Category: Archive – 2015

This week the Deputy Prime Minister, Mr Louis Grech together with Dr Ian Borg launched an SME Initiative that will benefit 850 enterprises over the next 5 years. The initiative was presented to various financial institutions and European Institution such as GRTU Malta Chamber of SMEs.

This initiative will combine the different resources of the European Structural and Investment Fund, the EU Horizon 2020 programme, the lending capacity 

of the European Investment Bank.

During the launch the Deputy Prime Minister said that the previous JEREMIE scheme confirmed that when SMEs are offered suitable financing instruments, they will react positively. The tool selected for the initiative is that of an uncapped portfolio guarantee, under which the selected financial intermediaries will benefit from a 75% risk cover on each eligible SME loan.

On this matter, GRTU believes that the JEREMIE scheme 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 one bank which was a limitation, not because the bank acting as a financial intermediary did not deliver, but for the reason that 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 welcomes this SME initiative and hopes that the Government will continue to undertake schemes and grants that will provide the necessary assistance to our local SMEs.

 

On 3^rdJuly, the Malta Competition and Consumer Affairs Authority (MCCAA) held an information session in collaboration with the GRTU on Product Safety and Market Surveillance.

This session was organised to provide information to economic operators with regards to their responsibilities to ensure product safety and how to 

make sure the products that are placed on the market are compliant. It is important that when selling a product certain certification and paperwork must be presented. This documentation will assist in saving time from having products picked up to be tested and from having to remove them from the market in case of problems. This applies to any products sold on the market, both coming from the EU and from outside the EU.

• During the event, it was identified that an economic operator has the responsibility to:
• Only place safe products on the market
• Use ‘harmonized’ standards which give presumption of conformity
• Provide relevant information to enable consumers to assess the risks inherent in a product
• Adopt measures to enable them to be informed of risks and take appropriate actions
• Ask for Declarations of Conformityfor CE marked products from the manufacturer
• Check DOC for any possible issues (eg superseded standards, irrelevant standards, lack of signature, yesterday’s date, COC and not DOC, wrong product, no positive product identification, etc.)
• Research RAPEX website for any banned products similar to the ones they are importing
• Make sure intermediaries can be trusted.
• If in doubt ask MCCAA for assistance before importing products

Economic operators also had the opportunity to learn about the RAPEX system which provides a rapid exchange of information between European countries and the European Commission about measures and actions taken in relation to products posing a serious risk to public interests. Through this system and other entities such as MCCAA, economic operators will be able to provide safe products to European consumers.

Thus market surveillance is essential in protecting European consumers and workers against risks presented by non-compliant products. In addition, market surveillance helps to protect responsible businesses from unfair competition by unscrupulous economic operators who ignore the rules or cut corners.

Further information on the RAPEX system can be accessed through the link: http://bit.ly/17vA07b

 

In July 2014, the Central Bank of Malta and the GRTU Malta Chamber of SMEs agreed upon the organisation of a continuous educational programme for the retail sector. 

In order to better assess their members’ needs, in October 2014, the GRTU, 

in consultation with the Bank, launched a survey with the supermarkets, mini-markets, retail outlets, petrol stations, pharmacies and appliances & IT outlets with the feedback bringing to light a number of areas where the retail sector needed assistance in terms of information and training needs.

Being the retail business, a significant percentage of employees deal with payments and cash handling on a day-to-day basis.  Through the survey however it transpired that only 52% of these employees are given general or specific training in relation to handling cash and dealing with payments. Amongst the most common issues the sector finds problematic are post-dated cheques, counterfeits, too many or too few coins, cheques not honoured, safety concerns, issues at reconciliation stage and late payments.

Even though counterfeits is a main concern only 50% of respondents own a bank authentication device and most are not aware that the machine should be upgraded regularly to keep abreast with developments in counterfeiting. 10% of retailers that do not own such devices do not accept all denominations.

On the new Europa Series of banknotes the absolute majority of retailers said their employees received no training on the security and other features of the new banknotes and in most cases the identification devices they own and the vending machines they have do not cater for the new series.

