Maghtab, Charges and all that

MRRA (not MRA as unavertedly quoted in the press) should have given more thought prior to the approval of the exaggerated fees imposed on skip loaders and waste carriers for dumping at Maghtab.

One understands the reason for the increase – people will be forced to move elsewhere, recycle or reuse and save the hefty charge. But for most loaders there is no alternative. They have to accept the charge and lump it on the consumers, only if customers are willing to pay. Most loaders and waste carriers are already finding it hard to collect payments due to them as hoteliers and others are too hard up to pay. This is so when the rates are today only 0.04% of the new charges that WasteServ is now implementing.

GRTU is seeking a positive solution that would at least relieve waste carriers from the additional hefty expense that they have to meet as registration taxes on the purchase of new trucks to meet the new obligations to weigh the materials they carry and meet new emission standards. It is not an easy issue but GRTU is hopeful that an agreement can be reached shortly with WasteServ and with MRRA that should hopefully enable small enterprises in the waste carrier business to survive.

The Digital Switchover

 Like the rest of Europe, at the end of this year, Malta shall be switching over to Terrestrial Digital Television. This means that all analogue free-to-air terrestrial television broadcasts received via the conventional rooftop antenna will be upgraded to digital. This changeover will effect only Maltese television channels that are received using a roof top antenna and will not affect Italian stations.

There is however no guarantee that Italian television stations will continue to be received once Italy goes through its own changeover. Intrinsically, the Digital Terrestrial Television signal is less powerful and it is unlikely that reception will be good enough all over Malta for the Italian channels.  Furthermore, the government has no control over what the pay TV providers choose to encrypt.

Research has shown that 11.2% of the Maltese population is not subscribed to a pay TV service from any of the local providers. These include people using Satellite systems. Another 7.5% of the population are subscribed to a pay TV service but  also watch free-to-air channels. The same research also shows that the majority of people who watch only free-to-air services are over 65 years of age.

Digital TV will bring a better picture quality for the viewer but will require that the user has a digital television set or a DVB-T digital set top box. The Digital Switchover Committee is going to launch a campaign to inform the public of these changes and to ensure that the changeover proceeds smoothly.

GRTU had, from the very beginning, pledged its support to help in this changeover and a meeting was held earlier this month for members from the affected sectors. The Changeover committee stated that the campaign will include television  advertising, leaflets as well as other adverts in the local media. A hotline is also going to be set up for this purpose. GRTU suggested that this initiative should be backuped up by the involvement of the retailers and traders of these products and suggested that a scheme similar to the FAIR scheme should be set up. The scheme will enroll suppliers of set top boxes and television sets with integrated digital tuners to guarantee that the product will be compatible with the new system and function correctly. During this meeting technical details of the required hardware were explained and discussed. A list of participating retail outlets will be published as part of the media campaign.

To the end user this change will mean that their roof-top antenna would have to be re-aligned and probably face a different direction, the cable from the roof to the TV set would probably also have to be changed and in some cases the antenna itself will have to be changed as well. For people using old TV sets without integrated digital tuners it will also mean having to purchase a inexpensive DVB-T digital set-top box or change their TV altogether.

GRTU feels is trying to urge the government to introduce incentives on the purchase of new flat screen TV sets. The aim is to encourage people to change their TV set to one with an integrated digital tuner rather than buy a set top box which will ultimately be discarded once the TV is changed later on.

The meeting was chaired by Marcel Mizzi (GRTU Vice President – Finance and Administration) and representatives of the Malta Communications Authority.

Micro Credit

Another month has passed since the Director General's strong appeal at MCESD to get this scheme moving without further delay. He says today that "those who believe that the situation for many micro and small businesses has improved as the recession is gradually receding, are very much mistaken." Our figures show that most small businesses on the first quarter of 2010 are worse off than they were in the 1st quarter of 2009.

 

"Pockets of large businesses and the result of the hefty wage increases enjoyed since 1st January 2010 by all the public sector have pushed GDP, but the growth has not resulted as a result of better economic returns by micro and small businesses. SMEs are still hard down. Government is foolish to continue to delay the implementation of the micro credit scheme which was the major instrument of support to micro and small businesses proposed in budget 2010." GRTU has proposed various ways how the scheme could be operated while Government awaits the EU funding attached to it.

