Category: Archive – 2009

A €10 million Grant Scheme to support sustainable tourism projects by enterprises has recently been launched.

These funds will cover the aid granted to enterprises, the publicity for the scheme and the management and administration of the scheme.

The projects submitted under this scheme must evidently have tourism as the main focus, with major benefits accruing directly to tourism, targeting potential tourists. The projects submitted must also be sustainable tourism project, and have to strengthen Malta's competitive advantage in tourism; increase the use of ICT for tourism; increase good environmental practice by tourism enterprises; and increase innovation in tourism.

Project Activities must fall under one or more of the proposed Intervention Areas:

(i) Product Upgrade & Investment in Equipment;

(ii) Investment in Environmentally friendly measures;

(iii) Investment in Information Communication Technology;

(iv) Investment in Entrepreneurship;

(v) Investment in Marketing:

The scheme will provide co-financing of up to 50% of the total eligible costs.

On Wednesday 4^th February I attended for an important meeting with Malta Resources Authority. On the Agenda was GRTU's claim for revision of the electricity and water tariffs hastily imposed by Government in October. I strongly contend that Malta Resources Authority are failing miserably to understand their role as the guardians of Maltese consumers and users of electricity and water services. The whole charade that has besmirch Gonzi's Government so badly could have been avoided if MRA had the guts to stand up and prove its worth. Instead MRA was practically absent till after the 5^th December 2008 when Legal Notice 330 of 2008 imposing the new electricity tariff regime was published by the minister responsible for MRA who at law is supposed to act on the advance of MRA. I am not aware that MRA had till then issued a single note or statement to Enemalta or the Ministry for Resources stating its approval or non approval of the tariffs. MRA is not only the authority that approves new tariffs but is the authority obliged to conduct an Impact Assessment on a major event as the introduction of a new electricity tariff system. The EU Commission issues specific guidelines to authorities like MRA on how to conduct an Impact Assessment.

I love the EU model based as it is on dialogue, consultations and the protection provided by Public Regulators. But for the model to work we need more and more people of calibre. People must be given the chance to learn and grow. I am in no doubt that Ing Joe Ellul, Chairman of MRA, can grow to face his obligations and provide the public with the protection it seeks. But Government should have never appointed a new person to a new post and then loaded on him a monster of a package to decide upon when he had hardly the chance to learn the rules. The result is, alas, what we all now know. We have an MRA who has gone round in circles trying to manage the mess imposed upon it by people who preferred to disregard the EU model and now MRA can only aspire to move to the future hoping to act in a manner that makes people forget the recent past.

What MRA now hopes achieve is to review the electricity tariffs taking into consideration the changes to the prices of petroleum products since Austin Gatt's Tariffs were published. MRA is also expected to evaluate all complaints raised and then include all its assessments in a revised tariff regime effective from end of March. In the new tariffs will remove any additional burdance that would have been proven to have been included in the tariff regime in operation since October 1^st. This is the issue that confused the 11 trade union leaders. MRA will not review the current tariffs as these are based on petroleum figures and other considerations produced up to September 2008. MRA refuse tariffs not on future prospects but backwards. They see what went right or wrong in the previous six months and produce a new tariff structure based on actual facts as they transpired during the current six month period. In practice the new tariffs will correct any previous exaggeration. But the impact will be forward not backwards.

The longest list of complaints presented to MRA on the electricity tariff structure imposed by Government since October have been raised by GRTU. Small and medium enterprises are currently the worst hit victims of the electricity tariff regime imposed by Government on 5^th December 2008 by Legal Notice. On behalf of small businesses we complained with MRA as soon as Austin Gatt first presented the new tariffs in October. Incredibly while we presented our complaints publicly in two press conferences and in a meeting with MRA, in a meeting with the Prime Minister and the Deputy Prime Minister and in writing also to MRA, Enemalta continued to advertise on it's website the old electricity tariff rates oblivious of the fact that Austin Gatt without issuing any Legal Notice has stated that the new tariffs will be applicable from 1^st October 2008. Enemalta was of course right. It could not publish electricity rates that were not backed by Legal Notice and did not carry the approval stamp of MRA.  Businesses men could not be blamed if they continued to quote their prices based on the tariffs advertised by Enemalta. Yet, Enemalta cheekily started as from October charging the new rates even though legally they had no power to do so. GRTU requested MRA to stop this abuse but what happened was that in November the old rates disappeared and the new rates were only made available by Legal Notice on 5^th December.

