Category: Archive – 2009

Yesterday a good number of business owners that will be hit by the Rent Reform Law met at GRTU to ensure that, at Committee Stage and during the debates in Parliament, the political parties of both sides give more attention to the problems that will hit business owners operating from rented property under a pre-1995 contract.

GRTU's Director General Vincent Farrugia explained that while GRTU recognises the right property owners have to dispose of their property freely in legal terms and under the rights established under the European Directives, GRTU cannot ignore that the enterprise, that is creating growth and jobs, has to be given priority. The Director General explained how in other European countries it is till today recognised that who starts an enterprise, that creates employment and services all the community, has all the safeguards necessary. In this was this individual not only is encouraged to invest, lease and expand but also is given the necessary time under law to recuperate the investment he has made.

Vincent Farrugia also insisted that it is not acceptable to GRTU that the value added, which increases the value of the property rented for commercial purposes, is only due to the increases in prices of the property market. The increase in value of a rented property for the purpose of a commercial enterprise is not only due to the increase in the prices of the property market but also because the individual running the enterprise from this location has, through investment and work carried out, increased the value of the property. Vincent Farrugia continued to insist that this principle needs to be recognised at law.

The Director General also stated that even though Government accepted GRTU's proposal that the new law is not to interfere in contracts where the landlord and the tenants have come to an agreement on commercial properties, the Rent Reform Bill still doesn't recognise as valid contacts where the conditions have been agreed upon and clear however the contract is indefinite. GRTU believes that in these cases it can never be the law to undo what was clearly agreed upon by two parties for an indefinite period, and for which in many cases a stipulated amount was paid by the tenant, and impose a definite period of twenty years. During the meeting several points were raised by business owners, particularly by those operating from property which has the Government as landlord, these expressed their worries that if the Bill is made Law they will have their rights taken away without compensation, in some cases the consequences for these enterprises will be disastrous. They have asked GRTU to ask for a financial compensation on their behalf.

If the Bill becomes law it will result in thousands of Euros in loss to many enterprises, the Government has no legal right to make them suffer this loss.

The GRTU members asked GRTU to appeal to the two parties in Government for more consideration to do what is really right and not take the easiest way out and take into consideration only what the property owners are saying.

GRTU will be once again redrafting fresh proposals and presenting them to be evaluated at committee stage, this so that the interest of owners of enterprises owners is safeguarded.

GRTU President Paul Abela, Director General Vincent Farrugia and Green MT CEO Joseph Attard, took part in the Business Delegation accompanying He The President Hon Edward Fenech Adami to Warsaw.

GRTU's delegates established excellent bi-lateral relationships with organisations representing private enterprises and also with individual businesses.

They met the Polish Organisation of Crafts and Distribution, representing the medium to large retailers such as super markets and department stores. GRTU here succeeded in opening the options for Maltese Suppliers to sell Directly their products to Polish high street retailers. GRTU members wishing to pursue these possibilities are to contact GRTU as GRTU will be presenting specific proposals to the Polish Organisation of Crafts and Distributors.

GRTU has also established direct personal contacts with the national organisation representing the Polish Crafts Association. GRTU in this regard is presently in the process of negotiating an arrangement that would assist Maltese SMEs dealing with Polish SMEs on various fronts.

GRTU also established direct links with importers and exporters of pharmaceuticals. These have expressed their interest in fostering new business with Maltese enterprises. Their company profiles and contact details were sent to the GRTU members who had answered to the expression of interest published a couple of weeks ago in the GRTU newSTRING.

One very interesting feature of the event was our meeting with ElektroEko, a waste management operator. This encounter proved highly positive for Green MT as it highlighted problems and the likely issues that Green MT might soon face.

Malta Enterprise would like to invite companies in the Construction and Building Industry to participate in the 6th International Building & Construction Expo between the 18th and 21st May 2009.

For the sixth consecutive year, the International Building and Construction Expo has brought together importers, retailers, manufacturers, architects, building contractors and government representatives with International suppliers in the construction industry. The show offers the unique chance for manufacturers to meet North African leading companies in the construction industry.

