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Category: Press Releases

A budget and economic mismatch for SMEs

Posted on by SME Chamber

Even though this year’s budget had a number of somewhat positive points, the GRTU had expected     much more for Small Businesses (SMEs).

GRTU does not feel that businesses should be grateful for no increase in taxes. Businesses were one of the main contributors that generated the economic growth and surplus we are enjoying today. This time, they were also the ones left out from government’s wealth distribution plans. In the current economic scenario, GRTU had expected a reduction in corporate taxation and the reversal of the harmful excise tax, amongst other things.

GRTU welcomes positive incentives such as the extension of the MicroInvest scheme and commitments to further reduce bureaucracy as well as the increased enforcement to ensure a level playing field. These are measures that have now become commonplace in every year’s budget. One will need to see what these will actually and tangibly result in.

We appreciate that the environment is high on government’s agenda, which is positive. This must however be accompanied by proper consultation in order to foster the right synergies with the private sector.

It appears that the government is taking our positive GDP trends for granted with no new incentives to continue stimulating the economy. GRTU is surprised that out of the 13 proposals it presented none have been adequately addressed.

GRTU is amongst others alarmed that the biggest challenge facing businesses today, the lack of human resources, was not even given a mention in this year’s budget.

This budget is populated by numerous minor proposals, none having the aggressive approach we desired to address specific issues. A case in point is traffic congestion with pages explaining minute solutions and nothing strong enough to really make a difference.

Traffic situation unacceptable – crisis needs immediate action

Posted on by SME Chamber

 

The traffic situation has become unbearable and unacceptable. The GRTU Malta Chamber of SMEs has been inundated by members’ concerns from across widespread business sectors that the alarming situation is not just one of frustration and 
tardiness, but profitability and competitiveness. Justifications
related to infrastructure and discussing long-term possibilities have long expired.
 
 
GRTU Malta Chamber of SMEs and its members have invested time and resources to consult, discuss
and put forward proposals to the authorities responsible for transport and traffic management.
Proposals that have time and time again been left on the shelf. GRTU’s approach was always to discuss
around the table but this has not achieved anything close to desired results of improvement.
 
The situation is affecting business across the board and the lack of effective planning and effective
implementation are resulting in each and every one of us paying the price. Chauffeur-driven transport is
choosing not to operate during specific peak times, transport and delivery costs are plummeting due to
inefficiencies caused by heavy traffic, customers are giving up driving to go shopping, and workers are
becoming less efficient per day of work due to time wasted in traffic.
 
The expectation for drivers and businesses to be patient with the traffic situation and accept the status quo should not even be considered. Tangible actions need to be taken imminently.
 
GRTU is calling for the authorities to take immediate action. Immediate action points to alleviate the
traffic crisis:
 
1. Private Collective Transport – Free for all schools, organised transport for all government
employees and immediate outlay of incentives for employers to organise private collective
transport for their own workers.
 
2. Enforcement Overhaul – Local Wardens and TM Officials need to be brought hand-in-hand with
traffic police. Aim of giving out fines needs to be completely and irreversably replaced with
coordinating and assisting traffic at all times but more surely during peak traffic. Emergency
teams need to be closer to peak areas to immediately address any traffic collisions with
minimum impact on flow of traffic. Smart application of intelligent transport systems such as
traffic lights and screens which are currently either under-utilised, used to fine, or deteriorating
rather than supporting traffic, need to be enhanced and adapted to support and manage traffic
flows . A Crisis Traffic Team needs to be set up to take immediate action, monitor daily if need
be, implement decisions and review decisions according to traffic impact and situation.
 
3. Change in Attitude for Public works and Closures – Projects with national impact such as the
Kappara Junction Project need to have works undertaken round-the-clock without further
excuses. This project is a major burden on traffic and every hour wasted from its completion is a
disservice to the country. There is so much work that can be undertaken during the night and
weekends to reduce the overall detailed project timeplan, which to date has not yet been
provided to GRTU. Zero allowance of public/maintenance works or part-/full- closures by any
public entity to allow permits during peak hours.
 
4. Immediate implementation of Car Parks/Park and Ride options – GRTU has been pushing for
under-utilised areas to be used as park and ride zones offering key parking areas and shuttle
service towards hub areas, such as the Gzira Stadium. Car Park development need to be
incentivised and given priority and Planning Authority level.
5. Shift towards staggering hours, online services, work-from-home and flexitime –government has
to lead by example. Departments across the board need to imminently adapt a work-from-home
approach during specific hours and staggering working times of employees. It cannot be
sustainable for everyone to drive towards Valletta at the same time because this is what has
always been done.
 
