Chamber of Commerce Enterprise & Industry - Administrative Report 2012 by Content House

2012

2012 Annual Administrative Report

Annual Administrative Report

The Malta Chamber of Commerce, Enterprise and Industry

Gold Collaborating Partners

Contents

– 06 – Foreword by President Stefano Mallia – 10 – Introduction by Director General Kevin J. Borg – 14 – Council of the Malta Chamber of Commerce, Enterprise and Industry 2012/2013 – 16 – Economic Groups Executive Board Members The Malta Chamber of Commerce, Enterprise and Industry – Staff – 18 – Work of the Council 2012 – Events Highlights – 25 – Policy Positions 2012 – 31 – Relations with Diplomatic Corps

– 33 – Economic Groups

– 65 – Surveys

a. Importers, Distributors and Retailers Economic Group Business Sections: HealthCare, Importers, Pharmacists Pharmacy Owners, Wines, Spirits, Beverages and Tobacco

– 66 – Administration

b. Manufacturers and Other Industries Economic Group Business Sections: Electrical and Electronics, Food and Beverage Processors, Plastics and Rubber Manufacturers, Pharmaceutical Manufacturers c. Services Providers Economic Group Business Sections: Financial Services, Information Technology, Real Estate, Remote Gaming, Road Contractors, Shipping and Bunkering, Yachting – 51 – Policy Committees a. Human Resources b. Environment and Energy c. Research, Technology, Development and Innovation d. Internationalisation e. Marketing – 62 – Examination Services – 62 – Collaborative Projects a. Corporate Social Responsibility b. Linking Industrial Needs and VET to Optimise Human Capital c. Pooling 4 Clusters

– 66 – Malta Chamber Foundation – 71 – International Scene a. BUSINESSEUROPE b. EUROCHAMBRES c. Malta Business Bureau d. EESC – European Economic and Social Council – 78 – Consultation a. MCESD – Malta Council for Economic and Social Development b. MEUSAC – Malta-EU Steering Action Committee – 82 – Business Sections – Executive Committees, Policy Committees, Business Councils – 86 – Nominees on Boards and Committees 2012 – 90 – Public Relations – 93 – Media Releases 2012 / 2013 – 94 – Make it an event to remember at The Exchange Buildings – The Seat of the Malta Chamber

The cut-off date for information published in this Annual Administrative Report is 1st March 2013. Events occurring after this date will appear in the 2013 report.

Malta Chamber’s Silver Collaborating Partner

Malta Chamber’s Bronze Collaborating Partners

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Milestones achieved by the Malta Chamber in 2012 and 2013 The past 12 months continued to be characterised by serious international upheavals and the prospects of a General Election for Malta. Despite the difficult scenario, we are pleased to report on our milestones and achievements for business. – Stefano Mallia –

Policy

the need for Malta to embrace a balanced economy and that the country’s competitiveness position needed to be continuously enhanced. At the same time, we called for fiscal consolidation to complement Malta’s relative economic strengths as well as to make certain of a stable economic environment which could generate enough wealth to finance the social security system that our people have become accustomed to.

The period under review was characterised by electoral campaigning. True to our apolitical status, the Malta Chamber did not contribute directly by commenting on the electoral manifestos published by any political party or any individual proposal being made by any side. We did, however, warn our political leaders to refrain from making unsustainable electoral promises and ascertain the right socio-economic balance in the country to breed confidence and stability. In January, we published a high-level document in which we emphasised the need to ensure that wealth creation precedes wealth distribution.

At the time of presentation of the 2013 Budget, the Malta Chamber was satisfied to note that a vast number of its proposals had, in fact, been included in the Budget Speech. Among the important proposals made by the Chamber and included in the Budget Speech were the reduction in income tax burdens; renewed investment in training schemes; a guaranteed longer period for feed-in tariffs for commercial installations of renewable-energy generating equipment; the elimination of certain anomalies which had been negatively

Wealth Creation Before Wealth Distribution Our Chamber repeated this axiom consistently in various public pronouncements not least in its verbal and written contributions to the pre-budget consultations, particularly during its participation in social dialogue. We consistently emphasised

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

level – especially as this would expand the barriers of our economic capabilities. However, the Malta Chamber was not in favour of quotas for several reasons. We stated that merit, experience and achievement should be the most important qualifications for any post and most definitely not gender. Rather than quotas, we explained that there is more merit in diversity and in a more holistic approach including innovative approaches to servicing the needs of private sector employers, in the area of work-life reconciliation and work arrangements.

affecting the property market (the 12 per cent Final Withholding Tax situation and post-contract property valuation system by government architects); the introduction of tax reliefs for investors who purchase equity in new, higher-risk, innovative companies; the creation of a business angel network to incentivise local start-up companies; and renewed investment in the National Research and Innovation Programme. At the time, the Malta Chamber expressed itself in favour of the measures announced in the Budget and was indeed the only social partner to voice its serious concern on the prospect of entering 2013 without the national Budget. Despite such calls, the outcome of the Budget vote in Parliament was a negative one and the Chamber, yet again, expressed its disappointment and economic concern.

Internationalisation of SMEs Discussions were also held with another European Commission Vice President during the period under review. During an event organised by Malta Business Bureau, the Malta Chamber discussed matters related to the internationalisation of SMEs with Commissioner Antonio Tajani responsible for Industry and Entrepreneurship. Here we discussed the need for projects that support SME internationalisation in markets that are closer to home and more relevant to our members such as North Africa and for the strengthening of such programmes as the Enterprise Europe Network that provide information on market intelligence and market access issues. At the same time, we put forward our views about the lack of concrete support for SMEs affected by the Libya crisis following our appeal for support by means of a letter to European Commission President Barroso.

Industrial Rent and Service Charges The Malta Chamber played a very active role in two key issues affecting Malta’s manufacturing industry – the proposed revision of both the industrial rent charges and the service charge. These matters were satisfactorily resolved through the intervention of two very proactive ad hoc committees that were set up by Council to deal with the issues of Industrial Rent and Service Charge Policies – one under my chairmanship and the other under that of Julian J. Mamo. Consequently, two ‘landmark’ agreements were signed with Malta Industrial Parks Ltd (MIP) last September in the presence of the Minister of Finance, the Economy and Investment. The negotiations were long and difficult particularly as the initial positions were very distant. However, from the final agreement reached it was clear that that Government was very open to the concerns and suggestions put forward by the Chamber. The agreements marked an important achievement not only for our Chamber, but more importantly for the future of industry in Malta. We are proud to have brought this matter to a conclusion in a manner which was right for the country and which safeguards the long-term sustainability of Malta’s manufacturing industry.

Internationalisation Furthermore, on the internationalisation front, our Chamber was proud to carry on with its support measures aimed at assisting members to expand their business abroad including those initiatives taken via its Business Councils. Two national events were held by the German-Maltese Business Council during the period under review – one dedicated to tourism and the other to the promotion of e-mobility. The activities of this Business Council follow on the success of our other two equally proactive entities – the Scandinavian Business Forum Malta and the Tunisian-Maltese Business Council. Our Internationalisation Desk assisted members in finding new alternative markets through its contacts and networks at its disposal. Work continued relentlessly on a project aimed at Enhancing Regional Business Networks in the Euro-Med Region with the kind support of FIMBank and the Malta Business Bureau, we received first prize in last year’s Enterprise Support Awards for this project. The aim of this project is to facilitate business contacts, match-making services between local and foreign

Gender Quotas Our Chamber was vociferous on the subject of female participation in the workplace and the implementation of gender quotas. The Malta Chamber’s position on the issue was made amply clear during various written and verbal exchanges with European Commission Vice President Viviane Reding. Recognition of the importance of women’s contribution in the business world is due – both on a micro and macro

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

to address informal dialogue sessions with our members, acknowledging the high regard held by the Malta Chamber with the country’s highest decision-makers. Without a doubt, this event gave our members a perfect opportunity to air their concerns and suggestions directly to our political leaders in a frank and open way. This year’s events were held in July 2012 and January 2013 with Dr Muscat and Dr Gonzi respectively.

companies, advice on market intelligence of regional economies and basic advice on legislation and cultural issues in these regions abroad. It is also pertinent to mention that as part of its efforts on this project, we also revived our active participation in ASCAME which is the Association of Mediterranean Chambers. As part of our representation work overseas, our Chamber supported business delegations organised by Malta Enterprise to important business destinations such as Israel, the Baltic States, the Gulf, China and Hong Kong, Algeria and Tunisia on two separate occasions. Besides, as part of our duties, we kept regular contact with all foreign ambassadors accredited to Malta.

In December, Dr Gonzi and Mrs Gonzi also accepted another invitation for dinner with our Council members and spouses. This event has by now become a fixture in our calendar and part of our tradition. It is encouraging to note that on every occasion Dr Gonzi had encouraging words for the Malta Chamber and the manner in which it had established itself as the leading business organisation on the island after its merger in 2009. He complemented the Malta Chamber for the researched and constructive manner in which it consistently presented its opinions during the past legislature.

Social Dialogue Our Chamber took up its prime policy concerns for discussion with the country’s social partners where it was very active within MCESD and the MEUSAC Core Group. Throughout the period under review, in fact, the Malta Chamber continued to give prime focus to its participation in social dialogue where it was represented by its highest officials and where its arguments were always backed by thoroughly researched position papers. The principal issues discussed regularly at MCESD throughout the year were utility rates, the minimum wage, pension reform, active labour market policies and the safeguarding of Malta’s socio-economic balance. The 2013 budget consultation process occupied a number of meetings between social partners at MCESD as did the subject of restructuring of MCESD to incorporate new members. Besides MCESD, we also made active contributions within the MEUSAC Core Group, Malta Enterprise Board, the RPI Management Board, MCST, the Employment Relations Board and the Malta Competition and Consumer Affairs Authority. The Malta Chamber was actively engaged in social dialogue on a European scale through a number of channels. I represented the Chamber and other employer organisations on the European Economic and Social Council where I have been active in important fields related to access to finance, access to the European Single Market, the development of a macro-economic strategy for the Euro Mediterranean area and the EU Structural Funds. My colleagues Norman Aquilina and John Huber have also been very active representing the Chamber on BusinessEurope and Eurochambres, where we were also able to air our views in European Social Dialogue.

Malta Chamber Foundation The Malta Chamber Foundation was established in 2011 with Helga Ellul elected as the first Chairman. The principal aims of the Foundation are to identify relevant EU funding opportunities in-line with the general demand arising from Malta Chamber members and to co-ordinate educational programmes for the benefit of the business community. The work of the Foundation during its second year of existence is elaborated upon within this publication.

Conclusion Circumstances have required me to report on the extensive work undertaken by our Council since March last year. Nevertheless, this was largely a team effort made by my colleagues on the Board of Management, Council and permanent staff. I can certainly vouch for the selfless attitude adopted by all in dedicating precious time and effort towards ensuring a prosperous economy for Malta and a favourable business environment for our members. I am more than confident that our new Council will continue the sterling work conducted over the current term in the interest of the Maltese business community. Writing on the eve of Malta’s General Election, the Malta Chamber is confident it will in no time establish a healthy working relationship with the incoming administration because the Chamber’s only interest – like that of political parties – is that of ensuring a healthy socio-economic balance for the country. In this light, the Malta Chamber looks forward to improving these same results and in creating greater national wealth through private sector growth.

Dialogue with our Political Leaders One of the major benefits of membership within our Chamber is the clout it gives individual members and companies and the opportunity it provides for them to raise their views before the powers that be. To this end, both the Hon. Lawrence Gonzi and the Hon. Joseph Muscat accepted our invitation

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

DG Report As Director-General, it is my pleasure to summarise the Malta Chamber’s major achievements this year. – Kevin J. Borg –

members’ satisfaction in September. This had been an outstanding issue dating back more than a year when the authorities revised rents upwards and enforced the service charge policy in a manner which was not acceptable to our Chamber. For this purpose two separate ad hoc Working Committees needed to be set up internally and these were involved in long and difficult negotiations with Malta Industrial Parks Ltd. Nevertheless, in the end, Government took the Malta Chamber’s suggestions into consideration and this paved the way to the signing of two ‘landmark’ agreements which are crucial for the future of manufacturing in Malta.

The highlight of my work this year – from a personal point of view – was the prize awarded to the Malta Chamber for its project aimed at enhancing its relations with regional Chambers in the Euro-Med area. At the administrative level, the year under review was of major significance. In fact, a major restructuring process of the staff organigram took place following the resignation of my colleague, Ing. Ray Muscat in June. Since then, I have been entrusted with full responsibilities with the support of three Heads to focus on Policy, Sectors and Quality and Administration. These positions were created to ensure focus on the core activities expected from the organisation and its staff. For similar reasons, each Economic Group represented by the Malta Chamber was allocated a member of staff at Executive level to facilitate better focus and specialisation. Besides, the reorganisation process also involved new roles for certain members of staff.

The permanent staff and myself supported the Manufacturing Economic Group in subsequent discussions entered into with Malta Enterprise on the framework for an Industrial Policy. A position paper was formulated outlining the priorities which determined the competitiveness and sustainability of industry. The main identified fundamentals included the availability of a skilled labour force at competitive wages; the provision of adequate factory space at competitive occupancy rates; the stable provision of energy at competitive rates; adequate access to finance; efficient and reliable internal and external transport links at competitive rates; incentives for investment; low/manageable bureaucracy; and internationalisation support to access the European Single Market and beyond. Additionally, the paper identified the conditions needed to nurture long-term productivity and improve working conditions, and called for a strategic complementation with educational policies, research, development and innovation considerations and network/cluster development.

Policy and Consultation During the period under review, I oversaw the formulation of a number of policy positions adopted by the Malta Chamber and its autonomous groupings. Principal among these were the positions made ahead of the national Budget in November and the General Election. In these submissions, the Malta Chamber emphasised the need for ensuring that wealth creation precedes wealth distribution. To this end, it submitted a number of recommendations aimed at enhancing competitiveness which is a pre-requisite for growth. A number of important proposals made by the Malta Chamber were included in the Budget Speech. These included reduced income tax burdens, renewed investment in training schemes, a guaranteed longer period for feed-in tariffs for commercial PVC installations, a business angel network for start-up companies and tax reliefs for investors who purchase equity in new, higher-risk, innovative companies and the elimination of certain anomalies which had been negatively affecting the property market (the 12 per cent Final Withholding Tax situation and post-contract property valuation system by government architects).

The research team at the Malta Chamber produced further position papers with respect to the following: • Feedback on Environmental Permitting • Feedback to the Malta Enterprise policy on the treatment of recycling activities • Feedback to DG Enterprise regarding Industrial Competitiveness • Tourism Policy recommendations • Feedback on Government’s Post Consultation pensions document • Eurochambres Economic Survey 2013 – final report • Feedback to the Waste Electrical and

Other important submissions were made in respect of delicate discussions pertaining to the resolution of the Industrial Rents and Service Charge for Industry which were concluded to the

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

to support the recently established German-Maltese, Scandinavian and Tunisian-Maltese Business Councils. All three Business Councils were exceptionally active in promoting commercial opportunities with their respective territories during the period under review. The activities of our Business Councils are amplified upon in the Internationalisation section of this report. Besides, our Chamber is currently in the process of establishing a MaltaPortugal Business Council as part of our recent Gold Partnership Agreement signed with Banif Bank which seeks to foster and develop business opportunities between Malta and Portugal.

Electronic Equipement Directive • Pre-electoral recommendations • Merger of the Government revenue departments • Research Technology Development and Innovation policy • Amendments to Waste Packaging Regulations

Publications This year the Malta Chamber decided to publish a premium quality book. Entitled ‘La Borsa – The People, The Building, The History’, this book about prominent exponents of commerce and industry, the magnificent Exchange building and its excellent collection of portraits and paintings will include essays by past Presidents and other Chamber officials, well-known historians and art experts, as well as a leading architect. This publication will be a testament to Malta’s strong commercial foundations.

Information Efforts made under the information strand culminated with a national conference organised in conjunction with Ernst and Young. The conference held in November also served as a launching pad for the results of the 2012 Malta Attractiveness Survey. The event was addressed by the Hon. Tonio Fenech, Minister of Finance; the Hon. Jason Azzopardi, Minister for Fair Competition, Small Business and Consumers; and the Hon. Joseph Muscat, Leader of the Opposition besides a host of other specialist speakers who included Ronald Attard, Country Managing Partner of E&Y; Carl Astorri, Senior Economist from Oxford Economics and the Chamber’s Services Economic Group Chairman, Julian J. Mamo. The event served to highlight and discuss Malta’s strengths and weaknesses in terms of its investment attractiveness and serving as a worthy base for international business.

The Commercial Courier Revamp On the occasion of the 65th anniversary of the publication of The Commercial Courier, the Malta Chamber launched the magazine’s new look. Being the official magazine of the Malta Chamber, the publication is considered to be a prestigious and practical platform that reaches all leading business people in Malta. The publication is also the oldest business magazine in Malta and the first issue was published in the late forties. The objective of the revamp was to give a more exclusive look and feel to the brand as well as to give the publication the look, feel, and versatility of contemporary design, following a successful seven-year run in the current format.

Other high-level events were organised on a national scale over the course of the period under review. These included an event dedicated to Corporate Social Responsibility which was addressed, among others, by former PwC Malta Senior Partner John Bonello; Playmobil Malta Environment, Health and Safety Manager Adrian Vigar; as well as Charles Borg and Vanessa MacDonald, Bank of Valletta’s CEO and Head of PR, respectively. Held in October, the conference highlighted that Responsible Entrepreneurship was most prevalent among local businesses both large and small – even if, at times, the business itself may have been unaware of the fact it was performing an activity that fell squarely into the CSR definition. It concluded that Responsible Entrepreneurship created a win-win situation for business and the stakeholders around it. The CSR project which is administered in conjunction with Bank of Valletta attracted the attention of the International Chamber of Commerce (ICC). In fact, the ICC invited the Malta Chamber to nominate this project for its Responsible Entrepreneurship Award.

Internationalisation Our Internationalisation Desk – under the guidance of a dedicated Committee – continued in its mission to bring foreign markets closer to the local business community. The work of the Internationalisation Desk is based on three strands: Information, Co-operation and Service Projects, and is supported by the existing Co-operation Agreements with HSBC, FIMBank, Creditinfo and Regus (Malta). The tasks of the Internationalisation Desk are demand-driven by the results of an extensive profiling exercise of members’ current and planned internationalisation efforts. This task is ongoing and is facilitating a more personalised and relevant service to companies, while enabling qualified input to the national debate about the priorities of trade and investment promotion.

Business Councils From the experience gained in recent years, we now know that Business Councils are a very efficient way to help firms venture abroad. In fact, Business Councils provide the ideal forum to connect Maltese business people with international companies based in Malta in order to share experiences, information and intelligence. Over the course of 2012, our Internationalisation Desk continued

‘The Future of Manufacturing’ Conference On 25th May, the Manufacturers and Other Industries Economic Group (MEG) held a half-day conference on The Future of Manufacturing, one of a series of activities organised by the MEG to promote the interest of the sector. The event targeted all those members interested in the way forward for

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

also received at Auberge de Castille where the Prime Minister witnessed the signing of a Memorandum of Understanding by the Presidents of DIHK and the Malta Chamber.

a competitive manufacturing sector, and aimed to delve into the issues being faced by both large and small enterprises. As a leading voice representing all areas of business, the Malta Chamber felt that it was its duty to promote the importance of the manufacturing sector, its sustainability and continued development.

Fiscal and Market Surveillance Under the guidance of the Importers Economic Group, the Malta Chamber continued to follow up on the matter related to abuses in free movement of goods. Active discussions were held with the authorities particularly insofar as the announced merger between the Government Revenue Departments was concerned. The Malta Chamber supports this move as long as it remains conducive towards the establishment of a level playing field between bona fide traders and those that operate below the radar and beyond the knowledge of any authority including fiscal.

Andy Gatesy, Chairman and CEO of Toly Products and Alfred Camilleri, Managing Director of Inspectra were invited to speak on behalf of industry, whilst the Minister of Finance, the Economy and Investment, Hon. Tonio Fenech and the Spokesperson for Industry, the Self-Employed and Foreign Investment, the Hon. Chris Cardona, were also invited to make their interventions in the presence of around 100 representatives from manufacturing. An insightful panel discussion closed the event, including interventions from Chris De Giorgio, Finance Director of Foster Clark Products Ltd and Sergio Vella, Managing Director of ArrowPharm Malta.