Libya Build today is the largest international exhibition held in Libya, specialised in the Building and Construction sector.  Libya Build 2008 proved to be a huge success with a participation of more than 300 companies from 26 countries from all over the world.

For company engaged in: Building and Construction; Architecture and Engineering Consulting Services; Electricity; Electrical & Mechanical Systems; Decoration & Interiors; Building Integrated Systems; Water Technology & Environment; Air Conditioning & Refrigeration; Glass, Wood & Metal ; Marble, Stone & Machinery; Bathrooms & Ceramics; Landscape & Gardening.

Costs vary according to the stand sizes you will be choosing. Malta Enterprise is also offering the possibility of applying for 60% refund of the spent eligible costs.

Should you be interested please contact Abigail Mamo @ GRTU.

This could be your opportunity to Promote your products as part of an official pavilion; Establish contact with potential trade buyers; Carry out field and market research.

38th Tripoli International Fair 2nd – 12th April 2009

Malta Enterprise will be organising the Malta Pavilion in this leading International Fair in Libya. Around 1,100 exhibitors were present in the 2008 event and the fair attracted several thousands visitors. A wide range of products are usually on display from consumer goods to industrial products.

Malta Enterprise will organise an information stand, thus your participation would be on representation bases. Participants can hire 1 to 2 sqm showcase/space (size of showcase may be less than 1sqm) on the Malta stand and one can either attend the fair or allow Malta Enterprise personnel to register enquiries on your behalf. The price per showcase is €100.  This fee covers all expenses including floor space, stand construction, shipment of exhibits/ brochures and enquiry handling. It excludes travelling, accommodation and subsistence costs.

Since space on this stand is limited, applications will be accepted on a first come first served basis. Should you be interested please contact Abigail Mamo @ GRTU

With the European Small Business Act (SBA) the European Institutions have finally recognised the dominant role Crafts and SMEs play for Europe's economy.

GRTU wants to summarise the most important policy actions that are needed to allow SMEs to master the current crisis and to fully use their potential for growth, job creation and innovation.

At the same time, we invite the incoming Czech Presidency to do its utmost to continue the quite successful crisis management by the current French presidency and to start the economic recovery process in Europe.

The compromise on the Services Directive and the Recognition of Qualification requirements, the reform of the Stability and Growth Pact, progress on the implementation of the "Think Small First" principles, an SME-friendly implementation of Basel II, the enhanced participation of SMEs in standardisation and a common understanding about labour market reforms (flexicurity principles) are the most important achievements and count on the positive side of the scoreboard for the current EU Parliament.

On the more negative side, Europe failed to find solutions for the European patent and for working time, to remove tax barriers within the Internal Market and to find adequate solutions for reduced VAT rates.

However, the progress made during the last years will not be enough to allow Europe's Crafts and SME to master the current crisis. All institutions at European, national and local level must do their utmost to re-stabilise the financial markets and to support economic growth.

The question of what Europe must do to overcome the financial turmoil and to ensure a recovery of Europe's economy will be at the centre of the upcoming EP election campaign and will not only keep busy the incoming Presidency but also the new European Parliament.

The Economic Recovery Plan recently released by the European Commission is a positive step, but it falls short on some important aspects. For instance, the SBA is mentioned half-heartedly throughout the text. If it is meant to be a serious contribution to economic recovery, the rescue plan must include an action plan on the implementation of the SBA.

CRAFTS AND SMES NEED SUPPORT TO SURVIVE THE CREDIT CRUNCH

The current and ongoing financial turmoil has significant negative effects on access to finance for SMEs. Credits and loans are not obtainable or only available under unacceptable conditions as regards price and collaterals. SMEs, which are not responsible for this crisis, must not pay the price for the difficult financial situation. Everything must be done to avoid a decrease of economic activity (investments, production and consumption) because of a lack of finance.

