The Malta Independent 25 April 2024, Thursday
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GRTU welcomes Budget 201

Thursday, 27 November 2014, 14:34 Last update: about 10 years ago

GRTU offered five key priority proposals, three of which directly make up the fabric of this year's Budget. GRTU welcomes these inclusions, however, much depends on the timely and successful implementation of these proposals. GRTU expects that in the same way it was the instrument behind the proposals it will likewise be directly involved in its administration.

GRTU strongly welcomes government's commitment to rid Maltese businesses of the unfair tax that is eco-contribution.

Removal of the eco-tax was one of GRTU's priority proposals for Budget 2015. Even though the measure, as announced in the Budget, excludes a number of products at this stage, GRTU considers this as a big win following the intense pressure GRTU has put in and especially since GRTU's proposed solution seems to have been adopted.

GRTU is however cautious in its reaction because it also welcomed government's commitment to review the eco tax last year but, a year on, no results have been achieved. Government has this year introduced an expiry date for this tax in 10 months' time, which it considers necessary to affect the required shifts in line with the WEEE Directive. GRTU will continue to follow the issue closely to ensure the deadline is met and expects to partner in the actualisation. GRTU will ensure the new system is fair and establishes a level playing field. GRTU also welcomes government's commitment to tackle unfair competition through a number of specific proposals.

This was another promise in Budget 2014 that was given increased context in this year's Budget. The issue of unfair competition has been driving bona fide enterprises out of business and GRTU made it clear this was no longer acceptable. Implementation and effective enforcement is key to achieving fair competition and therefore we will also be following closely the implementation of this measure.

The revision of the Valletta Shop Scheme is another measure proposed by the GRTU which we were pleased to see announced in the Budget. Valletta shops, owned by government, have a lease that currently is very limited and gives them low entitlement.

The previous scheme attracted little interest and therefore GRTU, through its proposal, sought to address such shortcomings. This gives the titleholder collateral upon which he can take loans from commercial banks in order to improve the premises, grow his business and employ more staff, to mention but a few aspects. GRTU is already involved in discussions and will endeavour to make the scheme attractive and successful.

With regards to Access to Finance for SMEs, an issue spearheaded by GRTU, government has a number of plans which, together with the investigation currently underway by the MCCAA, should improve the lending environment for SMEs. GRTU welcomes the extension of the feed in tariff and that for the first time government shall allow those who already installed PV systems under the 22c scheme to increase the number of panels. GRTU believes this incentive should however not discriminate those who were pioneers in PV installations in Malta, those that first installed PV panels with the 25c feed in tariff.

GRTU notes that Budget 2015 mentions a new "solar farm policy" being drafted by Mepa. GRTU has long been arguing in favour of PV farms but under the premise that a significant amount of local enterprises are involved in such projects.

The fact that land in Malta to use for such projects is scarce is no secret and therefore we need to make the most of such resources and avoid issuing gigantic tenders targeted at single players. Solar firms are an important element in Malta trying to reach its 2020 targets of energy generated from renewable, however, we need to make sure we use our resources and limitations well.

In GRTU's view an area or multiple sizeable rooftops should be allocated for PV installations. Once the installations by the local operators is carried out the area should be maintained either as a government or a private generation plant, with parts of it sold to those interested, first preference given to people who reside in apartments or other dwellings without access to a roof.

GRTU is also currently calling for funding. Funding for PV installations has once again stopped. GRTU believes that the country and the sector cannot afford long periods of lack of investment in PVs. It is a fact that when no funding is available no investments are carried out, this however should not be the case and funding should be planned in a way to cover all the funding period and not with hiccups. GRTU is currently addressing this with the relevant Ministry.

On a negative note GRTU requested a reversal of last year's drastic increases in the licenses for commercial vehicles. This was unfortunately not taken up. GRTU will continue insisting with the government that these increases were introduced without consultation and economic impact assessment. From a general overview of this year's Budget it transpires that further increases might be foreseen.

GRTU was very surprised on the announcement of the proposed initiative to supply consumers with the facility to take back plastic bottles and other plastic materials to the supermarket or petrol stations. Supermarkets and petrol station would effectively act as a deposit bank. GRTU and its members feel that this proposal is unacceptable. Consumers could not be better assisted than through what is currently already in place - a free and frequent door-to-door collection system.

The proposal to cause supermarkets and petrol stations to cater for such a requirement is disproportionate to the aims the measure seeks to achieve, uncalled for because consumers are already effectively serviced and assumes that these establishments do not already make the most of the space they have. Setting up a deposit site is easier said than done.

In addition this measure ignores the fact that supermarkets themselves, as importers, already pay a scheme to collect the recyclable waste, including plastics which they put on the market and therefore finance the door-to-door collection for consumers. GRTU strongly believes that the polluter pays principle should go no further than this and will object heavily to any additional impositions.

GRTU feels that both the issue of commercial licenses and the measure related to plastic bottles will affect enterprises' competitiveness very negatively and GRTU will immediately endeavour to address this issue. 

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