Category: Archive – 2015

The Opposition Spokesman for Local Councils and Whip of the PN Parliamentary Group has visited the GRTU Malta Chamber of SMEs offices in Valletta for a cordial meeting with Green MT in order to further understand its operation. He expressed that  stronger collaboration with GRTU and Green MT could lead towards providing an even better service for recycling and waste 

collection to residents. He stated that the next step forward is for Local Councils to work closer together for both recycled and mixed waste collection so that the service becomes more professional and effective whilst strengthening its viability.

Green MT Chairman Paul Abela and CEO Joe Attard outlined the current operations effected by Green MT in a substantial amount of Local Councils across Malta and Gozo. Issues discussed included the  current collection of grey bags from localities and issues relating to monthly glass collection and individual environmental initiatives taken by Green MT in individual localities such as St Julian’s and St Paul’s Bay.

At St Paul’s Bay Green MT caters for collection of carton and plastic from commercial entities daily. In the past this was undertaken in collaboration with the Local Council but recently this has become a fully-fledged Green MT operation. In the case of St Julian’s Green MT, together with the Local Council, has introduced a pilot project collecting glass from a designated amount of commercial outlets in the catering and hospitality sector. The amount of outlets using the service is expected to grow and the aim is therefore to ensure that such an entertainment hub does not dispose of any glass at the landfill through mixed waste. 

With regards to the implementation of the WEEE Directive, Joe Attard outlined that there are still a number of issues that need attention if Malta is to comply. Local Councils need to ascertain that Electrical and Electronic Equipment pertaining to WEEE is delivered to Authorised Facilities and not to scrap metal facilities as is still the case. The current bulky refuse collection system needs to be revamped to maintain a sustainable operation across Malta and Gozo and does not become an added burden to Local Councils due to the implementation of this waste stream directive. To this effect Joe Attard stated that Local Councils need more information in respect to waste stream directives currently in force under EU law. Green MT shall be holding a National Conference to disseminate further information to all Local Councils across Malta and Gozo.

Hon David Agius outlined the Opposition’s commitment towards more education, better service, cleaner environment and waste management. Whilst congratulating Green MT on its initiatives, he encouraged further dissemination of      environmental information at Local Council level. In addition he outlined that changes need to be effected in current waste management systems across Local Councils so that economies of scale are set in place and residents given an upgraded service.  Hon Agius further outlined that current allocation of funds to a number of Local Councils were not sufficient and it is high time that these are reviewed in respect to land-filling fees. The contribution of companies towards waste collection is a statement of the environmental credentials that Maltese and Gozitan businesses carry. Paul Abela emphasized that under the polluter-pays principle, everyone has to be responsible for the waste generated. To this effect both residents and the commercial community had to shoulder equal responsibilities to make sure that one does not have to pay for the other.

Hon Agius thanked Green MT for its operations at Local Council level and outlined his continued support to the operation whilst auguring that the WEEE implementation starting in September will have the least hiccups possible. Hon Agius continued by outlining that such meetings had to be held more often in the interest of the Local Councils and their residents. He concluded that residents, businesses and Local Councils have to work hand-in-hand whilst more education and information campaigns regarding collection times and related information would increase the positive commitment by all. This would lead towards   having cleaner localities and better service to residents. 

Green MT is a fully-owned subsidiary of GRTU, set up with the aim of aiding producer members and SMEs to comply with environmental legislation using the best technologies available at the lowest price. Green MT operates a Packaging Waste Compliance Scheme and has over 1100 registered members. For further information one can contact Green MT on 21496965/6.

GRTU was invited by NCFHE to discuss an Employee Skills Gap survey under a project which consists of three initiatives; a study on skills supply and demand in the Maltese labour market, a graduate tracer study, and training sessions for education providers on the implementation of Bologna Process tools.

NCFHE is requesting the assistance from employers’ associations to disseminate the survey to their members and support them in achieving a high response rate from all sectors of the economy and all types of companies.

The data collected through this research shall provide insights on the following;

1. Information on skills shortages in the labour market to facilitate decision making of policy makers and education providers, career guidance professionals as well as students and their families about areas of study and levels of qualifications sought in the    labour market

2. Provide important feedback to education providers on the knowledge, skills and competences required in different sectors of the economy in order to evaluate the relevance of the their study programmes to the labour market

3. Advise stakeholders on the needs of the labour market

4. Assess the impact of ongoing reforms of the education system in Malta

5. Provide a basis for future systematic and periodic employee skills gap surveys in Malta

NCFHE shall be holding focus groups with HR members from different organisations and sectors in order to build on further evidence for Employee Skills Gap. This survey should be distributed to all organisations by the end of September and a report with all findings would be available by April 2016.

