TA’ QALI CRAFTS VILLAGE

GRTU last week has written to Malta Enterprise regarding a meeting with the Ta' Qali Crafts Village operators. During this meeting GRTU had the opportunity to explain to them the ME/MIP policy and urge them to conform as soon as possible so that this project is finally settled.

 

A number of points from the discussion have been raised:

  • The draft contract needs to be amended so that it becomes less burdensome when a second or a third transfer of lease is registered. They feel that the sharp increase in rates applicable will affect the value of the property, given that they will be investing directly from their own funds.
  • The vast majority of the operators are willing to finance the building within the planning guidelines as approved by ME/MIP and by MEPA. They however feel that current MEPA charges are too high, given also the fact that ME/MIP/Government have already paid substantial funds to MEPA for the approval of the previous Government proposed project. The operators strongly argue to disagree with MEPA and with the Parliamentary Secretary responsible for tourism and environment for the settlement of a nominal fee per individual permit. MEPA cannot honestly object to such a proposal as it has already been paid handsomely for a project which has still not materialized
  • A small number of operators require only small additions and small infrastructural changes and there is no need to go into heavy new construction investment as investment has already been effected throughout the years. The operators argue to be lenient on the absolute figure of the investment commitment, at least in the initial first 5 years.
  • Operators are concerned that no discussion has been held on the whole plan for the Crafts Village. They are concerned that they are not aware of important details like exits and entries, parking facilities and the overall circular flow. They feel that before they commit ME/MIP should also be committed to an outline plan which will only be altered with the consent of the lease holders.
  • Operators would also prefer to have a specific commitment by ME/MIP on the volume design and standard time-scale of execution of the proposed ME/MIP financed Public Areas investments.
  • A number of operators will continue to operate from the area which is incorporated in the National Park zone. These operators would like to have the opportunity to continue to operate as a small craft centre within the National Park. These operators argue to open discussions with the Ministry responsible for the National Park so that this project extension could materialize with the assistance of ME/MIP. This in practice would be an extension of the Ta' Qali Crafts Village.
  • The operators also argue to start immediate discussions with the Ministry responsible for transport and Arriva so that public transport services to the Crafts Village even before the new project materializes is improved at least to the level that existed before Arriva started its operations. As things stand today there is no direct service from Valletta, Sliema area and St Paul's Bay/Qawra area, and tourists pass through Ta' Qali without even realizing that the destination "Village" is actually the Crafts Village.
  • A number of operators have still not fixed the final appointment with ME/MIP. I strongly argue to cause Ian Robertson to fix appointment with each and everyone.
  • A major complaint by the operators concerned the maintenance and cleaning of the public areas. They request you to reconsider these charges. They draw your attention to the fact that most of the dirt and damage is not really caused by people visiting the Crafts Village during opening hours but the Crafts Village is suffering tremendously by the weekend activities held at Numero Uno and the weekend family leisure activities. The litter is a problem, the operators request you to take it up seriously with the authorities concerned so that an enforcement plan could be put into action. The operators request you to consider a maintenance charge that is more commensurate with the lease rates given, also that these operators are self-employed and all additional charges directly affect their take home pay and that they cannot further lower the prices of the crafts they sell as they are already in a competitive un favorable position in relation to imports from the far east.
  • The operators also continue to insist that no changes should be made to the current commitment that the lease is reviewable every 25 years, during which no increases and transfer of lease are acceptable.
  • Finally, while arguing to press for the earliest resolution of all pending issues, the operators request you to extend the deadline due at the end of September by a suitable period, enough to settle all pending issues.

GRTU will continue to persist in provide its services to ensure that this longstanding issue is finally settled.

GRTU has so far not received a reply

Il-GRTU, Vince Farrugia u s-Sidien tal-Huts ta’ Qali Crafts Village

Il-GRTU – Malta Chamber of Small and Medium Enterprises – ilha tirraprezenta lis-sidien tal-huts ta’ Ta’ Qali ghall-13 il-sena. Matul dan iz-zmien il-GRTU ghamlet kull sforz possibli biex il-Crafts Village ta’ ta’ Qali jkun upgraded biex jilhaq livell accetabbli ghall-destinazzjoni turistika ta’ valur bhal ma taspira li tkun Malta. Il-GRTU persistetament insistiet li l-progett ikun integrat fil-pjanijiet l-ohra ta’ Ta’ Qali bhal ma hu l-Park Nazzjonali u l-postijiet ta’ rekrejazzjoni u sports skond il-Pjan ta’ azzjoni dwar Ta’ Qali. Il-GRTU fin-negozjati kollha matul dawn is-snin dejjem rat li l-interessi ta’ dawk li investew l-ahjar snin ta’ hajjithom u flushom u t-talenti taghhom biex Ta’ Qali Crafts Village ikun zviluppat ma jitaffgux taht progetti u pjanijiet godda li ma jzommux bhala perm l-craftsmen li huma l-qofol ta’ Crafts Village.

