Category: Archive – 2011

Vince Farrugia, European Economic and Social Committee (EESC) Maltese Employers representative, has this week participated in the EESC Plenary Session where two important papers for which he was Rapporteur were adopted as EESC papers.

 

The first Report on e-procurement based on the European Commission (EC) consultation taking the form of a Green Paper which seeks the views of interested parties on how the EU can help Member States to speed up and facilitate the procurement process. E-procurement refers to the use of electronic communication and transaction processing by government institutions and other public sector organisations when buying supplies and services or tendering public works.

In his paper Mr Farrugia makes a number of conclusions and recommendations to the  EC. Implementation of an inter-European e-procurement framework  is a cornerstone for the proper functioning of commerce within the internal market given the importance of public procurement vis-à-vis the GDP of each Member State.

The approach whereby every Member State adopted its own time-frame vis-à-vis e-procurement implementation failed to meet the desired results and instead led to further distancing from the desired objective of an agreed unified system. It is now of paramount importance for the EC to adopt strong and effective leadership to achieve an integrated, inter-operable, and business/technology standardised e-procurement framework across Member States. This would ensure that while no activity by any individual Member State is affected that further endangers the achievement of the desirable target, action is actually implemented that furthers the implementation process over an agreed time-frame of an approved cohesion approach.

All calls for public procurement in Member States – below as well as above the threshold – are published in the portal of the national contracting authority. SMEs would be assisted either through direct capacity building initiatives, setting up of e‑procurement Facilitating Support Centres by national, regional contracting authorities or constituted bodies representing SMEs through national and EU financing – to ensure that SMEs and micro-enterprises embrace and leverage e‑procurement.

Following unanimous approval by the section this paper yesterday achieved formal approval when it went straight to the vote.

The second paper adopted concerned the EC Communication which outlines the most serious tax problems that EU citizens face in cross-border situations and announces plans for solutions. When individuals move or work or invest abroad, they can encounter double taxation and other difficulties such as in claiming tax refunds and in obtaining information on foreign tax rules.

In the paper the EESC makes a number of important recommendations:

· the establishment of one-stop shop services whereby citizens can acquire information, pay taxes and receive the necessary certificates and documentation to be used across the entire EU;

· the simplification of administrative procedures applied to cross-border situations to be undertaken on bi-lateral and multi-lateral bases across Member States, including inter alia the removal of double taxation and the utilisation of administrative instruments to ensure the seamless operation of the numerous existing double taxation agreements;

· the provision of advance tax rulings giving information on the final tax liability outcome which is specifically tailored to the individual taxpayer;

· the setting-up of a Cross-Border Taxation Observatory exercise under the auspices of the European Commission to gain, on an on-going basis, a detailed and practical understanding of existing tax barriers and their evolution

· the efficient undertaking of tax procedures in cross-border situations should not be put down on the individual citizen, but that there should be proper mechanisms in place to ensure that the operating procedures are simple and clear enough for the citizen to be able to cope with. While recognising the valid contribution made by available facilities for citizens to report tax obstacles, the effort of policy to remove such obstacles should progress beyond this.

The taxation paper  receive 74 votes in favour, 0 against and  abstentions.

It is an outright lie that Green MT is responsible in any way for the current penalties being placed by MEPA, the Competent Authority, on producers/importers who have not complied with Waste Packaging Regulations, legally binding since 2006.

 

MEPA was fully aware that in 2006 alone, 1700 producers registered with the same Authority as producers of Packaging Waste in the market. At the time they stated that these 1700 producers place 60,000 tons of packaging waste on the market. However despite registering with MEPA, only a handful went any further and registered as members of Authorised Waste Packaging Compliance Schemes.

It was only recently that MEPA decided, based on the figures that it had in hand, that those who did not comply to the legislation, should not only be made further aware, but also set up a penalty procedure for those who continue to be free riders, by not joining an Authorised Waste Compliance Scheme following registration with MEPA.

Let us be very blunt. An importer is responsible for placing his packaging waste in the market. It is not only a legal obligation but also a moral one. Those who think otherwise are guided wrongly. At GRTU we have been insisting with all sectors of the business community that the responsability and the legal obligations are both there. We have not only stressed this, but have worked hard to make sure that importers and producers both register with the Competent Authority and also join Authorised Waste Packaging Schemes.