Media Representations This year the Malta Chamber continued to express its opinions in the media, with regular press releases and opinion pieces. I participated in television discussion programmes such as Bondi+, Dissett and Ghandi xi Nghid. I also gave interviews to the media on such issues as the Budget, familyfriendly measures. Malta’s competitiveness and pensions. the Malta Chamber also held comments for television and radio as well as participated on television and radio current affairs programmes. Issues such as the Budget, family friendly measures, Malta’s competitiveness and pensions were all significantly commented upon. The Malta Chamber also held a press conference on Service Charge and Rent Policies.

Doing Business with Bavaria – “Challenges and Opportunities for a Changing Tourism Sector” On 19th July, the German-Maltese Business Council (GMBC) hosted an event entitled ‘Challenges and Opportunities in a Changing Tourism Sector’. Speaking at the event were the GMBC Chairman Karl Aquilina, the Minister for Tourism, the Environment and Culture, the Hon. Mario de Marco; the German Ambassador to Malta, H.E. Hubert Zieger; Munich Airport’s Head of Travel Industry and Hub-Marketing, Florian Pötsch; Kempinski Gozo General Manager Sven Fritzsche; and Bayern International Head of Department, Dr Maika Gruber.

Appreciation Staff and members of the Malta Chamber were saddened by the news of the loss of Anthony Borg Cardona who passed away in January after suffering a long illness. Mr Borg Cardona served the Chamber for 41 years. He started working at the Chamber in 1965 under the Presidency of Philip H. Toledo and under the guidance of Permanent Secretary, Salvino NicholasVirtu. He eventually took over from Mr Nicholas-Virtu and later became Director-General in 1990. I was fortunate enough to have served under his guidance and leadership for nine years and later to have been entrusted with the responsibility of carrying on his sterling work. Words of admiration and appreciation are often spoken of Mr Borg Cardona by members and other acquaintances whilst he is often remembered at the Chamber’s regular social gatherings and his memory will live on at the Chamber for many years to come.

After the speeches, participants gathered in the Malta Chamber courtyard for a ‘Flavours of Bavaria’ networking reception. Entertainment was provided by a Bavarian band flown in specially for the occasion, while both Bavarian and Maltese beer was served to accompany authentic German food. This event was supported by Munich Airport, Lufthansa, Kempinski Hotel San Lawrenz Gozo, Simonds Farsons Cisk and Halmann Vella.

Visit from the Association of German Chambers of Commerce and Industry (DIHK)

In conclusion, I thank all my colleagues at the Malta Chamber for their dedication and team-work. With the guidance of Board of Management, Council, Economic Groups and Committees, I look forward to another awardwinning year of service to the business community.

Our Chamber was honoured to receive the President and CEO of DIHK in November. Prof. Dr Hans Heinrich Driftmann and Dr Martin Wansleben are very high-profile personalities in the German business world as well as in the European Chamber circle. The two held active discussions with the German Maltese Business Council on future collaboration. They were

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Council of the Malta Chamber of Commerce, Enterprise and Industry 2012-2013

Board of Management President: Mr Tancred Tabone/Mr Stefano Mallia*

Deputy President: Mr Stefano Mallia/Mr William Wait*

Vice President: Mr William Wait/Mr Andrew W. J. Mamo* Officer: Mr John Huber Officer: Mr Andrew W. J. Mamo/Mr Charles A. Zahra* Officer: Mr Anton Borg

The remaining Council Members are: Mr Norman Aquilina Mr Martin Borg Mr Charles Brincat Mr Ian Casolani Mr Gino Cutajar Mr Frank V. Farrugia Mr Matthias Fauser Mr Reginald Fava Mr Julian J. Mamo Mr Noel Micallef Mr Mario Spiteri Perit David Xuereb Mr Charles A. Zahra Mr Tonio Casapinta*

Past Presidents

*By virtue of article 4.22 of the Statute of the Malta Chamber of Commerce, Enterprise and Industry, following the resignation of Mr Tancred Tabone on 6th February 2013, Mr Stefano Mallia took over the post of President; Mr William Wait became Deputy President, Mr Andrew W.J. Mamo became Vice-President and Mr Charles A. Zahra was elected Officer. As provided by Rule 4.8 of the Statute Mr Tonio Casapinta joined Council and the Executive Board of the Services Providers Economic Group.

Mr Louis Apap-Bologna Mr Adrian Bajada Chev. Baron Adrian Busietta Mr Joseph R. Darmanin Mr Anthony S. Diacono Mrs Helga Ellul Mr Louis A. Farrugia Mr Martin Galea Mr Victor A. Galea Mr Francis T. Gera Mr John E. Sullivan Mr Joseph N. Tabone

Hon. Legal Advisor: Dr Hugh Peralta Hon. Architect: Mr Stephen Mangion Hon. Chaplain: Fr Thomas Moore

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Council of the Malta Chamber of Commerce, Enterprise and Industry 2012-2013 Continued

Economic Groups Executive Board Members Importers, Distributors and Retailers Economic Group

Manufacturers and Other Industries Economic Group

Services Providers Economic Group

Mr Gino Cutajar – Chairman

Mr Matthias Fauser – Chairman Mr Charles Brincat – Deputy Chairman Mr Norman Aquilina Mr Anton Borg Mr William Wait Mr Noel Micallef

Mr Julian J. Mamo – Chairman Mr Ian Casolani – Deputy Chairman Perit David Xuereb – Vice Chairman Mr Stefano Mallia/Mr Tonio Casapinta* Mr John A. Huber Mr Mario Spiteri Mr Trafford Busuttil (co-opted) Mr Peter Sant (co-opted) Mr Edward A. Woods (co-opted)

Mr Frank V. Farrugia – Deputy Chairman Mr Andrew W.J. Mamo – Vice Chairman Mr Reginald Fava Mr Martin Borg Mr Charles A. Zahra

*By virtue of rule 4.8 of the statute, Mr Tonio Casapinta joined the Executive Board of the Services Providers Economic Group upon the taking over of the post of President by Mr Stefano Mallia on 6th February 2013

The Malta Chamber of Commerce, Enterprise and Industry – Staff Mr Kevin J. Borg B.Com., B.A. (Hons.) Econ. Mr Andre Fenech B.A. (Hons.), M.A. European Studies Mr John B. Scicluna Miss Johanna Calleja Mr Klaus Pedersen Ms. Sc. (Int. Bus. Adm.) Miss Rachel Bartolo B.A. (Hons.), M.A. European Studies Mrs Jeanelle Brincat B. Com. (Hons.) Public Policy Miss Marylyn Hili B.A. European Studies (Hons.) Miss Claire Rizzo Mrs Elena Scicluna Miss Diane Seychell B.A. (Hons.), M.A. European Studies Mr Robert Tabone Valetta B. Com. (Hons.) Public Policy Miss Lina El-Nahhal B.A. (Hons.) European Studies, M.A. European Public Affairs Miss Dorianne Bonanno Miss Bernice Azzopardi Mr Anthony Tanti Mr Joseph Fenech Mr Charles Maione

Director General Head – Policy Development Head – Quality & Administration Manager – Statutory Affairs & Administration Manager – Internationalisation Executive – Sectors Executive – Malta Chamber Foundation Executive – Research Executive Assistant to President and Director General Executive – Education Executive – Media and Communications Executive – Sectors, Development & Research Junior Executive – Internationalisation Front Office and Events Co-ordinator Support Secretary Examinations Clerk Support Staff Support Staff

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Events Highlights

concentrate on growth and we know that success depends on how competitive our businesses are,” he concluded.

a Linking Enterprise visit at the Faculty of Engineering on 19th April. The Malta Chamber delegation, led by the Chairman of the MEG, Matthias Fauser included Deputy President William Wait and outgoing Director General Ing. Ray Muscat, as well as representatives from some of the major manufacturing plants on the Island. The main purpose of this event was to introduce these companies to the services offered by the Faculty of Engineering.

The Malta Chamber held its Annual General Meeting on 15th March.

Malta Chamber wins first prize for National Enterprise Support

2011 was no easy year for business but despite the challenges, significant milestones for the benefit of business were reached. “The coming months will be equally hard and we, the business community, must be up for the challenge,” former Malta Chamber President had warned.

The Malta Chamber was awarded first prize in the National Enterprise Support Awards 2011 for its Internationalisation Project entitled ‘Enhancing Regional Chamber Networks in the Euro-Med Region’, which is supported by the Malta Business Bureau and FIMBank.

During the visit, those in attendance had the opportunity to view the Faculty’s facilities, which included a tour of various departments such as systems and control engineering, mechanical engineering, Industrial electrical power conversion and industrial and manufacturing engineering.

Annual General Meeting 2012 – Malta Chamber urges authorities to focus on competitiveness

During the AGM, Mr Tabone referred to a number of competitiveness issues and pending reforms which are hindering business and economy. In this regard, he appealed once more to the authorities who need to ensure that they do their part to match the private sector’s quest for competitiveness. “One of the principal amongst unresolved structural issues is the issue of COLA. The MCESD working group in which we actively participated agreed to the inclusion of productivity as a new element in the COLA formula under review. However, we are still waiting for its implementation and we shall keep pressing for urgent closure,” he stated. The former President also highlighted various issues that require urgent closure in the interests of national competitiveness. He referred to the discussions on the pending Rent and Service Charges, which remains a pending issue to the detriment of the manufacturing sector, and also for closure on the Eco-Contribution refunds. In conclusion, Mr Tabone appealed to the business community to remain focused. “As entrepreneurs, we need to

The National Enterprise Support Awards is an event sponsored by Government and the European Commission, in recognition of those entities and organisations that have made exceptional efforts to assist SMEs. Through this project, the Malta Chamber has so far established nodes in a number of European and North African countries, with more agreements in the pipeline. As part of this project, the Malta Chamber has also renewed its active participation in ASCAME – the network of Mediterranean Chambers in which each country is represented by a regional Chamber.

Linking Enterprise at the Faculty of Engineering The Manufacturers and Other Industries Economic Group (MEG) in collaboration with the University of Malta organised

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Mr Fauser said that the Malta Chamber strongly believed that such an initiative would create more awareness of the research facilities at the University, which would contribute towards the strengthening of the links between Industry and academia. This was something which both organisations would like to foster. He insisted that this visit was the beginning of an ongoing collaboration between the University of Malta and the Malta Chamber.

Council meets Prime Minister The Malta Chamber welcomed Prime Minister Lawrence Gonzi together with MEP Simon Busuttil to the Malta Chamber in June. Mr Tabone remarked that despite local and international distractions, Malta’s economy was doing well and despite what are regarded as temporary shocks, Malta managed to maintain good socio-economic balance. He said that he was convinced that with better communication, especially through social dialogue, the Maltese islands could be rendered even more competitive, with the creation of more investment and jobs. The Malta Chamber was also pleased to note the Commission’s emphasis

Events Highlights

on similar pressing recommendations which the Malta Chamber itself had been consistently making, on pension reform, Malta’s COLA mechanism and specific labour market rigidities. The Malta Chamber reiterated that unsustainable electoral promises were the biggest threat to economic wellbeing because these could compromise Malta’s competitiveness, therefore an appeal was made to the Prime Minister to continue to act in the interest of Malta’s competitiveness. The Malta Chamber emphasised that the country must not allow labour costs to spiral out of control in respect to productivity. Referring to sustainable pensions, it also stated that an integral part of the solution is to ensure that a higher proportion of the population is working productively. The Manufacturers and Other Industries Economic Group raised the point that the last couple of years had been difficult for manufacturers, with competitiveness being eroded through increased costs such as COLA and electricity rates. The need for flexible employees was highlighted as well as the need for manufacture to be varied and not just high value-added. In his reply, the Prime Minister said that manufacturing is an important part of the economy and that he hoped that because of the skills set, Malta offers a highly competitive package. The Real Estate Business Section remarked that the sector felt that Government wished to distance itself from dependence on the property sector at a time when it most needed Government’s backing. The Section referred to the previous Residence Scheme which had brought a lot of business and investment into Malta. In this regard, its termination had caused negative repercussions. The Malta Chamber had offered its own recommendations for the new scheme; however its contribution had been ignored.

The Real Estate Business Section also spoke about the 12 per cent capital gains tax which was levied even when the vendor lost money on his property and Government valuations which were made by Government appointed architects, often after improvements had been made to a property, and whose valuation could not be appealed or contested. The Prime Minister said that he was familiar with all the points raised. He said that there was no strategy to take a cautious approach to real estate development. Government had done nothing to disincentivise property development; on the contrary it had introduced measures to incentivise development in certain areas.

explained how the company’s story is closely linked to the country’s history and its industrial and economic evolution. Ms Caruana gave details about the origin of the company in the early 1920s. Today, SFC plc. brews and packages a number of award winning beer brands and produces a vast range of other beverages. As a Group, Farsons has diversified successfully into the fast food sector through its company Food Chain Holdings Limited, the importation of fine wines and spirits, through Farsons Beverage Imports Company Limited (FBIC), the bottling and distribution of water in 18.9 litre bottles, through EcoPure Limited, as well as the importation and distribution of food products through Quintano Foods Limited. Following this presentation, members present were invited to visit the LC allowing for the exchange of best practices between the participants.

Successful Linking Enterprise Event at Simonds Farsons Cisk 20 members attended a successful Linking Enterprise event that was held at Simonds Farsons Cisk plc on Thursday, 21st June. Members were welcomed by Malta Chamber Director General Kevin J. Borg, and by Farsons Group Chief Executive Norman Aquilina. During his speech, Mr Borg thanked SFC for its continuous support towards the Malta Chamber, and thanked both Mr Aquilina who is a Malta Chamber Council Member and chairs the Fast Moving Consumer Goods Committee, as well as Antoinette Caruana, who chairs the Malta Chamber Business Education Committee, for their input at the Malta Chamber. Ms Caruana, Company Secretary and Group HR Manager at SFC plc, gave a detailed account of the Group’s history, as well as the company’s development from a small family business to one of Malta’s leading group of companies. During her presentation, Ms Caruana

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Dialogue Meeting with the Prime Minister On 28th January, the Malta Chamber welcomed Prime Minister Dr Lawrence Gonzi to a dialogue meeting with members. Mr Mallia opened the meeting, the first part of which was held in the presence of the media. He said that the Malta Chamber and the Government shared the same aim – that of seeking what was best for the country. He said that as was done during previous election campaigns, the Malta Chamber was not commenting on any specific measures being proposed by any Party. Mr Mallia emphasised the fact that in the run up to the last Budget, the Malta Chamber submitted a number of proposals which followed the common objective of ‘wealth creation before wealth distribution’. It also reiterated a number of proposals which had

Events Highlights already been taken up by Government in the proposed 2013 budget. Mr Mallia also spoke about the Malta Chamber’s concern about the sustainability of a number of proposals made by both parties during the election campaign. “The Chamber feels that some proposals being put forward by both parties could jeopardise the competitiveness of the Maltese economy. For the moment, the Chamber will stop at just expressing this note of concern however, at a later stage, i.e. post election, it will be very active in opposing any measures which it feels are not sustainable and which could jeopardise our ability to generate growth and jobs,” Mr Mallia continued. On his part, Dr Gonzi said that it was vital for all to learn a lesson from the past five years. He said that had Malta not had its finances in a strong position, it would not have been able to address the challenges brought by the international recession and a large number of jobs would have been lost. Dr Gonzi was optimistic about the future. He informed the members present that 25,000 new jobs would be created in the next five years, the income tax burden would be decreased and new measures would be implemented to allow females aged over 35 to return to the workforce. He also thanked the employers who contributed to the country’s economic growth. Malta Chamber members were allocated ample time for questions and comments to Dr Gonzi during which they asked questions on various subjects such as tourism, the sick leave proposal, MEPA, manufacturing, utility tariffs, the amalgamation of the Inland Revenue Departments, e-Cards and the need for longer guarantee periods for feed-in tariffs for commercial installations of photovoltaic cells.

Wine Tasting Evening Seven companies: Francis Busuttil & Sons (Marketing) Ltd., P. Cutajar & Co. Ltd., M. Demajo (Wines & Spirits) Ltd., Charles Grech & Co. Ltd., S. Rausi Ltd., Farsons Beverage Imports Co., Wembley Stores

Ltd. came together to present their wines during a Wine Tasting Evening which took place at the Malta Chamber on 22nd June. The Wine Tasting Evening is a highlight in the Malta Chamber’s diary. It offers members involved in the production and importation of wines an occasion to showcase their wines in the Malta Chamber’s beautiful Courtyard. The Wine Tasting Evening also serves to bring members together during this informal event. Participation in this event was free of charge, however members were encouraged to make a donation to be presented to the Ursuline Crèche. The Malta Chamber thanks Continental Purchasing Co. Ltd. (who supplied Zwiesel Kristallglass AG wine glasses), Polidano Press Ltd. and Villa Arrigo Ltd, without whom this event could not have been possible.

Then Malta Chamber President Tancred Tabone remarked that the business community acknowledged that there are certain limitations on competitiveness which are acting as bottlenecks to growth. Therefore, he said that the Malta Chamber was eager to hear Dr Muscat’s concrete proposals on pension reform, the need to revise the COLA formula to include a measure of productivity, utility rates, the widening of social dialogue within MCESD, female participation and the maternity leave issue, and abuse of social security benefits which is crushing the tax-abiding majority of the Maltese population. He also said that unsustainable electoral promises could compromise competitiveness. Dr Muscat said that a new Labour government would be committed to follow the EU’s fiscal consolidation policy, which has to be backed by a sustainable strategy. Economic growth has to be viewed as the motor of the Maltese economy. A new Labour government will be willing to fight bureaucracy and to follow this cultural change in procedures, the support of the Malta Chamber is crucial.

Doing Business with Bavaria – ‘Challenges and Opportunities for a Changing Tourism Sector’

Malta Chamber hosts Dialogue Session with the Leader of the Opposition On July 17th, the Malta Chamber welcomed Dr Joseph Muscat, Leader of the Opposition to the Malta Chamber for a dialogue session with members. THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

On 19th July, the German-Maltese Business Council (GMBC) hosted its second event, which was entitled ‘Challenges and Opportunities in a Changing Tourism Sector’. Speakers included GMBC Chairman Karl Aquilina, Minister for Tourism, the Environment and Culture, Mario de Marco; German Ambassador to Malta, H.E. Hubert Ziegler; Head of Travel Industry and Hub-Marketing, Munich Airport, Florian Pötsch; Kempinski

Events Highlights Gozo General Manager Sven Fritzsche; and International Member of the Management and Head of Department, Bayern International, Maika Gruber.

Chamber was proud to have brought this matter to a conclusion in a manner which safeguards the long-term sustainability of Malta’s manufacturing industry.

Following the speeches, participants gathered in the Malta Chamber courtyard for a ‘Flavours of Bavaria’ networking reception. Entertainment was provided by a Bavarian band flown in specifically for the occasion, while both Bavarian and Maltese beer were served to accompany authentic German food. The event’s sponsors were Munich Airport, Lufthansa, Kempinski Hotel San Lawrenz Gozo, Simonds Farsons Cisk and Halmann Vella.

Agreements on Industrial Rent and Service Charge Policies to Safeguard Malta’s Manufacturing Industry On 5th September, the Malta Chamber signed two ‘landmark’ agreements with Malta Industrial Parks Ltd (MIP) in the presence of the Minister of Finance, the Economy and Investment, the Hon. Tonio Fenech, concerning Industrial Rent and Service Charge Policies. The Malta Chamber could proceed with the signing of the Memorandums of Understanding (MOUs) after final agreement was reached between the authorities and the Malta Chamber’s two specialised committees which were specifically set up to discuss both matters separately and in parallel with MIP. The Malta Chamber’s Manufacturing Economic Group also signalled its full agreement with the contents of the MoUs. The Malta Chamber underlined that it had entered into a Memorandum of Understanding with MIP. The MoU was intended to serve as an enabling framework for negotiation between factory tenants and MIP. The actual contracts will be entered into between MIP and the tenant itself. This agreement was perceived as an important achievement not only for the Malta Chamber, but more importantly for the future of industry in Malta. The Malta

Prime Minister Witnesses Signing of Historic Agreement for Malta

Malta Chamber meets Nigel Tomlinson On 18th September, the Malta Chamber Board of Management welcomed Nigel Tomlinson, an advisor to EUROCHAMBRES and International Chambers of Commerce (ICC) to the Malta Chamber. Mr Tomlinson actively works with EUROCHAMBRES and ICC on projects dealing with quality, environment and internationalisation. During the meeting, various topics were discussed, most notably international projects in which the Malta Chamber could be collaborating in the near future. In fact he also held a meeting with the Chamber’s Internationalisation Committee on 19th September.