THE RIGHT POLICY MIX TO SUPPORT THE RECOVERY OF EUROPE'S ECONOMY

The recovery must be supported by policies which aim to bring back confidence to all economic actors and to stabilise economic demand, without endangering fiscal stability in the long run. The SME sector represents not only 99.8% of all enterprises, 67,1% of employment and 57.6% of added value (last data available from 2005), but was also the most dynamic part of Europe's economy during the last years as regards growth, job creation and innovation. Consequently, Crafts and SMEs have to – and will – play an important role if Europe wants to master the economic crisis.

CRAFTS AND SMES NEED MORE SPACE TO BREATHE

Craft and SMEs can only use their full potential for growth and job creation if unnecessary administrative burdens are avoided and the remaining barriers to markets are removed. The European SBA provides the principles for an effective policy in line with the needs of small enterprises and an encompassing catalogue of concrete measures to be taken at all levels to improve the business environment and to give SMEs enough space to breathe.

A key contribution for achieving an SME-friendly environment is a change in the perception of the role of entrepreneurs and risk-taking: entrepreneurship and the associated willingness to take risk should be applauded by political leaders and the media, and supported by administrations.

AVOID ANY UNNECESSARY BURDENS FOR CRAFTS AND SMES

Even if the European Commission is implementing since two years a better legislation and simplification programme, which aims to reduce administrative burdens coming from EU regulations by 25% until 2012, small enterprises have not witnessed concrete improvements so far. This programme will only be successful if all European Institutions and the Member States increase their implementation efforts and if other burdens will not be created in the meantime.

Therefore, GRTU asks all European Institutions to avoid any unnecessary administrative burden for SMEs and to remove administrative burdens for SMEs whenever possible, as already agreed in the European Charter for Small enterprises. This cannot be achieved through simplistic proposals. Simplification and better regulation require first and foremost a cultural shift, a change of mindset among civil servants, public authorities and the legislator in general.

The actual standards in the fields of environment, health and safety, consumer protection and others create too often high administrative burdens and compliance costs, especially for smaller companies. Such burdens and costs should not be reduced or abolished by exempting small enterprises from such rules and standards, but by simplifying the procedures.

Therefore, the proportionality principle should be applied as a basic rule whenever SME policy is concerned. This principle means that SMEs should be treated differently according to the level of dangerousness and risks they may impact.

The needs and particularities of SMEs have to be taken compulsorily into account in all relevant policies, programmes and negotiations at EU and national level.

Furthermore, the current economic downturn must lead to a review of all pending legislation, which may put further – and unnecessary – burdens on small enterprises. Policy projects that were started in good economic times must therefore be re-assessed and checked against the new reality.

MEASURES TO INCREASE THE COMPETITIVENESS OF CRAFTS AND SMES AT ALL LEVELS AND STRENGHTEN THEIR ACTIVITIES OUTSIDE THE EU

Crafts and SMEs will only be able to lead Europe's economy out of the current crisis if their capacity to growth, innovate and create new jobs is enhanced.

SMEs, micro and craft enterprises play an essential and fully recognised role for the development as well as the competiveness in the regions and for the economic and social stability of the territories. In many places, they represent the most important possibility, sometimes the only one, to create new jobs especially in critical areas like city centres, suburban areas and rural territories.

Only 8% of SMEs are involved in export. This shows that there is a clear need to help European SMEs to access foreign markets.

CRAFTS AND SMES NEED SUPPORT TO SURVIVE THE CREDIT CRUNCH

The current and ongoing financial turmoil has significant negative effects on access to finance for SMEs. Credits and loans are not obtainable or only available under unacceptable conditions as regards price and collaterals. SMEs, which are not responsible for this crisis, must not pay the price for the difficult financial situation. Everything must be done to avoid a decrease of economic activity (investments, production and consumption) because of a lack of finance.