In the light of the above findings, a programme has been developed to assist the retail sector. The Programme’s main objectives are: (i) to raise awareness on the risks existing in the areas of counterfeiting and money laundering;  (ii) provide the necessary training to the retailers’ employees in the fight against counterfeiting and money laundering thus reducing financial damage/legal risks; and (iii) to inform the retail sector on the use of more efficient payment instruments.

The CBM-GRTU Joint Educational Programme includes:

• A ‘Continuing Educational Programme’  mainly focusing on cash related matters and payment instruments;
• The ‘Certification of Cash Handlers Programme’; and
• Meetings with the main supermarkets at their main offices; and
• Advice on the purchase of banknote authentication devices and vending machines.

 

The European Union Programmes Agency (EUPA) held its annual stakeholder forum this week in order to consult interested parties about the upcoming Erasmus+ Funding Programme in terms of priorities and operations. The forum meeting was a positive initiative as it brought to the table the Agency’s vision for the upcoming cycle whilst receiving feedback from the major operators to ensure better attainment of EU-funded projects that fall within Erasmus+.

Earlier this month GRTU held a meeting with its members in the private training provision industry specifically to gather feedback on previous experiences of funding projects and challenges faced that may have served as hurdles to hinder private providers from participating. At the stakeholders’ forum held by EUPA, GRTU representative Matthew Agius raised pertinent concerns of private providers to which EUPA promised due attention. The main points involved:

1. Human Resources Implications – Think Small First

If national priorities truly are to increase private training provider participation in such funding programmes, then the way these are designed and administered have to keep in mind the realities of small business operating in the sector. The administrative burden that can be handled by public providers with state-funded human resources to handle such project work is not an option for private providers. It is expected that documentation is necessary to ensure transparency and quality, but administrative work which is unnecessary make participation in such projects unfeasible and impossible.

2. Monitory Role rather than Policing Role

It is understood that public agencies handling EU programmes and funds have to monitor and ensure that proper implementation takes place when such EU funding is being distributed. However, since such monitoring has to take place anyway at the final stages at least, it would be far more appropriate if a handholding exercise is undertaken prior to private applicants making unintended mistakes. These can be fixed at this stage and with an attitude of support rather than of policing.

3. Competing Against Public Providers

Private providers are often at a disadvantage when compare to public entities which are competing or even handling such funds. This has to be taken into consideration and appropriate measures to rule out unfair competition have to be put in place if private providers are to be attracted to compete for such funds as otherwise these will automatically see such applications as an unnecessary exercise which takes up irreplaceable resources when they are already not at par with their public counterparts.

4. Simplification and Communication – Bottom-Up Approach and a One-Stop-Shop

Private providers are not necessarily equipped to first of all be abreast and aware of the funds and programmes available and what the possibility are. Moreover when they are aware of such opportunities, the application procedure and guidance notes for instance, are often too hefty for private providers not to be discouraged. Therefore preparation of documentation should be made in a sense that takes into account the realities of small private providers. There should also perhaps be one-stop-shop that supports and guides all the various elements of EU funding programmes. Communication efforts also have to be tailor-made to reach out to small businesses operating in the training sector and not only to the larger state-funded entities.

5. Closer Deadlines on Cycles

Previously deadlines for funding rounds where set at quarterly intervals. Therefore if a private provider was planning a project application and did not make it in one round, the application could be submitted in the next. However now having a yearly interval between one deadline to the next makes it less attractive to apply. If the private provider would have missed a deadline because of necessary time needed to gather relevant information or find partners for a project, it would have to wait another year. This is often not possible and the providers would either drop the project altogether or implement it anyway without EU programme funding.