Malta Chamber Summer Event 2012 On 25th September, the Malta Chamber held its social end-of-summer event at The Saluting Battery in Valletta. A number of distinguished guests were present, including Prime Minister Dr Lawrence Gonzi, Minister of Finance, the Economy and Investment Tonio Fenech, as well as Members of Parliament Dr Charles Mangion (Spokesperson for Economic Development, Financial Services and Pensions) and Mr Leo Brincat (Spokesperson for the Environment, Sustainable Development and Climate Change).

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

The former President of the Malta Chamber and the President of the Association of German Chambers of Commerce and Industry (DIHK) signed a historic Memorandum of Understanding (MoU) at the Auberge de Castille in the presence of the Prime Minister of Malta, the Hon Lawrence Gonzi and the Ambassador of the Federal Republic of Germany to Malta, H.E. Dr Hubert Ziegler. The agreement was signed on 30th November at the end of a two-day visit by a high-level delegation of the Deutscher Industrie-und Handelskammertag (DIHK) to Malta. During the visit, the delegation – which included DIHK President, Prof. Dr Hans Heinrich Driftmann and CEO Dr Martin Wansleben – held meetings with the Malta Chamber and its GermanMaltese Business Council. Discussions centered principally on common issues, concerns, future challenges and possible areas of cooperation also regarding European affairs. The highlight of the delegation’s programme in Malta was a meeting with Prime Minister Lawrence Gonzi, where the DIHK President and CEO were accompanied by then Malta Chamber President Tancred Tabone and Director General Kevin J. Borg. On this occasion, all sides discussed the recent activity of German foreign direct investment in Malta and innovative ways of collaboration that could lead to a sustained pattern of investment in the coming years. Following these discussions, the Malta Chamber and DIHK signed their MoU.

Events Highlights

National Conference on the Malta Attractiveness Survey 2012 The Malta Chamber in collaboration with Ernst & Young hosted the National Conference on the Malta Attractiveness Survey 2012 on 22nd November, which marked the publication of the Malta Attractiveness Survey by Ernst & Young. Former Malta Chamber President Tancred Tabone opened the conference by saying that the Malta Chamber strongly believes that the Survey provides a helpful insight to investors and that the Malta Chamber is therefore delighted to contribute to this report. Ernst & Young Managing Partner Ronald Attard explained that the Malta Attractiveness Survey 2012 brought together the views of top executives of 90 foreign-owned companies operating in Malta. With world markets becoming more affected by economic uncertainty, Mr Attard stressed that the importance of foreign direct investment to the Maltese economy has increased. Sectorial competition in Europe has never been more intense and there is always more that can be done to enhance the Malta offer.

Among the speakers at the event were the Hon. Tonio Fenech, Minister of Finance, Economy and Investment; the Hon. Jason Azzopardi Minister for Fair Competition, Small Business and Consumers; Leader of the Opposition the Hon. Joseph Muscat; Carl Astorri, Senior Economist, Oxford Economics, and Malta Chamber Chairman Services Economic Group Julian J. Mamo.

President’s Annual Reception 2012 Members and guests were welcomed to the Exchange Buildings on December 4th for the end of year Annual Reception. Among the guests were H.E. The President of Malta Dr George Abela, H. E. President Emeritus Dr Eddie Fenech Adami, the Hon. Prime Minister and Mrs Gonzi, and Minister for Fair Competition, Small Business and Consumers the Hon. Dr Jason Azzopardi. Present from the Opposition’s side were the Hon. Karmenu Vella, the Hon. Charles Mangion, the Hon. José Herrera and the Hon. Carmelo Abela. A number of Ambassadors also attended the event, including H.E. Dr Petra Maria Schneebauer, Ambassador of Austria; H.E. Mr Cai Jinbaio, Ambassador of China; H.E. Mr Michel Vanderpoorter, Ambassador of France; H.E. Dr Felice de la Morena Casado, Ambassador of the Kingdom of Spain; H.E. Mrs Souad Guebiaoui, Ambassador of Tunisia; H.E. Mr Robert Haydon Vernon Luke, British High Commissioner and H.E. Mrs Gina Abercrombie-Winstanley, Ambassador of the United States of America. The event was held in Sir Agostino Portelli Hall.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Council hosts Dinner in Honour of the Prime Minister In December, the Malta Chamber Council welcomed Prime Minister Dr Lawrence Gonzi to its Annual Dinner. During his address, former Malta Chamber President Tancred Tabone remarked that the Malta Chamber embraced the Budget Speech especially because its objectives were much in line with the Malta Chamber’s – that is, fiscal consolidation and economic growth. He also said that the Malta Chamber feared that Parliament’s rejection of the Budget Speech will create additional uncertainty to 2013 which, is being envisaged to be a difficult year for business. Mr Tabone emphasised that the Malta Chamber was the only social partner, or member of MCESD to come out with such unequivocal messages in the media in the run-up to the Budget vote. He also mentioned a series of instances in which the Malta Chamber contributed its advice on matters of prime economic importance, such as closure on the matter of Rents and Service Charges for the manufacturing industry and the setting up of Business First as a one-stop-shop for government services to SMEs. In conclusion, Mr Tabone reiterated his aims to the Prime Minister that ultimately, both parties’ goals are the same; the best for our country. The Malta Chamber was always willing to contribute its part to ensure that its members operate in the right environment for growth.

Policy Positions 2012 During the year under review, the Malta Chamber followed closely a number of issues and in some cases also formulated position papers. The Malta Chamber has constantly been at the forefront of discussions when the national interest was brought to the fore. Banking of Hours

be to implement measures which encourage a natural rise in the number of women at decision-making level, including incentives for females to retain their employment and help strike a balance between work and family commitments.

After years of active representations on the issue, the Malta Chamber welcomed the publication of LN 46 providing for the introduction of Banking of Hours across the board. The Malta Chamber deemed this as a significant step in safeguarding Maltaâ&#x20AC;&#x2122;s competitiveness, particularly through labour flexibility.

Eco-contribution exemption In a letter to the Permanent Secretary for Tourism, Culture and Sustainable Development, the Malta Chamber registered the complaints of a number of members who have been chosen to undergo verification by the Approving Body.

As the Malta Chamber often stated, flexibility must be Maltaâ&#x20AC;&#x2122;s main driver for success in the current international climate. The concept was straightforward and allowed for extra hours worked during peak periods to compensate for times when workers were idle due to leaner demand. The LN set a calendar year as a reference period and gave the possibility of both parties agreeing to carry over balances from one year to the next. The Malta Chamber was also pleased to see that the necessary safeguards were put into place to ensure fairness and flexibility.

The Malta Chamber disapproved of this process for a number of reasons, primarily because these audits were being carried out in an overzealous way after so many years, where the eco-contribution matter was being mismanaged by the authorities and as a result of which these law-abiding companies paid eco-contribution on top of private waste packaging schemes. In the process they were subjected to unfair competition from operators which did not abide by the same environmental and other obligations. In this regard, the refunds due to these companies, at law, remain unpaid.

The Malta Chamber was confident that banking of hours would also serve the country well in a broader sense beyond competitiveness. It could also enable easier planning ahead for both the employer and the employee. In so doing, it could serve as a family-friendly measure because it contributes towards the improvement of the work-life balance of people who work in sectors that experience significant peak and off-peak differences in demand.

The Malta Chamber believed that this would create not only an administrative burden but in many instances a financial one since these operators have to open every item they sell which falls under this category and show it to the same auditors.

Within the current international climate, more flexible work practices are essential to ensure the further competitiveness and flexibility of businesses and the economy. The Malta Chamber firmly believed that this Legal Notice was a step in the right direction towards this aim.

Better regulation vital for competitiveness The Malta Chamber noted with satisfaction the commencement of a consultation process on proposed amendments of commercial licenses regulations, announced by the Ministry for Fair Competition, SMEs and Consumers, Hon. Jason Azzopardi.

Quotas for women on company boards

The Malta Chamber had been following this matter closely within its efforts in the area of better regulation. In this regard, it had, for a number of years, been making strong representations to reduce administrative burdens on businesses, particularly SMEs which are the worst affected by red tape. The Malta Chamber reiterated its position for a more transparent and efficient process, which would save time and reduce costs for business.

The Malta Chamber concurred with the Maltese Governmentâ&#x20AC;&#x2122;s decision to oppose plans by the European Commission to impose a 40 per cent quota for female board representation on publicly listed companies by 2020. The Malta Chamber believes that merit, experience and achievement should be the most important qualifications for any post, and most definitely not gender. The Malta Chamber recognised the importance of the contribution of women in the business world, however, it reiterated its position that quotas do not adequately address the need to improve gender balance on boards. Measures to impose a standard scenario in Europe as a whole may not apply to Malta due to cultural issues and the availability of support structures for professional mothers.

The Malta Chamber hoped that any legislative change or administrative burden reduction would be trickled down to clients facing staff in Government entities, to ensure a smooth transition to more efficient practices. The Malta Chamber would be participating in this consultation on behalf of its members and augured that Government will be in a position to continue to simplify regulations and reduce administrative burdens for businesses.

Furthermore, with quotas taking precedence over competences, females may be given jobs on the basis of gender rather than academic qualifications and merit. The ideal approach would

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Waste Management (Packaging and

Malta Chamber, are still valid to this day and should be seriously considered in the light of the present reform. It is also noteworthy to see that the European Commission’s recommendations are generally in line with the Malta Chamber’s position.

Packaging Waste) (Amendment) Regulations The Malta Chamber wrote to MEPA about the proposed amendments to Waste Management (Packaging and Packaging Waste) Regulations. The Malta Chamber expressed its concerns on the way the consultation was carried out and the tight deadline given to reply, and it requested an extension to the deadline to submit meaningful recommendations. The proposed amendments aim at ensuring compliance with Directive 94/62/EC of 20 December 1994 on packaging and packaging waste, as amended by a number of EU directives.

The Malta Chamber reiterated that the sustainability of our pensions system is beyond the debate stage and requires the country’s full and constant focus. As a realistic and responsible organisation, the Malta Chamber understands the urgency of the situation and the grave repercussion of the delay in implementing further reform. In designing the necessary reform, policy-makers must ascertain two crucial factors in ensuring balance between the country’s economic and social needs. All stakeholders need a blueprint with clear timeframes and all relevant information in order to be in a position to plan adequately for the future. It is also important that the matter is tackled holistically in line with other social and economic policy considerations such as those related to health, wage indexation and education among others. Besides, whilst the reform is underway, stakeholders do not expect conflicting decisions to be taken, such as policies facilitating early retirement in the public sector.

The main change included in this proposed amendment is regulation 5(2) which stipulated that producers whose packaging ends up at final consumers would be obliged to join an authorised packaging waste recovery scheme. Other amendments include an extension to the timeframes by which producers register as a producer of packaging and other administrative formalities directed towards waste management schemes. The Malta Chamber showed its concern on the proposed amendments which were going to impact negatively on companies which are currently self-complying to the requirements of the law.

Pre-Budget Proposals

The Malta Chamber made its views on pension reform amply clear and now awaits progress to the reform with the least shocks possible to the country’s socio-economic balance.

The Malta Chamber submitted its proposals for the 2013 budget to the Minister of Finance, Economy and Investment, Hon. Tonio Fenech. The document made 31 practical recommendations in terms of utility costs, COLA, public sector bureaucracy, family-friendly measures and a shift from direct to environment taxation. It also included sectoral recommendations featuring manufacturing, tourism, construction and real estate, ICT, digital gaming and yachting.

‘Tourism Policy for the Maltese Islands 2012 – 2016’ Recommendations The Malta Chamber sought to step up its efforts in the tourism field by encouraging a wide and active participation of representatives in those sectors which complement hotels and catering establishments. For the purpose of drawing up this position paper it sought the views of its members operating not merely in the hospitality sector but in wider areas such as English language schools, destination management companies (DMCs), car hire companies, airlines, operators of entertainment establishments, travel agents and the major transport and logistics hubs on the island.

Feedback on Environmental Permitting The Malta Chamber recognises that the regulations on Environmental Permitting for Industry may have negative consequences on some sectors which are represented by its members. For this reason, a Sub-group chaired by Board of Management member Anton Borg was formed in order to focus on this issue and address the members’ points of concern in a counter proposal.

In view of the above, the Malta Chamber strongly agrees with the current practice of reviewing the national Tourism Policy at regular intervals in line with ongoing developments that affect growth in the sector. This enables the country to meet new challenges effectively. The Malta Chamber further believes that Malta must take more direct control of its brand, its story and message. It must leverage on its unique selling proposition, combining these intelligently into the various niches in which it is established or new ones it is seeking to penetrate.

Following a presentation delivered by MEPA officials on the consultation document, a number of sub-group meetings were held, during which the members present put forward their queries and expressed their concern about this reform.

Feedback on the Government’s PostConsultation Pensions Document The Malta Chamber studied the updated post-consultation strategic review of Malta’s pension system and the recommendations made by the European Commission in its white paper. It deemed the study a good basis for reform but insisted for the urgent publication of a final blueprint with clear timeframes to ensure further progress in the reform. The blueprint must contain all necessary information in order to ensure that business and other stakeholders are in a position to plan adequately. The recommendations made in past studies and the position of the

It also agrees with the authorities’ priority of trying to attract more tourists during the shoulder and winter months. Therefore, it fails to understand how the Strategy document ignores certain important segments which satisfy the need to attract value-added tourism during the low season. A case in point is the fact that there is no mention of the yachting industry, as well as sports activities such as golf.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

As a responsible constituted body and aware of the structural bottlenecks to growth that persist, the Malta Chamber called on political parties to avoid complacency and address the need for a holistic and effective approach to competitiveness to drive growth.

The Malta Chamber agrees with the reasoning given in the strategy that the country needs to have the right mix of airlines, such as legacy carriers, low-cost and charter operators, to improve accessibility to new emerging markets such as the BRIC countries. Coupled with this, strong action needs to be taken in relation to the visa requirements for tourists coming from these markets.

The Malta Chamber perceives (a) Growth and (b) Sustainable Public Finances as the key ingredients in ensuring a healthy socio-economic balance and a stable economic future for the country in the next legislature.

The Malta Chamber concluded that the authorities must do extensive lobbying with the European Commission to make it understand the importance of Air Malta’s future to the island’s economy and that European state aid rules should be made flexible whilst the restructuring process is being carried out.

With this in mind, the Malta Chamber strongly advocated: 1) The achievement of a Balanced Budget as targeted by 2015/16 2) Reduction of income tax burdens as announced in the 2013 Budget Speech to stimulate investment and growth as well as to discourage abuse 3) Commissioning of the energy interconnector to safeguard stability of supply and lower costs 4) Continued investment in alternative energy which will help reduce our dependency on imported fuel and energy 5) Continuous investment in education and training to secure a qualified workforce 6) An improved business environment within which the traditional economic sectors such as manufacturing, tourism, retail and trade, shipping and construction, and real estate can continue to grow and create jobs 7) Nurturing new growth promoters such as aviation, digital gaming, financial services and yachting. Whilst not entirely new, the Malta Chamber believes that, given the right strategic support, the latter two sectors continue to promise significant potential for expansion.

Budget 2013 Reactions The Malta Chamber noted the underlining priorities of the 2013 Budget as being fiscal consolidation and job creation. It fully supported these objectives and was encouraged by the fact that the 2013 Budget did not create economic shocks namely through increases in tax and utility rates. On the contrary, the announced reduction in income tax rates was in line with the Malta Chamber’s consistent requests for reduced tax burdens in the economy. These requests were made in the interest of both national competitiveness via lower pressure on wage demands and a boost in domestic disposable income. The Malta Chamber also noted a number of measures aimed at enhancing the competitiveness of Malta’s major growth promoters that were addressed in the Budget Speech. Among these were Entrepreneurship, SMEs and Start-Ups, Manufacturing, Tourism, Property, Energy and Environment, Employment and Training. Whilst the Malta Chamber identified itself with a number of measures announced in the Budget, there were a number of proposals it would also have liked to see included in the Speech. Foremost among these was the missed opportunity to address the COLA formula, which is required to complement Malta’s competitiveness position whilst being retained as an instrument to compensate workers for loss of disposable income due to inflation. The Malta Chamber would also have liked to see the introduction of a voluntary scheme for business whereby operators could choose between variable energy rates or opt to fix their tariffs for a number of months ahead at a reasonable premium. It would also have liked to see its proposal accepted for the re-introduction of export-credit insurance within the limitations imposed by EU regulations.

The Malta Chamber stated that it believed that the next election falls at a time which is of fundamental importance to the country. In line with the need to consolidate public finances and competitiveness levels, it reiterated its firm belief that the country’s political leaders must place wealth creation before wealth distribution. Consequently, it appealed strongly to the political parties to refrain from making any unsustainable electoral promises and other statements that could jeopardise Malta’s international reputation and economic development in the longer-term. It also augured that the political parties engage in a mature political discussion and that the electoral campaign would remain calm and respectful to ensure least disruption to the business momentum.

Pre-electoral proposals – ‘Wealth

The Malta Chamber always worked well with all political parties because its only interest is that of promoting business and ensuring that Malta has a good business environment. In spite of the incredibly difficult international economic environment within which we are operating the results achieved so far are extremely good. The Chamber looks forward to improving these same results and in creating greater national wealth through private sector growth.

Creation Before Wealth Distribution’ The Malta Chamber is mindful of the challenges which the international scenario will continue to place on the local economy. The financial instability in the euro area and the uprising in the Arab world are far from over and Malta must continue to adapt and adjust to these situations over the coming five-year period.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Meetings with Foreign Diplomatic Missions represented in Malta

Date

Country

Ambassador/Honarary Consul

2012 01 19 Belarus H.E. Evgeny Shestakov 2012 01 20 Gambia Deputy Head of Mission, Mrs Njendeh Wadda 2012 01 24 Rostov, Russia Prospective Honorary Consul, Mr Chetin Talat Enverovich 2012 01 27 Istanbul, Turkey Prospective Honorary Consul, Mr Ilker Mengi 2012 02 08 Krakow, Poland Prospective Honorary Consul, Ms Agnieszka Kaminska 2012 02 21 Russia H.E. Mr Boris Yu Marchuk 2012 04 10 Peru Honorary Consul, Mr Peter Cassar Torregiani 2012 04 10 Azerbaijan H.E. Mr Vaqif Sadiqov 2012 04 23 Tunisia H.E. Mrs Souad Gueblaoui 2012 04 25 Austria H.E. Dr Heinz Fischer 2012 04 27 The Netherlands H.E. Mr Robbert Jan Gabrielse 2012 06 04 Colombia Prospective Honorary Consul, Dr Ricardo Schembri Carrasquilla 2012 05 22 France H.E. Mr Michel Vandepoorter 2012 06 18 Antalya, Turkey Honorary Consul, Mr Abdil Gokhan Dogan 2012 06 26 USA H.E. Gina Abercrombie-Winstanley 2012 07 02 Italy H.E. Efisio Luigi Marras 2012 07 03 Trinidad Prospective Honorary Consul, Mr John A. Hadad 2012 07 16 Mozambique Honorary Consul, Dr Bilotta 2012 08 14 Indonesia Commercial Attaché of the Indonesian Embassy in Rome, Mr Bachtiar Pangaribuan 2012 09 18 Arizona, USA Prospective Honorary Consul, Mr Henry Cappello 2012 09 27 San Marino Honorary Consul, Mr Claudio Marciano di Scala 2012 09 28 Indonesia Chargé d’Affaires of the Indonesian Embassy in Rome, Mr Priyo Iswanto 2012 10 01 Bogota, Colombia Honorary Consul, Dr Ricardo Schembri Carrasquilla 2012 10 03 Odessa, Ukraine Honorary Consul, Mr Eduard Klemenko 2012 10 08 Indonesia Honorary Consul, Mr Ir. Rocky J. Pesik 2012 10 15 Bialystok, Poland Honorary Consul, Mr Janusz Antoni Kazerbuk 2012 10 29 Cagliari, Sardinia Prospective Honorary Consul, Mr Michele Pons 2012 11 05 Swaziland Prospective Honorary Consul, Mr Arshad Mansoor 2012 12 14 Spain Malta’s Ambassador to Spain, H.E. Dr Tania Vella 2012 12 18 Portugal Malta’s Ambassador to Portugal, H.E. Mr Joseph A. Filletti 2013 01 11 Saudi Arabia H. E. Dr Stephen D. Borg 2013 01 30 Israel Prospective Honorary Consul, Dr Daniel Blankleder 2013 02 12 Peru Prospective Honorary Consul, Chev. Eduardo Montenegro y Soria 2013 03 01 Dusseldorf Honorary Consul, Dr Dieter Pawlik

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Importers, Distributors and Retailers Economic Group The Importers, Distributors and Retailers Economic Group Executive Board held four meetings throughout 2012, during which it discussed various subjects of importance to the sector. right skills. It was also stated that the Libyan market offered great potential but there were still many problems such as the visa issue, the difficulty of taking money out of the country and the lack of certain basic financial structures in Libya.

