Category: Archive – 2011

Since 2006, the European sugar market regime has been undergoing a reform process. The existing legal framework foresees that the quota system, once a cornerstone of European agricultural market regimes, will stay in place until 2015. In other important sectors in the EU for example cereals, quota are abolished or being phased out such as for example milk.

 

The basic coordinates for the sugar market have changed as well. The EU, once a leading sugar exporter, has become a net importer. This was expressly intended by EU policy makers in 2006. Today, some 15% of the European sugar demand are covered by imports. In the current market year, however, the EU sugar market is determined by a shortage of supply and high price levels. For many companies, including the processing sector, this situation has become a point of major, for some even fundamental, concern.

But still, the European sugar beet production continues to be encouraged by the existing quota and extremely high import tariffs.

Against this background, even more than about price increases, importers and retailers are concerned about the risk of a possible shortage of supply in 2012.

Members are invited to submit any comments or additional information to EuroCommerce. Depending on the echo, EuroCommerce might consider further lobbying action as appropriate.

Why did you become an entrepreneur?

Being employed for me was very boring. I wanted to have my own business to be able to develop my desire of promoting live music.

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How have you come to chose your line of business?

When I was in my teens, I used to play guitar at places of entertainment and I fell in love with the leisure industry.

Where did you go on your last holiday?

London – I like London because I like the faster city/night-life.

What is your earliest memory?

When I was a very little boy and I got lost in a crowd and I thought it was the end of the world!!

If you could chose to be someone famous who would you be?

Quincy Jones- The famous American producer, composer of Jazz

Malta Enterprise will be holding an interactive workshop on International Public Procurement. Potential contractors and business people will have the opportunity to learn how to tap into the international tendering processes and how to go about tendering more effectively. The workshop will be delivered by UK procurement experts with a special intervention by the World Bank Enterprise Outreach Services Unit and will include a questions and answers session.

Venue: The Capua Palace, Sliema

Date: Wednesday 26^th October 2011

Time: 9.30am-4.30pm

Fee: €80 per participant

Delegates will receive a free 4 week trial of the Malta Enterprise tender search service; access to online documents on selling to the Public Sector in the EU and all workshop presentations plus a written guide.

The number of participations is limited to 30. To reserve your place, kindly e-mail or contact the Enterprise Europe Network on 25423443/25420000

 

 

 

 

The Chartered Institute of Marketing (CIM), the leading international professional body for marketing, is celebrating its centenary this year and CIM Malta is carrying out a number of initiatives to make 2011 a special year for marketing and marketers in Malta. The highlight of CIM Malta's centenary celebrations will be the Centenary Conference. It has been some time since a National Marketing Conference has been held in Malta and the Institute's centenary has presented a golden opportunity for CIM Malta, together with CIM's UK Head Office, to bring to Malta two keynote addresses and will be joined by local expert Dr John C Grech.

This is an experience not to be missed by all those involved in marketing and business in Malta. It will show how marketing is relevant to all walks of life, not just commercial organisations. Participants in the conference will have the opportunity to debate the issues and seek answers through the questions and open discussions during the sessions, as well as network with the speakers and other during lunch.

Booking details:

Venue: Corinthia Hotel, St George's Bay

St.Julians

Date: Friday, 14^th October 2011

Time: 8.30am-13.30pm

The conference fee is €175; €150 for Members of GRTU-Malta Chamber of SMEs and The Malta Chamber of Commerce Enterprise and Industry and €125 for Members of The Chartered Institute of Marketing.

For more information, log on to : cim.co.uk/malta or email .

 

 

 

 

 

GRTU insists on Exemption from Eco Contribution – The Malta Chamber of Small and Meduim Enterprises continues to insist that if Government really wants to implement this Directive or as transposed in Maltese Law by Legal Notice Ln 63 of 2007, then the producer placing the product on the market has to be exempt from the payment of Eco Contribution. This is the one and only condition that remain a cardinal stalemate between the Authorities and the producers today. The Malta Environment and Planning Authority, MEPA, has recently set a plan for the implementation of this WEEE Directive.

Whilst it is indeed a step in the right direction, there will be no implementation of  any sort unless this matter is taken on board.

There are of course other restrictions for a country the size of Malta, mainly economies of scale. Whilst the Directive in the past obliged us to recover 4kg per capita the current recast of the WEEE Directive  will shortly change this to 65% of market placement. This will increase Malta's current obligation of a recovery of 1700 tons to over 8000 tons which is a very demanding figure. Not only demanding but the cost of recovery , dismantling, treatment processes and final recycling will be exorbitant.