Il-GRTU, Vince Farrugia u s-Sidien tal-Huts ta’ Qali Crafts Village
Il-GRTU – Malta Chamber of Small and Medium Enterprises – ilha tirraprezenta lis-sidien tal-huts ta’ Ta’ Qali ghall-13 il-sena. Matul dan iz-zmien il-GRTU ghamlet kull sforz possibli biex il-Crafts Village ta’ ta’ Qali jkun upgraded biex jilhaq livell accetabbli ghall-destinazzjoni turistika ta’ valur bhal ma taspira li tkun Malta. Il-GRTU persistetament insistiet li l-progett ikun integrat fil-pjanijiet l-ohra ta’ Ta’ Qali bhal ma hu l-Park Nazzjonali u l-postijiet ta’ rekrejazzjoni u sports skond il-Pjan ta’ azzjoni dwar Ta’ Qali. Il-GRTU fin-negozjati kollha matul dawn is-snin dejjem rat li l-interessi ta’ dawk li investew l-ahjar snin ta’ hajjithom u flushom u t-talenti taghhom biex Ta’ Qali Crafts Village ikun zviluppat ma jitaffgux taht progetti u pjanijiet godda li ma jzommux bhala perm l-craftsmen li huma l-qofol ta’ Crafts Village.

Vincent Farrugia d-Direttur Generali mexxa l-bicca l-kbira tan-negozjati u ippartecipa f’sieghat twal ta’ diskussjonijiet u sal-lum hadd ma iddubita mill-integrita tieghu. Kien ghalhekk ta’ sorpriza ghall-GRTU li xi hadd insinwa bla ebda bazi ta’ xejn li Vincent Farrugia fuq din il-kwistjoni ghandu ci conflict of interess. Il-GRTU hi sodisfatta ghall ahhar li fuq din l-kwistjoni u fuq l-ebda kwistjoni ohra ipprezentat mill-GRTU f’isem il-membri taghha matul is-snin li Vincent Farrugia la qatt kellu u lanqas ghandu xi conflict of interest ghax mhu f’xejn involut fuq bazi personali li jislet jkollu conflict of interest mall-intraprizi li huwa jirraprezenta hu x’inhu l-Board jew Kumitat li qieghed membru tieghu.

Il-GRTU dwar l-progett ta’ Ta’ Qali hadmet ma gvernijiet u Ministri differenti mall-MDC, mall-MEPA, mall-gvern centrali u mall-Malta Enterprise u fuq kollox mas-Segretarju Parlamentari, Edwin Vassallo u mall-Prim Ministru Dr.Lawrence Gonzi u mall-Prim Ministru ta’ qabblu. Il-GRTU tistenna li l-gvern isib soluzzjoni ragunata li hi fl-interess ta’ kulhadd u li jinqata’ t-theddid ta’ zgumbrament lil min hobzu jaqlagha biss min Ta’ Qali.

Il-GRTU izda tichad li xi hadd, Prim Ministru, Ministri, Segretarji Parlamentari, MEPA, Malta Enterprise jew xi hadd iehor mill-1994 l’hawn irrifjuta li jkellem lill-GRTU u lil Kumitat tas-Sidien tal-membri tal-GRTU. Il-GRTU tichadd ukoll li fil-proposti prezenti li qed jipprezenta l-gvern m’ghandhomx bazi tajba ghal ftehiem ghas-sidien kollha. Jista jintlahaq ftehiem bi ftit aktar kooperazzjoni. Il-GRTU hi fiducjuza li dan il-ftehiem jista jsir. Izda m’ghandux ikun hemm min aktar ghandu interess li ma jsir xejn milli li jsir xi haga sewwa u gusta skond l-esigenzi tal-pajjiz.

Il-GRTU tichad fuq kollox li d-Direttur Generali, Vincent Farrugia ghandha xi conflict of interess ghalhiex huwa jipprezenta l-interessi tas-sidien tan-negozji zghar u medji fuq l-Malta Enterprise Corporation. Allahares jkun acettat l-kuncett li min jkun fuq Board biex jirraprezenta l-interessi ta’ setturi differenti fis-socjeta jkollu konflitt jekk jipprezenta l-veduti tas-setturi li ghalihom jitkellem. Jekk ikun accettat dan kieku d-demokrazija naqilbuha rasha l-isfel.

Il-GRTU tichad wkoll l-kumment li ghamel il-gurnalista Owen Galea tal-Orizzont li Vincent Farrgia ma kienx disponibbli ghall-kummenti wara dak li intqal fil-laqgha li s-sidien tal-huts ta’ Ta’ Qali kellhom mall-Onorevoli Edwin Vassallo. La l-email, la l-mobile u lanqas it-telephones privati u tal-Ufficini ta’ Vincent Farrugia ma jindikaw li Owen Galea ikkuntatja f’xi hin lill-Vincent Farrugia.

Il-Ligi Dwar it-Tipjip – l-Gvern jiddandan ghas-Spejjez Hadd’iehor

Il-Ministru tas-Sahha qal li l-Ligi dwar it-Tipjip f’postijiet pubblici qed ikollha l-effett mixtieq. Sakemm dan ifisser l-effett li aktar nies qed jieqfu milli jpejjpu u aktar nies qed igawdu arja nadifa, dan hu sinjal tajjeb u l-GRTU tifrah mall-Ministru ghal dan s-success.