"Why on earth is the Ministry of Finance continuing to drag its feet on this vital scheme. Being busy with the crises increase is no reply to small business owners who seek the safety valve of micro credit. Indeed many small business owners cannot understand why the Government is so preoccupied and so willing to spend Malta's hard earned reserves to pay treachery of the Greeks when they cannot find the time and the funds to help Maltese entrepreneurs" concluded Vince Farrugia. GRTU cannot speak load enough on this issue. Yet it seems that nobody out there wants to listen.

Green MT signs agreement with 11 Local Councils in Gozo

 Green MT Limited, GRTU ‘s  owned subsidiary has reached an agreement with eleven Local Councils in Gozo, thus nearly the whole region of Gozo. The Local Councils forming part of this agreement include Rabat, Fontana, Kercem, Ghajnsielem, Ghasri, Gharb, San Lawrenz, Nadur, Qala, Zebbug and Munxar.

 

Addressing those present included Hon Minister Giovanna Debono and Parliamentary Secretary Dr Said. Region President and Rabat Mayor Dr Samuel Azzopardi welcomed those present and expressed his satisfaction that Local Councils were gathered together to sign one agreement for the recovery of Separated Waste. Dr Azzopardi took the opportunity to thank all Mayors and Executive Secretaries for their contribution to reach this agreement.

Vince Farrugia, GRTU Director General and Green MT ‘s Chairman outlined GRTUs role in setting up the legislative framework together with Government to operate Waste Compliance Schemes on a fair level playing field. He outlined the response of the business community towards corporate social responsibility, including the recovery of waste packaging from the market. Green Mt is now indebted to all Local Councils present for this agreement and outlined the fact that Green MT will give back to the community through its not for profit based operation.

Mayors and Executive Secretaries present were also addressed by Dr Stafan Buontempo, Opposition Speaker for Local Councils who continued to state that there has been an increased input into Waste management recovery which has over the last years given results.

Dr Chris Said  outlined with examples the increase in waste packaging recovery in localities currently under agreement with Green MT and continued to state that the target for these eleven Local Councils in Gozo is a 26 ton per week recovery. This will include an educational campaign to all sectors. Current recovery stands at 8.5 tons. Dr Said augured Green MT and each individual Local Council all the success in this green venture. He further outlined that over the last two years Government was proactive in providing Schemes for Local Councils in the Environmental and Energy sectors.

Minister for Gozo Giovanna Debono outlined that during her first years in Government she had a dream, that of closing down Qortin. This dream came true last week when a permit was granted to Waste serv to build a family park. The Minister spoke about waste recovery being a part of Vision 2015 and Eco Gozo. Without fail Local Councils played a very important role in keeping cleaner localities and augured to the success of this operation. However Local Councils operate through individuals and she thanked all those Mayors, Executive Secretaries, and Local Councillors who give so much of their time towards their individual localities.

The agreement which is for two years was signed by Green Mt Chairman and Chief Executive Officer, Vince Farrugia and Joe Attard respectively, with each individual Mayor and Executive Secretary of each of these eleven Local Councils.

We must act to make the Economy Grow

 The potential of the Maltese economy in the eyes of the Far Eastern and Gulf countries is much bigger than most Maltese entrepreneurs believe. All Maltese businesses who have participated in recent business delegations have learned that many foreign investors are eager to learn of Malta's possibilities as a logistic centre for import/export to the large EU market of 500 million and to North Africa.

Similarly strong are the possibilities for new registrations in Malta as a centre of finance institutions, ship registration and airline registrations. The options for joint ventures in further processing of products made in countries outside the EU as well as the use of Malta's entrepreneurial capacities to complement the more cost effective production capabilities of countries like China and India are tremendous.

Malta today is a free enterprise country. Long past is the age when Government Delegations consisted only of Government senior officials interested only in promoting the interests of the nationalised industries. Today as a result of EU funding a lucrative internationalisation scheme exists that helps Maltese business owners to seek new opportunities in different countries to enable their business to grow. Maltese business owners can receive financial assistance to enable them to identify and promote new business options. "The Maltese economy must grow if all SMEs want to earn a decent rate of return on their investment but this growth will not come unless all of us strive to seek new opportunities. Simply chasing one another in Malta is not good enough, the economy needs new money and this new money can only come through new opportunities that we can find overseas. This is the great challenge we all have. We can be negative,  complain and grumble or be positive and aggressive to take the opportunity and new business ventures through an effective internationalisation project" stated GRTU's Director General Vincent Farrugia.

