Category: Archive – 2011

The GRTU's Tourism Hospitality and Leisure Division has successfully negotiated with the Malta Tourism Authority a reduction in the bank guarantee requirement for commercial establishments having a permit for outdoor tables and chairs.

 

Following lengthy talks over the past months, the MTA has agreed to reduce the rate per square metre for a bank guarantee in favour of the MTA, which licensees of establishments holding an outdoor concession permit for tables and chairs had to procure.

The rate, which was originally imposed at a hefty €250 per square metre of concession space, has now been reduced to a reasonable rate of €50 per square metres. Consequently the bank guarantee which needs to be procured by licensees holding such a concession will be calculated at the rate of €50 per square metre of outdoor concession area occupied by an establishment's tables and chairs.

In a statement, Philip Fenech, President of the GRTU's Tourism Hospitality and Leisure Division, explained how this reduction will alleviate the additional financial pressures of having a substantial part of their liquidity held up in a bank guarantee. The scope of the bank guarantee which was imposed by the MTA is designated to offer a security against the payment of any breaches by licensees of their obligations arising from their concession permit. This imposition was introduced following several abuses by licensees who went beyond the parameters of their concession. Mr. Fenech reiterated that the MTA is still overtly secured at the reduced rate of €50 per square metre; and the previous exorbitant rate was simply prejudicing a licensee's liquidity unnecessarily.

For further details related to this issue kindly contact Mr Philip Fenech – Deputy President & Vice President Hospitality & Leisure on 99493534

GRTU welcomes the European Commission's new Transport Policy White Paper published on 28th March as a good first step towards a resource efficient, integrated transport system. The private sector supports the use of new technologies, the development of adequate infrastructures and the emergence of reliable multinational operators active in multiple modes of transport.

 

 

 

 

 

 

 

 

For commerce, the efficient delivery of goods is of utmost importance. We strive to use the most cost efficient modes of transport which offer reliability, quality and flexibility. Where these needs are met.

GRTU fully supports more efficient freight transport on both long distance and ‘last mile', but the fact must be recognized that there is no alternative to road transport for the last mile. The transport system in urban areas must reflect this reality: there is no alternative to road transport in assuring deliveries to the many small shops that make our city centres alive and vibrant.

GRTU is also concerned that road transport is seen as a never ending source of finance for future transport investments and for maintenance. The commerce sector is willing to pay for more efficient and sustainable transport. But we have serious concerns about the ongoing discussion on the Eurovignette and road pricing and the White Paper's long list of initiatives which need financing (investments, new vehicles, training of staff, restrictions etc.). We fear that the commerce sector will end up effectively paying a tax on distribution in urban areas. This is not good for city centres, competition or consumers.

Unless an agreement is reached with Government Authorities in respect to excess of Packaging Waste recovered by Schemes in 2010, then the recovery of separated waste will stop with immediate effect. A meeting is being held for all contractors operating in 41 Local Councils in Malta and Gozo, tomorrow Saturday 9th April to discuss this matter and related decisions are be taken. Most contractors have pending payments in 2010 and these can only be settled if the excess tonnage recovered by Schemes is sold to non current members of Authorised Waste Packaging Schemes.

 

Green MT, GRTU's fully owned subsidiary, has over the last six months written to those concerned with this issue, including The Prime Minister Dr Lawrence Gonzi. Just because Government is no longer responsible through Waste serv to recover the Grey Bag from all these localities, does not mean that unsustainable operations can continue as long as it is the private sector being burdened by these responsabilities.

MEPA, the Competent Authority responsible to make sure that enough enforcement is made so that producers of packaging are members of Authorised Schemes has not effectively stood its ground. Only 1700 producers are registered with MEPA and only 670 are today paying to Schemes. So over 1000 still need to pay up for their obligations in 2010 and also over 2300 still need to register both with MEPA and also with a Scheme and become a paying member.