 

 

 

An NCFHE conference concluding its European Social Fund project Making Quality Visiblelaunched the National Quality Assurance Framework for training provision in Malta. The National Quality Assurance Framework was described as a milestone for further and higher education provision in Malta as it consolidates and formalises processes towards achieving and acknowledging quality standards across the board. NCFHE Chairman Martin Scicluna highlighted how this was the first framework of its kind across 

Europe since it is a common framework for both academic as well as vocational training and covers all levels of the Malta Qualifications Framework.

GRTU considers this as a very positive development that helps establish a level playing field in the sector of training provision. It also ensures more seriousness in terms of credibility and mutual understanding of training courses. This supports employers in understanding what the prospective employee has learnt and is able to do after having followed a specific course. Quality training and certification is essential to push forth a more skilled workforce reflecting more and more industry needs whilst being backed by certification which is understandable for recruitment. GRTU sees this as a positive development whilst reiterating that implementation of Quality Assurance policies cannot be dealt with in a one-size-fits-all approach. The processes and contexts of a micro-sized business providing specific training cannot, for instance, be considered under the same guise that the processes and contexts of a national university would.

The idea behind the setting up of a Quality Assurance framework is to up the level of training provision as well as provide support to institutions in order to identify pitfalls and conduct self-improvement. It needs to transcend a culture of quality across the board in terms of training by bringing together all stakeholders including providers, trainers, students, employees, employers and policy-makers. The cycle is based on:

• Internal quality assurance (IQA);
• External review to the internal quality assurance;
• External quality assurance, and;
• Review by the European Quality Assurance Register for Higher Education.

The process is based on implementation, evaluation, review and planning.

The Quality Assurance process shall seek to assess whether the 10 IQA standards are fit for purpose, functioning and effective, and sustainable. The report on the quality assurance systems of training providers shall be peer-reviewed by experts appointed by the National Commission for Further and Higher Education (NCFHE).

The Internal Quality Assurance Standards are as follows:

• Presence of an effective quality assurance policy
• Institutional probity (Appropriate Financial Sustainability)
• Appropriate design and approval of programmes
• Student-centred learning, teaching and assessment
• Student admission, progression, recognition and certification
• Competence and development of teaching staff
• Appropriate learning resources and student support
• Appropriate information management
• Appropriate public information
• Ongoing monitoring and periodic review of programmes
• Cyclical external quality assurance

At the end of the conference, Education and Employment Minister Hon Evarist Bartolo presented certificates to the quality assurance experts who operate in various training provider institutions which have undergone the respective training in quality assurance.

 

The MEUSAC Core Group meeting held last Monday hosted Prime Minister Joseph Muscat ahead of the June European Council focusing mostly on economic and security issues. This MEUSAC Core Group meeting however coincided with the Urgent EURO Summit meeting to address the Greek debt crisis and therefore served as an opportunity for social partners to discuss these developments with the Prime Minister.

Prime Minister Muscat explained how the Greek crisis was of great concern as in terms of exposure in view of the national economy, Malta and Germany would be the most highly effected should Greece default on their commitments. There seemed to be a conciliatory tone over the weekend which however the Prime Minister was not expecting a definite solution to be found this week but rather an extension of the negotiations over Greece’s commitments and its new Prime Minister Alexis Tsipras’ electoral promises. Prime Minister Muscat explained that Greece seemed to have tabled a more tangible counter-proposal than the previous unrealistic plans.

The situation described by Prime Minister Muscat was a delicate one. If Greece were to further default leading into exiting the Eurozone there would be substantial political and economic repercussions. Politically this would mean a weaker future for Eurozone and the EU concept as a whole giving further space to anti-Community quarters to be fanned. On the other hand, economically this would have a huge impact on the EU member states having contributed to support the Greek debt crisis as well as on any future situations of trust and solidarity.

The MEUSAC Core Group meeting also addressed the EU Council Meeting being held on 25 and 26 June. The Prime Minister outlined the importance to follow up on the security and immigration issues. Immigration figures could be heavily affected even with one-off large boat arrivals despite the arrangements with Italy having proven to be valuable. The Prime Minister also expected the conclusions of the Council to include some form of timeline on the renegotiation of the UK’s EU accession package.