GRTU Malta Chamber of SMEs is calling for immediate actions that can in any way alleviate or mitigate
traffic. This situation is seriously effecting operation and merely accepting that school has started is not
enough. GRTU shall be seeking to address this matter immediately directly with the Prime Minister.
Issued for immediate release – 8th October 2016
 

GRTU dubs reformed warden system a cosmetic exercise – calls on decision-makers to go back to drawing board

Posted on by SME Chamber
GRTU Malta Chamber of SMEs calls for an urgent overhaul of the local enforcement system. Despite wide consultation in 2014 and updates to the law to establish the Local Enforcement System Agency (LESA), the sorry situation remains unchanged. 
 
This is reflected in the lack of consideration to those working on the road to conduct deliveries or transport passengers, amongst others. Productivity is already affected by growing traffic and lack of parking. Irrational fines continue to hinder rather than improve the situation. 
 
The starting point for devising and implementing enforcement needs to be based on the reality of those whose livelihood depends on the road, where a regular day for delivering perishable goods or driving tourists to catch their flight, are such that traffic causes constant delays. Delivery-persons conduct difficult goods-carrying work often in undesirable weather conditions in both summer and winter. The service needs to be effected as close to destination as possible. In a constant battle against time, local wardens need to be there to support and not to reap on the traffic and parking situation by issuing of senseless fines. 
 
GRTU reiterates that even though parking abuse needs to be addressed, the lack of parking spaces and the related exigencies should not be abused of by wardens to issue fines irrationally. Gozo Tourism Association (GTA) and Gozo Business Chamber have accused wardens of ‘irrational decisions’ over Santa Marija weekend. There needs to be serious consideration of the impact of such approach in terms of tourism and competitiveness. Blatant issuing of fines in what is possibly the busiest day for external and internal tourism alike in Gozo is insensitive to say the least.
 
Solutions need to be found on a broad level and to this extent GRTU welcomes Transport Malta’s move towards setting out a Master Plan and Transport Strategy for the whole country, to which GRTU has put forward a document with concrete proposals. This however does not tally with how the local enforcement system is operating in practice.
 
Being flexible and practical are key. Whilst abuse should not be tolerated, parking for a few minutes in places where there is no inconvenience or obstacle should be allowed and guided by local wardens rather than fined. Unloading and boarding bays need to be respected. 
 
We should look at a system which educates first-time offenders and punishes frequent offenders. The private operator needs to invest in training of those engaged in wardens to communicate effectively, educate and give directions instead of simply issuing fines, which is at times accompanied by arrogance. Local wardens need to understand the importance of their role when aiding during traffic diversions and road closures and have to be seen acting accordingly. 
 
Most of all setting up of agencies that control enforcement needs to be tied with government self-financing rather than leaving it up to the operation itself to finance the authority or enforcement. Enforcement cannot be driven by the need to collect funds but rather towards understanding, educating and ultimately improving the situation. The goal is not to issue more fines, but to provide a better service to the community.
 
This matter shall be presented with specific measures in GRTU’s proposals for the upcoming National Budget.
 

An ever-improved fair through GRTU Malta Chamber of SMEs and Fiera il-Kbira agreement

Posted on by SME Chamber
An agreement of cooperation signed between GRTU Malta Chamber of SMEs and Il-Fiera l-Kbira promises successful organization of the nation-wide fair. The aim of the collaboration focuses on improving quality and standards whilst reflecting evolving practice that can serve business exposure and benefit consumers alike. 
 
The long-term agreement is an echo of collaboration in the past years between fair organizers and GRTU as an organization representing the interest of businesses. GRTU’s involvement is set to upstage an already prominent important event on Malta’s commercial calendar with plans to solidify the fair and ensure that its full adherence to regulations and improved level of quality give an even better showcase to consumers in the years to come.
 
GRTU President Paul Abela stated that “it was important for GRTU to safeguard the interest of its many members exhibiting at the Fiera l-Kbira and thanks to GRTU’s intervention a significant amount of resources invested, both in terms of time and money, have been saved from waste and harm to business. Fairs serve an essential economic purpose and are an important platform, especially for the smaller businesses seeking increased exposure to the consumer.” 
 
The management of il-Fiera l-Kbira said that although the fair has always been controlled by several rules and regulations, formal collaboration with an organization with the standing of GRTU will directly result in the strengthening of quality and standards, increasing the success of the fair for the benefit of everyone involved. 
 
Just like the previous two editions, this third edition of il-Fiera l-Kbira is expected to attract a crowd of over 100,000 visitors.  
 