Therefore, GRTU asks all European Institutions to re-stabilise the financial markets by:

• providing sufficient amount of liquidity to the financial markets;
• providing guarantees to interbank lending operations to restart the financial market, which came close to a standstill;
• ensuring sufficient refinancing of SME loans (EIB, national intermediaries, guarantee schemes);
• increasing the public guarantee facilities for SME loans (EIF and national institutions);
• ensuring that any public support for banks is given in favour of their customers and not in favour of their shareholders;
• reforming the global regulatory system for the financial market (including rating agencies) to avoid the repetition of such crises in future (increase of transparency, no off-balance operations);
• ensuring that the financial markets are better targeted to real economy than to financial speculations;
• including deposits from small enterprises in deposit guarantee schemes.

THE RIGHT POLICY MIX TO SUPPORT THE RECOVERY OF EUROPE'S ECONOMY

The recovery must be supported by policies which aim to bring back confidence to all economic actors and to stabilise economic demand, without endangering fiscal stability in the long run. The SME sector represents not only 99.8% of all enterprises, 67,1% of employment and 57.6% of added value (last data available from 2005), but was also the most dynamic part of Europe's economy during the last years as regards growth, job creation and innovation. Consequently, Crafts and SMEs have to – and will – play an important role if Europe wants to master the economic crisis.

Therefore, GRTU asks all European Institution to contribute to a policy mix, which:

• uses any room for further rate cuts by the European Central Bank;
• lets the in-built automatic stabilisers work;
• uses the possibilities provided by the Stability and Growth Pact to increase public investments without endangering the long term targets for budgetary consolidation;
• stimulates additional private demand by setting the right incentives, i.e for. energy saving investments in private houses;
• avoids the bailout of industries which are experiencing structural problems or facing overcapacity;
• stimulates public and private demand by investments in infrastructure (research, training, ITC, transport) also via Public-Private Partnerships (PPP);
• avoids any inflationary second round effects on prices coming from wage increases not in line with productivity growth;
• uses the extended possibilities offered by the new State aid regulations to support SMEs with public support programmes;
• provides the necessary flexibility of labour markets to keep as many persons employed as possible.

CRAFTS AND SMES NEED MORE SPACE TO BREATHE

Craft and SMEs can only use their full potential for growth and job creation if unnecessary administrative burdens are avoided and the remaining barriers to markets are removed. The European SBA provides the principles for an effective policy in line with the needs of small enterprises and an encompassing catalogue of concrete measures to be taken at all levels to improve the business environment and to give SMEs enough space to breathe.

A key contribution for achieving an SME-friendly environment is a change in the perception of the role of entrepreneurs and risk-taking: entrepreneurship and the associated willingness to take risk should be applauded by political leaders and the media, and supported by administrations.

Therefore, GRTU asks all European Institution to fulfil the commitments made in the framework of the SBA and to implement the announced principles and actions – the sooner, the better:

• Legislation and programme planning at all levels must respect the "Think Small First" principles, if they have any effect on small enterprises. This means that rules must respect the majority of those who will use them. This includes independent impact assessments for small enterprises, systematic consultation of representative Craft and SME associations, the "only once" principle and the introduction of common commencement days.
• The essential and valuable role of the representative business organisations must be fully recognised. In addition, such organisations have to be systematically integrated, whenever relevant, into all European advisory expert committees, high level groups and other appropriate fora.
• Consultation of the representative business organisations must remain the rule; clear and transparent criteria have to be set to assess the result of direct and internet consultation;
• The participation of SMEs in public procurement procedures must be facilitated.
• Tax systems must be reformed to make investments more attractive and to strengthen private consumption.
• The pilot project on reduced VAT rates for labour intensive services, which is an effective measure to fight undeclared work, must become definitive and be open to all Member States.
• Internal market barriers resulting from 27 different tax systems, which are prohibitive for small enterprises, must be removed by a common tax base or by mutual recognition of the home tax system.
• Business transfers must be made easier via new financial products (i.e. mezzanine instruments), consultative services and favourable tax provisions.
• The existing rules on late payments must become more effective and include also business-to-consumer relations, in order to improve the financial situation of SMEs.
• Access to, retaining and improvement of competences should be facilitated.
• Better enforcement of the correct implementation of European legislation.

