The past experiences of this programme has also shown that a number of students identify themselves with particular employers and actually seek them out when they eventually embark on their chosen career path at post-secondary level.

Businesses are encouraged to provide opportunities to host such students for such a brief period which would support their development particularly within the context that these students are tomorrow’s labour force.

The main sectors for placement being sought are the following:

• Agriculture
• Animal Care
• Architecture
• Art & Design
• Automobile
• Aviation
• Childcare
• Clerical/Administration
• Manufacture
• Marine
• Media
• Mechanics & Electronics
• Performing Arts
• Personal Care
• Sales
• Sports
• Elderly Care
• Engineering
• Finance/Business
• Gardening
• Heritage
• ICT
• Law
• Maintenance

Interested business owners are requested to contact GRTU on  or 21232881 for further information or to sign up as a host to the CEE programme.

 

 

Social Dialogue Minister Hon Helena Dalli described the context of this meeting as a timely one since social partners would be discussing Malta’ Pre-Budget Document in a few weeks time. This therefore contextualises Malta’s priorities in terms of focal areas to address in line with EU’s recommendations and EU 2020 strategy.

Officials from the European Commission Representation in Malta gave an overview of the Country Specific Recommendations for Malta which outline the following actions for Malta in 2015 and 2016:

• Public Finances– Following correction of the excessive deficit, achieve a fiscal adjustment of 0.6% of GDP towards the medium-term objective in 2015 and 2016.
• Education– Take measures to improve basic skills and further reduce early school-leaving by promoting the continuous professional development of teachers.
• Pensions– Accelerate the increase in the statutory retirement age and link it to life expectancy
• Access to Finance– Improve small and micro-enterprises’ access to finance, in particular through non-bank instruments                         –

GRTU acknowledged that despite negative scores in some of the indicators presented in relation to these policy areas, it was on the other hand positive to note that in terms of improvement ratio, Malta was featuring on the higher end of the scale. Focusing on SME-related issues, GRTU highlighted concerns which were reflected in the documents leading up to the Country-Specific Recommendations and which GRTU has been putting at the forefront.

One of the four Recommendations is directly linked to small and micro-enterprises in terms of access to finance. Malta’s economy is based on micro-enterprises at a higher rate than its European counterparts and therefore prioritising business concerns has to be at the highest end of the agenda if those who are building and sustaining our economic growth are to continue driving the economy forward. It is clear that Malta needs to incentivise non-bank instruments to outreach more flexibility and possibility for growth to businesses which are not maximising their potential due to problems of access to finance. Waiting for banks to take this step has not achieved much, and thus, such initiatives could then provide impetus for banks to follow suit. GRTU recognises the positive vision of the government in this sense particularly through initiatives mentioned in the 2015 Budget such as the setting up of a Development Bank as well as seed capital and venture capital. However it is becoming more and more imminent to see progress on theses initatives which need to be developed from proposals to actualizations which business can tangibly benefit from.

Another major concern highlighted by GRTU was the need for addressing unneccessary administrative burdens and related issues. Reference was made to a recent initiative to steer forward Malta’s e-Government services. GRTU welcomed this but explained that this would not succeed if it is not backed by a customer-oriented public service. There is evident need for training of public servants and adjustment of management processes to be sensitive to what delays and administrative burdens can cost a small business or a self-employed person.

GRTU also highlighted concerns related to unfair competition which need to be implemented to empower Maltese businesses. Deterring policies through fiscal policy initiatives such as a similar set-up to the Guardia di Finanzithat the government had promise in the 2015 Budget need to be implemented. On the other hand there needs to be incentives to support Maltese businesses to open up their markets such as through online means and e-commerce. Investing in supporting Maltese businesses to make the shift towards including an online business model would boost our economy.

Last but not least, GRTU also spoke about education-related issues whereby it is agreed and accepted that Malta’s most essential resource is its human resource. Whilst acknowledging positive initiatives being undertaken at the moment such as through apprenticeship schemes or the alternative learning programme, one needs to ensure that the various entities concerned are coordinating the different initiatives towards the same direction. While the country has done well to aim for the top, one may need to revisit the value of medium- or low- skilled jobs. The country has invested in post-secondary education but it is evident thatour education system at compulsary levels is failing a segment of children. This needs to be addressed in order to ensure their motivation to learn through different styles and across vocational subjects.