He continued saying "I have seen for myself, and evaluated in a professional manner, various options that we have met as we sought to seek new business ventures that can be operated through Malta and I can say that those who dare have a great chance to win. We have now the right institutional structures and the right regulatory regimes and above all the necessary support to seek new businesses overseas. It is up to us to go further. The economy will grow but we all need to make a greater effort. Simply blaming it all on Government is cheap. Entrepreneurs, seek opportunities. These opportunities are there, but manna does not fall from heaven anymore. GRTU is striving hard to support businesses who want to seek new opportunities and who really want to make the economy grow" concluded Mr Farrugia.

New Cosmetic Products Regulation

 On 30 November 2009, the new cosmetics products regulation was adopted, EU Regulation 1223/2009, replacing the Cosmetics Directive. With the new Cosmetics Regulation Europe is having a robust, internationally recognised regime, which reinforces product safety taking into consideration the latest technological developments, including the possible use of nanomaterials.

 

Most of the provisions of this new regulation will be applicable as from 11 July 2013. The ban and the strict regime aiming at phasing out animal testing were not modified.

In view of the above kindly submit any comments to Audrey Anne Anastasi on fax: 21 242406. For more information contact 23952000.

Document can be downloaded from MSA's Cosmetics web page: www.msa.org.mt/rad/cosmetics/consultations/2010/Ongoing/

Introduction

Council Directive 76/768/EEC relating to cosmetic products, transposed to national legislation by Legal Notice 424 of 2004 (as amended), has been significantly amended on several occasions. Since further amendments are to be made, in this particular case it should be recast as one single text in the interests of clarity. A Regulation is the appropriate legal instrument as it imposes clear and detailed rules which do not give room for diverging transposition by Member States. Moreover, a Regulation ensures that legal requirements are implemented at the same time throughout the Community.

This Regulation aims at simplifying procedures and streamlining terminology, thereby reducing administrative burden and ambiguities. This Regulation comprehensively harmonises the rules in the Community in order to achieve an internal market for cosmetic products while ensuring a high level of protection of human health.

The environmental concerns that substances used in cosmetic products may raise are considered through the application of Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and establishing a European Chemicals Agency, which enables the assessment of environmental safety in a cross-sectoral manner.

Who's responsible?

The presentation of a cosmetic product and in particular its form, odour, colour, appearance, packaging, labelling, volume or size should not endanger health and safety of consumers due to confusion with foodstuffs, in accordance with Council Directive 87/357/EEC concerning products which, appearing to be other than they are, endanger the health or safety of consumers. In order to establish clear responsibilities, each cosmetic product should be linked to a responsible person established within the Community.

An efficient traceability system facilitates market surveillance authorities' task of tracing economic operators.

It is necessary to determine under which conditions a distributor is to be considered as the responsible person. All legal or natural persons in the wholesale trade as well as retailers selling directly to the consumer are covered by reference to the distributor. The obligations of the distributor should therefore be adapted to the respective role and part of the activity of each of these operators.

To ensure their safety, cosmetic products placed on the market should be produced according to good manufacturing practice. For the purpose of effective market surveillance, a product information file (PIF) should be made readily accessible, at one single address within the Community, to the competent authority of the Member State where the file is located. The

PIF shall be made available in at least one of the following languages: Maltese, English, Italian.

The general principle of the responsibility of the manufacturer or importer for the safety of the product is also supported by restrictions of some substances in Annexes II and III. Moreover, substances which are intended to be used as colorants, preservatives and UV-filters should be listed in the Annexes IV, V and VI to Regulation (EC) 1223/2009 respectively in order to be allowed for these uses. To avoid ambiguities, it should be clarified that the list of allowed colorants contained in Annex IV includes only substances which colour through absorption and reflection and not substances which colour through photoluminescence, interference, or chemical reaction.

Extention of the scope of the Eco-design directive

 The Eco design directive (2005/32/EC) has been recently recast into a new directive (2009/125/EC) so as enable the setting of requirements (through implementing measures) on Energy Related Products. i.e. Products that do not use energy, yet  have a potential impact on energy consumption.  An example of an energy related product is thermal insulation for buildings. 

 

This new directive 2009/125/EC should not impact the implementing measures enacted under the former directive 2005/32/EC or the current work programme which is addressing Energy using Products. However the European Commission is going to commission a study which identifies suitable candidates for which regulatory requirements in the form of implementing measures could be set.