Il-Ligi Dwar it-Tipjip – l-Gvern jiddandan ghas-Spejjes Hadd’iehor

Il-Ministru tas-Sahha qal li l-Ligi dwar it-Tipjip f’postijiet pubblici qed ikollha l-effett mixtieq. Sakemm dan ifisser l-effett li aktar nies qed jieqfu milli jpejjpu u aktar nies qed igawdu arja nadifa, dan hu sinjal tajjeb u l-GRTU tifrah mall-Ministru ghal dan s-success.

Izda jekk l-Ministru qed jirreferi ghall-hsara li saret lin-negozji z-zghar ta’ pajjizna fil-qasam tad-divertiment u ghat-telf li baghtew minn bwiethom s-sidien u l-impjegati ta’ dawn il-postijiet allura zgur li l-GRTU ma tistax tifrah mieghu. Hadd mill-Prim Ministru l-isfel ma qal li l-Ligi kontra t-Tipjip kienet intenzjonata biex tkisser lin-negozji z-zghar fil-qasam tad-divertiment izda l-ebda Awtorita jew Ministru (hlief ghall-Kunsill Lokali ta’ San Pawl l-Bahar), ma ghamel xejn biex itaffi ghall-hsara li qed ibghatu minna s-sidien tal-bars u postijiet ohra tad-divertiment.

Kien komdu ghal-Ministru tas-Sahha li jghabbi fuq il-privat ir-responsabbilta tieghu u jiehu l-midalja tal-prosit minn Brussels fl-istess waqt li l-gvern qed idahhal l-miljuni tal-liri minn fuq dahar min ipejjep. Id-dicenza u l-korrettezza pulitika kienet u ghadha titilob li l-gvern iwarrab parti minn dawn l-miljuni li qed idahhal biex jassisti b’mod dirett lil dawk kollha li l-valur tan-negozju taghhom gie zvalutat bl-imposizzjoni tal-Ligi dwar it-tipjip fil-bars u f’postijiet tad-divertiment.

X’jiswa li l-gvern jghid li qabel tiddahhal ordni legali ghandu jitfassal pjan li jimmitiga l-hsara fuq s-settur privat meta mbaghad ssir ordni legali bhal tat-tipjip li twegga lil tant sidien ta’ negozji u l-gvern mhux biss ma jikkumpensax u ma jaghmel xejn izda jkompli jghaffeg u jsus wara s-sidien tan-negozji u jfixkel fejn seta jghin biex n-negozji fil-qasam tad-divertiment ikunu iffacilitati jfendi u jkabbru. Hija irrisponsabbilta li l-gvern impona u baqa ma kejjielx l-impatt negattiv fuq in-negozji u ippropona kif ser jirrimedja.

Jaghmel zball kbir il-gvern jekk jahseb li s-sidien tan-negozji tad-divertiment ser jahfruhielu ghall-mod dishonest li mexa maghhom. Is-sidien ghadhom jistennew lil gvern jiccaqlaq u jaccetta r-responsabbilta tieghu.

Is-Sitwazzjoni fit-Turizmu ma tistax tithalla tehzien aktar

Il-GRTU qed twiddeb lil gvern li jekk it-Turizmu jithalla jinzel l-isfel aktar bir-rizultat li dan is=sajf ma jghatix id-dhul bizzejjed li hafna stabilimenti qed jistennew il-pajjiz jiffacja problemi serji. Malta barra it-Turizmu, ftit li xejn ghandha min fejn tista tfendi u numru dejjem jikber ta’ intraprizi zghar u medji min oqsma varji mhux biss direttament fit-turizmu izda bars restoranti, snack bars, kafeterji, night clubs, gyms, trasport, car-hire, hwienet, traders, bdiewa, sajjieda u hafna u hafna servizzi, illum jiddependu mit-turizmu u lkoll jistennew u jippretendu sajf b’sahhtu biex ifendu s-sena kollha.

Is-Sitwazzjoni fit-Turizmu ma tistax tithalla tehzien aktar

Il-GRTU qed twiddeb lil gvern li jekk it-Turizmu jithalla jinzel l-isfel aktar bir-rizultat li dan is=sajf ma jghatix id-dhul bizzejjed li hafna stabilimenti qed jistennew il-pajjiz jiffacja problemi serji. Malta barra it-Turizmu, ftit li xejn ghandha min fejn tista tfendi u numru dejjem jikber ta’ intraprizi zghar u medji min oqsma varji mhux biss direttament fit-turizmu izda bars restoranti, snack bars, kafeterji, night clubs, gyms, trasport, car-hire, hwienet, traders, bdiewa, sajjieda u hafna u hafna servizzi, illum jiddependu mit-turizmu u lkoll jistennew u jippretendu sajf b’sahhtu biex ifendu s-sena kollha.

Din is-sena l-MTA u l-Ministeru tat-Turizmu hada falza stikka fil-kampanja pubblicitarja taghhom u fl-istrategiji u r-riformi li wettqu u ghadu mhux tard biex jirrimedjaw u jsalvaw s-sajf li beda.