Whilst acknowledging that a closer corporate taxation system at European level could support more coherence in terms of dealing with different tax regimes across the EU, GRTU’s understanding on the effects upon small and island economies such as Malta remain of major concern. Harmonisation in this field of policy along various fronts can lead to an understanding of having the possibility of a one-size-fits-all scenario, which across the realities and make-ups of the Member States’ economies within the EU, may be close to impossible unless it provides unfair advantages to the larger and higher-taxed jurisdictions.

There a number of concerns which effect Malta and its SMEs. In the first instance, such measures are assumed to benefit SMEs in bringing taxation regimes closer in perhaps a bid to make it more straight forward for the potentiality of specific SMEs to engage in business across EU Member State borders. Nevertheless one should firstly not assume that this is the only challenge for SMEs to engage in such cross-border business and moreso, it should not be entertained that not moving towards such policy direction is undermining SME interests in Malta in any way.

First of all, GRTU stands by the principle of subsidiarity and therefore where possible policy decisions should always be taken closer to home. This is a principle that also supports the concept of thinking small first, which allows SMEs and their respective representatives to influence the agenda closer to home. This implies the notion of fiscal sovereignty, which in terms of SME interests in Malta maintains that Malta as a Member State remains in control of its fiscal and taxation policy. This allows a micro-economy like ours to apply policy as would make best sense in terms of our national priorities and allows for adaption towards fiscal well-being in proportion to our small size and economy. Small economies need to retain and maximise their potential flexibility which is an advantage often weighed out by other cons of being of such small size and limited in resources. In turn this also allows for healthy tax competition across Member States. Initiatives driving towards a one-size-fits-all fiscal and taxation policy imply that we are also pushing towards no incentivisation of competitiveness in terms of tax regimes. This will allow a status quo and lack of initiative to re-invent taxation regimes for business  attractiveness – something which all SMEs across Europe would benefit from, but most of all which small island economies like Malta can adapt and renovate in, yet would be unable to if we go head-first towards this direction.

Conditionalities and optionalities still remain – and this is understandable in order not to allow rigidity of entrenched systems to be in one way or other undermining business potential and realities in any Member States. Yet, therefore if this road is to be taken, allowing optionality, one would be risking all the undermining factors for SMEs and related business whilst still providing an opt-out in cases of larger and stronger economies for specific cases which would en toto result detrimental to SMEs from smaller states. This optionality also provides a burdensome system for Maltese SMEs which are often smaller in size and setup than their European counterparts.It is also not guaranteed that any eventual sharing mechanisms based on the formulae proposed, would definitely result in fair and equitable results and may therefore favour the revenue towards larger Member States.

The clear argumentations of small economy setups vis-à-vis their larger counterparts and lack of adequate practical one-size-fits-all apparatus which would benefit all on an equal footing, show that before heading forth with such policy direction, one has to rethink the practical impact on all Member States and forms of entrepreneurial settings within each, prior to designing any such form of way forward.

GRTU welcomes a more concise version of the MQF  Referencing Report which makes it more practical and user-friendly.  There are a number of positive developments yet through a number of issues have also been flagged by GRTU members.

Maintaining the Descriptors for Levels 1-8

There has been widespread acceptance of the Level Descriptors from Levels 1 to 8 and courses have been transposed in terms of learning outcomes using the current level descriptors.

Introduction of Entry Levels A and B beneath Level 1

The introduction of Entry Levels is considered as a natural step for the framework to be more inclusive and provide recognition for more basic learning which would have occurred yet does not reach Level 1.

National Qualifications and Respective Credits (Levels 5 and 7)

Clarifying the different forms of qualifications at these two levels and their respective expected credits makes it clearer for everyone. Nevertheless one has to clarify what, if any, establishes a full level, as well as provide a better understanding of the derivation of how a specific qualification is pegged to a specific number of credits.

There needs to be more elaboration and consultation on this point in general.

Reducing Number of Minimum Contact Hours to 5 per credit

This reduction is envisaged to make it more straight-forward in terms of contact hours against the notional hours of one credit. One has to consider how this is going to courses which are already accredited with the previous minimum of 6.25hrs.

