GRTU Malta Chamber of SMEs was very satisfied with the meeting held last Wednesday with important leaders from the new administration.
GRTU was given the opportunity to voice its concerns and proposals on various issues, many of which, we were assured directly by the ministers concerned, have already started to be tackled.
The general feeling was that the Prime Minister and his ministers understood and appreciated the views presented and therefore we are confident that the outcome was a positive one. GRTU officials will now follow up on the implementation.
This was the first formal meeting with the Prime Minister since the change in administration; in the run up to this important meeting GRTU has however met the ministers, parliamentary secretaries and the Principal Permanent Secretary individually.
Last Wednesday the GRTU Executive Council and top officials met not only with Prime Minister Joseph Muscat but also the Minister for the Economy, Investment and Small Business Chris Cardona, the Minister for Sustainable Development, the Environment and Climate change Leo Brincat, the Minister for Energy and the Conservation of Water Konrad Mizzi, the Minister for Finance Edward Scicluna, Parliamentary Secretary for Competitiveness and Economic Growth Dr Edward Scicluna and Chief of Staff Keith Schembri.
GRTU’s introduction
The president Paul Abela, who thanked the Prime Minister for this opportunity, made the introduction. He stated that today GRTU has a wide range of experience and the administration appreciates the valid input GRTU gives.
Mr Abela called on the Prime Minister to generate more work in the localities and incentivise the use of empty buildings. He also called on the implementation of the Small Business Act principles to the full benefit of SMEs, especially because the public service still has a very negative attitude towards the private sector. He reminded the Prime Minister and members of the Cabinet that 98% of Maltese enterprises are micro and small and together employ 77% of the workforce.
Mr Abela said the GRTU believes in the Prime Minister’s personal enthusiasm towards SMEs and therefore he appealed to the Prime Minister to change this mentality and that the GRTU will be right behind him to do that.
Mr Abela also expressed his concern on the current developments, which picture employers as abusers of employment regulations. He appealed to the Prime Minister not to allow negative campaigns and ones, which create uncertainty. Everyone is very concerned with the influx of illegal immigrants coming to Malta, but there is another influx that should also concern us, the number of qualified Europeans coming to Malta to seek jobs.
In the sectors the GRTU represents there are more job vacancies than individuals with the right set of skills and qualifications wanting to work in these jobs. There is an enormous skills mismatch that needs to be addressed. This is why the GRTU has been arguing for the setting up of Sectoral Skills Councils.
There is also the problem of the budget deficit and GRTU asked MCESD to convene with urgency and discuss the European Commission report on Malta. The MCESD unfortunately seems not to be seeing this urgency and we feel it has not yet started working properly.
There are also very important Boards such as the Employment Relations Board, which have not yet resumed. It is important that the institutions are driven by capable individuals that see the sense of urgency.
Mr Abela’s final remarks were that there is a lot that needs to be done and the GRTU intends to support the government throughout. The GRTU is not afraid of the challenges that lie ahead.
The Prime Minister’s reaction
The Prime Minister thanked president Paul Abela and he explained that he asked a number of members of the Cabinet to be present in order to better tackle the issues the GRTU presents.
Dr Muscat stated that he himself has not been the biggest fan of the administration and agrees that the public sector does not really appreciate or understand the private sector. He stated that the public sector is gradually changing its culture, attitude and mentality however they are still afraid of change and innovation.
The Prime Minister mentioned that the Commissioner for Bureaucracy has been appointed to have one single point where to direct suggestions and ideas. Dr Muscat re-emphasised that at no time will he be defending the status quo but he will be aggressively and continuously attempting to introduce positive changes.
The Prime Minister described the first Budget of this government as an important element that will see the increased engagement of the private sector. Work on the Budget has already started and they envisage that it will be in the form of a green paper, some-thing more practical and short.
He also referred to the issue of the high electricity and water tariffs and the water project that is being studied to reduce these tariffs, which should have a positive effect on consumers and business owners.
On the issue of skills mismatch the Prime Minister stated that we have vacancies but we also have unemployment, which underlines this problem. Many vacancies are being filled by foreigners. We need to help our youngsters to build careers where it is required and government has started working on guiding youngsters better. Dr Muscat also mentioned the introduction of an employability index, which will help guide youngsters without denying them any opportunity of studying what they want. Vocational training will also be tackled through the youth guarantee. Government is looking at best practices from Germany and Austria.
On working conditions the Prime Minister said further discussions with the GRTU are needed. He said that the reality is that the majority of employers are law abiding and therefore government does not want them to be at a disadvantage and suffer unfair competition.
Government wants a level playing field when it comes to industrial relations and unfair competition. This, the Prime Minister stated, included having everyone paying eco-tax. Dr Muscat said government knew about the abuses that were taking place and was looking into a solution that abided with the EU law of free movement in the single market.