At the same time the workers Trade Unions raised their complains as to how families were going to be affected by the new rates and the Chamber of Commerce and the FOI speaking on behalf of large enterprises complained that the largest employers were being badly hit. Incredibly, the Government fiddled a little with the tariffs and giving big business some relief and polished up the rebate scheme for households. Without losing any income expected from the October tariff structure. Someone had to carry the brunt for the advantages given to these households and to big business. The burden was loaded all on the back of owners of small and medium enterprises. They already headed bad in the first set of new tariffs. Now their burden was further increased. MRA who was supposed to have studied GRTU's complaints and reduced the burdens hastily imposed by Minister Austin Gatt, idly stood by and approved the imposition of additional burdance on SME's as follows:

 

Units Used                28^th October           5^th December          Difference

0-2000                        0.128                          0.147                          +15%

2001-6000                 0.136                          0.155                          +14%

6001-10000               0.149                          0.168                          +12.7%

10001-20000                        0.164                          0.183               +11.5%

20001-60000                        0.181                          0.200                +10.4%

60001-100000          0.166                          0.185                            +11.4%

100001-1MIL                        0.153                          0.172                  +12.4%

So MRA had a complaint from GRTU that the new tariffs announced in October were discriminatory against printers, workshops, butchers, supermarkets, mini markets, fish shops, cold stores, confectioners, sprayers, food traders, restaurants and all other producing a product or a service with a high electricity content, and rather than evaluating this complain and recognizing the discrimination against small and medium enterprises. MRA shamelessly approved the further increased load on the already suffering small businesses.

On 16^th January 2009, six weeks after the publication of the Legal Notice by the Minister responsible for MRA, the MRA issued a public statement saying they had approved the new rates.  MRA expressed their satisfaction that the figures on which the new tariffs regime was based "appear to have been correctly configured", that the "key assumptions …. accurately tie in" and that "the resultant outputs generated by the final KPMG Report as amended by subsequent changes agreed with the constituted bodies, have been correctly transposed in the Draft Legal Notice".

I've never seen such bare-faced statements.  We have been complaining from day one.  We have presented the analysis and what's wrong with the KPMG backed new tariffs. We have complained officially to the MRA that the rates were unacceptable and discriminatory to small and medium businesses, now MRA had the audacity to state that everything is fine with the Legal Notices published six weeks earlier and that all this was "as agreed with the consultant bodies".  Incredible! We acted as one of the countries, five national constituted bodies members of MCESD representing the largest cross section of small and medium enterprises and MRA states that the additional punishment inflicted on SME's was "as agreed with the constituted bodies". Even Prime Minister Lawrence Gonzi denied his grotesque falsehood.

Now we have been told to wait till March. Perhaps MRA will change something. Till then say a prayer. Perhaps someone up there will help the lot on top to see straight.

 

 16-19 March

GRTU is one of the partners supporting Malta Enterprise in the organisation of the Maltese Business Delegation to Prague.

The Czech Republic has a long tradition in manufacturing and services, which during the last decade have been brought to considerable growth, strongly supported by the unprecedented levels of foreign direct investment. The most promising sectors for business cooperating includes:

 

 

 

 

 

 

 

 

 

 

 

1. Automotive:

New car importers

Importers of car parts

2. Electronics ad electric products

Importers of electrical and electronic products

3. Plastics

Incorporated in electrical machine equipment, construction, agriculture. Food processing and leisure industry

4. Precision engineering

Cutting tools and metal forming machines

Machine equipment

5. Financial service

6. Power renewable energy and emissions trading

7. Construction and regeneration

8. ICT

Importers of IT products

Infrastructure providers ex: IP multi-media subsystems

9. Consumer Goods

10. Healthcare services

Healthcare management services

Lifestyle products

11. Shared services and centres

Customer services

Software development

Research and development

Design

Business Support Services

12. Biotechnology and Life Science

Chemicals and pharmaceuticals

13. Training and education

Language schools

14. Tourism

 

The above list is not exhaustive, yet it gives a good indication of the main sectors were the Czech Republic is focusing.