Bla sforz ikbar minn min hu inkarigat is-sitwazzjoni diga hazina ta’ hafna negozji tkompli tehzien u jkun inutli li l-gvern jkompli jghabbi fuq in-nies tan-negozji. Il-GRTU tistenna azzjoni serja bla aktar telf ta’ zmien ghax kif sejrin mhux sejrin tajjeb zgur. Issa l-waqt li mill-paroli nghaddu ghall-fatti jekk l-awtoritajiet iridu li s-sidien tan-negozji z-zghar jemmnu li l-interessi taghhom ghandhom post importanti fl-istrategija ekonomika tal-gvern.

Working Time Directive Opt-Out Clause

The Malta Chamber of Commerce and Enterprise
Federation of Industry
Malta Hotels and Restaurants Association
GRTU – Malta Chamber of Small and Medium Enterprises
Malta Employers Association

The Malta Chamber of Commerce and Enterprise
Federation of Industry
Malta Hotels and Restaurants Association
GRTU – Malta Chamber of Small and Medium Enterprises
Malta Employers Association

Working Time Directive Opt-Out Clause

The FOI – Federation of Industry, the Malta Chamber of Commerce and Enterprise, the Malta Employers Association, the Malta Hotels and Restaurants Association and GRTU – Malta Chamber of Small and Medium Enterprises, are active in several European fora in which these organisations send their representatives, to defend the interests of enterprises established in Malta. The media has in recent days carried various opinions of politicians and unions concerning the Organisation of Working Time, a draft directive that has been under discussion in the European Parliament as well as in the European Economic and Social Committee (EESC). Our five major organizations that represent the majority of enterprises in Malta have their own opinions on this highly important topic. in favour of the opt-out clause that gives workers the right of individual voluntary choice on whether to work more than the maximum 48 hours per week as imposed by the Working Time Directive.

The representatives of Maltese employers in Group 1 (Employers Representatives) at the European Economic and Social Committee (EESC) Ms Sylvia Sciberras and Mr Edwin Calleja representing all the employer organizations mentioned above, have supported and canvassed in favour of the adoption of a draft opinion by EESC during the Plenary Session of May 2005 on the Proposal for a Directive. The European Employers organizations did not support a draft opinion that had received the approval of the Unions supported by some representatives of Civil Society. in the EESC: General assembly. Employers representatives supported by a number of members from the Civil Society Group tabled a Draft Counter opinion that was also voted upon and supported by a strong minority of the members. Because of the strong support received this draft counter opinion will therefore go to the Council and the European Parliament to show the differing view point of employers.

“Employers supported the Commission’s proposal, and not the Trade Unions version, for amending Directive 2000/88 EC concerning certain aspects of the organisation of working time
This proposal is based on Article 137 (2) in the Treaty establishing the European Community according to which the directives adopted should “improve the working environment to protect the worker’s health and safety” while it “must avoid imposing administrative, financial and legal constraints in such a way as to hold back the creation and development of small and medium sized undertakings”.

Employers insist in their counter-opinion on:

· giving a high level of protection of workers’ health and safety, whilst allowing companies flexibility in managing working time.

· Allowing greater compatibility between work and family life;
· Avoiding any imposition of unreasonable constraints on companies, in particular SME’s

The Commission rightly emphasized the important role on this issue of Member States and social partners at national, branch or enterprise level.

More specifically, Employers emphasized that a 12-month reference period is already used in many Member States. It therefore believes the current provisions of the directive should promote the annualisation of the reference period.

Concerning on-call time the Employers’ counter opinion points out that several Member States have national legislation and practices which contain rules on time spent “on call” in various sectors and especially in the health sector. These rules vary in different ways, but it is common in all cases that either on-call time does not count as working time at all or only partly.

Employers supported the European Commission’s proposal that the inactive part of on-call time should not be regarded as working time. This is crucial for the functioning of all enterprises, especially SME’s and for the further development of the social economy.

Furthermore, European employers acknowledged that on-call time should not be considered as resting time as this would lead to excessively long working hours, which could hamper the reconciliation of work and family life and endanger the health and safety of workers.

However, they said that they would consider if necessary, that the inactive part of on-call time could be established as an average number of hours, in order to take into account the different needs in the various sectors and enterprises.

European employers believe that the possibility of the ‘opt-out’ should be maintained and the collective opt-out should be put on equal footing with the individual opt-out. This is important in order to take into account the different practices on industrial relations across the enlarged EU as well as the needs of enterprises and the needs and wishes of workers that might wish to work longer in different periods of their lives.

Nevertheless, it has to be assured that this possibility stays voluntary, is not used in an abusive way and that the worker can withdraw his consent to work longer when his live circumstances change. Employers therefore supported the additional conditions linked to the opt-out as suggested by the Commissions’ proposal”.

Employer organizations believe that it is inconceivable for small, medium and large businesses in Malta to remain competitive if work places are restricted to a 48 hour week as a statutory imposition.