The issues
GRTU’s director general Vincent Farrugia presented the Prime Minister with a dossier of issues which were very important for GRTU and on which immediate government action was required. GRTU officials went on to present the issues that are very important for GRTU members:
Crafts
GRTU said that the Crafts Village is in a bad state. Many operators that used to work on genuine crafts have been abandoned and neglected for many years and have gradually left the village. Thanks to the efforts of GRTU the operators within the crafts village have once again become united within GRTU and a MoU was signed. However, we have heard nothing since the change of government.
GRTU called on government to help the crafts sector as it was very difficult for them to operate sustainably. Government stated that Ta’ Qali is a priority but they need a bit more time to find the best solution; we will start seeing tangible work on the project by next year. Government is now tapping EU funds for the village. The aim is very simple, that of having a crafts village like all other EU countries.
Audits on micro companies
GRTU complained that micro companies should not be required to submit yearly audits. It is a very large administrative burden and cost on micro businesses and should government do away with such a requirement it would show a clear commitment to eradicating excessive bureaucracy. Government said it is working on this.
Contraband diesel
GRTU said that sale of fuel has been reduced and we feel the main reason for this is due to contraband fuels. There are ways to check this and track the source but raids are being carried out in the wrong places, those that are already abiding by the law. Government recognised that this is a problem and in fact they have already found some sources and action has been taken. More in this regard is planned. Any abuses in this area should be reported directly to Minister Konrad Mizzi.
Port operations
Following GRTU’s insistence, operations at the port are smoother, however, operators still have a lot of problems with the CITIS office that opens just twice a week for a few hours. This is delaying clearance. GRTU is also calling for government to introduce a single pass for operators to be able to go through all port facilities. Currently each area or facility requires a different paper or pass.
Industrial areas under Malta Enterprise
GRTU explained how difficult it is for many SMEs to be awarded a large space from Malta Enterprise within the industrial areas, which they need for their work. Government said that the law would be changed shortly as currently the guidelines are old and the realities of the private sector today are very different. Many sectors today fall outside this scope.
In addition government said that industrial areas falling under Malta Enterprise would have changes within that area falling under the competence of Malta Enterprise and involve Mepa to a much lesser extent.
Water consumption
There are a number of private sector operators that are high consumers of water, among which, laundries. These should be helped to reduce such consumption through schemes encouraging change in machinery and other projects. Government said that a consultation is currently underway and invited GRTU to submit its comments. In addition to this a meeting will also be held with the minister concerned.
Parking
Parking is the cause of many problems and lack of business in many localities. GRTU explained it is very hard for businesses in the main localities as their customers and employees complain of lack of parking, loading and unloading is very complicated, deliveries are very time consuming and wardens are on the watch eager to give fines.
GRTU mentioned that something needs to be done in these localities especially Valletta with all the complications of the CVA, coloured and reserved parking spaces.
Government said it is currently looking into ways in which the CVA could change as well as other solutions for parking issues in the locality. An example, that was mentioned, was the 15-minute parking on double yellow lines being introduced in the UK.
Tourism
The localities should be given centre stage on this issue. There is a lot the localities can offer to tourists and having such a small country is the main reason why tourists should not be concentrated in the main tourist localities. Incentives for alternative types of lodging in other localities must be considered.
The same principle goes for more work and childcare facilities in the localities. This will give new energy to our localities and alleviate traffic congestions. GRTU also mentioned that we feel the need to have our voice within the MTA.
IT
GRTU said that the taxes on IT equipment are very high and evasion is rampant. The system needs to be revised. GRTU called for the e-commerce scheme to be relaunched, it was a very good scheme, which should be reopened. In addition, many students studying IT do not continue to study because they cannot afford it. The schemes available are very good but the require individuals to fork out the funds in advance. Government agreed that a grant scheme must be introduced to help students to study without the need to take out a loan.
Student cards
GRTU called on revamping the system as it is not clear and carries a high liability for owners of retail outlets as they are directly responsible for sales their sales people make. The 2% charged on goods bought with the smart card is too high. Retailers are not represented on the Board determining the system. These should be revised.
VAT
GRTU complained on the way inspections are carried out at POS. The system includes very high fines and for every POS you have to apply separately to get an exemption, a complicated process.
EU funds
GRTU called on the launching of employment and training schemes. These should be available constantly and should not be bureaucratic so as to encourage employers to apply and be awarded refunds. In addition, all schemes should cater for handholding for applications as many businesses fail over lack of paperwork or pictures.
Agriculture
Operators in the agriculture sector need help. There are many issues that hamper them including the administration of the pitkalija, incentives for investments and encouragement of agritourism. Government said that it is currently working on an agritourism policy and is welcoming feedback on the revision of the pitkalija.
Rent law
GRTU explained that many businesses that have been operational for years have suffered from this law. It is an unjust law, which disregards any payments made throughout the years, the contract between the owners and the tenants, goodwill, etc… In 15 years they will have to go out and give the keys back to the original owners. This agreement needs to be revised.
Valletta City Gate
GRTU called on government to take the City Gate complex in hand and turn it into something that merits such a prominent position. The shops in City Gate want to invest and have their mind at rest that the contract is on a long-term basis. Government said it seeks to find a solution together with the shop owners.
(Taken from newSTRING)