AVOID ANY UNNECESSARY BURDENS FOR CRAFTS AND SMES

Even if the European Commission is implementing since two years a better legislation and simplification programme, which aims to reduce administrative burdens coming from EU regulations by 25% until 2012, small enterprises have not witnessed concrete improvements so far. This programme will only be successful if all European Institutions and the Member States increase their implementation efforts and if other burdens will not be created in the meantime.

Therefore, GRTU asks all European Institutions to avoid any unnecessary administrative burden for SMEs and to remove administrative burdens for SMEs whenever possible, as already agreed in the European Charter for Small enterprises. This cannot be achieved through simplistic proposals. Simplification and better regulation require first and foremost a cultural shift, a change of mindset among civil servants, public authorities and the legislator in general.

The actual standards in the fields of environment, health and safety, consumer protection and others create too often high administrative burdens and compliance costs, especially for smaller companies. Such burdens and costs should not be reduced or abolished by exempting small enterprises from such rules and standards, but by simplifying the procedures.

Therefore, the proportionality principle should be applied as a basic rule whenever SME policy is concerned. This principle means that SMEs should be treated differently according to the level of dangerousness and risks they may impact.

The needs and particularities of SMEs have to be taken compulsorily into account in all relevant policies, programmes and negotiations at EU and national level.

Furthermore, the current economic downturn must lead to a review of all pending legislation, which may put further – and unnecessary – burdens on small enterprises. Policy projects that were started in good economic times must therefore be re-assessed and checked against the new reality.

Therefore, GRTU asks all European Institutions to review and reassess the following pending pieces of legislation, which may be especially burdensome for SMEs:

• The "Sustainable Consumption and Production Action Plan", which includes:

the recast of the Eco-design Directive: UEAPME pleads for the application of the extension of the scope of this directive to serial products only. Moreover, UEAPME would like the EU Commission to establish a procedure to finance SMEs' technical involvement in the Eco-design scheme;

�� the revision of the EMAS Regulation: UEAPME pleads for strengthening the SME-friendly provisions and for the abolishment of new concepts which will result in further red tape for micro and small businesses, such as the concept of environmental performance and environmental performance report;

�� the revision of the Eco-Label Regulation:UEAPME asks for an overall reduction of the costs, in particular the costs of the technical tests required in order to show the respect of the criteria, and an enhanced added value of the Eco-Label scheme as a market instrument;

�� the new policy on Green Public Procurement (GPP): UEAPME is concerned that SMEs might be discriminated because of GPP due to the fact that SMEs generally cannot afford the complex and costly audit systems or certification measures required by them. Moreover, GPP criteria, in order to be feasible, should be based on existing initiatives on the market.

The Action Plan aims to set up a system based on new, stricter minimum requirements in environment and energy policy for products to be put on the markets, coupled with a revised energy labelling scheme and with quality thresholds for public procurement. UEAPME would like the EU Commission to set up a framework to inform and prepare SMEs to the use of new eco-efficient concepts, such as life cycle analysis, in their production process, which still represent a revolution for most of them. This could be done by strengthening and fully implementing the existing Environmental Compliance Assistance Programme (ECAP).

• the Renewable Energies Directive;
• the Energy Performance of Buildings Directive;
• the Construction Products Regulation;
• the Collective Redress for Consumers;
• the new proposal for a non discrimination directive outside the labour market;
• the revision of the Maternity Leave Directive;
• the revision of the Working Time Directive;
• the revision of the Euro vignette Directive on heavy goods vehicles.

MEASURES TO INCREASE THE COMPETITIVENESS OF CRAFTS AND SMES AT ALL LEVELS AND STRENGHTEN THEIR ACTIVITIES OUTSIDE THE EU

Crafts and SMEs will only be able to lead Europe's economy out of the current crisis if their capacity to growth, innovate and create new jobs is enhanced.