There is no more time. Contractors will not work any more without getting paid for their services. Although a solution is visible we need to make sure that it is effectively put in place in the shortest time possible. It is no longer acceptable that an importer of shoes is a paying member to a Scheme and another equally responsible under law shoe importer, is not. This country needs a fair and level playing field in all business sectors.

GRTU has from the very begining emphasised this situation. The length of time taken to decide has taken its toll on all operating contractors. Whilst Government wakes up and decides to increase fuels on a monthly basis, then it takes ages to decide on other matters which month after month continue to provide a sheer burden to these operators. This must stop.

Those who have the remit to decide, mostly politicians, should decide or else move on to more subtle quarters. Some jobs are unfortunately what they are. Some decisions are not always met with clapping hands and this is one of them. Those who are not ready to decide should then choose other jobs.

Later today a meeting is being held to enter into the technicalities of a solution to this issue. There should not be any corners. No delays in implementing towards a level playing field. Contractors meet tomorrow and in the absence of a concrete deal with Government Authroities on this issue, they will stand up to be counted. If there is no agreement, then tomorrow's meeting will give a 48 hour notice of industrial action.

We are of course aware that we are not far away. A solution is not out of this world. We must make sure once and for all that Schemes in this sector work according to European extended polluter pays principle under sustainability too.

Local Councils account for over 75% of our recovery targets. They are a financial burden to Schemes. There are a large part of our expense. The demands by the communities are extensive, and rightly so. They do their best to obtain from Schemes what they cannot finance on their own. We find no objection to such requests as long as Govern holds to its commitments too. Government  had in the past committed itself with the Association of Local Councils that if an Authorised Scheme falters in  its operations, then the Government through Waste serv will take over once again. We are not going in that diection. That direction is now a part of history. If Government takes us there, we will stand up to be counted at the European Commission level. We will leave no stone unturned to tell Europe the truth about waste separation in Malta.

Once again we feel we are very close to a mechanism that will set the ball rolling towards sustainable operations and also creating a fairer level playing field in all sectors of the economy.

Lets work together to avoid a mini Naples next week!

GRTU is extremely pleased the European Commission has confirmed that anti-dumping duties on Chinese and Vietnamese footwear imports to terminate by end March 2011.

 

 

 

 

 

The currently applied antidumping duties on footwear with leather uppers from China and Vietnam are set to expire at the end of March 2011. This information is officially confirmed by a notice of impending expiry published by the Commission in the EU Official Journal.

The expiry of these antidumping duties coincides with a Commission announcement to monitor for one year the evolution of the relevant imports of footwear (from China, Vietnam and Macao), "with a view to facilitate swift appropriate action should the situation so require".

Reportedly, the Commission had to concede the one-year monitoring in order to facilitate the European shoes manufacturers' decision to withdraw their request for further extension of the duties.

 

A common tax base could dramatically reduce compliance costs for small companies operating cross-border in the EU. However, the plans for a common consolidated corporate tax base (CCCTB) unveiled by the European Commission are too complex and not in line with the needs of SMEs. GRTU's Brussels representatives urged the Commission to provide a small business friendly version of the CCCTB. The organisation also raised doubts on the CCCTB being optional. This would add a 28th tax system to the 27 existing ones, complicate the status quo, oblige Member States to run two systems at the same time and create an extra opportunity for "tax engineering".

 

Compliance costs for small businesses taxed in more than one Member State can be as high as 2.5% of turnover, as opposed to a mere 0.02% for larger corporations. We are in favour of a Europe-wide tax base, which would dramatically reduce costs and remove an obstacle to more intra-EU trade for SMEs.

While the Commission must be praised for putting the CCCTB proposal on the table, the communication is extremely complicated and was clearly not written with small companies in mind. We doubt that the text as it stands will bring about concrete advantages for SMEs, unless a simplified version for smaller enterprises is provided.