Nomenclature of Qualifications and Awards

This is envisaged to provide a clearer picture of what constitutes a qualification (full level) and an award which perhaps was previously more difficult to comprehend especially for persons who are not very much  acquainted with the MQF.

On the other hand, there is clear need of communicating with the general public, learner, workers and      employers about what these reflect as otherwise there will be misconceptions on the ground. The influence of nomenclatures from other European systems should also be taken into consideration.

Minimum Credits for Accreditation Decreased from 4 credits to 1 credit

This is also a positive initiative which gives value to shorter learning experiences which may be in effect of value to that particular individual and sector, which was previously being unaccounted and not accredited.    Without adequate awareness-raising, this may be intentionally or unintentionally, abused of.

ECTS/ECVET

Some thought needs to be given on how ECVET and ECTS are used in comparison to how these are used in other European countries. It is also necessary to consider what other credit systems (e.g. different number of hours) are mostly used in Malta and promote an understanding of this         nationally to ensure understanding.

Validation of Informal and Non-Formal Learning

Validation of Informal and Non-Formal Learning needs to be implemented in practice.

Quality Assurance

A lot of developments have been undertaken particularly by NCFHE in this field. QA implications have to however be discussed with training providers prior to changes. NCFHE itself has to be more transparent to instil confidence that a level-playing field is entertained, especially between public self-accrediting institutions and small private providers.

General Education

General Education levels are not given specific credits. This may be a positive decision as otherwise the number of hours undertaken during such learning would result in perhaps far greater hours (and thus credits) than that of credits to be reached for a qualification at these levels. Nevertheless one should also consider how other forms of qualifications at these levels can be compared to a full level in terms of credit.

Fees

A specific change that has been implemented during the period covered in this update is that licensing and accreditation is no longer free of charge. Accreditation and licensing fees that have been implemented, even without consultation and proper justification, are not even reflected in the resources at NCFHE and thus the efficient and timely service to operators. It may also cause unfair competition with public or self-accrediting institutions.

For the full version of feedback, for further information or suggestions, kindly contact GRTU on 21232881 or          .

GRTU has formally drawn the attention of the Information and Data Protection Commissioner’s Office regarding its concern on the basis of possible data protection and unfair competition regarding access to data entrusted to public authorities for specific purposes. It transpires that the private company Malta Public Transport Service Operations Limited (privately owned by Autobuses de Leon S.L. and Felipe Cosmen Menendez Castanedo) is being allowed a form of access to the National Idenitity Card Database and/or the Driving License Database.

This process is undertaken when an individual is applying online for a ‘Tal-Linja’ Card, upon consenting, to these      national databases. This may imply that the website which transpires to be operated by the said private    company has been given authorization to acquire data from these databases— something which other competing and/or non-competing businesses are not privy of.

GRTU has discussed this matter with the Information and Data Protection Commissioner’s Office whereby explanations and elaborations on the set of approvals and reasoning behind this occurrence have been discussed. GRTU has been informed that the go-ahead has been given to Transport Malta which has been the public authority that has requested this, and that the private company in question is only acting on behalf of the said authority. It has also been explained that a set of procedures have been set in place to, as much as possible, ensure that such data is not mishandled or abused of in any way. It has been explained that this particular case has been approved due to its nature and on a case-by-case scenario. This has been described as a necessity to ensure implementation of government policy as well as due to public transport efficiency being a matter of national interest. A number of conditions have also been set in place, such as the need to dispose of all data upon termination of engagement. It has also been emphasized that the end-user has to give one’s consent prior to allowing the access of said data.

Nevertheless, GRTU intends to follow this matter and raise its concerns formally with the relevant authorities responsible for fair competition, such as the MCCAA and its respective Ministry.

Despite the assurances given upon the data protection concerns, GRTU still considers this access to data as highly valuable and to which any such direct or indirect competitors cannot have similar access to. There may be other transport companies competing for the same possible clientele, such as for instance, chauffeur-driven cabs or minivan service, which may be interested in advertising targeted services to specific segments of society or to design similar bundle offers to their clients, but who may not have this similar allowance to access personal data from national databases even if consent is given. There may also be other business initiatives in other commercial sectors apart from transport which would benefit greatly from such possible access to data.

At the end of the day, in this particular case, there are private interests and commercial activity irrespective of the fact that the sector of operation is one described as related to government policy and national interest. GRTU shall continue to insist that the principles of fairness and equal access to opportunity are safeguarded.