Therefore, UEAPME asks all European Institutions to increase the competitiveness of the Crafts- and SME sector by:

• improving access for small enterprises to standards and existing technologies at affordable prices and conditions;
• creating a Community patent and an EU-wide jurisdictional system for patents;
• using the possibilities given by the new State aid regulation to provide innovation support measures;
• providing sufficient financial means notably through the ESF and EGAF for effective training measures, especially for facilitating transitions of persons becoming unemployed during the current crisis;
• designing labour market reforms, in line with the joint principles of flexicurity;
• supporting the anticipation of skills needs in relation to the creation of new jobs;
• promoting the mobility of young people in vocational education and training and notably of those in alternating training schemes such as apprentices;
• strengthening the implementation of the Environment Compliance Action Programme (ECAP) in close cooperation with SME organisations;
• better co-operation between the Member States in the fight against organised crime affecting SMEs; more specifically a coordinated action is needed against misleading business directories;
• completing the internal market for goods and services, in order to create a level playing field for SMEs;
• introducing a general rule on duty to act in accordance with the principles of good faith and fair dealing, which applies to both professionals and consumers;
• prolonging the Block Exemption Regulation on motor vehicle distribution and servicing after 2010.

SMEs, micro and craft enterprises play an essential and fully recognised role for the development as well as the competiveness in the regions and for the economic and social stability of the territories. In many places, they represent the most important possibility, sometimes the only one, to create new jobs especially in critical areas like city centres, suburban areas and rural territories.

Therefore, UEAPME asks all European Institutions to:

• Engage in a close dialogue with representative organisations of SMEs, micro and craft enterprises to define together new rules of territorial governance and the priorities of the future European cohesion policy. These rules and priorities should follow the "horizontal subsidiarity" principle, by which policymakers at all level – EU, Member States, regions, local authorities – must work with representative economic and social actors when taking measures in their policy field;
• Support the development of an "economy of proximity" to increase the competitiveness of enterprises active mainly on local markets, which are and will remain a key source of local employment;
• Reinforce the development of small and micro enterprises in the structural funds and in the new cohesion policy, and create a more efficient rural policy in favour of all local economic forces;
• Favour an innovation policy that is better adapted to the reality of small enterprises, including medium, low-tech and non-technological innovation processes, which are typical in small enterprises.

Only 8% of SMEs are involved in export. This shows that there is a clear need to help European SMEs to access foreign markets, but also to ensure fair competition at international level.

Therefore, UEAPME asks all European Institutions to:

• make progress in bilateral and multilateral trade negotiations for further reducing tariff and non-tariff, tax and regulatory barriers to trade;
• strengthen the protection against unfair competition, especially by adapting the existing trade defence instruments such as anti-subsidy and anti-dumping better to the reality of SMEs, which can not deal with the amount of information required to prove the damage;
• provide SMEs with better information and qualified advice when they considering going international;
• continue the efforts in the framework of the Market Access Partnership (MAP) in order to improve the SMEs' access to third country markets, specially to the neighboring countries.

CRAFTS AND SMES NEED SUPPORT TO SURVIVE THE CREDIT CRUNCH

The current and ongoing financial turmoil has significant negative effects on access to finance for SMEs. Credits and loans are not obtainable or only available under unacceptable conditions as regards price and collaterals. SMEs, which are not responsible for this crisis, must not pay the price for the difficult financial situation. Everything must be done to avoid a decrease of economic activity (investments, production and consumption) because of a lack of finance.

Therefore, GRTU asks all European Institutions to re-stabilise the financial markets by:

• providing sufficient amount of liquidity to the financial markets;
• providing guarantees to interbank lending operations to restart the financial market, which came close to a standstill;
• ensuring sufficient refinancing of SME loans (EIB, national intermediaries, guarantee schemes);
• increasing the public guarantee facilities for SME loans (EIF and national institutions);
• ensuring that any public support for banks is given in favour of their customers and not in favour of their shareholders;
• reforming the global regulatory system for the financial market (including rating agencies) to avoid the repetition of such crises in future (increase of transparency, no off-balance operations);
• ensuring that the financial markets are better targeted to real economy than to financial speculations;
• including deposits from small enterprises in deposit guarantee schemes.