GRTU President Paul Abela addressed the MEUSAC Core Group meeting expressing the need for a balanced approach to the Greek crisis. Abela described the delicate situation as one which had to be handled in a way which is open to compromise as otherwise if Greece were to be given the message that the EU is not ready to negotiate, it could lead to a position where if Greece fails, it would not longer be a situation to compromise and negotiate but rather to receive nothing at all – with all the negative connotations of that result. This has to be done diligently so as not to send out a message that defaulting and stamping one’s feet is tolerated at EU level.

Paul Abela also delved into two main topics being addressed at the June EU Council. He expressed how the Digital Single Market Strategy for Europe should be given importance. GRTU has been continuously emphasizing that online and e-commerce has become inevitable and is therefore the way forward for the retail sector to challenge competition. This would mean that the Government needs to not only support this agenda but also provide the necessary resources to support Maltese SMEs and micro-enterprises the push they need to upgrade to this reality.

Paul Abela also made reference to the Country-Specific Recommendations which would be endorsed during the June Council. Paul Abela focused his intervention on Access to Finance which is identified as key matter for Malta. Abela recognised that the Government’s vision includes non-bank instruments to address needs of Maltese businesses in a more flexible manner allowing the potential growth that is not being reached due to such access to finance constraints. This was outlined in the Budget 2015 speech with various initiatives such as the Development Bank, Seed Capital and Venture Capital initiatives. Paul Abela therefore appealed for this vision to be accelerated. One cannot simply wait for the banks to open their doors further to business needs, but to find non-bank instruments for business solutions which would support our enterprises and perhaps give an incentive for banks to follow suit.

 

F’laqgha kordjali organizzata nhar il-Gimgha 19 ta’ Gunju gewwa l-Kunsill Lokali, Rahal l-Gdid is-sidien tal-hwienet gew pprezentati bil-progett ta’ tisbieh li ser jsir gewwa l-Pjazza Antoine de Paule. Dan l-progett gie pprezentat mill-Kunsill Konsultattiv ghan Nofsinhar ta’ Malta mmexxi mic-Chairman, s-Sur Sur Silvio Parnis. Flimkien mas-Sur Parnis kien hemm prezenti s-Sur Domenic Grima, s-Sindku ta’ Rahal l-Gdid, l-Perit Christopher Mintoff, kif ukoll ma’ rapprezentanti ohra.

Fl-indirizz tieghu s-Sur Parnis qal li dan l-progett ser jaghti spinta l-quddiem lil Rahal l-Gdid u ser jkun ta’ valur mizjud kemm ghal min ghix, jahdem u jzur dan il-lokal. Ghalkemm l-maggorparti kbira tas-sidien qablu li dan il-progett ghandu jsir,hafna minnom urew it-thassib taghhom dwar il-bidliet fil-hidma ta’ kuljum taghhom li dan kien ser jgib, kemm waqt l-process tax-xoghlijiet kif ukoll meta jitlesta. Is-sidien insistew mal-awtoritajiet kkoncernati sabiex jitfassal pjan fejn l-impatt jkun minimu.

Is-Sur Parnis wieghed lil dawk prezenti li hu kien ser jaghmel dak li jista’ sabiex x-xoghol jsir bl-inqas inkonvenjent possibbli izda ma eskludiex li progett bhal dan ma jgibx mieghu ntoppi. Huwa qal li kien diga` tkellem ma’ diversi entitajiet kkoncernati, mar-residenti u ohrajn u  ghad fadallu ohrajn li jrid jkompli jiddiskuti maghhom sabiex jintlahaq l-ahjar kompromess. 

Filwaqt li  l-GRTU tappoggja dan il-progett, titlob sabiex jittiehdu in konsiderazzjoni xi talbiet li l-membri ressqu waqt din l-laqgha ta’ konsultazzjoni.