One of the subjects of concern to many Economic Group members was the implementation of the Waste Electrical and Electronic Equipment Directive (WEEE). The Government was collecting about €9.5m annually from Eco-contribution, most of it from WEEE. The Government had granted a WEEE licence to two schemes – GreenPak and GreenMT – but both did not operate because it was not feasible to do so with Government still collecting Eco-contribution. Furthermore, Eco-contribution did not cover all the electrical products that fell under WEEE.

During the year the Economic Group Chairman took the initiative to call a meeting with all Malta Chamber members in the furniture industry to discuss the issue of market surveillance. The outcome of the meeting was that there were people who were managing not to pay VAT on foreign imports of furniture and this was creating unfair competition against businesses paying all their dues.

The Board was of the view that importers of electrical products that were registered with both a packaging waste scheme and a WEEE scheme should be completely exempt from the payment of Eco-contribution. Another solution would be to extend Eco-contribution to all WEEE products and to convert WasteServ into a WEEE Scheme. Whatever solution was adopted, it was important to avoid at all costs the introduction of a new WEEE tax. The Board is still following up on this matter.

The Executive Board submitted its recommendations for inclusion with the Malta Chamber proposals for the National Budget for 2013. This included a call for importers to be granted the right to issue a request for payment followed by an invoice when payment was recieved, at which stage VAT would be paid. The Board also recommended that the reversal of invoices was introduced in the case of nonpayment. Currently the VAT paid was an additional loss.

The Central Bank of Malta expressed interest in following the work being carried out by members of the Malta Chamber in various sectors of the economy. A meeting was therefore held between the Executive Board and Central Bank officials during which the serious cash flow problems being experienced by members dus to delays in receiving payments from Government were discussed. There was also a shortage of demand, mostly due to a drop in household purchasing, increased purchases over the internet and increased unfair or illegal imports, many without the payment of Excise Duty, VAT, etc. Business was facing regular cost increases and there was a clear need for a reduction in various bureaucratic practices. There were a number of trades where it was now difficult to find workers with the

The Executive Board received and discussed reports on the work being undertaken by the Malta Chamber with the Ministry of Foreign Affairs to reduce the problem of delays in the issuing of visas by the Consulate of Malta in Libya, Eco-contribution, the prospects of business development with Libya, and work permits. During 2012, the Importers, Distributors and Retailers Economic Group welcomed the formation of the Pharmacist Pharmacy Owners Business Section.

Importers, Distributors and Retailers Economic Group Business Sections HealthCare Business Section

to micro-enterprises and start-ups as they are not able to participate in tenders. Furthermore it reduces the possibility of competition. A meeting with the Director of Contracts was held on 14th March 2012 during which the Director had adamantly confirmed that the participation fee would not be removed. The matter was also brought to the attention of Dr Simon Busuttil during a meeting held on 22nd June 2012.

The Executive Committee held regular meetings with the Central Procurement and Supplies Unit. Over the year a number of decisions have been taken benefiting distributors. The most important was the introduction of the single performance bond. This has resulted in greater efficiency and substantial savings. Also on the agenda for meeting with the CPSU were payment terms, shelf life; harmonisation of conditions; sample requests, delivery periods; and waiver of penalties when there is no out of stock situation.

During this meeting, Dr Busuttil was informed of a number of issues faced by members, including the refund of penalties. Copies of the correspondence exchanged over the years were made available to Dr Busuttil. Dr Busuttil did not envisage refunds being made and suggested it would be

The Executive Committee vigorously opposed the introduction of a participation fee for tenders. The fee is burdensome especially

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

beneficial to all concerned if the Section came forward with proposals on how best to offset the amounts due to members. He recommended proposals including investment in green energy, subsidies on new employees and training.

Importers Business Section

The matter of penalties being incurred because of a lack of proper forecasting by Government had also been discussed with Dr Busuttil. This translated into stringent delivery periods and therefore penalties because of late deliveries. It was suggested that until Government was able to accommodate longer delivery periods, an addendum could be included with contracts stating that penalties for late delivery would be waived whenever CPSU does not run out of stock consequent to the said delay.

The main focus of these discussions centred around the issues of unfair competition and illegal trade. In June the Committee held a meeting on the subject with Dr Simon Busuttil during which it highlighted the concern of the business community about the strong competition that it was facing from importation of dubious legality from other countries, mainly but not exclusively from Sicily. It was stated that the Business Section felt that there was a clear need for the strengthening of the market surveillance function to ensure that all businesses were operating on a level playing field, paying all due licences, duties and taxes. It was also pointed out that illegal imports did not only hurt law abiding businessmen because when the products turned out to be defective, or when there were contractual or non-performance problems, the consumer usually ended up a loser. Dr Busuttil stated that the concept of freedom of movement of goods was a basic one in the EU and there was nothing one could do about it. However, it was clear that the business community was concerned about unfair and illegal competition and one had to see what could be done about it. A possible solution would be increased market surveillance, conducted randomly within the country. An important step in the right direction was the consolidation of the data and resources of all the revenue departments under one head which should improve matters substantially.

The Importers Business Section Executive Committee held three meetings during the year during which it discussed unfair competition, anti-dumping and excessive bureaucracy.

Also discussed were the participation fee for Government tenders and the Late Payments Directive (LPD). Dr Busuttil confirmed that the LPD would be entirely transposed according to the set timelines. On 18th June 2012, Raymond J. Vella and Marcel K. Mifsud met with Gerald Petit from the European Commission DG Enterprise who visited Malta as part of the Enterprise Experience Programme. During the meeting the Late Payment Directive (LPD) had been discussed. According to Mr Petit the LPD could not be transposed if the payment terms included in a contract were different to those stipulated by the LPD. It was noted that Government should not demand payment terms which went beyond the LPD timeframes. The legality of pressure from Government regarding the average European price had also been discussed.

Pharmacists Pharmacy Owners Business Section

The recast of the European Late Payment Directive 2011/7/EU was transposed into National Law. LN272 was published on 14th August 2012 with an effective date from 1st March 2012. In a nutshell, payments terms would effectively be reduced from 150 days to 90 days (summing up 60 days credit and maximum 30 days for acceptance). Interest on late payment was to increase from 2 to 8 per cent above ECB base intervention rate. An email had been sent to MEP Dr Simon Busuttil informing him of the developments on the Late Payment Directive and the need for tender documents and contracts to reflect the new legislation.

The Pharmacists Pharmacy Owners Business Section was set up in August 2012. The Business Section caters for pharmacists who are the proprietors of their own pharmacies. These members had previously formed part of the HealthCare Business Section, however the need for a dedicated section had been felt as opinions had been expressed that issues facing distributors and pharmacists were divergent. So far the Executive Committee has concentrated on the Pharmacy of Your Choice Scheme (POYC). It has presented its recommendations for a revamp of the scheme to the Prime Minister, the Minister of Health, the Elderly and Community Care, the Minister for Fair Competition, Small Businesses and Consumers, the Leader of the Opposition and MEP Dr Simon Busuttil during dedicated meetings. The Executive Committeeâ&#x20AC;&#x2122;s proposals were well received by all concerned.

Meetings were held with the Directorate for Pharmaceutical Affairs regarding reference pricing for new medicines to be introduced on the Government Formulary List. Meetings were held with the Malta Competition and Consumer Affairs Authority, as well as the Ministry of Finance concerning the pricing of medicines in the private sector and the establishment of the Medicines Prices Conciliation Board.

The proposed scheme streamlines the work that pharmacists practicing in the community have to carry out and, at the same time, renders the process of distribution and availability more practical. The proposal also ensures minimising waste in expired stock both at point of distribution and under patientsâ&#x20AC;&#x2122; care.

The Committee also made representations concerning the new Pharmacy of Your Choice Agreement to ensure a commitment for discussions to commence on a reimbursement process.

The Executive Committee also made representation to ensure that all stakeholders are involved in the discussions for the development of a new and more efficient and effective service to the community.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Wines, Spirits, Beverages & Tobacco Business Section

Maltese Winemakers Association, agreed to endorse the Sense Group paper so that the three bodies submitted a joint paper to the authorities. This was presented to Minister Chris Said at a meeting held on 8th August.

The Wines, Spirits, Beverages, and Tobacco Business Section Executive Committee this year focused on the Draft National Alcohol Policy 2012-2016.

During this meeting the business representatives stressed that the business sector was against abuse but the Government’s draft was proposing a one-size fits all solutions, very often using a sledgehammer to crack a nut. 85 per cent of the population was in the moderate drinking category but the Government’s approach would hit this category just as much as the problematic 15 per cent. A targeted approach was called for. Instead, Government’s proposed measures seemed to be targeted to reduce overall alcohol consumption nationally. The Sense Group also spoke of its great commitment to education and to responsible drinking.

When it came to the attention of the Malta Chamber that the Government had drawn up this policy and that the Cabinet had decided that the views of a number of bodies were to be sought before the said document was put up for public consultation, the President of the Malta Chamber wrote to the Government to include the Malta Chamber in this process. This request was immediately acceded to. After consultations with the Sense Group, that had drawn up a detailed professionally prepared paper on the subject, the Malta Chamber, and eventually also the

Manufacturers and Other Industries Economic Group Throughout 2012 the Manufacturers and Other Industries Economic Group (MEG) Executive Board continued to actively pursue issues effecting Industry. Following a successful Manufacturing Conference in May, the main objective achieved by the MEG was the resolution of the issue of Factory Rents and Service Charge, and from then on seeking to focus on proactive measures aimed at the development of a healthy and sustainable manufacturing industry.

Meetings of the MEG Executive Board

for Industry. The MEG presented a brief report which compared Malta’s competiveness with other countries in terms of electricity costs and highlighted the effect that rising tariffs had on the cost structure of industrial operators. The MEG reiterated its position that, whilst recognising the limiting factors for Malta and Enemalta, an adequate solution had to be explored if Industry was to be safeguarded as a major contributor to the Maltese economy.

The MEG Board held a number of meetings with third parties throughout the year to promote the interest of the members. These included meetings with the Hon. Chris Cardona (MLP Main Spokesman for Industry), Prof. Edward Scicluna (MEP), Joe Tanti and George Vella (CEO and President of the Malta Business Bureau), Lawrence Zammit (Malta Enterprise Chairman) and with the Prime Minister Lawrence Gonzi and MEP Simon Busuttil in their meeting with the Council of the Malta Chamber in June 2012. The main issues put forward by the MEG in these meetings were the Rent and Service Charge policies, the risk of lower State Aid intensities and investment aid with Malta’s prospective loss of the Convergence Objective qualification, and the main challenges for the competitiveness of Industry, including labour costs, transport costs, energy costs and access to the international markets. In December 2012 the MEG also held a meeting with Enemalta Chairman, Louis Giordimaina, to discuss the cost of electricity

‘The Future of Manufacturing’ Conference In May 2012, the MEG held a half-day conference on The Future of Manufacturing, which addressed the issues faced by large and small enterprises and which determined the competitiveness and sustainability of Industry in Malta. The conference included interventions by Andy Gatesy – Chairman and CEO, Toly Products Ltd and Alfred Camilleri – Managing Director, Inspectra Ltd, the Hon. Chris Cardona, spokesperson for Industry of the Labour Party, and the Hon. Tonio Fenech, Minister of Finance, the Economy and Investment, also addressed the conference.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Press Articles – The contribution of the

This was followed by a panel discussion chaired by MEG Chairman Matthias Fauser, which discussed a number of issues, including wages, productivity, education and standards, business flexibility, entrepreneurship and internationalisation. In his closing remarks Mr Fauser appealed to the authorities to heed Industry operators. He promised the support and commitment of the MEG to assist policymakers in strengthening manufacturing as a pillar of the Maltese economy.

Manufacturing Industry to the Economy In a series of articles carried in The Times of Malta during the year, MEG Chairman Matthias Fauser discussed the role of Industry in a well-balanced economy and the main challenges in safeguarding and improving the sector’s competitiveness in Malta. The first article entitled ‘Industry’s role in a balanced economy’ highlighted the re-emerging awareness of the importance of manufacturing in Europe and emphasised the key role of Industry, as a driver of the real economy. The second article, ‘Why manufacturing offers careers to change the future’ addressed the need to promote the Manufacturing Sector as an exciting and viable career route for young people, whilst making a collective effort to overcome mistaken negative perceptions that damage the prospects of careers in Industry. The last article for 2012, ‘Handle with care’ called for an increased appreciation of Manufacturing’s contribution to the country’s economic wellbeing, and advocated sensitivity when dealing with issues which effect Industry competitiveness and productivity. It highlighted the need to avoid burdening Industry with additional homegrown costs, and the need for constant communication and collaboration between the Industry operators and policy makers.

Industrial Rent and Service Charge Agreement An important success for the MEG members was the resolution of the Rents and Service Charge issues which affected tenants of the factories managed by Malta Industrial Parks Ltd (MIP). The problem arose after the upward revision of rents and the enforcement of the service charge policy in a manner which was unexpected and unacceptable to the members. Discussions with MIP were conducted by two separate committees: The Factory Rents Committee, chaired by President Stefano Mallia and further composed of Matthias Fauser, Charles Brincat, Joe Pace, Robert Abela, Kenneth Caruana and Tonio Bugeja; and the Service Charge Committee, chaired by Council Member Julian Mamo and including Matthias Fauser, William Wait, Marisa Xuereb, Jason Cole, Joseph Gingell and Alexander Zammit. The agreement reached was well received by MEG members as it took on board all the suggestions put forward by The Malta Chamber. As a result, in August 2012, The Malta Chamber signed two agreements with MIP in the presence of the Minister of Finance, the Economy and Investment, the Hon. Tonio Fenech, concerning Industrial Rent and Service Charge Policies. The agreements established objective criteria to determine the amount of rent for each tenant, giving operators a degree of certainty, whilst the Tenants’ Associations were entrusted with the maintenance of Industrial Zones.

Discussions on an Industrial Policy with Malta Enterprise In November 2012 the MEG met with a Malta Enterprise delegation led by CEO Dr Sue Vella to discuss the framework for an Industrial Policy. The MEG presented a paper outlining the priorities which determined the competitiveness and sustainability of Industry as a main pillar of the Maltese economy. With a view to attract investment in new industries and sectors, while retaining the existing manufacturing base, the main identified fundamentals included the availability of a skilled labour force at competitive wages; the provision of adequate factory space at competitive occupancy rates; the stable provision of energy at competitive rates; adequate access to finance; efficient and reliable internal and external transport links at competitive rates; incentives for investment; low/manageable bureaucracy; and internationalisation support to access the European Single Market and beyond. Additionally, the paper identified the conditions needed to nurture long-term productivity and improve working conditions, and calls for a strategic complementation with educational policies, R&D&I considerations and network/cluster development.

The MEG-UoM Working Group In 2012 MEG members Emidio Friggieri and Sergio Vella were appointed to a working group set up with the University of Malta (UoM) to enhance collaboration and joint initiatives between Industry and the University. The group is also attended by Wilfred Kenely (Innovation and Development Trust, UoM), Anton Bartolo and Martina Pace from the Corporate Research & Knowledge Transfer Office, UoM and Dr John C. Betts (Dean, Faculty of Engineering). The working group is focusing on a number of objectives, including enhancing the students’ preparedness for the working environment, discussing a framework for student internships and the setting up a framework for services provision by the Faculty of Engineering to Industry. The group also contributed to the discussions about the framework of a Memorandum of Understanding between University and the Malta Chamber, delineating an umbrella agreement for collaborations between the University and Malta Chamber, and the Malta Chamber Foundation.

Collaboration on Manufacturing Sector research The MEG collaborated on a study conducted with Prof. Joseph Falzon, Dr Frank Bezzina and Dr Ing. Martin M. Zammit from the Faculty of Economics, Management and Accountancy, which investigated the opportunities and challenges encountered by manufacturing firms that are currently set up in Malta. The findings derived from the responses of the participating manufacturing firms are discussed in the study, which goes on to provide

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Priorities for the Manufacturing Sector for the 2013 General Election

feasible recommendations to Maltese policy makers for the development of the manufacturing sector. Recommendations include the need for a better link between academia and industry, and the need of a well-defined industrial policy.

The MEG also communicated with the three political parties to outline the priorities for the Manufacturing sector in view of the March 2013 elections, with the aim of ensuring an adequate focus on the factors considered to determine the sustainable future competitiveness of Industry.

MEG meets Strategic Policy Secretariat at the OPM In October 2012, MEG officials met the Head of the Strategic Policy Secretariat Mikela Fenech Pace regarding a Research Manufacturing Strategy. The meeting discussed the need for a holistic definition of research activity in Malta. The Malta Chamber argued that the countryâ&#x20AC;&#x2122;s eco-system for research, technology development and innovation was not yet adequate for ambitious objectives in this area. It recommended a consolidation of the resources in niche research areas that would be best suited for the country.

The MEG would like to thank former Director General Ing. Ray Muscat for years of hard work alongside the MEG and previously as Federation of Industry Director General, whilst auguring him every success in his future endeavours.

Manufacturers and Other Industries Economic Group Business Sections Electrical and Electronics Manufacturers Business Section

Meeting with MCCAA Members of the Business Section met with officials from the Malta Competition and Consumer Affairs Authority with the scope of asking for clarifications about the new RoHS Directive, 2011/65/EU (Restriction of Hazardous Substances Directive), which came into force on 2nd January 2013.

Enhanced communication for joint purchasing possibilities and identification of specialised services During 2012, the Business Section investigated the feasibility of joint purchasing initiatives by companies in the sector. The Business Section created a list of consumables regularly purchased by the different companies and undertook to circulate this for information purposes. The Section also created an online platform to enable the sharing of such information and look for joint purchasing initiatives on a case by case basis. It was also decided to use the same online platform to host enquiries about different services provided by local companies. This information sharing would allow a better knowledge of the services provided by different operators and therefore enable the provision of a more complete local service to potential clients.

Pharmaceutical Manufacturers Business Section Developing regulations The Pharmaceutical Manufacturers Business Section was consulted regularly on developments in regulations concerning the sector, including EU regulations such as the delegated act on the detailed rules for a unique identifier for medicinal products for human use, the proposed Anti-Counterfeiting Trade Agreement, a proposed regulation to replace the Clinical Trials Directive and the new pharmacovigilance legislation.

Human Resources Training Working Committee on the Pricing of Medicinal Products

The Business Section undertook to explore the possibility of collaborating to organise IPC training in soldering and repair work for employees of the respective companies. The training was proposed in the form of a one-week programme delivered by a certified IPC trainer. The selected employees benefitting from the training would then be in a position to transfer the knowledge gained to others on the place of work. The Business Section identified the specific area of training to be addressed and kick-started the process of identifying the foreign training provider to engage in 2013.

In 2012, the Deputy Chairman, Dr Claude A. Farrugia, continued to represent the Business Section on the Working Committee on the Pricing of Medicinal Products. Franco Gatt, Chairman of the Pharmaceutical Manufacturers Business Section, together with the Health Care Business Section, signed an agreement with regards to the pricing of medicinal products, which comprised a revision of the external price-referencing mechanism, intended to ensure fair market prices for medicinals in the private sector.