Our organizations believe that the Group 1 (Employers) counter-opinion was most appropriate for the requirements of a small economy like Malta and the European Commission, the Parliament and the Council of Ministers should give due weight to the opinions of leaders of enterprises in Europe if they seriously believe in the Lisbon Agenda and really want the European and the maltese economy to prosper in the coming years.
For Release
May 27 , 2005

Il-Kunsill Lokali tal-Mosta ma Jitghallem Qatt

Il-GRTU tappella lil Gvern biex jikkontrolla lil certi Sindki. Il-GRTU – Kamra Maltija tan-Negozjanti Zghar u Medji temmen li certi Sindki u Kunsilli Lokali jidher li wahhluha f’rashom li jghamlu li jistghu biex ikomplu jsallbu u jifnu lis-sidien tan-negozji z-zghar li jahdmu fil-lokalita taghhom. Ezempju gwap hu dak tal-Mosta.

Il-GRTU tappella lil Gvern biex jikkontrolla lil certi Sindki. Il-GRTU – Kamra Maltija tan-Negozjanti Zghar u Medji temmen li certi Sindki u Kunsilli Lokali jidher li wahhluha f’rashom li jghamlu li jistghu biex ikomplu jsallbu u jifnu lis-sidien tan-negozji z-zghar li jahdmu fil-lokalita taghhom. Ezempju gwap hu dak tal-Mosta.

Wara li ghal snin shah in-negozji tac-centru tal-Mosta ilhom isoffru mill-konsegwenza tad-tidwir tat-taffiku li wara tant snin baqa’ ma ttrangax skond kif kienu mweghda s-sidien tan-negozju, issa ghall-darb’ohra s-Sindku tal-Mosta qed jimponi bidliet bla ebda konsultazzjoni u ebda ftehim mas-sidien tan-negozji.

Il-progett il-gdid li qed jigi impost fic-centru tal-Mosta ser ikompli jnaqqas l-ispazju tal-parking disponibbli u ser jaghmilha aktar difficli biex il-hwienet tal-Pjazza u tac-centru kummercjali jkunu jistghu jinqdew u jaqdu ahjar lil klijenti taghhom. Is-Sindku ma ta’ kaz xejn tat-talbiet biex jikkonsulta mas-sidien tal-hwienet allavolja jaf li dan hu obligu taht l-Ligi tal-Kunsilli Lokali. Issa wara li ma ikkonsultax dwar l-progett, rega lanqas ma kkonsulta dwar it-twettiq tieghu, bir-rizultat li qabad u ghalaq ic-centru tal-Mosta bla ma ta’ kaz xejn tal-hsara li qed igieghel lis-sidien tal-hwienet isoffru. Dan l-eghluq ghat-traffiku qed isir meta ghadu ghaddej ix-xoghol fuq t-toroq ewlenin ta’ barra l-Mosta

Il-GRTU issostni li l-Gvern ma jistax jibqa’ jhalli lil certi Sindki u Kunsilli li jibqghu jgiebu ruhhom b’dan l-mod goff u nsensittiv ghall-ahhar. Jidher izda li l-Gvern qata’ qiesu li jzomm kontrol fuq ceri Sindki u l-prezz qed ikollhom ihallsuh s-sidien tan-negozji z-zghar.

Il-GRTU qed tappella lill-Gvern biex isib tarf ta’ din l-problema. Sindki bhal tal-Mosta, bl-imposizzjoni ta’ progett bla konsultazzjoni u mposizzjoni ta’ CCTV fic-centru li sallab biha lil hwienet kollha; bhas-Sindku ta’ tas-Sliema u ta’ Santa Venera li qabdu u mponew penali ta’ Lm20 kuljum fuq l-kuntratturi u ohrajn bhas-Sindku tal-Msida li impona, wkoll bla sahha ta’ Ligi, penali ta’ lira kull metru ghall-eghluq ta’ siti taht kostruzzjoni u Sindki ohra li jdawwru t-traffiku, imponew parking schemes u wahhlu CCTV’s u qed jesageraw bic-citazzjonijiet u l-multi li qed ifajjru fuq numru bla qies ta’ sidien tan-negozji. Ma jistghux jibqghu ghaddejjin qiesu xejn mhu xejn.

Is-sidien tan-negozji z-zghar ta’ pajjizna jridu bidla f’din l-mentalita kiefra lejhom li issa saret marda. Il-Gvern bilfors issostni l-GRTU irid jiehu mizuri hu ghax wahedhom is-Sindki jibqghu ma jaghtux kaz.

Director General Participates in the European Social and Plenary Session-Restructuring & Employment

The Director General of GRTU – Malta Chamber of Small and Medium Enterprises – attended the Plenary Session of the European Social Fund and the Employers Technical Forum of ESF held in Brussels on the 17th and 18th of May 2005. Vince Farrugia is a member of the Tripartite European Social Fund Committee in representation of Maltese employers.

The Director General of GRTU – Malta Chamber of Small and Medium Enterprises – attended the Plenary Session of the European Social Fund and the Employers Technical Forum of ESF held in Brussels on the 17th and 18th of May 2005. Vince Farrugia is a member of the Tripartite European Social Fund Committee in representation of Maltese employers.

The ESF is established under the Treaty of Rome. It is the main financial tool through which the European Union translates its strategic employment aims into action. It is the largest established Structural Fund and provides EU funding on a major scale geared towards the fulfillment of the EU’s Employment Strategy.