Pre-arranged one to one meetings will be organised however these must be substantiated by the meetings you set personally. GRTU is willing to assist its members in this task.

Malta Enterprise will assist participants with 50% of the costs involved (flights and accommodation).

Anyone wishing to help sponsor some activities are also welcome.

Anyone interested: Abigail Mamo 21232881 till the 13th of February.

 

An additional rain water culvert is to pass parallel to the existing one as this is not capable to cater for the increase in run off storm water in the surrounding roads.

Works have commenced this week and will be divided into four phases. No road closures would be required, however on street parking would be removed in stretch were works are being carried out. 

Duration of works is planned to take one and a half months.  All access to commercial outlets and residents (including garages) will remain accessible.

On Wednesday 4^th February I attended for an important meeting with the Malta Resources Authority (MRA). On the Agenda was GRTU's claim for revision of the electricity and water tariffs hastily imposed by Government in October.

I strongly contend that the MRA are failing miserably to understand their role as the guardians of Maltese consumers and users of electricity and water services. The whole charade that has besmirch Gonzi's Government so badly could have been avoided if MRA had the guts to stand up and prove its worth. Instead MRA was practically absent till after the 5^th December 2008 when Legal Notice 330 of 2008 imposing the new electricity tariff regime was published by the minister responsible for MRA who at law is supposed to act on the advance of MRA. I am not aware that MRA had till then issued a single note or statement to Enemalta or the Ministry for Resources stating its approval or non approval of the tariffs. MRA is not only the authority that approves new tariffs but is the authority obliged to conduct an Impact Assessment on a major event as the introduction of a new electricity tariff system. The EU Commission issues specific guidelines to authorities like MRA on how to conduct an Impact Assessment.

I love the EU model based as it is on dialogue, consultations and the protection provided by Public Regulators. But for the model to work we need more and more people of calibre. People must be given the chance to learn and grow. I am in no doubt that Ing Carmel Ellul, Chairman of MRA, can grow to face his obligations and provide the public with the protection it seeks. But Government should have never appointed a new person to a new post and then loaded on him a monster of a package to decide upon, when he had hardly the chance to learn the rules.

The result is, alas, what we all now know. We have an MRA who has gone round in circles trying to manage the mess imposed upon it by people who preferred to disregard the EU model and now MRA can only aspire to move to the future hoping to act in a manner that makes people forget the recent past.

What MRA now hopes to achieve is to review the electricity tariffs taking into consideration the changes to the prices of petroleum products since Austin Gatt's Tariffs were published. MRA is also expected to evaluate all complaints raised and then include all its assessments in a revised tariff regime effective from end of March. The new tariffs will have removed any additional burden, if that is the case, that was included in the tariff regime in operation since October 1^st 2008.

This is the issue that confused the 11 trade union leaders. MRA will not review the current tariffs as these are based on petroleum figures and other considerations produced up to September 2008. They will at that point see what went right or wrong in the previous six months and produce a new tariff structure based on actual facts as they transpired during the current six month period. In practice the new tariffs will correct any previous exaggeration. But the impact will be forward not backwards.

The longest list of complaints presented to MRA on the electricity tariff structure imposed by Government since October have been raised by GRTU. Small and medium enterprises are currently the worst hit victims of the electricity tariff regime imposed by Government on 5^th December 2008 by Legal Notice. On behalf of small businesses we complained with MRA as soon as Austin Gatt first presented the new tariffs in beginning October.