In terms of reaseach and innovation, GRTU described the need to achieve better results in this sector as an opportunity to link research and its usefulness to industry. Research occuring at the University of Malta and now at MCAST needs to be opened up to small businesses as an opportunity to tap into this resource since micro-enterprises do not have the capability to house research staff and departments. Research and innovation is also happening at SME level but is not necessarily being captured and maximised.

 

This week GRTU collaborated with the Economic Policy Department to organise an information session on the Transatlantic Trade and Investment Partnership (TTIP). This session was organised to update members about the current TTIP negotiations and also provide an opportunity for businesses to consult and give their feedback.

The discussion focused on various sectors which will be affected once the agreement comes into play. These include industries tied with engineering, raw materials and energy, cosmetics, medical devices; pharmaceutical

 products and chemicals. With the successful completion of these negotiations the EU-US will facilitate economic growth through increased trade in goods and services and improving foreign investment. The agreement will also establish market access by removing trade barriers and encourage continuous cross-border trade between both continents.

At the moment in the terms of tariffs, trade between EU and US is already beneficial as tariff rates are quite low. However through these negotiations the need to develop a framework for dealing with the regulatory divergences that hamper transatlantic trade in goods and services and investment flow was acknowledged. The TTIP negotiations are covering three major areas:

1. Market access (goods, services and investment):focusing on trade in services and investment protection by eliminating all duties on bilateral trade. Public procurement will also be tackled to enhance business opportunities through substantially improving access to government procurement opportunities at tall levels of government on the basis of national treatment.

2. Regulatory issues and non-tariff barriers: this area targets better regulation, best practice and regulatory cooperation which are still areas where both sides disagree. For example, currently the EU and US are at a disagreement concerning the level of product standards in areas of car importation/exportation and cosmetics.

3. Rules, principles and new modes of cooperation to address global trade challenges and opportunities: these include talks regarding :–

· intellectual property rights

· trade and sustainable development

· customs and trade facilitation

· trade and competition

· trade related energy and raw materials

· small and medium-sized enterprises

· capital movement and payments

· transparency

The conclusion of the TTIP negotiations is targeted to end by 2015 however this deadline is considered to be very unrealistic. Nevertheless the latest development regarding the European Parliament’s agreement to the TTIP resolution and the US’s approval of the trade partnership agreement it is expected that the decision will be facilitated and thus shorten the period for a deal to take place.

For further detailed information on the TTIP negotiations visit the European Commission website at: http://ec.europa.eu/trade/policy/in-focus/ttip/

 

 

 

Malta has had its national qualifications framework (MQF) referenced to the European Qualifications Framework (EQF) since 2009. This gives Malta’s education system more value in terms of mutual trust across countries and allows transferability of qualifications.

The National Commission for Further and Higher Education (NCFHE) has launched a consultation to update Malta’s Referencing Report. The major changes include:

• Clearer definition of a full level qualification(such as a Bachelors’ Degree for Level 6) as opposed to a short course described as an award
• Introduction of entry levelsbelow MQF level 1 in order to capture the skills developed by individuals which do not reach the present first level of the framework.
• A renewed commitment towards validation of informal and non-formal learningwhich should give value to attainment of skills irrespective of the context within which it has been obtained (such as learning of skills through the world of work)
• Establishing a lower minimum number of creditsfor accredited learning to a minimum of 1 credit (25 hours of learning)
• Establishing the minimum number of creditsfor full level qualifications
• Reducing the minimum contact hoursper credit to 5 hours (out of 25)
• Formulating a methodology towards giving credits to work-based learning

GRTU is holding a meeting to discuss the updated referencing report with operators in the sector in order to include it in its feedback to NCFHE. This meeting is being held at GRTU offices on Thursday 6th August at 15:30hrs. In order to confirm your attendance you are requested to contact GRTU on or 21232881.