The May 2005 Plenary Session and the Technical Fora – one for Employers Representation, one for Worker Representation, and one for Government Representation discussed the new Employment Guidelines that now govern the EU’s Employment Strategy are redefined after the recent redrawing of the Lisbon Strategy.

The documents under discussion at the ESF Plenary Session included:
· The Communication from the Commission on Restructuring and Employment. The Commission firmly believes that restructuring must not be synonymous with social decline and a loss of economic substance. On the contrary, restructuring can underpin economic and social progress – but only if such measures are correctly anticipated and provided firms can manage the necessarily change quickly and effectively and provided public action helps ensure that the change is carried out in sound conditions.

· The Integrated Guidelines for Growth and Jobs 2005- 2008 which includes the Commission Recommendations on the broad guidelines for the economic policies of the Member States and the Community as well as the proposed Council Decision on guidelines for the employment policies of member States which is the subject of discussion at the informed EU Council Meeting which is is being held tomorrow Friday 20th may 2005.

When enough is enough

With economic prospects for small businesses looking rather bleak, Vince Farrugia, director general of the Chamber for Small and Medium Enterprises (GRTU) does not mince his words when he says that “this is an educated government that does a lot of hearing but very little listening

Lamenting about the bureaucracy that has inundated small businesses with reams of paperwork, Farrugia says that ministers are being led by their underlings. He insists the time is now ripe for Prime Minister Lawrence Gonzi to conduct a cabinet reshuffle to institute his own team.Small businesses are crying out for concrete action to be taken to alleviate some of the government-induced costs Farrugia says, and yet while ministers listen politely to what the GRTU has to say, suggestions for change are shelved by faceless bureaucrats more intent on serving Brussels than the Maltese taxpayer.
On the first anniversary of Malta’s EU accession you asked the Prime Minister to change ‘policy’ and ‘most of all faces’. Why are you calling for a cabinet reshuffle?
Lawrence Gonzi, at this particular stage, is the best of the crop in Parliament. From the complaints I get from most of GRTU’s members, there are hardly three people in Parliament with whom you can make a decent economic argument. One of the problems facing the country today is that the system does not appreciate the economic ills hounding the country. Whatever the issue at stake, the bottom line is money. If the economy takes off we can start solving the deficit, we can start taking care of our roads and the environment.
Had Lawrence Gonzi created a revolution last year when he took over as Prime Minister it would have been premature and very presumptuous of him since his only experience in government until then was that of social policy minister, not a department directly linked to the economy.
In foreign affairs he was weak and needed to learn the ropes. In my view it was positive of him to take charge of finances because it helped him learn how they operate because a Prime Minister who is weak in finances will remain hobbled throughout the legislature. He also had to understand from closer range the abilities of the people around him. Gonzi also had to understand the structures sustaining Malta’s European membership. Until last year the people administering EU membership were not under Gonzi’s hands. They were answerable to Richard Cachia Caruana, who still seems to be in command. Gonzi needed another year to understand the intricacies of the European Union.
Today, a year after, Gonzi can now form his own team. The current team is not his. There are some who are capable, others who are tired and those whose vision is still that pertaining to the Fenech Adami era – a vision that stopped with EU membership.
Lawrence Gonzi has to seek those coming up the ranks of the Nationalist Party and who have ambition and possibly include in his government people from outside the party and Parliament. Gonzi can inject a new lease of life in this country’s administration and now is the time to do it.
The GRTU had an influential role in tipping the scales in favour of EU membership when it declared its position publicly. Similarly in 1996 the GRTU was influential in returning a Labour government. From where does this influence stem?
Our people, bar owners, retailers, contractors, restaurateurs and others operating small and not-so-small businesses, have shown for more than once that they can influence public opinion. A retailer constantly meeting people on a daily basis has much more influence on the electorate than somebody who spends most of his time at home.
This is something that was underestimated during the EU referendum when we decided in favour of Europe. We did not favour membership because it was absolutely right but when compared with the alternative it was the better option.
We are organised on a national level, district level and on street level. I can know what the situation in Zejtun is through a simple telephone call. When we activate our system, and politicians know this, it is alive. Our system is not always united. Unity occurs when there is an overriding issue that hits everybody and if I were to interpret the messages reaching me today, the single most important message is ‘do something because this government is not listening’. Small businesses cannot have it anymore.
If small businesses are crying out for some action and yet you claim Parliament has only a handful of people who understand how the economy works, what solution do you see in sight?
I used the word listening because it is the correct word. We do have consultation. I, Vince Farrugia, on behalf of the GRTU am on a number of boards and trust me I do my best wherever I can. There are other GRTU members who are spending a lot of time on other boards. But at the end of the day we ask ourselves whether this is worth it because when the draft document on which we were consulted is eventually adopted it contains none of the changes we would have suggested.
Let’s take for example the document on consumer credit, which will soon be adopted. Even if there are EU directives, it does not mean we simply adopt legislation without discussing it and agreeing with the social partners concerned. They heard us, made some small changes and simply trudged on. I cannot criticise the Prime Minister because I am in constant touch with him. I email him once or twice a week, but when the message is delivered it simply fizzles out.
This is a bureaucracy-led government. Apart from the very few ministers who show leadership the rest are not in the driving seat. They simply rely on bureaucrats who interpret EU legislation to the letter, leaving politicians with little or no discretion to intervene so that what is discussed with social partners is included in the legislation.
They are caretakers.
Bureaucracy seems to be a favourite punching bag for the social partners. Why is it so big a problem?
Compared to two years ago, a simple bar owner today has to manage volumes of paper work, is subjected to countless inspections and is constrained to fill in numerous forms. You cannot imagine the bureaucracy that has piled on small businesses. But nobody seems to care and they even lie.
When I spoke to the Prime Minister or a minister on certain issues and they assured me they were not going to implement something as planned, it was to no avail. One such example was the smoking issue. Things could have been done differently without making people go crazy. What was not done in 50 years need not be implemented in six months, it could have taken a longer period.
We could have waited for such a ban to be introduced through an EU directive therefore eligible for assistance.
Government could have brought the importers of air conditioners together and enticed them to import air purifying systems during the leaner winter months. Through the vote for small enterprises under Malta Enterprise, businesses could have been helped to start installing such systems. This way, over a longer period I could have turned to my people and told them that the smoking ban was a correct measure because people wanted it. As things developed the licence was devalued because suddenly smokers became unwelcome clients and businesses were left to shoulder the burden of compliance.
Small outlets could have installed air-purifying systems without the obligation to build smoking rooms. The air would not have been 100 per cent pure but is the air in the street 100 per cent pure, given all those carcinogenic fumes coming out from car exhaust?