Incredibly while we presented our complaints publicly in two press conferences, during a meeting with MRA and another with the Prime Minister and the Deputy Prime Minister and also in writing to MRA, Enemalta continued to advertise on it's website the old electricity tariff rates oblivious of the fact that Austin Gatt without issuing any Legal Notice had stated that the new tariffs will be applicable from 1^st October 2008.

Enemalta was of course right. It could not publish electricity rates that were not backed by Legal Notice and did not carry the approval stamp of MRA.  Businesses men could not be blamed if they continued to quote their prices based on the tariffs advertised by Enemalta. Yet, Enemalta as from October cheekily started charging the new rates even though legally they had no power to do so. GRTU requested MRA to stop this abuse but what happened was that in November the old rates disappeared and the new rates were only made available by Legal Notice on 5^th December.

At the same time the workers` Trade Unions raised their complains as to how families were going to be affected by the new rates and the Chamber of Commerce and the FOI speaking on behalf of large enterprises complained that the largest employers were being badly hit. Incredibly, the Government fiddled a little with the tariffs, giving big business some relief and polished up the rebate scheme for households. Without losing any income expected from the October tariff structure.

Someone had to carry the brunt for the advantages given to these households and to big business. The burden was loaded all on the back of owners of small and medium enterprises. As if it was not bad enough with the first set of tariffs, now their burden was further increased. MRA who was supposed to have studied GRTU's complaints and reduced the burdens hastily imposed by Minister Austin Gatt, idly stood by and approved the imposition of additional burdens on SME's as follows:

So MRA had a complaint from GRTU that the new tariffs announced in October were discriminatory against printers, workshops, butchers, supermarkets, mini markets, fish shops, cold stores, confectioners, sprayers, food traders, restaurants and all others producing a product or giving a service with a high electricity content, and rather than evaluating this complaint and recognizing the discrimination, MRA shamelessly approved the further increased load on the already suffering small businesses.

On 16^th January 2009, six weeks after the publication of the Legal Notice by the Minister responsible for MRA, the MRA issued a public statement saying they had approved the new rates.  MRA expressed their satisfaction that the figures on which the new tariffs regime was based "appear to have been correctly configured", that the "key assumptions…. accurately tie in" and that "the resultant outputs generated by the final KPMG Report as amended by subsequent changes agreed with the constituted bodies, have been correctly transposed in the Draft Legal Notice".

I've never seen such bare-faced statements.  We have been complaining from day one.  We have presented the analysis and what's wrong with the KPMG backed tariffs. We have complained officially to the MRA that the rates were unacceptable and discriminatory to SMEs, now MRA had the audacity to state that everything is fine with the Legal Notices published six weeks earlier and that all this was "as agreed with the constituted bodies".  Incredible!

We acted as one of the countries` five national constituted bodies members of MCESD representing the largest cross section of SMEs and MRA stated that the additional punishment inflicted on SMEs was "as agreed with the constituted bodies". Even Prime Minister Lawrence Gonzi denied his grotesque falsehood.

Now we have been told to wait till March. Perhaps MRA will alter something. Till then say a prayer. Perhaps someone up there will help the lot on top to see straight.

GRTU is pleased to announce that during this week the European Parliament will be discussing GRTU's petition against the Utility Tariffs.

GRTU's petition was initiated by GRTU's Director General Vincent Farrugia. The Petition is No 440/2006 in respect to Electricity Tariffs.

This is another step forward in GRTU's fight towards fair and equal payment of tariffs for utilities, issued by the State Electricity Corporation, Enemalta.

 

GRTU's Petition to the EU Parliament was moved by Maltese MEP Dr Simon Busutill, at the request of GRTU's Director General Vincent Farrugia.

GRTU's petition was initiated on the grounds that the Enemalta and The Malta Resources Authority (MRA) disregard the Electricity Directive (2003/54/EC) and continue to impose electricity rates on SMEs which are negatively discriminating them since they are being forced  to subsidize part of the larger consumption made by larger companies (Consumption of over 1.2m KwH).

Data which has not been confirmed by Deliotte & Touchet or KPMG shows that 103 consumers actually use more then 1,200,000 Kilowatt Hour units, whilst over 40, 089 account holders use less then 1,200,000 Kilowatt Hour Units.