Leaving the application of the common tax base as an option would mean adding a 28th system to Europe's 27 diverse and inconsistent tax regimes. Member States would have to run two systems in parallel, with a different tax base and possibly different tax rates. On the other hand, optionality would also create an extra opportunity to practice „tax engineering‟. It is hard to see how this could improve the current situation, especially as far as SMEs are concerned.

The Single Market has undoubtedly brought widespread benefits to Europe. We have seen greater clarity in trading conditions across the continent, leading to a reduction in costs for both businesses and consumers. However, despite this success there have been a number of challenges to the prosperity of the Single Market. A rapidly changing global environment compounded by the financial and economic crisis has demanded a comprehensive response. The European Economic and Social Committee (EESC), the EU body representing organised civil society, remains a crucial partner in formulating this response.

 

Consultation and dialogue with civil society is a priority in the preparation and implementation of new measures. The European Economic and Social Committee was the first EU body to formally respond to the Single Market Act from Commissioner Barnier. This demonstrates how civil society can react swiftly, whilst consulting with all of its components from the earliest stage in the search for a real consensus.

The Single Market Act is only the start of a long term process to revive the Single Market. The EESC has identified a number of measures that are missing in the Single Market Act covering issues such as copyright levies, data protection, investor protection, the social progress protocol, European private company statutes, e-procurement, European credit rating agencies, micro- and family businesses, credit and debit cards, e-payments, consumer credit and over-indebtedness, interbank transfers and others. It will make proposals in due course and issue detailed positions when the European Commission proposals emerge, including evaluating proposals related to the EU 2020 flagship initiatives. The EESC insists on the need for a holistic approach that goes beyond the artificial division of the Single Market Act into three pillars. The Committee aims at remedying the eclectic nature of the proposals by suggesting more coherence and mutual interdependence of individual measures. The proposals are complementary in that they interact with one another and impact on society at large: workers, consumers, businesses and citizens alike. There is no specific Single Market for each of these categories.

Monitoring, managing and enforcing Single Market legislation is crucial. To achieve this, the European Commission should cooperate closely with Member States through better use of the Single Market Scoreboard.

Whilst being aware of missing policies in the Commission package, the Committee has focused on the following bundles of measures – these clusters being the result of the interdependence between the individual proposals – that are seen as clear priorities:

The Charter of Fundamental Rights as an integral part of the Single Market (29);

Services (4, 40 and 43);

Retail financial services (41);

Services of General Interest – SGI (25);

Sustainable development (10, 11 and 27);

Small and medium-sized enterprises and other legal forms of entrepreneurship (12, 13 and 14);

Competitiveness (19, 20 and 21);

Standardisation (6);

Digital Single Market (2, 5 and 22);

Corporate Governance and workers involvement (36, 37, 38);

Free movement of workers and the economic freedoms (30);

Public Procurement Legislation (17);

External dimension (24);

Access to justice/collective redress (46).

Open communication on the added value and challenges is of paramount importance in order to gain public support. It is important to take into account the reality on the ground and the real concerns of citizens. The input of organised civil society is indispensable as well as the involvement of national governments that have to take into consideration that the Single Market is an integral part of our domestic economies. Political parties, the media, educational institutions and all other stakeholders have a historical responsibility in relation to the EU being able to successfully cope with the challenges of the global world based on the values that so far have characterised our social market economies. The world will not wait for us. Europe's fragmentation, protectionism, nationalism and lack of vision will not allow us to compete with the new global powers.

This is an official article issued by the EESC in occasion of the adoption of the EESC Opinion on the Single Market Act. GRTU's Director General Vincent Farrugia is an EESC Group I member.

People should pay more to travel in future, according to a European Commission paper intended to pave the way to a greener and more competitive transport sector. The Commission's transport white paper, scheduled for publication on 28 March, is meant to steer policy for the next decade and put transport on a path to reduce its carbon footprint.

 

In the latest draft of the paper the Commission signals that it wants to end exemptions on value-added tax and energy tax for aviation and shipping, as well as removing tax breaks for company cars. Current transport taxes pose "conflicting incentives" with attempts to reduce noise, congestion and pollution, the paper states.