GRTU is requesting the Government to take into consideration the business community of the area and not just the residents, in relation to the University that is being planned for the South of Malta.

The GRTU advises that any such project that involves the acquisition of areas of land through advantageous conditions should be subject to clear and stringent parameters on how the land should be utilized.

The GRTU expects that any dealings and contracts entered into for the setting up of this University do not provide for any possibility, in the near or long term, of using the acquired land for retail areas or shopping complexes.

It is being understood that the advantages related to land given to investors is strictly for the setting up of the university and not of using the area to derive commercial advantages through other uses. Malta has enough retail areas and shopping complexes and including retail investment in such a project will not only not bring any added value but will negatively effect businesses in the vicinity.

GRTU is making this observation because in a similar case, the land around the Malta International Airport was not only used for the airport and ancillary services but was also developed commercially to house offices and on a number of occasions developing the area into a shopping mall was also considered.

Therefore GRTU insists that any new revenue that will be generated through the University project should revitalize the South in its totality and this includes the business community of the area.

Increasing pension capping for business owners and self-employed amongst GRTU proposals for business-friendly pensions reform

A fairer capping for self-employed and business-owners

GRTU believes that a more realistic approach specifically addressing the self-employed and business owners is required. Our self-employed and business owners have not only contributed heftily in financial terms over the years, but are also the main drivers of economic development and job creation. Their contribution must be acknowledged and translated into the pension they have contributed for and deserve. The current system is unjust especially when considering that other sectors of society, such as former Members of Parliament, are treated differently with no maximum capping on their pension. This measure should not only ensure a fairer pension to this sector of society but also disincentivise under-claiming of income, upon which an individual is to be taxed.

A system which is sensitive to self-employed’s realities

A thorough reform needs to take into consideration the context of self-employed which, in GRTU’s opinion, requires specific measures to reflect their reality. On these lines GRTU proposes allowing self-employed persons to retire early for cases where they are close to their retirement age and their business is no longer feasible.  Another measure would be of exempting self-employed persons from having to stop working for one year when the opt-outoption is taken. 

Worthwhile incentives are necessary to push forward diversification efforts

Incentives and measures being put forward need to be financially viable if take-up is to be registered once implementation is transposed from paper into practice. Some of the incentives proposed in the reform may seem welcoming on paper but do not make financial sense for end-users. Recommendation 13 suggests opting to renounce pensions for a minor permanent increase. In practice however it would take too long to recuperate the renounced pension itself.

An effective measure that GRTU believes would really incentivise pensioners to remain active in the labour market is the reduction or removal of taxation on pensions for working pensioners, or removal of NI contributions.

In itself however, the drive towards highering the working age, whether through incentives or imposed, also comes with its concerns. These may include sector-sensitivity matters based on issues such as the extent of physical activity or health hazards this may pose on ageing persons; as well as issues related to productivity and career opportunities.

Holistic reform

A stronger overall reform is necessary to sustain first pillar pensions whilst incentivising diversification.

GRTU believes that a long-term approach is needed to start addressing seriously the sustainability of the pensions system in the context of its social importance along with its economic viability.  The change must be gradual however change to the status quo is necessary. Postponing will only make matters worse and make change more difficult and costly.

Last Friday Minister Edward Scicluna presented economic figures, projections and Government’s vision to the MCESD members.

The Minister said that the Budget is not a simple accounting exercise but it sets out the direction Government is aiming at. As such the pre-budget document is entitled ‘delivering our vision’.

The Minister said that competitiveness is one of the only parameter on which we have control and maintaining the competitiveness of our enterprises and higher level of productivity is key. This is something the Budget will be addressing.

In addition, the investment priorities of the Government were outlined:

Reforming institutions, employability through education, green economy, energy, health, Gozo and social inclusion.

GRTU CEO Abigail Psaila Mamo acknowledged the positive figures and economic projections outlined in the document however she stated that as usual one will have to see what measures these will translate into in the Budget itself. The CEO also said that once again the problem of bureaucracy and malfunctions of the public administration was on the Budget agenda. So far we have not been successful in making changes that matter in this area, this is something we and our members battle with on a daily basis and it is the main reason our country ranks so poorly. The Government had even appointed a Commissioner to tackle bureaucracy and simplification however we found that the Commissioner’s powers were limited to sending proposals.