Wiehed irid jiehu in konsiderazzjoni li Rahal l-Gdid, bhalma huma ohrajn, huwa wiehed mill-irhula b’ammont sostanzjali ta’ servizzi fejn jidhol t-transport pubbliku, sahha, banek, garr u hadd ta’ xoghol, u ohrajn. Wiehed jista jghid li l-ammont ta’ hwienet huwa kbir u l-kontribut ta’ dawn is-sidien huwa sostanzjali fejn dawn barra li jiggeneraw ix-xoghol jsebbhu l-lokal u jzidu l-impjiegi.  Ghalhekk il-GRTU titlob sabiex jittiehdu il-konsiderazzjoni t-talbiet li ghamlet ghan-nom taghhom waqt laqghat diversi fosthom:

Il-Progett:          

Il-GRTU tikkumplimentha lil Kunsill Konsultattiv il-ghaliex skont il-prezentazzjoni li saret mill-Perit Mintoff jidher li l-progett ser ikun wiehed sabih u se johloq hafna spazji fejn wiehed jkun jista’ jgawdi l-isbuhija tal-pjazza u fl-istess hin jinqeda skond il-bzonnijiet tieghu.

L-preokkupazzjoni tal-GRTU hi l-effett fuq l-kummerc waqt l-andament tax-xoghol. Ghalhekk tipproponi bhal ma jsir dejjem, li jsiru laqghat ma kull min hu involut sabiex wiehed jkun nfurmat sew ta’ x’ser jigri. Mhux ser jkun hemm qbil kolletttiv f’kollox izda wiehed jkun jista jasal f’bilanc bejn il-partijiet kollha kkoncernati.

Nifhmu li ser jsiru laqghat mal-entitajiet u awtoritajiet kkoncernati fejn jigi pprezentat programm ta’ kif ser jitqassmu x-xoghlijiet meta u kemm ser jdum x-xoghol, traffic management, trasport u affarijiet ohra essenzjali sabiex ma jinholoq l-ebda inkonvinjent.

Parkegg:               

Din hija wahda mill-issuesli ghandha tittiehed bis-serjeta ghaliex fil-fehma taghna hija wahda preokkupanti, mhux biss f’lokalitajiet li qed isiru progetti u xoghlijiet izda anke ohrajn. Wiehedghandu jiehu stockta’ dak li diga jezisti llum u tinstab alternattiva simili.   Il-GRTU taqbel mall-proposta fejn toroq b’bankini wiesa

 

As a follow-up to the Budget 2015 Speech proposal whereby it was stated that the Government is aiming at furthering a National Strategy towards Electronic Payments in order to combat tax evasion and money laundering avenues, GRTU members were given an overview of an FIAU (Financial Intelligence Analysis Unit) proposal limiting cash transactions.

The measure is intended to:

a) Reinforce Malta’s Anti-Money Laundering Framework

b) Cut down on cash hoarding

c) Potential reduction in crime (e.g. hold-ups, etc.)

d) Combating Tax Evasion

e) Increasing Payment Traceability

f) Ensuring a more efficient and safer payment environment

The proposal is to make cash transactions above a specific amount decided upon by the Finance Minister illegal. The amount is to be no more than €15,000, however the proposal being put forward sets the limit at €10,000. This refers to cash transactions which are single transactionsbut also if they are linked transactions. Anyone caught contravening shall be fined between 15% and 40% of the amount exceedingthis said threshold. There shall also be an obligation upon which a subject person who knows or suspects of such transactions in cash has to inform the respective authorities immediately.

GRTU members are asked to send their feedback to GRTU or inquire for further information on   by not later than 13th July 2015. This will allow GRTU to include this in its feedback.

 

President Marie Louise Coleiro Preca opened the MCAST 2015 Expo which also launched its Course Prospectus for the upcoming scholastic year with 163 courses starting next October. MCAST CEO Stephen Cachia explained how MCAST would now also be delving into the Performing Arts and seeking to advance courses at Masters Level (MQF 7) in the near future. The MCAST EXPO, being held at MCAST Paola until Saturday 27th June, is aimed at offering visitors a taste of the MCAST learning experience.