Meeting on Policy Issues with DG Enterprise Meeting with Central Bank Officials

Chairman Franco Gatt met with Policy Analyst Gerald Petit from DG Enterprise who was in Malta under the Enterprise Experience Programme in June 2012. The Enterprise Experience Programme is intended to provide civil servants in the European Commissionâ&#x20AC;&#x2122;s Directorate General for the Enterprises and Industry an insightful experience of small or medium-sized enterprises.

The Business Section met with Central Bank Officials to discuss the economic and operational conditions which were influencing the performance of the sector.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Plastics and Rubber Manufacturers Business Section

Food and Beverage Processors Business Section

Full-time diploma for Polymer Technicians

The Food and Beverage Processors Business Section was set up in 2012 within the Manufacturers and Other Industries Economic Group. The Executive Committee mainly tackled the impact of new EU rules on food labelling which will come into force in 2014, but already represent important implications to be considered. Additionally the Committee looked into the ongoing EU debate with regards to the Commission proposal to abolish the sugar quota regime by 2015. The Business Section undertook to exert pressure on Government to take a favourable stand on this, as it would signify a considerable decrease in the price of sugar for consumers. The Executive Committee was also engaged in discussions with the Food Studies and Environmental Health Department of the University of Malta (FSEH), to explore mutually beneficial collaboration for both parties. Subsequently the Business Section agreed to collaborate with FSEH through the communication and participation in activities organised by an Industrial Advisory Platform (IAP) set up for the sector.

Throughout 2012, the Business Section continued to collaborate with MCAST in its drive to increase the base of technical human resources for the sector. The full-time diploma for Polymer Process Technicians, developed with contribution from the Malta Chamber members, was re-launched for the academic year 2012/2013, and kicked off with the first intake of students. Members of the committee continued to work closely with MCAST in order to promote the diploma and increase awareness of the subject-area among students and parents. The Committee also considered the possibilities of changes to the format and content of the diploma, in order to target a higher intake of students.

Towards increased energy efficiency The Executive Committee worked to evaluate the alternatives to achieve higher energy efficiency in the sector’s manufacturing operations, with the aim of countering the effect of increasing electricity tariffs. Whilst the possibility of a scrappage scheme was considered, the alternative of upgrading existing equipment was evaluated. The Committee collaborated with the University of Malta to explore the possibility of tapping into EU funds for further research and research implementation, including the upgrading of existing plastic moulding machines. In order to complement this process, efforts are ongoing to gather information on the existing machines currently in operation.

1st workshop of the Food Industrial Advisory Platform of Malta A workshop, held on 12th December 2012, was the first initiative of the Food Industrial Advisory Platform, which sought to address issues of interest to the Business Section. The workshop was addressed by Dr. Vasilis Valdramidis, Senior Lecturer in the Department of Food Studies and Environmental Health at the University of Malta, who gave a short introduction on the Department. He was followed by Martina Pace, Manager, Knowledge Transfer Office at the University. Head of Department Dr. Anna McElhatton then delivered a presentation on the courses currently offered by the Department with regards to Foods Sciences. Ingrid Busuttil from the Malta Competition and Consumer Affairs Authority and John Attard Kingswell, the Director of the Department of Environmental Health, also gave presentations on the new EU labelling regulation.

Meeting with Plastics Europe Chairman Olaf Zahra met with Giuseppe Riva, Director for Mediterranean Region at PlasticsEurope Italia, where Mr Riva gave an overview of the international economic conditions and the effect on the plastics industry in different countries. He also outlined the work of Plastics Europe towards improving the competitiveness of the industry and tackling its main challenges. PlasticsEurope was also involved in the European wide debate with regards to the relation of the use of plastics in packaging waste and Co2 emission levels. PlasticsEurope was voicing its view that substituting plastic for other materials in packaging would have counterproductive results, leading to increased waste and emissions.

Services Providers Economic Group The Services Providers Economic Group Executive Board held a number of meetings throughout the year in relation to the several Business Sections that fall under it namely: Financial Services; Information and Communications Technology; Real Estate; Road Contractors; Shipping & Bunkering and Yachting. Another item dealt with by the Economic Group Executive Board was the submission of points to be raised in the Council’s meeting with the Prime Minister and, subsequently, for inclusion in the Malta Chamber position on the National Budget for 2013. In line with the Economic Group’s objectives to reach out to potential members and encourage established associations to become members, the Executive Board, embarked on a series of meetings to revive the Tourism Business Section. A meeting

During 2012, the Chairman of the Economic Group launched discussions on the formation of a Remote Gaming Business Section. To this effect various meetings were held for a number of interested firms in this industry to discuss and draw up the relevant objectives and terms of reference. These were duly approved by Council and by the Executive Board following which the firms involved met in November to set up the Remote Gaming Business Section and elect its Executive Committee.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

effects of the financial crisis on the financial services sector, the changes being experienced by the real estate sector, and the performance of various other sectors in the services industry. The last important item dealt with by the Executive Board, and the one that took up the bulk of the time of its meetings was the reports by the Chairmen of the respective Business Sections that fall under the Services Economic Group, and the resultant discussions thereon.

was held with the Federated Association of Travel & Tourism Agents (FATTA). This was followed by another two well attended meetings for members operating in the tourism sector. The feedback was very positive and it is now hoped that a Business Section will be set up following the forthcoming Council elections. Like other Executive Boards and Committees, the Services Providers Executive Board held an interesting meeting with officials from the Central Bank during which it discussed the

Services Providers Economic Group Business Sections Financial Services Business Section

a holistic pro-natal policy, increase child rearing credits and link it to fertility rates, set up an inter-ministerial working group on active participation in the labour market and review childcare accessibility, after-school childcare services and implement family friendly measures. The Pensions working group is also suggesting that drastic changes to the PAYG system should be studied further and it is being suggested that further research should be carried out on effective systems such as the Notional Defined Contribution (NDC) implemented in countries such as Sweden. Antoinette Caruana and Mark Hogg on behalf of the two committees raised a number of issues and promised to send feedback about the updated version of the document.

Throughout the year, the Financial Services Business Section has continued to work and meet on a number of issues. The executive committee was once again chaired by Peter Sant. The issues discussed included the pensions reform, Single European Payments Area (SEPA), Banking Union and an update regarding the Financial Transaction Tax (FTT). During 2012, the Chairman was also nominated to sit on the National SEPA Coordination Committee on behalf of the Malta Chamber.

SEPA During the month of April, the Chairman met with Herman Ciappara, Head of the Payments and Banking Department of the Malta Central Bank to discuss the upcoming migration to the Single European Payments Area (SEPA). During the meeting it was proposed that the Malta Chamber would assist the Central Bank in disseminating information and raising awareness on a sectoral level about this subject and organise information events about the upcoming changes.

Following this meeting, the Malta Chamber, through feedback gathered from its members, reviewed its position. In its final position it stated that it felt that the updated post consultation review of Malta’s pension system was a good basis for reform but insisted on the urgent publication of a final blueprint with a clear timeframe. The Malta Chamber further stated that the recommendations made in past studies about the subject were still valid to this day and stated that the European Commission’s proposals in its white paper about pension reform were generally in line with the Malta Chamber’s position.

During June, Central Bank officials were also invited to an event entitled ‘Payments Solutions Seminar’ which was co-organised by Bank of Valletta and the Malta Chamber. During this event, participants were informed of the upcoming changes about SEPA migration.

MEUSAC core group meeting On 28th September, Andre Fenech attended a MEUSAC core group meeting in which the EU’s draft proposal for the supervision of Banks forming part of the Banking Union was discussed. The Chairman of the MFSA, Dr Joe V. Bannister explained that the new proposal would see the European Central Bank gaining new powers to monitor the performance of the 6,000 banks in the Eurozone. The proposal suggested that the ECB would start the process in January 2013, monitoring some of the banks that have received or requested bailouts from the public sector. All other banks would be supervised by January 2014. Mr Fenech expressed his concerns on the implications for local banks and the activities that would require approval from the ECB, and added that this proposal would in effect limit the sectors’ flexibility. Dr Bannister further explained that the proposal was still in its early stages and further developments would be expected during the upcoming year.

For this purpose, towards the end of the year, members of the Malta Chamber’s Information Technology Business Section met with representatives of the SEPA coordination committee and the Malta Bankers’ Association to discuss the IT requirements needed for companies during this migration.

Meeting about Pensions Reform Update On 23rd May, a joint meeting between the Financial Services Business Section and the Business Education Committee was held with Joe Camilleri, Director General (Social Security) about the Pensions Reform update. During this meeting, Mr Camilleri pointed out the salient points of the reform that need to be taken into consideration by employers, human resources managers and financial institutions. Among others, it was being suggested that a multi-disciplinary approach is implemented in favour of

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Information and Communications Technology Business Section

the promotion of exports. Dr Farrugia shared the Committee’s concerns and communicated that the PL was drawing up plans to formulate a vision on how to further promote the industry.

A number of meetings have been held throughout the year, both at the Executive Committee level as well as, whenever this was deemed necessary, of all the members of the Business Section. Early in the year the Executive Committee of the Business Section held a brainstorming session with its members to discuss what the IT Section had achieved to date, any matters of concern, as well as an assessment of particular aims the Section would like to accomplish. Among the issues discussed was that of the Training Aid Framework (TAF). The Committee noted in several of its meetings that most of its members had not yet received the funds due to them under TAF. The matter was referred to the Malta Chamber’s Secretariat to be handled through Malta Chamber’s HR Committee.

Another focus which the Committee paid particular attention to was the useful work being carried out by the E-Skills Alliance, under the chairmanship of John Ambrogio. Unfortunately, the Committee noted that the momentum of the E-Skills Alliance initiatives started slowing down towards the end of the year due to a reduction in human resources being made available to the Alliance by MITA. The Executive Committee has always paid great attention to its relationship with the University of Malta. In fact, Committee member John Ambrogio was commissioned to draft an agreement setting up a Liaison Committee between the ICT Business Section, MITA and the University. The Committee will be a sub-committee to the University Faculty Board and subject to its authority. The agreement is in the process of being finalised.

The Committee also focused on the possible initiation of a State of the ICT Industry Report. Following a call for quotations, the Executive Committee unanimously agreed to appoint Deloitte as the preferred bidder. The report will be financed by members and non-members of the Business Section.

Another important initiative dealt with throughout this year was the Pooling for Clusters (P4C) Project. The Malta Chamber was invited by MITA and Malta Enterprise to participate in this initiative intended to draw up a plan to form a cluster with the possibility to develop into a sort of ‘ICT Malta’. Executives Robert Tabone Valetta and Marylyn Hili represented the Malta Chamber in Slovenia and Estonia respectively for one week, to learn best practices. Later during the year, six focus groups were set up including one for the ICT sector, in which the sharing of ideas and best practices to find a way forward were discussed. MITA is drawing up a report with recommendations on the best course of action.

Another concern raised by the Business Section members has been the non publication by MITA of its regular Procurement Outlook. This issue has been taken up by the Executive Committee with MITA on a number of occasions. In preparation for the forthcoming General Elections, the Executive Committee decided to draw up a pre-election document to be presented to the political parties, for consideration in drawing up their electoral manifestos. This was done and the Committee held meetings with the leaders of the main political parties in June to present to them the said paper. Both political parties agreed in principle with the proposals submitted in the Memorandum.

In a meeting held between the Executive Committee and Joe Schembri, Chief Officer Trade, Investment & Enterprise Support at Malta Enterprise a number of points were discussed. These included the process of launching an online ICT directory, and Malta Enterprise’s financial help for the employment of staff for internationalisation initiatives. Malta Enterprise also consulted the Committee on its country preferences for the organisation of trade missions. At such an event the participants would jointly participate in the events and meetings of the first road show but would then be free to hold individual meetings as they deemed fit. The Committee endorsed the proposal that Malta Enterprise should organise the first event in the United Kingdom and in fact this event has been scheduled for February 2013.

The Executive Committee held a working lunch with the Minister for Infrastructure, Transport and Communications and the Chairman of MITA. It also held a separate meeting with the Labour Party’s main spokesperson for Consumer Rights, Communications and ICT, Hon. Dr Michael Farrugia. The Committee informed Dr Farrugia of the work carried out by the Business Section; on the importance it laid on maintaining a good relationship with the Ministry responsible for IT and MITA; and on its contribution to the work of the E-Skills Alliance which was giving a valuable input to the industry through its work. The Committee stressed that Research and Development should be given considerable attention due to Malta’s weak position in the area. It commended MITA’s initiative of outsourcing its work to the private sector but informed Dr Farrugia of existing difficulties being faced by firms on exporting their products, and the need to set Malta on the ICT map to help further in

Another important initiative was the collaboration with MITA in the drawing up of plans for the EU Financial Package 20142020. The Executive Committee felt that it was important for the ICT Industry to draw up its plans and try to lay a stake on the highest percentage possible of funds that would be available

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

The main focus of the second and last meeting for 2012 was the European Commission Action Plan on Online Gambling. The Committee discussed the Action Plan at great length and submitted the Industryâ&#x20AC;&#x2122;s views on the matter to Malta Chamber President Stefano Mallia, who presented them in his capacity as member of the Economic and Social Committe (ECOSOC) of the European Union (EU) at a seminar organised by the European Gambling and Betting Association in Brussels.

for Malta in the said financial package. This was important especially in view of the fact that Malta would probably be losing its Objective 1 Status and, consequently, the funds for Malta will be substantially less. The Executive Committee called a meeting for all Business Section members to discuss and brainstorm on the subject in question. The matter is still under discussion. Finally, during the year the Business Section worked on various other issues, events and initiatives to promote and help the industry. These included a Seminar Session organised by the Malta Business Bureau on Fostering E-Skills for Growth with the participation of John Ambrogio as one of the speakers. The Malta Chamber also committed its support and involvement in the Be Smart Online project.

Finally, the Executive Committee sent a memorandum to the Hon. Tonio Fenech, Minister of Finance, the Economy and Investment, to introduce the newly set-up Business Section. The Committee outlined its immediate roadmap and a number of objectives laying its foundations. These included the establishment of a clear dialogue both with the Ministry of Finance as well as with the Lotteries and Gaming Authority; education of the general public about the Industry and its contribution towards the Maltese economy; the promotion of the Industry as one that offers job opportunities to young people; provision and assistance in effective lobbying efforts from initiatives issued by the EU so as to protect the viability and attractiveness of business to operate in and from Malta; as well as providing continuous suggestions for new legislative or policy proposals. To this effect, the Committee requested a meeting with the Minister and is currently awaiting feedback from the Ministry on what can be expected from this important sector in the economy.

Real Estate Business Section The Real Estate Business Section Executive Committee held meetings as and when necessary during the year. One of the main areas of activity concerned the Financial Intelligence Analysis Unit which had legally imposed various obligations on real estate agents. The Executive Committee started looking into the matter to see whether there exists a possibility to remove or reduce some of the more onerous of these obligations relating to due diligence and reporting. The Executive Committee drew up and presented its points at the meeting of the Malta Chamber members with the Leader of the Opposition, Dr Joseph Muscat.

Road Contractors Business Section The Road Contractors Business Section was not particularly active this year but this was more than made up for by the group of Business Section members who are participating under Level III of the Framework Agreement. These members met several times to discuss and tackle common problems that they were facing.

The Committee also kept track on the developments taking place in the schemes applicable to High Net Worth Individuals.

Remote Gaming Business Section

Early in the year, concerned by the fact that local aggregate suitable for the specifications established by Transport Malta was becoming increasingly scarce, the members sent a letter asking Transport Malta to consider enabling the importation of the appropriate materials from outside Malta. This request was eventually acceded to.

The Remote Gaming Business Section was set up in November 2012 and is the latest addition to the list of Business Sections of the Malta Chamber. Conscious of the growing importance of the sector in the economy, early in the year the Malta Chamber held an information meeting for gaming firms to seek to establish whether they would be interested to form part of this organisation and be represented by it. The feedback was positive.

In order to be in a position to engage experts and commission reports, as and when necessary, the members decided to set up a special fund and to each contribute a sum over and above the Malta Chamber membership fee.

A number of meetings followed to discuss and draw up the relevant objectives and terms of reference. These were duly approved by Council and by the Services Providers Executive Board following which the firms involved met in November to set up the Remote Gaming Business Section and elect its Executive Committee members who are to serve until the next biannual Council elections which are due in March 2013. At its first meeting the Executive Committee elected a chairperson and a deputy chair, and started talking about the Business Sectionâ&#x20AC;&#x2122;s plan of action for the forthcoming months.

Naturally, the most important meetings held during the year were those with Transport Malta. The main issues dealt with were: the revision of prices for the period covering January to June 2012 (to cater for the substantial increase in the price of certain qualifying raw materials); arrears and the late payment for works carried out with the resultant effects on cash flow; poorly drawn up Bills of Quantity; emergency works for the utilities; mix design; and the burden of unnecessary guarantees. A lot of

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

containing any form of animal product or bi-product due to arrive in Malta, even for onward carriage or transhipment. This required a great deal of administrative work. The options were to complete the documentation provided by the Department or complete a spread-sheet per consignment.

discussion was also dedicated to what would happen once the Framework Agreement came to an end in the beginning of 2013. A noteworthy development that took place during the year was the setting up of a joint contractors/Transport Malta Quality Circle. The Circle set up Committees to focus on: Standardisation, Standards and Specifications; Traffic Management and Health & Safety; and Communications & Coordination. All committees have been meeting on a regular basis. The plan is to eventually set up further committees to cover: Media, Public information, Education and Awareness; Planning of Works; and Worker Education and Professional Development.

Bunker Tax The Department of Customs had informed members present of a 100 per cent increase in Bunker Tax. The Malta Chamber had written to the Ministry of Finance on this issue. Whilst the constant rising costs were noted with regret, the Executive Committees recommended that the issue be taken up by suppliers.

Shipping and Bunkering Business Section

Meeting with Transport Malta

As in previous years the Shipping and Bunkering Business Section (SBBS) continued to work closely with the Association of Ship Agents (ASA).

On 15th May, the Executive Committees met Mark Portelli, Chairman of Transport Malta. The main purpose of the meeting was for Transport Malta to inform the Executive Committees of the increased tariffs.

Supply of fresh water Members met with Ing. Anthony Rizzo, CEO of the Malta Resources Authority in order to discuss problems relating to the supply of fresh water to vessels outside harbour. It was noted that water was only available through one outlet at the Water Services Corporation, furthermore the hours during which water could be obtained were restrictive and the quality of the water was considered to be inferior and not fit for human consumption.

Tug Malta had revised their tariff for 2012-2014 by 10.35 per cent. This was in accordance with their operating contract and also due to their investment in a new tug boat which had been approved by Transport Malta. The opportunity had been taken to remind Mr Portelli that the Short Notice Fee was still being charged for manned tugs. This matter had been discussed in previous meetings and correspondence exchanged on the subject. Mr Portelli agreed to follow up on the matter.

Bunkers and Second Agent on Portnet Bunkers and the listing of a second agent on Portnet had been discussed with Capt. Bugeja of Transport Malta and some improvements had been noted. The problem was caused by a ship agent who informed owners, charterers and vessel operators that they were the exclusive agents for stem bunkering in Malta. This was not the case and was considered to be unethical. The matter was being followed up.

Transport Malta had also informed members of the revised tariffs for Mooring Men and Foremen.

Meeting with MEP Dr Simon Busuttil On 14th September 2012, the Executive Committee met with MEP Dr Simon Busuttil. The following were the items discussed:

Increase in Freight Costs During the year it had been noted that various ship agents had been approached by their clients (importers and exporters) who expressed concern about the fact that shipping lines had stopped operating from the North Continent to Malta and that only one company was offering this service and at an increased rate. This reduction in availability was possibly due to a modal shift from container to trailer. The matter had been discussed by members with their principals but it was felt that this was not within the control of members or their principals.

Improvement of Communication with Port Authorities â&#x20AC;&#x201C; In recent years communication between the ship agents and the port authorities, namely Transport Malta, had improved. Previously any changes to port tariffs were notified to the Shipping and Bunkering Business Section and Association of Ship Agents via legal notices but more recently the Executive Committee was called to a meeting to be informed of the impending changes. Members felt that it would be of benefit to the industry at large to involve the Executive Committee at the initial stages and that it should be consulted and asked for its opinion. It was noted that shipping lines would only come to Malta if it made financial sense. The objective was to ensure that Malta remained competitive compared to other ports in the Mediterranean. For this reason it would be advantageous for the SBBS/ASA to be involved in changes to port tariffs.