The European Electricity Directive does not allow for cross subsidization of tariffs and does not allow for discrimination against users. We therefore believe the above tariffs are in breach of community law. GRTU is confident that this time round no one from the European Commission will tell us that we have not exhausted the local legal hurdles.

GRTU also complained that the European Commissioner for Energy did not give sufficient consideration to GRTU's complaint, thus perpetuating the cost disadvantage of Maltese SMEs.

The GRTU continues to insist that we are not against incentives given to the large commercial consumers as they are important to our economy, this as long as SMEs do not foot the bill. Only the higher consumer is being helped by having part of the bill paid by the lower consumer, who is an SME and cannot sustain such an expense.

The GRTU delegation, directed by Director General Vincent Farrugia, has met yesterday with the Chairman of the Malta Resources Authority (MRA) Ing. Carmel Ellul and with the Chief Executive Officer Antoine Riolo, whereby it once again presented GRTU's objections to Government's method of introducing the electricity and water tariffs.

GRTU has once again informed the MRA that GRTU was not satisfied with the way MRA performed its duties when it approved the new tariffs and their analyses, which according to Maltese Law it was obliged to do.

The Director General emphasized that the duties of the Malta Resources Authority are spelled out clearly in the law, and those which are not specifically mentioned in the Maltese law (Act No.XXV 2000) are found in the European Electricity Directive (2003/54/EC). These obligations are also explained in the European Commission guidelines as to how impact assessments should be performed and the consultation process in serious cases where changes in the electricity tariffs which have serious impact on the enterprises, families and the economy in general.

Mr Farrugia also explained that from the facts which resulted and from declarations made by the Minister for Infrastructure, Transport and Communication Hon. Austin Gatt, by the Chairman and the CEO of the MRA to the MCESD, from public declarations by the Prime Minister and Minister Gatt, from what has been ensued from the GRTU meetings, the Trade Unions of workers, the Chamber f Commerce and the FOI, and now even from the same chairman of the MRA, a big confusion was created and everyone is feeling uncertain. Such confusion is causing a lot of negativity and damage which is not good neither for Government, for Enemalta and nor to the experts of Enemalta (KPMG) and MRA (Deloitte) and least of all to the same MRA, which had a clear duty to prevent such confusion.

The Director General presented facts and figures showing that those who have suffered mostly out of this confusion were the small and medium enterprises. The GRTU can never agree to the removal of the surcharge mechanism, because this was bound with to the changes in the international prices of oil, taken on short periods. GRTU has however agreed that the tariffs needed adjusting. The GRTU was and still is against that the tariffs take as their basis the exaggerated prices of oil dominating in 2008. No one is to project structures of tariffs on short term changes.

GRTU sustains that the tariffs have to be based on the international average price of oil (a formula which covers the oil to the power station, a delivered price) worked out on a good number of years of not less than 10. It was the MRAs duty to check Enemalta does not invent tariffs based on prices which were temporary and exaggerated. There should have never been implemented a tariff based on the previous tariff + 95 % surcharge and other increases on top. The argument about the capital costs, the return on capital  approved by the KPMG and other payments to make up for the inefficiencies of Enemalta , had to be better taken care of by the MRA without any acceptance that such be lifted on the new tariffs. It is not enough MRA said the new tariffs were well summed up. This is a conclusion that the GRTU does not agree with.

Vincent Farrugia said that GRTU keeps insisting that the regime of tariffs that was proposed to MCESD by Minister Austin Gatt in the beginning of October 2008 are too hard on owners of small and medium enterprises. After pressure from GRTU, Minister Austin Gatt presented once again another tariff system on the 28^th October 2008, and these, although also hard were better than those proposed in the beginning of October.