THE RIGHT POLICY MIX TO SUPPORT THE RECOVERY OF EUROPE'S ECONOMY

The recovery must be supported by policies which aim to bring back confidence to all economic actors and to stabilise economic demand, without endangering fiscal stability in the long run. The SME sector represents not only 99.8% of all enterprises, 67,1% of employment and 57.6% of added value (last data available from 2005), but was also the most dynamic part of Europe's economy during the last years as regards growth, job creation and innovation. Consequently, Crafts and SMEs have to – and will – play an important role if Europe wants to master the economic crisis.

Therefore, GRTU asks all European Institution to contribute to a policy mix, which:

• uses any room for further rate cuts by the European Central Bank;
• lets the in-built automatic stabilisers work;
• uses the possibilities provided by the Stability and Growth Pact to increase public investments without endangering the long term targets for budgetary consolidation;
• stimulates additional private demand by setting the right incentives, i.e for. energy saving investments in private houses;
• avoids the bailout of industries which are experiencing structural problems or facing overcapacity;
• stimulates public and private demand by investments in infrastructure (research, training, ITC, transport) also via Public-Private Partnerships (PPP);
• avoids any inflationary second round effects on prices coming from wage increases not in line with productivity growth;
• uses the extended possibilities offered by the new State aid regulations to support SMEs with public support programmes;
• provides the necessary flexibility of labour markets to keep as many persons employed as possible.

CRAFTS AND SMES NEED MORE SPACE TO BREATHE

Craft and SMEs can only use their full potential for growth and job creation if unnecessary administrative burdens are avoided and the remaining barriers to markets are removed. The European SBA provides the principles for an effective policy in line with the needs of small enterprises and an encompassing catalogue of concrete measures to be taken at all levels to improve the business environment and to give SMEs enough space to breathe.

A key contribution for achieving an SME-friendly environment is a change in the perception of the role of entrepreneurs and risk-taking: entrepreneurship and the associated willingness to take risk should be applauded by politic

Vince Farrugia

GRTU still fails to understand how Government managed to mess up the electricity tariffs issue so badly, and why they stubbornly keep saying that they are right, when no one, not even the party die-hards are convinced.

I take the case of the complaints by small and medium businesses. How can someone who's being asked to pay for the consumption done by others be convinced that the Government is acting logically?

Why do ten or twenty small retailers who consume together as much electricity as one very large consumer pay 33% more for their use?

Whilst Government continues to insist that SMEs are the backbone of the economy, they contradict this by insisting on doing exactly the opposite on the electricity and ware tariffs issue. The way SMEs are being rewarded for consuming less energy is by paying 33% more to subsidise higher consumers, consume less = pay more.

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. The current cross-subsidisation is negatively discriminating on the lower consumer. The higher consumer is not only being helped but is having part of its bills paid by the lower consumer, who is an SME and cannot sustain such an expense. A Robin Hood upside-down policy.

A quick look at what SMEs were paying before the sudden change occurred, helps you understand better. First of all the first 200 units of energy were free and rest of the charges were as follows:

The tariffs proposed to the KPMG report and presented to MCESD by Minister Ausin Gatt on 23rd October 2008 were as follows:

After analyzing the change in the Tariffs structure, GRTU met first the Prime Minister and afterwards Minister Tonio Fenech and on behalf of GRTU members presented them with our alternative proposals. Our proposal included stepped tariffs that would start low and gradually reach the new Tariff structure within a three year period. This would have allowed for an adequate transition period that would have diminished the sudden shock and inevitable consequences we are facing today to propose a more responsible way forward. Making the change proposed a more responsible one.

GRTU was never given an answer to its proposal and accordingly on 1^st December 2008, we wrote to the Malta Resources Authority requesting them to issue Enemalta with a ‘cease and desist order' not to implement any new Tariffs.