"Transport taxation should become more rational," said a senior Commission official, adding: "We don't think it is likely that transport can continue to be funded through general taxation to the same extent."

Greater use of the ‘polluter pays principle' is also intended to help reduce transport's carbon footprint. The Commission is aiming to cut emissions from transport by 60% by 2050, a target that the transport department agreed in advance with the climate-action department to avoid damaging rows during the internal consultation. Transport is the only part of the economy where emissions have increased since 1990.

Benchmarks

The paper sets out ten "benchmarks" for reversing this trend, including a 40% drop in emissions from shipping by 2050, seeing goods going by rail or water for distances greater than 300 kilometres, and most passenger journeys of around 300 kilometres being made by rail rather than air. The paper also envisages that petrol-powered cars should disappear from cities by 2050 and replaced by carbon-free vehicles.

A senior Commission official confirmed that the Commission's modelling was based on getting to an 80% economy-wide reduction by 2050. But the official rejected the charge that this was bad faith on the 95% target. "I don't think that is fair… For the next ten years, the things we would be doing are exactly the same." However, he also said that a higher target for cutting transport's emissions would mean faster phasing-out of fossil fuels.

GRTU's Director General Vincent Farrugia and also EESC member and rapporteur on the EESC Opinion on the Effective Enforcement  of Budgetary Surveillance in the Euro Area met this week Ms Sylvie Goulard, MEP, at the European Parliament as rapporteur on the same Commission Communication but at the European Parliament.

 

During the meeting Mr Farrugia and Ms Goulard discussed both their reports and tried to find common ground, this would be desirable due to the high importance of the subject .

The Proposal forms part of a package of 6 legislative proposals aimed at strengthening economic governance in the EU – and more specifically in the euro area – as part of the EU's response to the challenges highlighted by recent turmoil on sovereign debt markets. The European Council of 24-25 March 2011 noted that the 6 pack of legislative proposals on economic governance is key to ensuring enhanced fiscal discipline and avoiding excessive macroeconomic imbalances. The 6-pack forms part of a wider comprehensive package of measures adopted by the European Council which should allow us to turn the corner of the financial crisis and continue our path towards sustainable growth. This package will strengthen the economic governance of the European Union and ensure the lasting stability of the euro area as a whole. Within the new framework of the European semester, the European Council endorsed the priorities for fiscal consolidation and structural reform giving a clear orientation for the preparation of the next year's national budgets and reform plans.

The role of EESC is fundamental to ensuring that the Parliament takes the right decision as will effect all the countries in the Eurozone.

During a MEUSAC meeting this morning chaired by the Hon. Chris Said, The Hon. Tonio Borg, Deputy Prime Minister, explained at length what the Government's position is now, in the short term and the long term with respect to the ongoing Libya Crisis.

 

The meeting also discussed what impacts this crisis is having on Tourism, employment and Maltese business interests in Libya. GRTU reiterated its position regarding Maltese businesses and the difficulties they carry, namely that the Government of Malta should defer various payments due by companies active in Libya, namely, but not solely, payments on VAT, Inland Revenue, and if necessary Water and Electricity.

GRTU also encouraged the Government to engage the banks on behalf of those businesses who were involved in Libya. GRTU is informed that certain banks are giving such clients a very hard time, with unreasonable demands being made to pay back capital used for Libya operations.

GRTU also asked the Government to consider a guarantee scheme to give Maltese businesses involved in Libya some respite with certain banks. It has to be said that all banks, with one notable exception, were taking such extreme attitudes with Maltese businesses involved in Libya.

Both Dr. Borg and Dr. Said stated that Government was doing its utmost to tap any available funds the EU may have. This was a welcome departure from the flat "Nien" of Minister Tonio Borg on last Monday's Bondiplus programme. GRTU concluded that now that the Government has the whole picture, it should immediately see how it could help. GRTU again stressed that the Government has to get tough with the banks.