And yes we are proud to state that Green MT has the largest amount of producers registered today, over 1000 who declare that they together place over 16,000 tons of packaging waste in the market. This is the tip of the iceberg. Green pak have also increased their membership base and their respective volume of tonnage placed on the market by their members. However when one adds the volumes of both Schemes, the figure currently does not exceed 30,000 tons. So somewhere out there, producers and importers are placing a further 60,000 tons of packaging waste which is neither reported or registered with the Competent Authority, MEPA, and thus neither contributing in any way to the financial burdens of the system. It is estimated that 90,000 tons will be placed in the market in 2011.

Of course, MEPA stood up to be counted. Someone might say it was quite late in the day, but better late then never. And yes some producers were strictly let off scott free for the years 2006 to 2009! Just a €50 penalty per year for not complying. For 2010 MEPA decided to charge a €100 per ton for any packaging placed in the market as an administrative penalty for non compliance.

For those who registered after May 2nd 2011, this penalty applies. For those who are registering with MEPA and a Scheme as from July 01, 2011, a penalty of Euro 120 per ton is in place. And yes, this penalty will continue to increase until MEPA decides it is fair and reasonable for all producers to come on board.

The message is loud and clear, comply now and respect your obligations to the Environment. If a producer is caught as a free rider six years down the line from now, he will be liable of administrative penalties back to 2006.

On another perspective to these penalties, GRTU is perplexed by those who should know better. And even more perplexed when we realise that a member of Parliament who of course has a right to own a business, continues to blatantly state that he is paying the salary of Green mt staff, because MEPA imposed penalties for his non compliance to the legislation since 2006. It is disgraceful, to say the least, that a prominent member of Parliament has the audacity to literally phone the Scheme and state such words.  

The members of the highest institution in the country have a responsability to shoulder. They should shoulder it without fail and not be the prime movers of insinuations of the sort.

The legal and moral obligations in respect to Waste Packaging Legislation is here to stay. GRTU is proud that through its subsidiary, Green mt, this responsability is being shouldered for the good of both the members of the Scheme and also the community in general, on a not for profit basis.

Taking care of our environment is not only our responsability, but also the responsability of each and every member of Parliament too. Let those who have ears listen!

GRTU is one National Organization that does its utmost to safeguard the environment. GRTU strives to educate its own members to look forward to a future where we as a country are on the forefront of environmental protection. It is easy for arm-chair critics to discuss and condemn. It is however much harder to organize and implement. When the Packaging Waste issue arose many wrote and proposed. But it was GRTU that organized its members to set up their own National Compliance Scheme and handle members' packaging waste.

This entails a massive organization to collect all packaging waste from the kerb-sides everywhere, process the material collected and manage 400 bring-in-sites with a total of more than 1,200 skips. In spite of all the criticism, mostly grossly unfair, especially from those who for the environment have never done anything other than talk, the GRTU Waste Management Compliance Scheme – Green MT, is a great success. Membership now surpassed 1,000 members. 1,040 to be exact. Yes, more than one thousand businesses who believe in Green MT enough to trust us with their obligations at Law and to pay Green MT for the services it renders.

The same goes for 41 Local Councils who authorize Green MT to collect all the recyclable waste collection and management in their Locality.

Green MT is now steadily building its Waste of Electronics and Electrical Equipment (WEEE) Waste Compliance Scheme. GRTU and Green MT are also working on other waste streams. Ideally we are to be the one-stop shop for all waste streams generated by the Maltese businesses.

GRTU was also instrumental so that Malta together with Ireland where the first EU Member States  to ban smoking in Public Places and bid addio to plastic bags. EU tourists and others who visit Malta are astounded at the level of compliance reached in Malta on the cigarette smoking ban and on the abolition of plastic bags. Yet few recognize that behind those environmental successes there is one name: GRTU

GRTU is now looking forward to the future. As stated elsewhere we stood shoulder to shoulder with the promoters of the New National Bus System as we strongly believe it is good for us and good for the entire environment.

GRTU is determined on the new energy support schemes like the photo-voltaic support scheme. We are also working on the other scheme like the motor-vehicle renewal scheme of the clear air schemes. We work while others talk. We act while others just criticize. We lead when others hamper.   

Green mt  has presented awards in respect to recycling collections from Sliema Schools organised by the Sliema Local Council.  Schools in Sliema from Mid March to end May 2011 made sure that their students separated waste , and material fractions from the said Schools were recovered and weighed by Green mt contractors.

 

St Patrick s  Schhol recovered 5.7kg per student in the period , whilst second placed New Ark Junior School reached a recovery of 2.9kg per student and third placed Sliema Primary School recovered 2.5kg per student.