Outlets could have also been given the choice of choosing whether they wanted to be smoking or non-smoking bars.
For the personal prestige of a politician or a civil servant, who wants to appear nice in Brussels, my people out there are crucified. He is taking my people up to court for not policing the ban as if it is a bar owner’s role to police clients. It even goes against economic logic for a bar owner to ask clients to leave.
The main argument of the pro-EU lobbyists was that membership would help us introduce higher standards and possibly instil better discipline. Isn’t what you are saying a counter argument to the reasons for membership?
The GRTU is very active in EU structures and I know what happens elsewhere. To start with the regulations we have to absorb in a span of months were introduced over a 40-year period in most EU countries. But even in Germany, a country renowned for its discipline, there is a way of implementing regulations through an educational process that creates the demand for change.
Our civil service is incapable of implementing regulations via a staggered approach. Our civil servants are just interested in applying EU law at all costs.
A British friend of mine once told me these words: ‘Europe is good for you but watch out for something. Your people shouldn’t go to Brussels and become messengers of Brussels to your people. They must remain representatives of your people in Brussels.’
She was right because today our civil servants are just messengers.
The Prime Minister has called on society to be positive and yet you are grumbling?
I agree with the Prime Minister that we have to be positive. But when my people are wearing shoes made out of thorns that hurt at every movement they make, it takes a very strong positive spirit to keep on smiling at the risk of being labelled dumb.
There is no profitability in the retail trade. Profit margins have gone down or vanished completely and that will soon have an impact on income tax. The economy is not growing at all. The economy is moving backwards not forward. Our fiscal system is structured in such a way that government creams off more taxes when the economy is booming and less taxes when it is down. In this crazy country, the contrary is happening. At a time when the economy is down Government is whipping everybody for past sins in a bid to collect more taxes. We are not in a boom and yet entrepreneurs are being subjected to countless arrears whether these are electricity bills, licences or income tax. It takes two to tango. Why did the bureaucracy not pressure defaulting businesses to pay up during the boom period?
Government has found itself in difficulty to sustain the exaggerated number of employees on its books and is therefore trying to cream off the required cash from businesses. It is only a question of time before the services industry starts shedding jobs. The only reason why it has held on for so long is because most of them are small family concerns.
Bars, restaurants, workshops, retail outlets and other service providers are feeling the squeeze and in a couple of months time will not only scream but react by shedding jobs.
I want to be more of a chamber focussed on facilitating small businesses, offering training and promoting education. I don’t want to stamp my feet to get things done but they cause you to do that. This is an educated government that hears you but lacks the nerve to implement changes suggested by organisations like mine.
What suggestions have you made that fell on deaf ears?
I am not one to grumble because all my training, my profession is that of a business developer. I promote business and I am full of ideas as are my people but when we come to present our ideas nobody wants to listen. That is why we end up grumbling.
Last year we presented government with a project. Small businesses need cash to operate. It does not mean they should not pay taxes but we asked for a deferred payment programme that would enable the individual to create a small capital fund. For example if a small businessman has sold a piece of land, if the money from that sale is put into the capital fund than Government would defer capital gains tax payment for five years. A minimum amount of income tax on profits, such as 10 per cent can be arranged and the resulting 25 per cent businesses would be allowed to invest in the capital fund. Government could also create an industry bond with attractive interest rates so that businesses can invest their capital fund. Government would utilise such bond money to help industry. At the end of a five-year period whatever the amount collected, a businessman knows that at least half of it is owed to Government but he must be given the option to either invest it to expand or improve the business or else Government will take its share.
We have been harping on this for three years. They did give a tax advantage to small businesses but the conditions laid down meant that nobody or very few benefited from such a measure.
What is your opinion on the investment registration scheme?
There are people who did not declare their income and transferred those funds abroad but there were others who did not declare earnings and kept that money in the economy. If Government decided to close an eye to irregular investments abroad it should have also given the chance to those who kept their money in the domestic market.
As things stand those who broke two laws – foreign exchange control and income tax evasion – have been given the chance to recuperate.
Are such amnesties fair?
We do not promote amnesties because they deliver the wrong message to honest taxpaying businessmen.
Is the property market a bubble waiting to explode?
Property has always been the safety valve for small businesses but look at what is happening to the market. The number of new properties on the market has increased dramatically. With 70 per cent of Maltese households owning their own house there is a limit to how much new properties Maltese individuals can buy.
Foreigners out there have a perception that this country is against foreigners buying property because of the derogation negotiated with the EU. It’s incomprehensible how countries such as Romania and Croatia are trying to attract foreign property buyers while here we imposed restrictions.
Unfortunately the construction industry is heading straight into an unsustainable situation. If that safety valve explodes this country will face serious problems.
The whole construction chain is financed through loans issued by our banks. The final payer is the buyer through another bank loan. If suddenly the floor beneath the developer collapses because of a glut on the market which will force prices down, than the whole system can come crashing down because banks will foreclose.
Should Bank of Valletta remain a Maltese bank?
The nationality of assets has no economic value. Who owns the financial institutions in London today? Does it really matter for the standard of economic operations or the quality of life in London, who owns such institutions?
The principles of good business management are not coloured by nationality. If on the other hand we have the intention of running a bank not on commercial criteria and neglecting good business practice, will the bank survive?
Among most people I represent there is a general sympathy towards retaining the Maltese character of Bank of Valletta. But as an economist I wouldn’t emphasise too much the nationality of our economic assets.
Today, is there a political party that represents the aspirations of the self employed?
No. We have two competing Labour parties. We have two parties happy to pander to the majority working class. I do not represent the majority since the majority are not entrepreneurs. The two political parties find it easy to be spendthrift with other people’s money rather than acting as guardians of other people’s money. If the majority of people who vote for you are workers it is very easy and comfortable to be generous with other people’s money.
There exists this fixation that business is a dirty word. This attitude is the primary reason why the social pact failed. Trade unions have not understood the economic situation and they came to the talks intent on taking rather than giving as if businesses are not feeling the squeeze.
We do not have a political party that is bluntly pro-business because they are scared to point out the deficiencies in the system and take appropriate action to address them. Abroad there are political parties that are significantly pro-business because they believe in the entrepreneurial spirit that fuels the economy. The self-employed have the ability to create wealth which will in turn benefit society as a whole.
Vince Farrugia was interviewed by Kurt Sansone