This is a case in point where EU Directive s cannot continue to be placed on member states with the onus of one size fits all' . In real tangible terms we are looking at exorbitant end of life cycle costs which will be burdened on the end consumer. It is the end customer who will eventually bear the brunt. There are limits and limits as to how far the business community can internalise a cost factor and eat out of its current dismal profits, if any.

At a time when Governments all over the European Community are taking austerity measures to make sure that they keep their incomes and expenditure in check, we wake up to the realities of a Directive which if implemented will surely increase the costs of products to the end consumer.

Whilst we are firm believers in environmental obligations, we also see our limits. Our economies of scale cannot allow us to build new recycling plants for such materials. It is as such a fact that most of these articles recovered at civic amenity sites and through the present bulky refuse system, can be dismantled and partially treated locally, but in respect to final recycling , this has to be done at facilities outside Malta at a  very high cost, this without mentioning the cost of shipping which is also restrictive.

Placing all this together GRTU does not want to wake up to a scenario where the sales of a large household appliance becomes restrictive due to this implementation.

Of course we are committed towards a better environment but we need to make sure that we can actually sustain our commitments be they large or small. This is definately large.

"GRTU is in favour of strong action to cut down the Budget Deficit. At 68% of GDP our debt is too high and it keeps growing on as a result of Budget Deficits. Government must send the message loud and clear that in support of the productive sector of the economy funds are available, but there are no axtra funds for the non – productive. Is is an increase in the productive elements of the economy that make the Economy grow.  Without growth Malta is stagnant. 

 

The Budget defecit will fall as growth marches forward. Government must invest heavily in new capital expenditure and create new financial  instruments to attract more private sector and financial sector funds that can be productively used to finance the public sector public capital expenditure.

 

Malta's infrastructure has seen a tremendious increase in investment but much of our infrastructure remians old and a sharp increase in infrastrutural capital investment will not only boost economic growth immediately but will serve for steadier economic growth in the following years.

GRTU's Budget 2012 proposals concentrate on Incentives for Growth;

Incentives for small enterprises to re-structure their financing and invest in expansions, new projects and innovation

Incentives to boost new enterprise start- ups as all existing schemes are sepcific and not aimed at the generation of new business start-ups

Incentives for private sector to invest more in  green-jobs and for the public sector to offer more and better cost-efficient waste management facilities. GRTU is active in this sector as GRTU manages the only green jobs generating social enterprise (Green MT).

Incentives for young first home buyers and to families with young children  and to small business owners wanting to buy property to buy at affordable prices the extra – surplus of housing and building stock currently on the property market. GRTU insists on attractive incentives to Maltese buyers not to foreigners.

Incentives for the increase of economic activities in the Locality.  There is too much vacant properties that can be used for office space, Tourism accomodation and other economic activity that can with the right incentives cause more people, especially women to work closer to home, cut on expense and increase economic and comercial activity in the localities.

Incentive for the reduction of private debts: the problem of debts in Malta is not only national but it is also one that effects small businesses and households. The level of indebtness of households is growing and it is effecting the purchasing power of household and it is our identified cause of stagment private consumption.  GRTU is pressing government to seek means to help families and business reduce on reschedule debts so they can have more available disposable income. The current Government policy towards the recruitment of foreigners is caotic.  GRTU is proposing that a payroll withholding tax of an agreed percentage of pay to foreigners recruited on a temporary basic is imposed so that these workers are officially registered and covered for tax social and medical contribution.

Incentives for more public private partnerships. Government was right to accept GRTU's proposal for Private Public Partnership (PPP), financed road works in the locality. This concept now must be expanded to include projects in the harbour and the development of new beaches and new infrastructurer works.

GRTU's programme aims at incentives for Growth"

 

Vince Farrugia, GRTU Director General was speaking at the Ministry of Finance Breakfast Forum on Budget 2012 at the Corinthia, St Julians on Thursday .

Addressing the ECO Section meeting at the European Economic and Social Committee in Brussels last Tuesday, Maltese enterprise owners representative at EESC Vince Farrugia criticised the new Basel III regulations imposed by the Bank of International settlements third attempt in 20 years to force Banks to raise their capital ratios. 

 

He was speaking soon after Mr Marc Hollanders, Special Adviser on Financial Infrastructure, Policy, Coordination and Administration, Monetary and Economic Department, and Mr Karl Cordewener, Deputy Secretary-General, Basel Committee on Banking Supervision from BIS explained what action the international regulator of financial institutions was taken to ensure that the world will not face another financial crisis as happened after September 2008.