The Fiera l-Kbira will be held at Montekristo Estate between the 7th and 17th of July 2016. 
 

GRTU reaches agreement with Enemed on a wider distribution of Super Unleaded Petrol – RON98 (2)

Posted on by SME Chamber

Following a meeting held earlier this week with Enemed Chairman Kevin Chircop, GRTU presented its arguments as to why the Unleaded Super Fuel should be distributed widely amongst fuel stations and therefore the stations interested should be given the opportunity to sell the new product.

GRTU is pleased to announce that following this meeting an agreement was reached whereby all fuel stations that express their interest in selling the

 Super Unleaded Petrol will be supplied as soon as the necessary preparations are completed from the fuel stations’ end.

A list of the fuel stations that would like to be supplied with the Super Unleaded Petrol has already been passed on to Enemed.

GRTU and its members have the same interest of Enemed, of pushing the new product and have it effectively penetrate the Maltese market.

GRTU would like to thank Enemed for accepting GRTU’s arguments and providing equal access to all fuel stations. GRTU also thanks Minister Konrad Mizzi for his intervention in the matter that was instrumental in facilitating discussions and finding an amicable solution.

GRTU and MCA launch tools to facilitate the advancement of Maltese SMEs in the digital world

Posted on by SME Chamber

The Malta Communications Authority and GRTU Malta Chamber of SMEs have today launched a number of tailored tools that will proactively increase the number of businesses in Malta that have an online presence and are able to compete online.

GRTU President Paul Abela stated that competition from the internet is one of the biggest concerns and challenges faced by Maltese businesses today. 

“It is a phenomenon that businesses need to adapt to and GRTU is pleased to be working hand in hand with the Malta Communications Authority to supply Maltese businesses with the necessary tools that will enable them to compete online”. Over a 100 foreign companies have registered for the Maltese VAT through the MOSS system to be able to sell to Maltese consumers and pay the Maltese VAT rate.

As part of a wider project financed by the European Social Fund (ESF) GRTU has not only identified the gaps that are holding businesses back but it has also developed learning tools to address them.  Thanks to ESF funds GRTU has developed a guidebook and an online learning tool, both aimed at upskilling businesses. These tools can help businesses go online for the first time as well as further develop and improve their online presence to be more effective and competitive.

Following the launch of the National eCommerce Strategy last year, the MCA Chairman said that MCA continues with its commitment to facilitate the uptake in eCommerce by ensuring that traders have the necessary means to capitalise on opportunities brought about by eCommerce. The MCA is cognizant that in today’s increasingly connected society, it is becoming ever so important for companies to develop and manage an effective online channel, especially in view of the fact that although 69% of businesses claim to have a website, only 14% were selling online in 2013, with the remaining sales occurring mainly through traditional brick-and-mortar stores.

It is therefore becoming critical for traders to be able to find the right expertise and support when setting up an online store or extending their business online. To this end, the Authority has re-visited the eCommerce guides for business, which it had launched some years back, and incorporated these in a website together with the online directory, BLINK,  so as to provide traders with a more comprehensive and practical reference tool. The eCommerce Guides for SMEs’ website is purposely designed around a number of categories reflecting the different phases that are usually required to set up an online shop. It features information related to legislation, website planning, online security issues, electronic payments, customer service, amongst others.

Hon Parliamentary Secretary for Competitiveness and Economic Growth, Hon Jose Herrera stated that ‘The national strategy for electronic commerce, that was ambitiously launched last year, is addressing the challenges through a number of measures that are spread on a six year period. First and foremost and without any doubt however, every enterprise needs to assess in great detail how this reality affects them. Therefore, the Malta Communications Authority and the GRTU are today jointly launching a package of information tools that will help enterprises undergo the necessary change. The guides are made available free of charge and provide enterprises with the necessary resources so that they can capitalise on the opportunities that electronic commerce brings. Through these guides we need to assist those industries where electronic commerce presents real opportunities for development and expansion.

GRTU and MTA initiate wave of communication efforts targeting the hospitality and leisure industry

Posted on by SME Chamber

A number of operators representing the majority of entertainment establishments in Malta and Gozo have yesterday attended a communication meeting related to compliance and higher standards organized jointly by the GRTU and the MTA.

The meeting was chaired by Philip Fenech, GRTU President for the Tourism

 section, and it was addressed by Paul Bugeja, MTA CEO, David Mifsud, Licencing and Enforcement Director and Charles Burlo, Head of Monitoring Board for Health and Safety in places of entertainment and GRTU CEO Abigail Psaila Mamo.