Pre-notification of consignments On 26th June 2012 a meeting had been held with Dr. A. Gruppetta, Director General (Veterinary and Phytosanitary Regulation) on the pre-notification of consignments. Ship agents in Malta had the responsibility of providing the Department of Agriculture with 72 hoursâ&#x20AC;&#x2122; notice for any shipment

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

One of the main issues of the Business Section that was followed up in most of the meetings held concerned the change in Transport Malta’s position on the practice, by a number of large yachts flying the Maltese flag, of regularly switching their status from private to commercial. Following representations made with Transport Malta, it was agreed that once Transport Malta finalised its review of this practice, it would make its official and updated position known in writing.

In particular it had been pointed out to Dr Busuttil that good communication and planning were crucial for the cruise liner business as costings were made well in advance and a sudden change in tariff could mean a loss of revenue. Conveyances at Valletta Cruise Port – Permission was being sought from the local authorities to allow conveyance boats (when returning from outside port limits conveyances) to berth at alternative berths other than at Valletta Cruise Port (VCP). This was due to the fact that the agents were being charged a wharfage fee at VCP for the conveyance boat to disembark the off-signing crew members in order for them to transit the quay and enter the Immigration offices to stamp their passports. The launch had to berth at VCP as it was situated adjacent to the Customs and Immigration offices. Conveyance boats could easily berth elsewhere and take the crew members by taxi/ car transport to the Immigration offices for their passports to be stamped. Members felt that VCP had taken advantage of the fact that conveyance boats were obliged to berth at VCP to off-sign crew members and asked that they be afforded the opportunity to choose an alternative berth.

Concerned by a number of safety issues such as over-speeding in bays and the sailing of dinghies and other sea craft by children, the Executive Committee wrote to Transport Malta recommending the introduction of a minimum age threshold for the sailing of dinghies and other sea craft as well as urging permanent surveillance in all ports and major beaches. Another aspect which the Committee focused on was the continued non-recognition of Malta flagged-yachts by the USA due to the fact that the Malta flag is not on the USA’s approved list of flags. The Committee made follow-up enquiries with the Minister of Foreign Affairs who reported that, following the representations that the Committee had made to him back in 2010, he had been personally following the issue and that in February 2012 the Government of Malta had lodged an application with the US authorities, indicating that Maltese legislation satisfies the reciprocity required by US law thus allowing the Department of Homeland Security to issue the required cruising license. In order to complement the Ministry’s work, the Executive Committee requested, and is now waiting for, a meeting with the new Ambassador of the USA to Malta with the aim to stress the importance of a quick solution of the issue for the Industry.

Electronic Conveyances – Dr Busuttil was informed of discussions and also meetings with four different departments namely Transport Malta, Port Health Inspector, Customs Baggage Room and Seaport Immigration Police, regarding agents processing conveyance documents electronically instead of physically calling at each office for their approval. Only Transport Malta and Port Health Inspector had accepted this system and confirmed their approval electronically. Regretfully Sea Port Immigration and Customs Baggage Room still refused to send their approval electronically and agents were required to physically send a shipping clerk, with a copy of Transport Malta and Port Health Inspector’s approval to these departments in order to obtain their approval.

In the second half of the year, the Yachting Services Executive Committee held a meeting with the Leader of the Opposition Dr Joseph Muscat to express the concerns and issues being faced by the Industry. The Committee commended the authorities’ efforts at promoting Malta as a centre for yachting activity and services, however, it stressed that the supply of berths was not meeting the high demand of request for berthing by both local yachts and visiting yachtsmen. Other salient issues discussed included existing fiscal structures and the possibility of land reclamation to create new marinas.

Bunker Suppliers – Members had asked Government to be more vigilant in assessing certain bunker suppliers. Regular complaints were received from shipowners worldwide regarding continuous irregularities by way of shortages as well as off specs bunkers. This was giving Malta a very bad image and many shipowners had blacklisted Malta as a bunkering port due to their bad experiences. Dr Busuttil had also been briefed on the regulations regarding the Border Inspection Post and the VHF licence fee.

During the year the Business Section discussed various other issues which include the Ta’ Xbiex privatisation of berths project and the delays with tenders of the Dock 1 area. The Executive Committee also drew up and submitted a letter to the European Commission with the Business Section’s position with regards to the Tax Tonnage Scheme.

Yachting Business Section The Executive Committee of the Yachting Services Business Section met a number of times during 2012 with the aim to discuss, and possibly resolve, a number of issues pertaining to the Industry.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Policy Committees Human Resources Committee The year under review saw the merging between the ‘Human Resources and Social Policy Committee’ and the ‘Business Education Committee’, which is now called the ‘Human Resources Committee’.

Objectives

Feedback on the Pre-Budget Document

The Malta Chamber’s Human Resources Committee objectives are to raise awareness and disseminate information in areas related to education, human resources, social policy and employment, both at a national and at an EU level. Furthermore, the Committee provides policy feedback and specific guidance in the above areas to the Malta Chamber Board of Management. With the setting up of the Malta Chamber Foundation in 2011, it was agreed that the Committee would focus on policy development and dissemination of information, while the training function was to be continued by the Foundation.

The Committee worked extensively on an exercise to provide feedback and recommendations on the 2013 Pre-Budget Document. The Committee focused on a number of priority areas which were included in the Malta Chamber’s official Pre-Budget feedback document. Extracts of the document are being reproduced hereunder:

Accessibility to educational programmes Accessibility to educational programmes sustaining the availability of skills in various sectors should be a cornerstone of Government’s strategy. In this regard, the Committee encourages Government to invest further in successful educational programmes and schemes such as the Training Aid Framework (TAF) and the Get Qualified Scheme and, that encourage the uptake of educational programmes. The immediate uptake of these schemes proves that companies are committed to provide full support to their employees’ engagement in lifelong learning.

The Committee strives to keep the members informed about the developments in these areas through regular updates on Chamberlink and direct mail-shots. The Committee held six meetings during the past year in order to coordinate its activities and discuss legislation in the areas mentioned above. The Committee provides updates related to its initiatives and activities to the Board of Management, as and when required. This contact with the Board allows the committee to ensure that the focus of the agenda is in sync with the Malta Chamber’s general policy.

Entrepreneurship through Education The Committee believes that another initiative that should be continued in order to instil entrepreneurial skills at primary and secondary school levels is the ‘Entrepreneurship through Education Scheme’. The Malta Chamber itself is participating in a project funded through this scheme that is led by San Gwann Primary School B.

Committee Members The members of the committee hail from the three Economic Groups, some being Human Resources Managers at large companies, and others Managing Directors in smaller enterprises. In order to ensure that information is ready available to this Committee, a representative from the Malta Business Bureau, Mariella Scicluna now forms part of the Committee, allowing for a swift flow of information between documents from an EU level and our members.

Validation of non-formal and informal learning The Committee also considers that by developing tools to validate non-formal and informal learning, for instance sectors skills councils that recognise learning that takes place at the work place, workers’ employability skills would be made more visible, and hence, more employable. The Committee encourages that such mechanisms and structures are developed.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Strengthening family-friendly measures

were held with Dr James Calleja (Permanent Secretary at the Ministry of Education and Employment) and Claudio Farrugia (CEO at the Employment and Training Corporation). Through the hard effort of the Committee as well as the Secretariat, the schemes were extended for a further month, allowing for companies to apply for these schemes.

The Committee is in agreement with Government’s proposal “to support companies within the private sector that are encouraging the introduction and further development of family friendly measures” within their structures. The Malta Chamber believes that labour market reforms that come into effect will support an organisation’s internal flexibility by general agreements on the company level mainly concerning variations in working time.

Dissemination of Information The Committee was active in disseminating information related to the areas of employment relations through the organisation of events such as benchmarking fora and information sessions. These sessions allowed for the exchange of information and allowed for specific guidance in areas related to employment for all Malta Chamber members.

Extension of school hours The Committee agrees that the education system should aim to develop the full potential of each individual. In this regard, the Malta Chamber believes that this can be challenging for various reasons, including the duration of the scholastic year which is less than 30 weeks. The revision of the National Curriculum Framework seems to recognise that the number of hours that a child spends in school needs to be increased, both as a work-life balance measure, as well as to allow for different activities. It is being suggested that the social partners should discuss the possibility of extending the scholastic year as well as the number of hours that a child spends in school. The Malta Chamber proposes that these additional hours could be manned by different professionals. Such additional extracurricular activities are to be given due related credit consideration in the stream of formal education.

TAF and EAP Information Sessions The Committee held two information sessions about the much debated TAF and EAP schemes as a large number of Malta Chamber members had attempted to apply for these schemes. Around 60 members attended both sessions, which focused on both the members’ queries as well as the reimbursement processes of both schemes.

New Employment Regulations Information Session Arising from various requests received from our members, the Committee organised a well-attended information session in May related to employment regulations that had been enacted at the beginning of the year. This session was organised in collaboration with the Department of Industrial and Employment Regulations (DIER). The event was chaired by the Committee Chairperson, Ms Antoinette Caruana. Dr Noel Vella, Director (Industrial & Employment Relations) & Functions of Registrar of Trade Unions, briefed Malta Chamber members about L.N. 44 of 2012, entitled ‘Employment Status National Standard Order’ and L.N. 46 of 2012, entitled ‘Overtime Regulations’.

Feedback on the schemes supporting training and employment The Malta Chamber secretariat, together with the support of the Committee, was at the forefront in the struggle with Government entities to assist companies in applying for these schemes and following through till the reimbursement stages. Our Chamber’s utmost apprehension, and more often than not, bone of contention, was the extensive delay for the reimbursement of training programmes that had been conducted. Notwithstanding these positive results related to the uptake of these schemes, the Committee always believed that local authorities are more concerned about ensuring the regularity of expenditure rather than promoting a resultbased approach to assess the success of Structural Funds.

Future Events The Committee is currently rolling out its 2013 calendar of events, which will include Benchmarking Fora on tackling the topics of injury leave and flexible working hours and Information sessions that will include topics such as the Pensions Reform.

Extension of the ‘Training Aid Framework’ and ‘Employment Aid Programme’ Following an announcement indicating that the TAF and EAP schemes will be abruptly halted, made during an information session organised by the Committee in May, several meetings

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Energy and Environment Committee During the year under review, the Energy and Environment Committee (EEC) has held several internal meetings of the Executive Committee and External meetings with Government departments and authorities and other stakeholders in the energy and environmental sectors. Perit David Xuereb maintained his position as the Chairman while Godwin C. Micallef was the Vice-Chairman who would lead the Committee in the Chairman’s absence.

Proposal on Waste Facilities and Financial Assistance to the Waste Management Sector

a discussion with the Ministry Officials, the Committee’s observations were taken as part of the consultation feedback.

During the month of March, a number of Committee members were involved in meetings with Malta Enterprise to explore ways to assist the ever growing waste management sector and provide locations for the investment in waste facilities. The Malta Chamber together with other stakeholders which included MEPA and Wasteserv drafted a document for the consideration of the Malta Enterprise board. The document included issues related to the lack of facilities in relation to WEEE dismantling but also included the point that in relation to a number of waste streams, such as waste oil and hazardous waste the economies of scale are not available to build specific recycling facilities. The Malta Chamber retorted that the private sector needs a level playing field to grow and cannot compete with Government entity that is subsidised by EU and public funds. An exit strategy from a number of areas current managed by Wasteserv was required. A particular site was also proposed to include a Waste Management Park for the expansion of the sector.

Malta Chamber meets Commissioner for Climate Action Another important meeting in relation to the EEC Committee was that held on the 4th of May were several entities, including the Malta Chamber, were invited to participate in a meeting with the European Commissioner for Climate Action, Connie Hedegaard. Outgoing Malta Chamber Director General, Ing Ray Muscat, Policy Development Manager Andre Fenech and Executive Marylyn Hili represented the Malta Chamber during this debate on climate change, where several pressing issues in relation to Malta’s position were addressed. Amongst other matters, the Malta Chamber said that whilst it welcomes innovative projects focusing on renewable energy, it emphasised that one needs to keep in mind Malta’s limitations with regards to its territorial capacity. The Commissioner addressed some of the concerns brought forward and underlined the importance of Europe to work towards improving energy efficiency in an effort to regain its competitiveness.

Meeting with Government Officials On 16th April the Malta Chamber’s Energy and Environment Committee led by the Chairman Perit David Xuereb, held a meeting with MEPA officials to discuss the consultation document on the Strategic Plan for Environmental and Development (SPED). It was explained that the document includes the key issues for the sustainable management of land and sea resources together with their spatial implications. It also includes a spatial vision for the Maltese Islands and outlines the Government’s objectives aimed to address the identified issues in line with the spatial vision. Official, Michelle Borg, from the Ministry for Tourism, Culture and the Environment delivered a presentation to the Committee on the Government’s strategic objectives. In essence, these objectives aim to promote sustainable human settlement development with the overall objective to improve the social, economic and environmental quality of human settlements. Borg explained that an integrated approach needs to be achieved which should facilitate appropriate choices to maximise sustainable productivity and use. These objectives will also work with the current Government policies and a more coordinated approach in terms of linking policies together will be given priority. Following the presentation, the Committee put forward their concerns and recommendations. Following

The Malta Chamber writes a Letter to MEPA regarding the Waste Management (Packaging and Packaging Waste) (Amendment) Regulations The Malta Chamber wrote to MEPA about the proposed amendments to Waste Management (Packaging and Packaging Waste) Regulations. In this letter, the Malta Chamber expressed its concerns on the way the consultation was carried out and the very tight deadline given to reply to this document. The Malta Chamber showed its concern on the proposed amendments which were going to impact negatively certain companies which are currently self-complying to the requirements of the law. In essence, the Malta Chamber insisted that companies should not be precluded to self-comply on one particular waste stream, which falls under the terminology of packaged goods. The Malta Chamber added that this situation was discriminatory and insisted that companies should be given the choice to self-comply or join a waste management scheme according to their cost-considerations. Negating such choice is tantamount to direct interference by the authority in the free market. For this reason, the Malta Chamber had requested an urgent meeting with the Environment Directorate at MEPA to discuss

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

this matter further. Following this, the EEC Committee was granted a meeting with MEPA Officials on the matter were such concerns were addressed and discussed. As a result of this meeting the EEC was pleased to know that its viewed were taken into consideration in the drafting of the legal notice.

Malta Chamber Energy and Environment Committee meets Assoreca President The Energy and Environment Committee also met with Dr Francesco Andretta, President of Associazione tra le Società di Consulenza e di Servizi per l’Ambiente, l’Energia, la Sicurezza e la Responsabilità Sociale (Assoreca), a non-profit association of consultancy companies working in the environmental, safety, and sustainable development fields. Dr Andretta has a background in environmental consultancy and has contacts with the Italian industrial sector and Confindustria. In the context of his work, he presented the Malta Chamber with the ‘Charter of Environmental Sustainability Principles – A Practical Guide’ from the Italian Confindustria. The aim of the meeting was to come up with a roadmap on how to present this document to Malta’s industry. The Assoreca President proposed that a joint event takes place between his organisation and the Malta Chamber. The main aim would be to have speakers especially from smaller companies (SMEs) giving testimonials, and these would be presented as best practices in the hope of stimulating attending companies to consider following such examples. Whilst this proposed event would be useful to promote ideas of environmental sustainability with the local industry, it would also serve to further increase contacts and introductions between Maltese and Italian industries.

Meeting with Permanent Secretary in the Ministry for Resources and Rural Affairs and Director of Interregional Packaging in Belgium On 9th October, the Energy and Environment Committee of the Malta Chamber met with Dr Ing. Christopher Ciantar, Permanent Secretary in the Ministry for Resources and Rural Affairs, and Marc Adams, Director of Interregional Packaging in Belgium. Adams gave an overview of the packaging waste management legislative system and the set-up of the recovery of such waste in Belgium. He explained that this is controlled by an inter-regional law which is valid on the entire Belgian territory. He further mentioned that Belgium has one waste recovery scheme for household packaging waste and another for packing waste originating from industry. Adams said that with regards to businesses, few are self-compliant and these companies usually produce a specific type of waste packaging. Belgium is one of the most efficient countries in Europe with regards to the recovery and recycling of waste and Dr Ciantar emphasised that it is important for Malta to emulate any best practices which countries like Belgium have to offer in the sector. Dr Ciantar also said that these types of examples need to be cascaded down to the Malta Chamber members through an event later on during the year.

Meeting with Wasteserv The Malta Chamber Energy and Environment Committee met for the second time during the same year with Dr Ing. Christopher Ciantar, Permanent Secretary in the Ministry for Resources and Rural Affairs accompanied by Perit Benny Farrugia Chairman of

Perit David Xuereb, moderated a panel session made of experts in this field who indicated the viability of electronic vehicles in the long-term and the need for the local authorities to invest heavily in the infrastructure required. German Ambassador H.E. Dr Hubert Ziegler delivered the concluding remarks.

Wasteserv and Ing. Saviour Abela CEO at Wasteserv. The meeting was set up with the intention of having an open dialogue on the current state of the waste management sector in Mata and mainly featured a discussion on issues such as hazardous waste, landfill gate fees, competition in the local waste management sector and the local scenario on energy from waste. At the end of the meeting Wasteserv agreed to hold more frequent follow up meetings with private operators in order to keep them informed with any developments in policy in the sector.

Dissemination of Information and Consultation The Committee kept the commitment of disseminating information to Malta Chamber members by publishing articles in The Commercial Courier, the Malta Chamber’s bi-monthly magazine. The aim of these articles is to give adoptable tips to business mainly with regards to cutting energy costs and energy conservation. In the year 2012 two articles have been published and these will surely be followed up with other articles to be written by other Members of the Committee on their area of expertise in 2013. Moreover, the EEC will keep providing its feedback on several environmental issues which arise during the year such as the comments which it has recently submitted on the WEEE (Waste Electrical and Electronic Equipment) recast directive.

E-Mobility Conference On 28th November, the German-Maltese Business Council and the Embassy of the Federal Republic of Germany, with the support of the Energy and Environment Committee organised a conference about e-Mobility. The welcome address was delivered by the Malta Chamber President, Stefano Mallia. Keynote speakers included the Hon. Minister George Pullicino and Opposition spokesperson for the Environment the Hon. Leo Brincat. A number of local and foreign experts in this field also gave technical presentations of the pros and cons of the sector and some of the pilot projects being carried out in Malta.

Research, Technology, Development and Innovation Committee During 2012, the Malta Chamber Research, Technology, Development and Innovation (RTDI) Committee met six times and was active on a number of fronts.

Policy Development

Article on Addressing Economic Challenges through Research

One of the major tasks undertaken by the Committee was to promote its policy document entitled ‘Meeting the RTDI Needs of Industry’. The main focus is to underline the essential need for investment in RTDI for the advancement and prospering of the Maltese economy. In this policy document the Committee refers to no less than eight issues which it believes must be taken into consideration when discussing the RTDI needs of industry. The document puts forward over 30 recommendations, each of which is accompanied by complementary initiatives and is intended to serve as an eye opener for stakeholders to place RTDI at the forefront of Government’s agenda where it will contribute towards the creation of a more dynamic and competitive environment.

Supported by the RTDI Committee, the President of the Malta Chamber issued an article on the Business Times which highlighted the positive outcome of research and innovation which has the effect of creating a better economic scenario. The article continued to emphasise that when Research and Development (R&D) is conducted in a successful way, it automatically leads to investments in capital equipment and human resources. This does not only generate new ideas and products to satisfy and enhance consumer welfare but improves business processes and opportunities, increases productivity and promises an overall competitive advantage. One of the most crucial points featured is that RTDI would go a long way in solving the minimum wage issue where incomes could be increased via innovation, specialisation and sophistication. The latter is perceived as a far more sustainable solution and one which is in the Country’s better long-term interest.

The eight areas covered by the document are: • Innovation Management Techniques (IMTs) • Research and Development Process • Education preparedness • Industry-academia linkage • Access to finance • Innovation Value Chain & Infrastructure • Technology Transfer & Licensing • Intellectual property rights

The full version of the article may also be viewed via the Committee’s section on the Malta Chamber’s website through the above mentioned link.

Events The Malta Chamber RTDI Committee has also been working hard on awareness events which will take place during the following year. During such events, the business community will be encouraged to attend.