During the presentation of awards held last Tuesday 28th June at the Sliema Local Council, Students and headmasters of all Schools were present for the occassion. Green mt Chairman mr Vince Farrugia who presented the awards to the winning schools emphasized the fact that students in every school were to be tomorrow  Joanna Gonzi , Sliema Mayor, expressed satisfaction that today's students are proud to separate their waste and accordingly help to make waste a resource. Dr Gonzi thanked green mt for their commitment not only to the Sliema Schools Initiative , but encouraged further initiatives at sectorial level within the community, from businesses to Associations within the Locality.

Present for the Awards presentation were also Sliema Local Council Officials and also Green mt officials.

All Schools participating were presented with a Participation Certificate.

Green Paper on expanding the use of e-Procurement in the EU – The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion as prepared by Rapporteur Vince Farrugia on 23^rd June 2011. The opinion recommends as follows:

 

implementation of an inter-European e-procurement framework is a cornerstone for the proper functioning of commerce within the internal market given the importance of public procurement vis-à-vis the GDP of each Member State; and

deployment of e-procurement up to local public administration level is to be considered as an important policy instrument as e-procurement:

reduces cost for business and public administration;

results in a streamlined procurement process, particularly if e-procurement instruments such as e-Auction and Dynamic Purchasing are selected leading to faster decision making;

results in greater transparency and reduces real and perceived malfeasance in procurement;

is a vehicle to the further attainment of an information society.

3) A review of the e-procurement framework cannot be carried out independently of a review of the legal framework for public procurement. e-Procurement is a channel that enables public procurement policy to be carried out more efficiently, effectively and economically. It is important that there is cohesion and a joint-up approach is adopted in this regard.

4) The implementation of e-procurement across Member States has not met expectations set out in the 2004 Action Plan. Be that as it may. It must be recognised that best practice examples exist. One such best practice is the holistic implementation approach to e-procurement adopted by Portugal – which merits commendation.

5) The multi-pronged approach whereby every Member State adopted its own time-frame vis-à-vis e-procurement implementation failed to meet the desired results and instead led to further distancing from the desired objective of an agreed unified system. The EESC recommends that it is now of paramount importance for the EC through the Directorate for Internal Markets and Services together with the Directorate for the Information Society to adopt strong and effective leadership (similar to that adopted with the e-Europe Agenda) to achieve an integrated, inter-operable, and business/technology standardised e-procurement framework across Member States. This would ensure that while no activity by any individual Member State is taken that further endangers the achievement of the desirable target, action is actually implemented that furthers the implementation over an agreed time-frame of an approved cohesion approach.

6)The EC, in stewarding e-procurement implementation, should encourage Member States to seek innovative solutions to overcome business procedures and language issues.

7) The Commission, in tandem with assuming a leadership role, should act as a ''champion'' by adopting e-procurement across its institutions.

8) A reinforcement of the importance of e-procurement as a vehicle to spur pan-European commerce within the internal market. Business processes and technology should spur commerce in the internal market rather than by design act as trade barriers.

9) Small and Medium Enterprises (SMEs) are the backbone of entrepreneurship in the EU. It is imperative that the work resulting from the review of the public procurement and the e-procurement frameworks respectively is directed to unleash SMEs' ability to compete in an e-procurement environment. It is therefore recommended that:

all calls for public procurement in Member States – below as well as above the threshold – are published in the portal of the national contracting authority;

SMEs are assisted either through direct capacity building initiatives, setting up of support centres by national, regional contracting authorities or constituted bodies representing SMEs through national and EU financing – to ensure that SMEs embrace and leverage e‑procurement.

10) E-procurement architecture should be interoperable and based on open standards and open source software.

Is it viable? That is the big question that the EU Evaluators will be asking in the coming few weeks. Many speak and pronounce. It is all nicely said. Air Malta is vital for us as an Island State. If we really are to enjoy our freedom of movement as Europeans within the Union. Air Malta is essential for us. Air Malta is essential for our Tourism, for our Financial Services, for our Commerce, for our Industry, for our Services: all major contributors to Malta's GDP.

 

But for the adjudicators what matters are facts and figures. What really matters is what leads to the bottom line on the Air Malta Accounts Stories and emotions don't count unless they can be translated in figures that can appear as items on the accounts.

Government's task is very hard. If they can back up their arguments with money figures then they have to give the money to Air Malta to become part of the accounts of the company. The point is that if they do that they will be blocked by the EU. That will be considered as nothing but direct State-aid. This as we all know is prohibited under EU Rules.