On 5^th December 2008, Legal Notice 330 of 2008 was issued with the following two different tariff structures

1. commercial users using less than 1,200,000 Kwh
2. commercial users using more than 1,200,000 Kwh

The adopted tariff schedules show that one large consumer using 1,200,000 units and over would pay Euros 154,016 whilst ten small consumers who altogether consumed 1,200,000 units would pay Euros 205,416 , a staggering 33.3% increase.

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, in this case SMEs, and we believe that whatever else the Malta Resources Authority is saying, and honestly no one understands what exactly they are saying, the above tariffs are in breach of community law. GRTU has issued a judicial protest in respect to these tariffs, and you can remain assured that this time round no one from the European Commission will tell us that we have not exhausted the local legal hurdles.

Our target is of course the European Courts and procedures. I have already stated all we had to say to the local public regulator, the Malta Resources Authority. They have however allowed themselves to be used, pushed and be beaten, and they cannot now expect much respect. They seem to enjoy being punching bags. That's why we continue to insist that beyond the Maltese Law Courts there are also the European Courts. The facts we publish are the real facts. They are simple. They are self explanatory.

On December 16^th 2008, during the National Conference held by GRTU for its 60^th Anniversary, entitled "Facing Today's Economic Reality, Bringing home the European Reality to Small Businesses" GRTU emphasized on the European Principle of "Think Small First". Dr Lawrence Gonzi, present for the said Conference outlined that SMEs together employ 67,000 employees.  ‘Thinking Small First" means that SMEs should truly be treated as the back bone of any European Economy.

GRTU continues to insist that Government still has time to come to terms with this fiasco.

The saga continues………….

 Are you currently seeking to recruit new staff?
Why not consider making use of the ETC schemes? ETC has just re-launched a number of schemes aimed at offering unemployed youth work exposure in a real work place situation. Youth can gain lacking work experience and prove to employers their ability in successfully carry out the assigned tasks. At the same time the employer can evaluate a potential employee prior to committing to employment.  

The Job Experience Scheme is specifically designed for young people aged 16 to 24 entering the labour market without any work experience or with only minimal experience in their chosen occupation. Participants are required to do 20 hours of work per week, up to 12 weeks. They can be placed with organisations within the public and private sectors. A weekly allowance equivalent of 46.59EURO will be given to each participant by ETC. The Private Sector Placement Scheme is similar to the above scheme, except that it is only open for private sector organisations and participant jobseekers should have been registering for work for at least six consecutive months. Each participant is to do 30 hours of work per week up to 12 weeks, and a weekly allowance equivalent to 75% of the minimum wage is to be paid by ETC. The Active Youth Scheme provides an opportunity for young jobseekers that have been registering for work for at least six months to work with a local NGO, religious or sports organisation for 12 weeks. Participants will do 20 hours of work with the organisation and an allowance of 69.88EURO a week will be paid to them by ETC.

For more information contact Abigail Mamo @ GRTU
Interested organisations can find basic information, eligibility criteria and the relevant application forms from the ETC website, www.etc.gov.mt. Organisations are encouraged to contact the schemes coordinator at ETC for more information. The coordinator can be reached at or by phone on 2220 1225.

DG Enterprise and industry is holding a competition for entrepreneurs to come up with a short video on the subject. The call is open for all production companies. More info: Abigail Mamo @GRTU—  

Government has launched 3 new e-government services to address the needs of enterprises. The services introduced are an updated Government Payment Gateway (GPG), an e-ID for organisations and a new contracts website.  

The new GPG replaces the previous system, which was launched in 2002, and provides an upgraded, more secure, payment system. The e-ID for organisations is an extension of the e-ID service for individuals, and will allow organisations to make use of a number of e-government services. The new contracts website, www.contracts.gov.mt, is being managed by the Department of Contracts, and features information and documentation related to government tenders. Users will also be notified, through email and SMS alerts, of any developments relating to tenders in which they may be interested.Source: di-ve.com