Budget Recommendations The Committee continued to provide feedback on the PreBudget Consultation Document. These mainly reflect the recommendations found in its policy document which may be found on the Malta Chamber website. The RTDI Committee urged Government to take on board these proposals.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Internationalisation Committee In 2012, the Internationalisation Desk further consolidated its’ position as one of the key departments within the Chamber, dealing with an ever-increasing number of inquiries from members and other Maltese companies, as well as the many foreign contacts and visitors who contact the Malta Chamber on a daily basis. creation of events and activities which benefit the participating members as well as the Maltese business community as a whole.

The Internationalisation Desk is headed by Manager Klaus Pedersen, and this year saw the addition of Internationalisation Junior Executive Lina El-Nahhal. Ms ElNahhal was an intern at the Malta Chamber before taking up the position of Internationalisation Executive in the place of Diane Seychell, who took the internal post of Communications and Media Executive in June 2012.

The following are some of the activities undertaken and/ or supported by the Internationalisation Desk:

Diploma in Manufacturing Excellence In the beginning of the year, the Internationalisation Desk was also involved in the Diploma in Manufacturing Excellence course which the Malta Chamber Foundation developed in collaboration with MCAST. Internationalisation Manager Klaus Pedersen developed and delivered a module on Internationalisation in the Manufacturing Industry, spanning over 10 lectures of three hours in the months of January and February 2012.

In a globalised world, companies operating in a small open economy such as the Maltese, are under constant pressure to relate to international challenges, even if they apparently operate in a purely local context. The Internationalisation database, which was created from scratch by the Desk, on the initiative of the Internationalisation Committee, continues to be a valuable asset, both in providing sound and quantifiable data about the internationalisation orientation of firms in Malta and also as a tool for the desk and the Malta Chamber to better service the membership, organise events and disseminate information. The work with populating and updating this database therefore continues to occupy a portion of the resources of this department.

Outgoing Business Delegations Malta Enterprise is usually the main organising organisation of outgoing business missions, with a dedicated staff and budget to undertake and financially support such activities. As part of a declared policy of working closely with Malta Enterprise, the Internationalisation Desk at the Malta Chamber participates in these missions by:

Another major development is the fact that Business Councils, which were started as a concept a few years back, continue to grow in numbers and relevance. These business councils are horizontal committees within the Malta Chamber that focus on promoting business exchanges between Malta and specific countries or regions. The concept was developed as an internal policy by the desk as a way of creating entities within the Chamber, so that the secretariat can ensure greater coordination, control, continuity and integrity, than can be exercised over with bi-lateral chambers that operate completely independently of the Malta Chamber. These Chambers have proven successful in activating members and even generating new membership and they have become catalysts for the

• Contributing to the annual plan for outgoing missions, with a basis in the research done as part of our profiling exercise. • Disseminating information about upcoming missions, via newsletters and dedicated mailing lists. • Identifying a participant from the Malta Chamber to represent the Malta Chamber on such missions, typically a member of the Board of Management or the Council. • Supporting Malta Enterprise with contacts to local chambers of commerce. • Supporting the participating officer with addresses and market information as necessary. • Preparing MoUs with other Chambers when necessary.

In 2012, there were outgoing business missions to the following destinations: Date 18-25 February 2012 24-28 March 2012 28-30 May 2012 30 May-2 June 2012 13-17 June 2012 13-21 October 2012 17-22 November 2012 1-5 December 2012 28 Nov – 1 Dec 2012

City Johannesburg, Cape Town Tel Aviv Vilnius Tallinn Tunis Shanghai, Hong Kong Kuwait City, Riyadh Algiers, Oran Tunis

Country South Africa Israel Lithuania Estonia Tunisia China, Hong Kong Kuwait, Saudi Arabia Algeria Tunisia

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Malta Chamber Rep Mr Anton Borg Mr Mario Spiteri Mr John Huber Mr John Huber Ms Mary Gaerty Mr Anton Borg Mr Tonio Casapinta Mr Gino Cutajar Mr Simon Alden

Incoming Business Delegations

Regional Chambers Network

Throughout the year, a number of foreign delegations come to Malta on business-related missions, be they institutional visits, delegations of businessmen, politically led missions or for example groups of journalists on exploratory visits.

This year, the Desk continued its’ award-winning project to connect with Regional Chambers in Europe, in order to be in a better position to connect our members with companies in other countries. This project takes it starting point in the fact that the Malta Chamber is both a regional chamber with individual companies as members, and also a national chamber. In order to reach companies, we therefore need to connect with regional chambers around Europe, and not only the national chambers, which would otherwise be our natural partners. The desk is currently planning a series of events in collaboration with a number of Chambers of Commerce in the Midlands in England.

In all these cases, the Internationalisation Desk is one of the first ports of call from the planning stage, through promotion and dissemination and up to the actual meeting and hosting of such delegations. The following are some of the delegations that we have received this year, either at the Malta Chamber or as part of events organised at Malta Enterprise: Date Name 2012 03 16 German FederalAssociation for E-mobility 2012 04 11 Qatari Delegation 2012 04 23 Dutch Delegation 2012 04 25 Austrian Official Delegation 2012 05 15 The Swedish Association of Graduate Engineers 2012 05 29 Study Visit – Good Heart Company 2012 09 11 Study Visit – Good Heart Company 2012 09 20 Study Visit 2012 09 24 Nigerian Delegation 2012 09 26 Press Visit by Russian Journalists 2012 10 23 Russian Business Delegation 2012 10 24 Malta-Spain Business Opportunities 2012 11 07-08 Swedish Bank SEB in Malta 2012 11 26 Media Visit by Indian Journalists 2012 12 03 Chinese Institutional Visit 2012 12 10 Cuban Institutional Delegation

Internationalisation Database As described in the introduction, this project is a cornerstone in the work of the Internationalisation Desk, and the work to expand and maintain this database has continued. Through its’ daily work, the Desk continuously looks for companies with international activities or intentions, and proceeds to interview them in order to ascertain which countries they target, what activity they undertake there, what sector they belong to, as well as other relevant variables.

Country Germany Qatar The Netherlands Austria Sweden Sweden

Meetings with Stakeholders and the Diplomatic Corps

Sweden

One of the declared objectives of the Desk is to work closely with stakeholders, especially Malta Enterprise, Finance Malta, relevant ministries and the diplomatic corps in Malta as well as that of Malta abroad. It is therefore natural that a lot of time is devoted to meetings and communication with these entities. Furthermore, the Internationalisation Desk of the Malta Chamber is increasingly the first call for many stakeholders and businessmen who visit Malta from abroad. We invest time and effort in meeting these visitors, because we hope it will lead to contacts for our members, and also to explain to visiting companies, the newly introduced international membership.

Germany Nigeria Russia Russia Spain Sweden India China Cuba

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Business Councils

with the German Embassy in Malta and it also held various meetings the new regional leader for Germany at Malta Enterprise, Josephine Farrugia; the Maltese Ambassador in Germany, H.E. Mr Karl Xuereb; and FinanceMalta.

In the introduction to the year of the Internationalisation Desk, we described the rationale behind the concept of business councils. Looking now at the specific councils, here is a brief description of some of the highlights of their activities:

Events: Scandinavian Business Forum Malta

• 2012 01 12 – Visit by Dr Frank Weisse, Chairman of the German Employment Agency • 2012 07 19 – Maltese-Bavarian Tourism Exchanges: ‘Challenges and Opportunities for a Changing Tourism Sector’. Refer to page 20 • 2012 11 28 – National Conference on E-mobility. Refer to page 57 • 2012 11 29 – 2012 12 01 – Deutscher Industrie – und Handelskammertag (DIHK) visit to Malta

This very active Committee had another busy year under the leadership of its very dynamic Chairman, Dr Mark Fenech. This year, the efforts of the Scandinavian Business Forum Malta were especially directed towards the creation of a web-site. The result of this can be seen on www.sbfmalta.com which has been launched and developed by ICON, one of the Forum’s official sponsors together with Frank Salt and SEB bank.

Events: Tunisian-Maltese Business Council

• 2012 04 13 – SBFM Drinks at Malta Property Expo, Ta Qali. One of a series of networking events bringing the local Scandianvian Business Community together with local business, • 2012 09 12 – Launch of SBFM website at Dr Mark Fenech’s residence • 2012 11 07 – Hosting the Swedish Bank, SEB, on their visit in Malta. • 2012 11 16 – Seminar by internationally renowned motivational speaker, Runa Magnusdottir from Iceland, entitled ‘Using the internet to develop your brand and yourself as a brand’

The Tunisian Business Council has been especially successful this year in putting a focus on Tunisia which has resolved in Malta Enterprise leading as many as 5 missions to Tunisia in the last two years.

Events: • 2012 04 23 – Meeting with Ambassador to Tunisia in Malta at the Tunisian Embassy in Attard • 2012 07 02 – Meeting concerning establishment of ferry boat between Malta and Tunisia with the Tunisian Ambassador, MEUSAC and relevant stakeholders. • 2012 10 05 – Meeting the President of Tunisia, the Hon. Dr Moncef Al Marzouki at the Tunisian Embassy in Attard

German-Maltese Business Council 2012 was another busy year for this active Committee which saw a number of incoming delegation and events. The Committee managed to build a good working relationship

Marketing Committee objectives and direction planned by the Marketing Committee were presented to the Malta Chamber Board of Management in June 2012, where they were duly approved. The findings of the survey served as the basis of an article published in the AugustSeptember issue of The Commercial Courier. The results of the survey were also uploaded on the Malta Chamber website. The Committee has devised its launch plan and action programme over the course of 2012, and will be holding its official launch in early 2013.

During 2012, the Marketing Committee in collaboration with MISCO as its sponsor, compiled a survey which was sent out to all Malta Chamber members. Through the respondents’ replies, the Committee was able to get an overview of the members’ perceptions about marketing, what they expect from the Malta Chamber Marketing Committee, and how important marketing is to their organisation. The results of this survey were then analysed and compiled into a report. The outcome of the survey report, together with the

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Examination Services During 2011-2012, student numbers declined due to economic down turn and political unrest from bordering countries. IELTS Malta took a proactive stance and employed an IELTS Marketing Coordinator to raise its profile and embraced social media to encourage awareness. The Malta Chamber is the only official testing centre in Malta for IELTS. In 2012, IELTS Malta provided testing to 620 candidates and will continue to provide the secure and customer-focused test in the future. Our profile has infiltrated the global market, in turn we have experienced a substantial growth of candidateship numbers. Currently we offer 15 IELTS tests annually. Candidate projections for 2012 were achieved with a surplus growth of 12 per cent. IELTS Malta has managed to sustain this growth despite operating in tough economic times. Additional information pertaining to the IELTS test can be sourced at www.maltachamber.org.mt/ielts

The Malta Chamber believes English as a business language is an important element for the Maltese economy, giving the Maltese community a competitive edge in numerous sectors. English is spoken, to a greater or lesser extent, by almost the entire population. Besides supporting tourism, English language proficiency assists the country in attracting Foreign Direct Investment and establishing itself as a centre for international business. Businesses that require client-facing employees to be proficient in the English language are increasingly requiring potential applicants to submit an IELTS test report form as part of the recruitment process. This will confirm their ability to communicate in English across all four language skills-listening, reading, writing and speaking. Many students travel to Malta to study the English language, they practise their skills within the community and assess their proficiency by attaining an IELTS qualification. Proficiency in English is a pre-requisite for individuals who would like to: emigrate, seek higher education, attain professional registration or secure miscellaneous employment opportunities.

Collaborative Projects

Corporate Social Responsibility

people to better the economic environment in which we operate”. Whilst underlining the advantages companies stand to gain from CSR, Mr Tabone concluded that “the Malta Chamber is of the belief that CSR should remain voluntary and should not be regulated, for companies to remain flexible.” Bank of Valletta Chief Executive Officer Charles Borg said that Bank of Valletta is synonymous with CSR – with the largest, most developed and transparent CSR programme in Malta. Mr Borg said that CSR is about being supportive of the common good and about taking a long-term view to provide added value to a company’s activities and the community.

The joint CSR initiative commenced in 2011 as a result of a Collaboration Agreement between the Malta Chamber of Commerce, Enterprise and Industry and Bank of Valletta. The project was aimed at (1) mapping out the conduct and development of CSR initiatives by Maltese companies, (2) giving additional promotion to the concept of Responsible Entrepreneurship amongst the business community and (3) maximise the benefits of CSR to both business and society at large. In October 2012, the Malta Chamber in collaboration with Bank of Valletta organised a conference entitled ‘Corporate Social Responsibility: Ensuring Business Benefits’.

Mr Tabone’s and Mr Borg’s addresses were followed by speeches by former PwC Malta Senior Partner John Bonello and Bank of Valletta Head of Public Relations Vanessa Macdonald, amongst other prominent speakers addressing the conference.

Former Malta Chamber President Tancred Tabone opened the conference by stating “It is in our best interest as business

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Linking Industrial Needs and VET to Optimise Human Capital

to more high-value added industries, this needs to be carefully managed and a one-size fits all across Malta should be avoided.

Over the past year, Malta Chamber members were involved in a training needs analysis exercise, which was the first phase of a project co-financed by the European Social Fund, entitled ‘Linking Industrial Needs and Vocational Education and Training (VET) to Optimise Human Capital’. This project is led by the Malta College of Arts, Science and Technology and is supported by the Malta Chamber. The other partners of this project are the Institute of Tourism Studies and the Malta Qualifications Council. Over the past year, Malta Chamber members participated in ten different sector groups that allowed to:

Participation in the Pooling4Clusters Project During the past year the Malta Chamber has actively been engaged, together with other stakeholders namely the Malta Council for Science and Technology and Malta Enterprise, in a project led by the Malta Information Technology Agency (MITA) called the Pooling4Clusters Project. This project put at the forefront the importance of clustering initiatives and was aimed at identifying and testing best practices in this regard through the participating Member States. This was done to improve the effectiveness of local support policies to clusters and to recommend authorities the best ways to develop and improve the support frameworks to clusters in Malta. In order to do this the Malta Chamber was invited to participate in a training programme. This included visits to partnering European countries to gain practical exposure of cluster development and growth, and to acquire know-how in operating and managing clusters.

• Analyse the trends and developments in industry specifically in the Pharmaceuticals and Chemicals, Financial Services, ICT, Furniture, Printing, Infrastructure, Food, Beverages, Maritime and Plastics sectors and • Identify the potential skill gaps and shortages of the present workforce in the abovementioned sectors.

In this regard, Executives Marylyn Hili and Robert Tabone Valletta, travelled to Estonia and Slovenia respectively, to take part in this exercise and bring back further knowledge which would contribute to the formulation of the recommendation policy paper on clustering initiatives in Malta.

The second phase of the project will be the launching of over 100 free training courses provision to address the shortages identified by the sector groups. During a panel discussion that was organised through this project on the subject of lifelong learning, Malta Chamber Director General Ing. Muscat stated that lifelong learning is indeed crucial and employability which should be emphasised rather than employee protection. Flexibility and security are not opposite poles: In today’s world, no employer can ensure job security, but employers can help employees in making them more employable, through transferrable skills. In this regard, the Malta Chamber appreciates the importance in lifelong learning so much so that it has created training and qualifications from the ground up. He also emphasised on the importance of sector driven bottom-up education and collaboration between industry and educational institutions, with successful examples such as the Diploma in Manufacturing Excellence and Diploma in Green Energy. He added that the Malta Chamber believes in the support and validation of informal learning, as well as its recognition. Ing. Muscat stated that while lifelong learning facilitates in the transition of workers from unsustainable sectors

The Malta Chamber also played a vital role in the formulation of focus groups which served to disseminate the knowledge gathered to sector specific companies. Throughout the focus groups held, members of the Malta Chamber were present and actively participated in the discussions. During these sessions, companies present also benefitted from networking, providing stimulus for collaboration and a starting drive fort the formulation of future local clusters. After the focus groups were finalised, the recommendation policy paper was put together through the joint efforts of all the entities involved, including the Malta Chamber. The policy paper which may be found on the Malta Chamber website, was issued and presented by MITA which is currently still accepting comments from anyone who wishes to submit their feedback.

Surveys The Malta Chamber’s Survey Work

In November 2012, Malta Chamber Executive Robert Tabone Valetta attended the annual workshop on business and consumer surveys organised by the European Commission in Brussels. The workshop was attended by representatives from various institutes and organisations from the 27 member states that undertake the surveys in their respective countries. The workshop allowed participants to share their ongoing working experience, reached a conclusion for actions on further harmonisation of specific data, and included a number of technical presentations which explored the possibilities for current economic indications, as well as forecasting through the use of data gathered by the BCS.

The Malta Chamber continued to conduct its monthly Business Surveys during 2012. The Industry, Investment, Construction, Services and Retail surveys are part of the Joint Harmonised EU Programme of Business and Consumer Surveys (BCS). The data gathered is used to build composite indicators to track cyclical movements in specific sectors or in the economy as a whole, and uses the results for analysis and surveillance. The Surveys provided a valuable source of information for the preparation of various reports and presentations by the Malta Chamber. This data serves to complement official national data on the performance of the sectors and acts on an international level as a timely lead indicator of actual performance.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Administration Staff

to the highest possible standard. In 2012, the façade of the building was cleaned, restored and painted. Work continues on the upper floors and in the courtyard.

The departure of Ing. Ray Muscat, Director General - Sectors and Business Development, to pursue a career in manufacturing, instigated in a number of changes to the Malta Chamber’s staff structure. New posts were created providing for three Heads responsible for Policy, Sectors and Administration. Three new Executives – Robert Tabone Valetta, Lina El-Nahhal and Rachel Bartolo were employed to deal with the increasing workload.

ISO 9001: 2008 As reported in the Annual Administrative Report for 2010, on 14th December 2010 the Malta Chamber was awarded ISO 9001:2008 certification by the MSA Certification Board. The Malta Chamber Quality Management System is designed to provide documented procedures and a control mechanism to assure the quality of its service, provide controls for the prevention of non-conformities, and assure consistent delivery. 2012 was mostly a year of consolidation of the work initiated in 2010. The process was continually monitored during the year through Internal Audits, Management Review Meetings, and External Audits that confirmed the continued effectiveness of the Malta Chamber’s Quality Management System and its compliance to the requirements of the Standard.

Other resignations in 2012 were from Edward Camilleri, Support Staff and Lorrieann Vella, Executive – Media and Communications.

Certificates of Origin During 2012 the Malta Chamber issued 2811 certificates of origin, 351 of which were destined to Arab countries.

Maintenance As the privileged custodian of a magnificent building the Malta Chamber is duty-bound to maintain the Exchange

Malta Chamber Foundation During the past year, the Malta Chamber Foundation continued its work in the areas of developing educational programmes as well as participation in European Union initiatives. The Foundation Board Chairperson is Helga Ellul, while the Board members are Frank V. Farrugia, and Perit David Xuereb.

BUILD UP Skills Malta project

drafting of a roadmap for Malta to address the required skills gaps and therefore contribute to Malta’s 2020 energy targets. At the time of writing the data collection process for the report consisted of 27 one-to-one interviews with stakeholders and the distribution of a mailshot survey to a further 280 stakeholders.

One of the first major tasks conducted by the Foundation was the submission of a project proposal under the Intelligent Energy Europe call entitled ‘Build-up skills’. In September, the Foundation recruited Ian Borg Bellanti as Research Analyst for a period of five months. Mr Borg Bellanti was employed to draft the National Status Quo Report, which is the main task of the Foundation in this project. This project was awarded to a consortium led by the Ministry of Resources and Rural Affairs. The other project partners are MIEMA and MCAST, which represent the energy management and education sectors respectively.

The inaugural National Qualification Platform was held on 5th October at the Malta Chamber. Ian Borg Bellanti delivered presentations on behalf of the Malta Chamber Foundation at this event as well as at the GreenBUILD Malta 2012 conference held on Thursday 18th October. The following month Mr Borg Bellanti attended the BUILD UP Skills exchange meeting in Brussels, where delegates from all participating countries congregated to discuss their progress in the project.

The report will consist of a skill gap analysis together with a study of the current educational provisions for green skills within the construction sector. In addition to the mentioned report, this project has also formed a National Qualification Platform, which enables discussions amongst stakeholders within the sector. Together with the Status Quo Report, this will lead to the

Although the National Status Quo report is nearing completion, this 18 month project will come to an end in the last quarter of 2013. Once this document is made public, a National conference will be held and the results announced to all the stakeholders interviewed and who form part of the platform. The press will

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

members, organising training about the subject of mental health as well as disseminate this project’s results.

also be invited to ensure the public is informed of all the findings. This will mark the start of the last phase which is the drafting of the actual roadmap for Malta to address the identified skill gaps.