A reduction of expenses is not easy either. The standards of approved services are what they are and Air Malta cannot simply operate cheaply. Reductions can be affected and even drastically but there is a limit as operability cannot be achieved if an airline falls below a viable size. And again here there is a lot of loose talk as to what can be done with excess labour.  Is it possible for workers of a commercial company to be offered alternative jobs in the Public Sector with the tax-payer's expense? Is this not State-aid? What reply does Government have if confronted by a similar request by workers who lose their job from privately owned companies. Again there is a lot of loose talk about early retirement schemes. It is not so easy here either.

The Malta Pensions Balance Sheet, to put it this way, is in the red. Government knew since 2000 that by 2011 the Pensions Account will be in deficit. Yet Government let it go in the red. Now they want to over-load an already serious deficit with additional burdens. The EU Commission in its analysis of the Budget and Consolidation Plan proposals presented by the Maltese Government for 2011 under the new Budget Deficit Surveillance Plan of the EU has already shown the Red Light to Malta on the introduction of any new early retirement scheme – they are banned.

Yes, the situation is bleak. The truth is not out yet. The tax payer is not being told the truth. Salvation may be the form of a serious Strategic Partner who is willing to take over the responsibility and guarantees of financial viability of Air Malta. This really means that someone powerful and capable enough to carry the trust of the EU Commission need to come forward and accept liability for the future viability of a restructured Air Malta. And it cannot be the Government or any other company invented by the Malta Government to carry the debt burdens of Air Malta. And it is not a question either of a re-scheduling of Air Malta' debts. It is though and much tougher than most people, even those who ought to know better, preferred to say.

The Government is the state of Malta and cannot guarantee viability. The Government of Malta does not have a hold on the market and cannot guarantee anything. It is only a reliable strategic partner of note and of great credibility that can issue acceptable guarantees to back up any viable plan that can be professionally evaluated as viable. And Industrial strives and irresponsible behavior will not help solve matters. Greece has given us all a great lesson; when things go bad strife will only make it worse. The solutions so far mentioned smell of subsidies and further debts. They all sound like additional, if not permanent, subsidies from tax-payers' money. This is exactly what the EU will not accept. Not because they are hard on us but because they are our guardians too.

The full truth is not yet all out. The sooner we all know it all, the better.

Xavier's last message: "As I am leaving Euro Commerce, I would like to warmly thank you for the dedicated support you gave me as CEO of Euro Commerce over the past 10 years.Over the last 10 years, we have managed at Euro Commerce to meet most of the objectives that were set for us. The image of Euro Commerce has greatly improved and it is a fact that Euro Commerce is nowadays regularly consulted by EU Institutions as the voice of commerce on a wide range of issues affecting the sector.

 

Over the past 10 years, many organisations have joined Euro Commerce and we have doubled the number of direct company members. We have worked hard to keep the balance between the interests of the components of the sector -retail, wholesale, international trade sectors, large and small companies. I am particularly proud to have been part of this evolution.

I am grateful to have had the opportunity to work with fabulous people in outstanding organisations. Your valuable contributions, the constructive cooperation that we were able to achieve as well as your respect and support for the work of the management and the team were key to make Euro Commerce a well established and recognised organisation in Brussels present on all issues -both technical and political- of relevance to the commerce sector.

To all of you I wish to say a big thank you.  I will go back to the issues on which I worked before joining Euro Commerce: the turnaround of companies and venture capital. I will also pursue the fight against Visa and Mastercard interchange fees, but this time by helping national members to get the full benefit of the Brussels decisions for domestic cards transactions.

If you wish to contact me in the future, my new e-mail is

One final comment: I wish to pay a special tribute to my colleagues at EuroCommerce: they are an incredibly talented and dedicated team – our sector is lucky to have them. No doubt that under Christian's leadership, they will reach – with your help – new heights.

My best wishes to them, to you and to Euro Commerce."

Parliamentary Secretaries Jason Azzopardi and Mario De Marco should have never imposed on retailers what for GRTU is unacceptable: penalties and threats of loss of business license, not for any illicit trading (the country is full of it!) but for servicing customers at an hour when most people are out relaxing after a day's work.

 

Confectioneries and other food stores in many localities in Malta served the public late in the evening selling food items, bread, wine and beer and all of those items consumers usually need to take with them to a BBQ, for a party or for home consumption. These shops sell hampers in Christmastime and on other occasions. During Festa days in the town or village these shops put out tables and help the locality make merry. Under the category of confectioneries, other sellers come in like pastizzeriji, kiosks and take-aways. All self-employed persons earning a living for themselves, their families and their employees. These are people who  do not register to receive state moneys, pay their licenses and go about their business without much fuss and grumble.