Working Time Directive – Opt Out Clause

Il-GRTU – Kamra Maltija tal-Intraprizi Zghar u Medji – tinnota b’dispjacir d-decizjoni tal-Parlament Ewropew li approva t-tnehhija tad-dritt tal-haddiema li bil-kunsens taghhom stess jahdmu aktar minn 48 siegha matul gimgha wahda.

Working Time Directive – Opt Out Clause

Il-GRTU – Kamra Maltija tal-Intraprizi Zghar u Medji – tinnota b’dispjacir d-decizjoni tal-Parlament Ewropew li approva t-tnehhija tad-dritt tal-haddiema li bil-kunsens taghhom stess jahdmu aktar minn 48 siegha matul gimgha wahda.

Din hi decizjoni kiefra ghall-Malta fejn s-suq tax-xoghol hu limitat u fejn mhux facli li l-intraprizi jhaddmu nies extra biex ilahhqu max-xoghol taghhom u fl-istess waqt jibqghu kompetittivi. Hi iebsa b’mod partikulari ghas-sidien tan-negozji z-zghar li hafna drabi jkunu f’sitwazzjoni fejn ix-xoghol biex isir skond it-termini tal-kuntratti li jkollhom bilfors li jkollhom perjodi li fihom iridu li n-nies taghhom jahdmu aktar min 48 siegha.

Meta l-haddiem jiccahhad milli jibqa’ jahdem aktar mhux biss jigri li hu u l-familja tieghu jkunu imcahhdu mill-qliegh xieraq taghhom izda effettivament jkunu mgeghla jisfurzaw lil min ihaddimhom jahdem hu s-sieghat kollha mehtega biex x-xoghol jitlesta. Bla opt-out clause l-Working Time Directive tfisser pis u tbghatija enormi ghas-self employed u ghas-sid tal-intraprizi z-zghar.

Il-GRTU hi parti minn lobby group ta’ organizazzjonijiet ohra li jirraprezentaw lis-sidien tal-intraprizi z-zghar fil-pajjizi imsiehba fl-Unjoni Ewropea u li kollha jsostnu li l-Working Time Directive bla opt-out clause hi hazina ghall-kummerc u kiefra ghan-negozji z-zghar.

Il-GRTU ghalhekk ma tifhimx kif l-membru parlamentari ewropew John Attard Montalto iddecieda li ma juriex hu wkoll is-solidarjeta shiha u konsistenti tieghu mall-haddiema, self employed u sidien ta’ negozji zghar Maltin.