On going discussions are setting minimum requirements in the form of implementing measures (primarily related to energy efficiency) on the following product groups:

Domestic Washing Machines;

Domestic Dish washers;

Domestic and Commercial fans even when integrate in products;

Water heaters (electric, gas, solar and heat pump);

Personal Computers and monitors;

Air conditioning;

Boilers;

Directional lamps;

It should be noted that European stakeholders of the following product categories have chosen self regulation:

Complex set top boxes;

Imaging equipment ;

When these regulations come into force they will be mandatory for the applicable imported and newly manufactured in the EU energy using products.

More info on directive 2009/125/EC may be found at : eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:285:0010:0035:EN:PDF

More information on the on going discussions may be found at : ec.europa.eu/energy/efficiency/ecodesign/eco_design_en.htm and www.eceee.org/Eco_design/products/

Closing date for comments on directive 2009/125/EC is 21st May 2010.  After that date only comments on the work plan and the product groups mentioned above will be accepted.

Comments are to be sent to Ing. Joseph Micallef – Regulatory Affairs Directorate

e-mail:   T: 23952221       F: 21 242406

Commission gives up the fight on interchange?

GRTU is very disappointed at the weak interim compromise announced by the Commission on Visa interchange fees and related anti-competitive rules. We do not consider that it satisfies the antitrust complaint instigated by our EU level representatives EuroCommerce.

 

At a time when consumers are fighting to keep their heads above water, Visa has announced record profits, this lacklustre compromise sets a very bad precedent for this tax on payments for consumers.

The Commission has succeeded only in obtaining commitments from Visa on debit cards. The 0.20% maximum weighted average interchange fee for Visa debit will allow the company to continue charging retailers and consumers unjustified fees in member states which fall outside the scope of the Commission action, as well as on credit and commercial cards.

Such a maximum figure will further undermine the efforts of the struggling third European card schemes: they will be quite unable to establish any system which offers a fairer pricing model.

We find it odd that the Commission is, as in the 2009 settlement with MasterCard, accepting a solution based on a methodology – the ‘merchant-indifference test' – which has not yet been tested and which is strongly criticised by all stakeholders – including the card schemes. The omission of credit cards from the commitments must also cast doubt on the adequacy of this methodology. We nevertheless welcome the costs of cash study and urge its speedy completion. We look forward to the downward revision of MIF levels, on debit and credit – which both remain unacceptably high.

We are very disappointed that the Commission has opted for this marginal way out on Visa. Since EuroCommerce lodged the first complaints 13 years ago, neither Visa nor MasterCard have brought convincing justification for interchange fees on card transactions.

In particular, EuroCommerce points out that:

The ‘average' fee levels do not correspond to any market reality.

The commitments retain the notion that fees should be a percentage of purchase price: there is no cost justification for this.

There is no justification for omitting credit cards from the settlement. Both types of transaction require the same processing, therefore should attract the same cost. (Retail studies show that the cost of cash handling is 3 euro cents per transaction.)

The barriers to cross-border acquiring for retailers have not been tackled.

We are, however, pleased to note that discussion will continue on credit and deferred debit and that the issue of commercial cards remains open. We also applaud the continued scrutiny of the ‘honour all cards' rule. EuroCommerce calls for the abolition of this rule which hides anticompetitive behaviour behind a confusion of differently priced and ‘premium' cards.

The Commission is sorely mistaken in thinking it will solve the interchange fee problem by allowing merchants to surcharge consumers, who are unwitting hostages to this unfair system. Competition in retail is fierce and most retailers will never discriminate against customers on the basis of the payment means they wish to use. We urge the Commission, on completion of its costs study, to take full account of data from retailers, reconsider the tourist test and revise these calculations.

In addition, the Commission's reliance on surcharging has been wholly undermined by the fact that several large member states have chosen to forbid surcharging under the options allowed in the Payment Services Directive.

M’Xlokk Embelishment

 Marsaxlokk road works second phase will commence on Monday the 17th May and are scheduled to finish on Monday 14th June 2010. During this phase the promenade road will be closed and reconstructed from scratch.

 

Services will be provided through Duncan Street and proper access to shops will be organized accordingly while the quay will be accessible for other urgent services.

During the said works Triq l-Arznell will be changed to two way. A site plan of the proposed two way system was distributed to all shops concerned.

Further assistance can be obtained from Ms Carmen Borg, Executive, GRTU and also by Arch. J Zerafa Boffa who will be on site while works are being carried out.