After the intervention of the Prime Minister Hon. Lawrence Gonzi and of the deputy Prim Minister Hon. Tonio Borg an agreement was mentioned with the workers' Trade Unions so that families could be given better rebates. Another agreement was mentioned with the Chamber of Commerce and the FOI so that tariffs of 103 large enterprises were lessened.  When on the 5^th of December Legal Notices 330 (Electricity) and 331 (Water) were published it became clear who was going to pay for the changes.  The burden that was removed from a few enterprises was placed wholly on the 40,000 SMEs. For the SME not only were the exaggerated burdens proposed in October not lessened, but the tariffs were increased once more by an average of 15% on the tariffs proposed by Minister Austin Gatt on the 28^th of October. For GRTU not only is this unacceptable but it is an obscenity.

It was an insult to GRTU for MRA to approve the Legal Notice and not only say that the tariff calculations were correct but also that it said that they were done "in agreement with the constituted bodies". This is surely a false statement as far as GRTU is concerned.

GRTU argued with the MRA that GRTU's requests are still pending and GRTU will keep insisting on them. GRTU explained it is presently exhausting the local judiciary process and is taking the case to the European Commission so that a full investigation on how the tariffs were calculated, how SMEs are being burdened with discriminatory tariffs and how these tariffs were approved. According to GRTU, MRA skipped completely the procedures specifically dictated by the European Commission and by the European Directives.

The Chairman of the MRA concluded that the MRA can only recognize all the points put forward and take them into consideration along with how the international market prices of oil change.  This for when MRA approves the adjustments to the existent tariff system after March 2009, at that point the MRA is able to approve revised tariffs that not only reflect the changes in international oil prices that resulted from October 2008 to March, changes which were not reflected in current tariffs. MRA also ensures that the revised tariffs make up for the extra payments that were made and that were not visible when the current tariffs were calculated and approved.

The MRA in this context gives full consideration to the complaints put forward by GRTU regarding the current tariffs and where these are found to be justified, these are reflected in the revised tariffs after March 2008.

 

 

 

 

 

 

 

 

 

3 events will be held between the 24 – 26 May 2009. Companies directly involved in the following sectors:

The hotel and hospitality products, services and technologies. The Hotel Show

Suppliers of products, services and expertise to the Retail industry. InRetail

Suppliers of office furniture, office interiors, office Technology and services. The Office Exhibition

The Hotel Show 2009 is globally acknowledged as the forum for the hospitality sector in the Middle East and North Africa. The event gives local and international suppliers access to the booming regional markets and a growth industry that has no equal.

Professionals in the commercial and office sectors visit The Office Exhibition for sourcing the furniture, interiors, systems and services and latest technologies for new and refurbished offices.

InRetail is the essential meeting place for overseas and Gulf based suppliers of products, services to the development, creation, launch and management of current and future Retail projects.

In brief, this is the leading 3 in 1 Exhibition in the Gulf Region that caters for services and suppliers to hotels, retail and office.

Should you require further information contact: Abigail Mamo @ GRTU

The Commission has issued a Draft Decision as regards restrictions on the marketing and use of lamp oils and grill lighter fluids.

Since 1st July 2000, there was a restriction in the sale to consumers of coloured and scented oils presenting an aspiration hazard for use in decorative lamps.  Although the Dangerous Substances and Preparation Directives provide that containers of grill lighter fluids and lamp oils have to be fitted with child-resistant fastening, accidents still occur as containers are either not closed properly, or the substance has been transferred from large original containers to smaller containers
without child-resistant fastenings.

It has become apparent that the unscented and uncoloured lamp oils and grill lighter fluids pose a risk to human health, and specifically to the health of young children, when ingested, causing breathing disturbances and disorders of the respiratory tract. Therefore it was felt necessary to strengthen current provisions to ensure they are appropriately labelled.

In order to minimise accidental ingestion by small children, packaging requirements should be introduced to make lamp oils and grill lighter fluids less likely to attract or arouse the curiosity of children and to
avoid that these products are mistaken for drinks.

The size of the container should also be limited to minimise accidents linked to the transfer from original containers to smaller containers without child-resistant fastenings or appropriate labelling. Consumer protection has to be strengthened by requiring compliance with this standard.

Any Comments on the Draft Decision are to be sent to Abigail Mamo @ GRTU.