The old Trading Licences Act did not allow them really all the freedom they practiced but in practice customers in Marsascala, Valletta, Sliema, St Julians, San Gwann, Iklin, Saint Paul's Bay, Qormi, Fgura, Marsalforn, Xlendi and practically all over Malta and Gozo throughout the whole year and in summer especially, could shop food and alcohol drinks without anyone going to check what has been purchased or what the shop owner sold and the reason is obvious: this is NOT Saudi Arabia. No one in Malta searches the person to see if any alcohol has been bought.

But now Mario Demarco and Jason Azzopardi, one operating from the Office of the Prime Minister and the other from the Ministry of Finance, came in mid-2011 and imposed this Law. It is puritanism version 2011. No retailer can sell to someone a bottle of wine or beer after 9pm and if the retailer dares meet the consumer's demand he will have his shop shut by the Police and have his License suspended for six months on first fault and permanently on the second. Plus he will also get incredible hefty fines. It is tragic. Imagine if it were a simple labourer, an employee member of a workers union. Try denying anyone his living. But it's ok if he's a self-employed. For these it is ok! They are only self-employed after all!

What nonsense says GRTU. This bit of absolute nonsense now has to go to Parliament. GRTU is sending the message to all MP'S very clearly! Those who vote in favour of this attack on retailers will be Named and Shamed at Election time by GRTU.

GRTU will issue specific directives to all self-employed and business owners not to vote for these candidates who say yes to this act. For GRTU they would have declared themselves as enemies of retailers and self-employed.

In 2011, GRTU will not allow this type of legislation to go through as if nothing matters. This proposed Law is preposterous. It is regressive and absolutely unacceptable. It sends us tumbling back to years now deeply buried.

It is a Law that hits like a bullet straight at GRTU's heart. WE WILL NOT HAVE IT.

GRTU Malta Chamber of SMEs warmly welcomes Arriva. We wish Arriva all the very best. GRTU has from the very beginning of the whole Public Transport Reform Programme been grossly enthusiastic and we have consistently given our support to Minister Austin Gatt the man behind the Reform. Indeed probably if it weren't for Austin Gatt we would not have believed that this B-Day would ever come. Austin Gatt is a mover. We felt from close range his enthusiasm for this project. This is a project which is the life-blood for all retailers in major commercial sectors and GRTU could not stay on the way-side.

 

GRTU through the Director General Vince Farrugia drew from the very start a position so at GRTU we all knew where we had to go and what we had to achieve.

First we identified the options; Government had either to:

1) Nationalize what was eventually a private monopoly

OR

2) Issue the whole National bus system or public tender for all contractors to provide all the services and to manage the whole system

  OR

  3) Liberalize the market to different operators so that they could enter the market and compete

The consultation in which GRTU took a very active part, led to the decision that the best option was a tender to appoint one professional private company.

GRTU's next major involvement was to ensure that Bus Owners who were all private self-employed entrepreneurs received enough options to join the new system or else being adequately compensate. Maltese Bus owners had their own independent association but GRTU as the National Organisation representing the self-employed was eager to give all its support to the Bus Owners Association.

The Bus Owners of Gozo are all members of GRTU so GRTU was also directly involved in the negotiations. It is hard for a self-employed to give up his business for whatever the price. For a self-employed his business is his life.

A bureaucrat can never appreciate this. But we daily walk with the skin of the self-employed and we feel what they feel. For Gozo Owners GRTU got an excellent deal: they got the compensation for losing the Public bussing contract, but they retained the bus which they could use as licensees to operate the unscheduled bus service in Gozo and this private bussing service license is valid for both Malta & Gozo. The Maltese Bus Owners got only the money compensation and a first option on jobs with the new sevice.

The next big step for GRTU was to ensure that the New Bus Network covered adequately all Commercial centres. GRTU strongly believed that the cost of the private car for each household is too high as a ratio of a family's budget and that most families given an effective Public Transport System would switch to more bus use. Valletta shopping is already 70% dependent on bussing. This will be a rule for most commercial retailers soon. So GRTU joined the discussion and consultation practically on all locations defending the interests of retailers and service providers.

Sunday July 3 is B-Day. We are satisfied with most of what Arriva is offering and we are confident it will improve. Our trust is also in the man who worked most to get the whole project through Manuel Delia. Manuel is a formidable person; hard but very capable and also a good listener.

We argued and spend hours of discussion and reams of paper in correspondence. But we say it loud and clear – if only there were others like Manuel Delia's in the public sector. Thank You Manuel.

Congratulations to all. Let's keep working to get it better