“The Maltese business community is still coming to terms with the challenges and opportunities of EU membership. While we actively prepare for the adoption of the euro to replace our national currency in less than 400 days, the country continues to undergo a series of important transformations and reform.”

The president of the Malta Chamber of Commerce and Enterprise, Mr Victor A. Galea said this during the chamber’s 158th annual general meeting, which was held yesterday at The Exchange in Valletta.

In his speech, Mr Galea referred to a number of issues which the chamber tackled during 2006, since he took over the presidency on 12 January this year.

Among the issues mentioned by Mr Galea in his speech, he referred to the port reform and stated that although the chamber appreciates the constraints within which the government and the authorities are operating, it continues to insist with the government that negotiations are concluded by the end of the year, resulting in cheaper port costs for the business community at large, and thus, helping to bring about enhanced competitiveness for the country.

“Another matter of importance addressed this year was the rampant abuse in free movement of goods. The unfair competition we face resulting from traders travelling abroad and bringing into Malta merchandise without paying VAT, eco-contribution, excise duties or other pertinent taxation is hurting our businesses,” continued Mr Galea.

He said that the chamber has recommended the setting up of a task force armed with legal executive powers to ensure effective market surveillance and enforcement. The chamber was one of the first institutions to support Malta’s EU membership and still firmly believes that this will translate into great benefits for Malta, at the same time we must ensure that we address abuse coming from one of the four freedoms which is damaging both the law-abiding entrepreneur and consumer alike.

On the Waste Packaging Directive, the chamber president stressed the importance that all chamber members are aware of their onerous obligations including the high recovery and recycling targets for packaging waste.

On this issue, Mr Galea added that the chamber continues to insist that the products registered with a MEPA-recognised compliance scheme should be fully exempted from eco-contribution.

On the subject of better regulation, he stated that although the business community is credited by the political leaders as being the motor of the economy, “we cannot generate productive investment and employment opportunities unless we find encouragement through adequate fiscal tools and the elimination of avoidable costs and bureaucratic harassment.

While we go through great pains and costs to comply, we often sense that our direct competitors go unpunished despite not being registered with the relevant authorities and consequently not complying with their administrative and fiscal responsibilities. This therefore exposes a situation whereby local entrepreneurs are simultaneously being adversely affected by over and under regulation.”

Mr Galea also mentioned the budget presented by the government for 2007, and reiterated that the chamber was encouraged by the emphasis in this year’s budget speech on the need to eliminate undue bureaucracy and regulation. “Our overall reaction to the budget, in fact, was positive. When one considers the limited manoeuvrability posed by the state of public finances and the Maastricht Criteria, the government still managed to announce a series of favourable measures to further consolidate public finance while enhancing competitiveness and economic growth.”

He referred to other consultation processes in which the chamber was involved, apart from the Budget 2007, including the Masterplan and various guidelines related to euro adoption, pension reform, corporate governance, industrial policy, the new Valletta traffic management system, public holidays falling on a weekend and the working time directive.

Mr Galea also mentioned the dialogue meetings held this year – one with the Prime Minister in April and another more recently with the leader of the opposition.

In his concluding remarks, the chamber president stated that as the world continues to change ever more rapidly, we as a country and as a business community are in no position to be complacent. “We must continue to work closely with the government and the social partners to give Malta and its people the success and prosperity we deserve.

“Our business community is renowned for its aptitude. We are a forward-looking and optimistic society and as in the past we overcame difficult times, I have no doubt that once again we will be able to meet future challenges with vigour and succeed,” concluded Mr Galea.