Vince Farrugia stated that these rules aim to address one of the biggest threats to the global economy: the tendency of financial organisations to go bankrupt during bad times. Among other reforms, the rules require banks to finance their activities with more equity, or capital, as opposed to debts.

The equity helps guarantee that the bank's own shareholders will absorb any losses, instead of turning to taxpayers for bailouts. For the bigger banks the new rules amount to something between 3% and 5 % of assets this.  Vince Farrugia said this is similar to putting €3,000 to €5,000 down on a  100,000 apartment. Somehow according to calculations based on Basel III this should in practice represent 10% of risk weighted assets.

Vince Farrugia pointed out  that the best research available from a group of researchers led by former Morgan Stanley economist David Miles, even extremely high capital ratios – as high as 50% -would actually be good for the economy because the benefits of reducing the frequency of financial disasters far outweighs any cost. These experts agree that optimal capital would probably be about 20% of risk-weighted assets, equivalent to tangible equity of 7% to 10%. That is double the level in Basel III.

Vince Farrugia stated that furthermore the Basel rules create perverse incentives. Instead of defining a bank's equity simply as a share of its total assets, Basel assigns each asset a weight that is supposed to correspond to a risk.  Government bonds, for example, have a zero weight, as if government bonds had no risk at all. This makes these bonds very attractive and helped turn Europe's debt problems into a global crisis by encouraging banks to invest heavily in high-yielding debt issued by countries such as Greece.

"These rules simply do not go far enough" stressed Vince Farrugia and as representative of enterprise he wanted to raise the voice of   most European enterprise owners who do not feel secure enough under the Basel rules and are therefore insisting with EU Member states to legislate in favour of higher more stringent requirements so that banks have much stronger loss-absorbing capacity consisting of equity and debt that converts into equity in times of stress of as much as 20%

The Office for Competition within the Malta Competition and Consumer Affairs Authority (MCCAA) undertook a fact-finding exercise on the supply of school uniforms and drew up a preliminary report on its findings.

 

A number of state, church and independent schools at different educational levels were selected to obtain information on school uniform prices and the manner by which school uniforms are supplied. A series of price comparative exercises were conducted to determine the minimum, mean and maximum prices of frequently compulsory school uniform items.

The Office found that uniforms specific to the school bought from specific points of purchase reflect higher prices and a lack of choice on quality and retailer. It was also noted that prices of certain uniform items appear to be considerably high across all three types of schools. Basing itself on the conclusions derived from the numerous exercises conducted, the Office proposed a set of recommendations on how the conditions of competition in the market for the supply of school uniforms may be improved to the benefit of parents and stakeholders.

In view of the above, the Office considers that there is further scope for investigation of this market in terms of the Competition Act.

The report is open for consultation:

https://secure2.gov.mt/consumer/consultations?|=1

Comments should be sent to

 

GRTU has this week met the Malta Communication Authority (MCA) to discuss the New Trustmark. GRTU was represented by Council member and IT section President Marcel Mizzi.

 

During the meeting the MCA gave some background on the old Trustmark system. They said the Trustmark used to be in line with the Euro Label which was already in itself no longer effective so they went to cabinet to trash the euro label and revamp it into a new label for Maltese websites. The old Trustmark had to be reviewed in 2008, which review took place in 2010. The MCA also explained that the involvement of the other entities and authorities was very limited, in fact it will be limited only to market the website.

The MCA said that it would very much like to cooperate with the GRTU and market this new initiative through its membership base. On behalf of GRTU Marcel Mizzi said that website owners are having problems with PayPal as there is an issue of trust. Mr Mizzi suggested that the Trustmark should give same kind of recognition and weight. In addition to this he suggested that the Trustmark should be available not only for commercial websites but also for information websites. The MCA took up Mr Mizzi's suggestions and will take action accordingly.

The MCA is currently in the process of finalizing the documents for the Trustmark criteria and they will launch them trough an event. The MCA stated that it had already used to check websites through the Commerce Act being Regulators.

Mr Mizzi further suggested that the Trustmark should be tiered and for instance in the next tier there should be included features such as accessibility for people with disability through FETA. The GRTU stated that it would like to review the criteria with the MCA at this stage.

The MCA said that there would be a nominal fee for the companies wanting to have acquire the Trustmark. The MCA said that in return all those who have acquired the Trustmark would be listed on their website and marketed as part of a bigger consumer campaign as Trustmark users.

The GRTU will also be collaborating with the MCA to hold a seminar for website developers which would be aimed to push the Trustmark forward.