The aim of the meeting was of helping operators in the sector attain higher standards by explaining compliance and licensing legislation and having a constructive exchange of views on the issues the operators face on a day-to-day basis.

Amongst other things a number of important issues were discussed including the presence of under age youths in places of entertainment, the capacity of the establishments, evacuation and drills, fire safety and juvenile delinquency.

The GRTU and the MTA and the operators are stepping up their efforts in time for the festive season to ensure that people can enjoy themselves while feeling safe. This is the first of a number of initiatives that are aimed at bringing the main stakeholders to work together for the betterment of the community at large.

Il-GRTU u l-MSBCA jesprimu l-preokkupazzjoni taghhom fuq l-izviluppi dwar ir-rilokazzjoni tal-bejjiegha tal-monti

Posted on by SME Chamber

Il-GRTU u l-Merchants Street Business Community Association (MSBCA) illum laqqgħu lis-sidien tan-negozji li jinsabu  fi Triq il-Merkanti, Valletta u dan in vista ta’ l-aħħar żviluppi dwar ir-rilokazzjoni tal-bejjiegħa tal-monti.

Is-sidien tal-ħwienet ta’ Strada Merkanti filwaqt li jirrijaffermaw li għamlu investiment ta’ miljuni ta’ ewro fil-ħwienet tagħhom u dan sabiex itejjbu l-

livell tan-negozju tagħhom, ma jistgħux jiġu issa f’pożizzjoni li l-investiment tagħhom jixxejjen.

Jifhmu li anke il-bejjiegħa tal-monti iridu jaqilgħu l-għixien tagħhom u huwa għalhekk illi qed jipproponu li l-bejjiegħa jerġgħu imorru quddiem is-Suq tal-Belt propju fejn kienu ftit taż-żmien ilu.

Is-sidien huma ferm preokkupati li numru ta’ franchises li qed joperaw minn Strada Merkanti huma deċiżi li jirtiraw jekk kemm-il darba il-monti jiġi rilokat matul Triq il-Merkanti.

Is-Sidien disposti li jitkellmu u jiddisktu u dan bil-għan li tinstab soluzzjoni.

A balanced budget with positive business incentives

Posted on by SME Chamber

This year’s Budget offers a healthy mix of incentives targeting the private sector many of which are being implemented with the collaboration of the GRTU. Most of GRTU’s priority areas have in fact been addressed and a good number of proposals have been taken up. GRTU believes this will further secure the country’s economic growth.

Energy

GRTU notes with dissatisfaction that the energy tariffs have not been reduced albeit clear indications supporting GRTU’s claim. GRTU will continue with its representations in this regard to see electricity reduced. On the other hand GRTU welcomes the positive incentives aimed at increased renewable energy investment by the private sector, also a priority area for GRTU.

Access to Finance

Whist GRTU welcomes the announcement that the investigation it itself instigated, in relation to bank interest rates and charges, has now been completed, GRTU is eager to see the results of this investigation and tangible action taken in this regard. In addition GRTU reiterates that more needs to be done to increase enterprise options when it comes to access to finance, especially means of financing that go beyond the use of banks. In line with this GRTU is also eager to see the implementation of the long awaited Development Bank.

Digital Economy

GRTU reiterates that we must foster an enabling environment for our enterprises to compete online. This is of paramount importance not just for our enterprises but also for our economy. As such GRTU believes this Budget is lacking of concrete incentives that encourage businesses to sell online and strengthen their online identity as well as policies that aim at making online selling to foreign countries a possibility through, for instance, competitive export costs.

Traffic and Parking

A number of GRTU’s proposals in this area have been taken up including planned incentives for the private sector to introduce transport schemes for their employees, other incentives such as car pooling and the strengthening of sea transport as well as the exploration of alternative means of transport. GRTU had also proposed increased parking facilities, a measure also present in this Budget. GRTU will continue working with the Ministry to continue increasing incentives to the private sector that can provide concrete solutions to Malta’s traffic problems.

Start-Ups

GRTU is pleased Government is giving importance to this trench of enterprises through repayable grants which was another priority and suggestion of the GRTU. GRTU will be working with the Ministry to intensify assistance to start-ups to overcome current shortcomings in the system.

Other

Other measures welcomed by the GRTU include the regulation of migrant workers, simplification through fiscal consolidation and the fast processing of insolvency procedures, the export trade guarantee, the permanent link between Malta and Gozo, the developments in relation to the POYC and the withholding tax on commercial properties.

In conclusion GRTU also welcomes the fact that in this Budget there are no apparent shocks to business and awaits timely implementation based on thorough consultation with social partners.