Collaboration with the Malta College of Arts, Science and Technology

Plastics Manufacturers Business Section Project

Education and continuous awareness of business best practices are among the principal activities of the Foundation. The importance of continuous investment in the education of employees is a key vehicle for competitiveness. Indeed, various education initiatives are being tackled through the Foundation, with a focus on Vocational Education and Training (VET). The emphasis on VET is specifically to reinforce the capability of members’ employees to address the changing demands of business; people who perhaps did not have the opportunity to follow a formal course of study or wish to build upon their existing knowledge and expertise.

In collaboration with the Plastics Manufacturers Business Section, the Malta Chamber Foundation is working on a project proposal that aims to mitigate the energy costs for companies whose main function is to deal with injection moulding operations. In conjunction with the Malta Chamber secretariat, the Foundation is conducting a survey that attempts to collect data about the sector’s energy consumption levels.

‘Mill-Ìnien ta’ San Ìwann’ Project Another project that the Foundation participated in over the past year was ‘Mill-Ġnien ta’ San Ġwann’, which was funded through the Government “Entrepreneurship through Education Scheme – 2012”. The project was held in collaboration with San Ġwann Primary School B, which forms part of St. Clare College. The aim of the project was to provide educational sessions to teachers as well as learning support assistants in the area of entrepreneurship. Through these sessions that were delivered by former Malta Chamber Director General, Ing. Ray Muscat and Foundation Executive Jeanelle Brincat, concepts related to entrepreneurship such critical thinking, sustainability, creativity, risk-taking and responsible action, were being conveyed. This course supported the school’s staff in exploring teaching methods that help children develop creative and critical thinking, as well as attitudes, skills and competencies needed to develop an entrepreneurial mind-set.

This emphasis is seen through the continuation of the Foundation’s collaboration with MCAST. For a number of years, the organisation has organised courses with this institutions, namely the Diploma in Manufacturing Excellence, which is currently in its third intake, and the Diploma in Green Energy Technology. Discussions were also held about injection moulding apprenticeship programmes as well as other targeted and industry related courses. The secretariat at the Foundation is also continuing its work on the ESF project entitled ‘Linking Industrial Needs and VET (Vocational Training) to Optimise Human Capital’. This project is being led by MCAST and is being conducted in collaboration with the Malta Qualifications Council as well as the Institute of Tourism Studies. The first phase of the project had attempted to assess the anticipated educational needs of ten industrial sectors. During the year under review, the project was in its second phase, during which courses in line with the identified skills gaps and shortages were being delivered.

Healthy Minds, Healthy Business Project The Foundation is also part of a consortium that currently participating in an ESF project entitled ‘Healthy Minds, Healthy Business’, which is coordinated by the Richmond Foundation. The role of the Foundation would be that of promoting this project among Malta Chamber

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Collaboration with the Austrian Federal Economic Chamber

course focused on quality management and outlined the content of the ISO 9001 standard and its correct interpretation as well as methods of process and project management. Following the completion of this course, six participants had started the process to become certified as Quality Austria official trainers, two of which were Malta Chamber staff members John Scicluna and Andre Fenech. Additionally, an information session was held to promote further Quality Austria’s ‘Quality Management Representative’ course.

In April 2012, the Foundation signed a tripartite Memorandum of Understanding with the Institute of Economic Development (WIFI), which is the training branch of the Austrian Federal Economic Chamber. This MoU was concluded during an incoming Austrian Presidential delegation. The purpose of the MoU is that WIFI would assist the Foundation in providing its know-how in the sector of staff training and development of skills which it has gained from its adult training and further education programmes. Furthermore, the agreement was also to include a reference to EU funding opportunities which were to be explored by both parties.

Collaboration with the University of Malta Throughout the year, discussions ensued with the University of Malta to develop a Memorandum of Understanding (MoU) with the aim of collaborating on initiatives in the areas related to the Malta Chamber’s Business Sections and Committees. A working group including representatives the Manufacturing Economic Group, the University of Malta, as well as the Foundation was set up in this regard. The MoU would allow for the Parties to provide administrative and expert support so as to collaborate on research, education and business initiative. Such initiatives would include the setting up of a framework to provide internships to University students, the provision of input to new and existing courses offered by the University as well as identifying experts from the business community or academia for their involvement in different projects.

Collaboration with CSB Group The Foundation organised two training courses in collaboration with CSB Group, entitled ‘Corporate Law’ and ‘Accounting’. The ‘Corporate Law’ course was delivered by Dr Doran Magri Demajo B.A., LL.D, and was attended by managers as well as accountants. This course was focused on the formation of partnerships and limited liability companies, and the duties of company officers. The ‘Accounting’ course was delivered by Jean-Claude Cardona, a Chartered Management Accountant by profession. The course dealt with five main areas, namely: budgeting, costing, management accounts, reporting and basic financial analysis. Apart from presentations and the use of various forms of media, both courses included a considerable amount of discussion time. This enabled the participants, who were employed in different industries, to share and exchange their experiences.

Collaboration with other entities Throughout the year, the Foundation held meetings with stakeholders in the educational sector, including the Management Efficiency Unit, the Chartered Institute of Logistics and Transportation, as well as the English Speaking Union. During the coming year, the Foundation will strive to pursue other initiatives to develop its portfolio of value-added services offered to the Malta Chamber membership, reinforcing the benefits for enterprises to form part of the Malta Chamber.

Collaboration with Quality Austria Another milestone of the Foundation was the organisation of the Quality Austria train-the-trainer course that was organised in February 2012 and attended by sixteen participants. This

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

BUSINESSEUROPE BUSINESSEUROPE, the Confederation of European Business represents more than 20 million small, medium and large companies. Active in European affairs since 1958, BUSINESSEUROPE members are 40 central industrial and employers’ federations from 34 countries, working together to achieve growth and competitiveness in Europe.

Malta Chamber participates in BUSINESSEUROPE Council of Presidents in Copenhagen

Malta Chamber Council member Norman Aquilina attends BUSINESSEUROPE’s Council of Presidents in Cyprus

Malta Chamber President’s Delegate Norman Aquilina and outgoing Director General Ing. Ray Muscat attended a meeting of BUSINESSEUROPE’s Council of Presidents in Copenhagen. The Council met with Danish Prime Minister Helle Thorning-Schmidt and discussed the challenges facing her during the last weeks of the Danish Presidency of the European Union (EU). In light of the deteriorating economic outlook, BUSINESSEUROPE urged for increased political determination to lift Europe out of the crisis.

On 6-7 December 2012, Council member Norman Aquilina participated in the BUSINESSEUROPE Council of Presidents in Cyprus on behalf of the Malta Chamber. The Council of Presidents of BUSINESSEUROPE, which convenes every six months in the country that holds the rotating Presidency of the EU, met with the President of the Republic of Cyprus, Demetris Chistofias. The President and the members of BUSINESSEUROPE exchanged views on the economic crisis in Europe, especially in the Eurozone, as well as on the prospects for reaching an agreement on the Multiannual Financial Framework 2014-2020 in the upcoming months. On their part, the members of BUSINESSEUROPE expressed their satisfaction with the way that the Cyprus Presidency of the EU Council has handled the issues on its agenda, noting that the Cyprus Presidency has left its legacy, since during its Presidency it achieved a political agreement on the Unitary Patent System, an issue that had been pending for over 30 years. President Christofias expressed his full support to the efforts of the President of the European Council Herman Van Rompuy, on the issue of reaching an agreement on the Multiannual Financial Framework.

BUSINESSEUROPE expects: • GDP growth to reach 1.4 per cent in 2013 in the EU as the increase in political and financial uncertainty associated with the euro and weaknesses in the banking system has damaged business confidence; • Unemployment to reach its highest level in almost 20 years (10.8 per cent in 2013). BUSINESSEUROPE also called for sound public finances which could provide the foundations for lasting growth and reinforce the euro, as well as complete commitment by member states to recommendations of the European Commission.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

EUROCHAMBRES Created in 1958, EUROCHAMBRES is the European Association of Chambers of Commerce and Industry and forms one of the key pillars of business representation to the European institutions. EUROCHAMBRES voices the interests of over 19 million member enterprises in 45 European countries through a network of 2000 regional and local Chambers represented by 45 national and one transnational organisations.

EUROCHAMBRES Economic Survey ‘2012-2013’

These results reflect the official forecasts for the Maltese economy for 2013. EES 2013 pointed towards a slow recovery overall, however forecasts for the local economy are encouraging.

For the thirteenth consecutive year, the Malta Chamber of Commerce, Enterprise and Industry participated in the annual pan-European benchmarking exercise organised by EUROCHAMBRES.

Malta Chamber attends EUROCHAMBRES events in Brussels

The EUROCHAMBRES Economic Survey (EES) is the largest European qualitative survey of business expectations. Its annual survey is conducted across the whole of Europe, and gathers the expectations of approximately 53,000 businesses on six economic indicators: business confidence, total turnover, domestic sales, export sales, employment and investment.

Board of Management Member John Huber and Director General Kevin J. Borg represented the Malta Chamber at a series of events organised by Eurochambres during their two-day visit to Brussels between the 18th and 19th October. The Malta Business Bureau Permanent Delegate to Brussels, Omar Cutajar accompanied the Malta Chamber delegation to all events.

At the European level, the EES 2013 recorded a fall in business confidence for a second consecutive year on an EU level, reflecting the ongoing Eurozone crisis, and the EU average for business confidence is at the most pessimistic level ever registered. In spite of all this, Maltese enterprises still hoped for the current economic situation to take a turn for the best.

The first event that the Malta Chamber representatives attended was the Global Chamber Platform Conference. The conference was addressed by Honorary President of EUROCHAMBRES and Chairman of the Global Chamber Platform Christoph Leitl and EU Commissioner for Trade Karel De Gucht, amongst other prominent speakers. It focused on trade and investment for growth and its main aim was to clarify major economic trends and identify opportunities in some of the main partner regions around the world.

16 per cent of Maltese businesses were optimistic that 2013 would be a good year for them. This presented an increase over last year’s expectations but it was much lower than the expectations for 2011, when over 40 per cent of Maltese businesses expressed a lot of business confidence. Turnover expectations remained positive in Malta, with 28 per cent of local businesses expect their gross income from national sales, exports and other revenues to grow as compared to 2012.

The second event entitled “EU Actions for Business” tackled different topics such as funding opportunities for SMEs and Chambers, entrepreneurship, and business prospects for SMEs in Asian markets. EUROCHAMBRES President Alessandro Barberis opened the event, while the EUROCHAMBRES moderators for the three sessions were Secretary General Arnaldo Abruzzini, EU Affairs Director Ben Butters, and International Affairs Director Dirk Vantyghem respectively.

Businesses’ predictions regarding growth of domestic sales were also positive, with 17 per cent positive domestic sales forecast in 2013. With regards to businesses’ expectations regarding the growth of export sales, this was also positive, with 35 per cent of Maltese businesses expecting an increase in exports. It was interesting to note that Malta, along with Denmark, was the country which showed the largest forecasted increase when compared to the year 2012.

The above event coincided with the 112th Plenary Assembly and election where Mr. Huber was elected on the Board of Directors for 2013. During the assembly, President Barberis’ report was discussed as well as those of the EU Presidencies, where Cyprus’s report on the progress made during 2012 and Ireland’s presentation of priorities for next year. The guest speakers were EESC President Group I, President from 2013 Henri Malosse and China Council for the Promotion of International Trade Vice Chairman Jinzhen Wang.

In addition, 17 per cent of Maltese businesses also planned to employ more people in 2013 than in 2012. Businesses are also planning to invest more in 2013, with 18 per cent of Maltese businesses having positive investment expectations.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Malta Business Bureau developed into the world’s largest market, catering for 500 million consumers. In this respect the publication’s highlight featured a qualitative study assessing the Maltese business’ experience of operating in the single market. A number of focus group sessions were organised with Maltese SMEs and micro-enterprises representing the Services, Import/ Distribution, Manufacturing/Exportation, Hospitality and Tourism Services sectors, who all contributed towards the study. Both publications are available on the MBB website www.mbb.org.mt and can be requested on info@mbb.org.mt

2012 marked another important and fruitful year for the Malta Business Bureau (MBB). Following last year’s commemorations of its 15th anniversary, the MBB this year sought to consolidate its foundations and continue to raise its profile and its relevance to business. The Bureau’s role today is indeed different from the one it was originally set up for in 1996. While the organisation was founded with the purpose of assisting Maltese businesses prepare for EU membership, the experience acquired in the past years equipped the Bureau with sterling knowledge to guide local firms in making the best out of EU opportunities. Furthermore, the MBB now serves as a catalyst in safeguarding businesses whenever EU legislation may not be deemed so favourable to Malta’s economic and commercial interests. This was yet another year whereby the MBB continued to grow and earn a wider respect from politicians, social partners and civil society. During these challenging economic times, now more than ever, the MBB is seeking to work hand in hand with all partners who have goodwill and the interest of Maltese businesses at heart. We pride ourselves to be of service to the local business community; in particular to the members of our parent organizations – the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association.

Impact Assessments This was a very active year with respect to the conducting of impact assessments. Following the announcement of a joint-collaboration project with Bank of Valletta last year, work immediately started, assessing the European Commission’s proposals for a Common Consolidated Corporate Tax Base (CCCTB) on the local private sector. The conclusions of the report were published in April 2012. The MBB held separate meetings with Government and Opposition to communicate its position and the reasons why it believed that this Directive would be detrimental to the Maltese economy should it be enacted at EU-level. Both parties agreed with the MBB’s conclusion and pledged their objection to the European Commission’s proposals. On a separate occasion, an information session was held with business stakeholders, to inform in more detail what the proposed directive entailed.

Publications The MBB and the European Commission Representation in Malta see an opportunity in communicating more effectively to the Maltese business community. In this respect, throughout 2012, both organisations collaborated jointly on a number of publications with the aim of informing entrepreneurs and enterprises on key EU-business related issues. The first publication intended to communicate how the EU budget is an exercise that makes business sense in so far as it supports the effective implementation of polices that are conceived to facilitate things for enterprises, provide businesses with opportunities to expand their operations overseas, as well as to enhance their operational set-ups. This publication took form of an informative leaflet entitled ‘Why the EU budget makes business sense?’. This was distributed with the business supplement of the Times of Malta. The second publication commemorated the 20th anniversary of the European Single Market. To date, the single market has

In September 2012, the MBB launched another study, this time focusing on businesses and their access to finance. This assessment study will strengthen and consolidate the MBB’s work related to the European Single Market, by presenting solid recommendations to both Government and the local credit institutions on the real financial requirements of our businesses, in order for them to continue to contribute towards growth and employment in the Maltese economy.

EU Funded Projects EU Life+ Investing in Water Project – In 2012, the EU LIFE+ Investing in Water Project took significant strides to reaching its targets for March 2014. The project is halfway through its lifetime, and has registered an excellent

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Tajani during a high profile business breakfast debate organised by the MBB. The event delved into issues relating to industry, entrepreneurship, tourism and SME internationalisation, all forming part of Commissioner Tajani’s portfolio within the College of Commissioners. The Conference also saw the participation of officials from various EU-offices, Members of Parliament, MEPs and other distinguished guests.

level of interest from local businesses and hotels. The EU Life+ Investing in Water Project was officially launched in January by Minister Mario de Marco. February saw the release of the Project Portfolio, which outlined the reasons behind the Project’s undertaking, as well as its targets and aims, along with any information relevant to the subject of water scarcity and conservation. The project website www. investinginwater.org was launched in April, providing a onestop shop in information concerning water savings. In June, the Radisson Blu resort in St Julian’s played host to the project’s National Water Conference. The conference played a key role in highlighting the project’s messages to a large audience comprising of representatives from the local business spectrum. In November, the MBB published a list of water saving solutions on its website. Complimenting this is an interactive and user-friendly self-assessment application which will help companies in immediately identifying tailor made water saving solutions through an on-the-spot analysis. The application will also generate a situation-specific report for the user’s convenience.

April The MBB in collaboration with the Malta Chamber ICT Business Section and eSkills Alliance Malta organised a business seminar on ‘Fostering eSkills for Growth’. This was a good opportunity for employers from all sectors of the local business community to understand more how the need for eSkills is required for all types of business, big and small, in various levels of a company’s structure.

‘Supporting Human Resources Development in Family-friendly Training’ (SHIFT) Through this project the MBB is seeking to gather best practices from countries with an advanced human resources level, particularly in the field of flexible work arrangements and family-friendly measures to develop an innovative and more competitive labour force in Malta.

June A high-profile international conference was organised jointly by the MBB and the Ministry for Fair Competition, Small Business and Consumers in light of new business opportunities unfolding in the Southern Mediterranean region following the Arab Spring. The conference was attended by entrepreneurs, and provided a unique platform for a technical and business discussion on the opportunities that exist in Libya, Tunisia and Egypt for Maltese businesses.

In 2012, two separate delegations of HR Managers have been given the opportunity to undergo a two-week training experience in Denmark and Germany and get exposed to flexible-work and family-friendly measures adopted by companies in these two best-practice countries. Towards the end of the year a second phase of the project commenced. The MBB launched a study that aims to document both the current take-up of flexible work and family-friendly measures by the private sector, as well as the difficulties faced by the local industries to adopt such measures. In this respect, a number of workshops were organised with various stakeholders to help the MBB understand better the needs and aspirations of local companies in this regard. The results of the study are expected to be published in 2013.

Malta Business Bureau – Making the best of opportunities in the EU Next year promises to be an interesting year for the MBB with a number of important projects lined up throughout the year. In early 2013, the MBB is holding a series of political meetings with key EU institutional stakeholders. A high profile meeting is taking place in Strasbourg with Commission Vice-President Michel Barnier in January on the Bureau’s Single Market recommendations. Other meetings with the European Parliament’s Internal Market Committee Chair Malcolm Harbour and the coordinators of the political parties will also take place in Brussels. Throughout 2013 the MBB will also be looking into identifying and submitting further EU-funded project proposals, to build up on the success of the EU Life+ Investing in Water and the Leonardo Mobility SHIFT Projects.

Conferences and Seminars

Finally, the Bureau will seek to remain close to enterprises by increasing consultation exercises and refining its lobbying efforts in Brussels, in order to better represent Maltese businesses interests in the EU.

March Leading Maltese entrepreneurs had a unique opportunity to meet with the European Commission Vice-President Antonio

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

European Economic and Social Committee Online gambling report gets strong vote at EESC

Established by the Treaty of Rome in 1957, the European Economic and Social Committee (EESC) is considered to be a bridge between Europe and civil society. It is a consultative body that gives representatives of Europe’s employers, employees and civil society a formal platform to express their points of view on EU issues. The Opinions of the EESC are formally submitted to the main EU institutions which in turn are ‘obliged’ to take into consideration the views of civil society when formulating EU legislation. The EESC therefore has a formal role in the EU’s decision-making process. The EESC is made up of three groups – Employers, Employees and Various Interest Groups. Malta has five members in the EESC – two representing employers, two representing employees (unions) and one representing civil society. Malta Chamber President Stefano Mallia is one of the two members appointed to represent employers in Malta. Participation is on a voluntary basis and the appointment is for five years. Mr Mallia has taken a very active role within the EESC and participates as a member in the following sections: • Internal Market Section (INT) • Economic and Monetary Union Section (ECO) • Agriculture and Environment Section (NAT) He is also a member of the Single Market Observatory.

Members of the EESC voted strongly in favour of the Opinion setting out the views of the Committee on the future of online gambling. The Rapporteur responsible for the drafting of the Opinion was Maltese member Stefano Mallia. Of the 134 votes cast only four were against and another four were abstentions. Given the sensitivity of the issue and the controversy surrounding it, the strength of the final vote in favour was somewhat unexpected. Henri Malosse, president of the employers group within the EESC said that “the strong vote was testimony of the hard work put in by the rapporteur and the high quality of the Opinion presented. Stefano was capable of taking on board the various views of the many stakeholders that have a strong interest in the sector.” Commenting after the vote, Stefano Mallia said, “I am very satisfied with the final result not only in terms of the vote but more importantly in terms of the quality of the Opinion. I trust and hope that the report will have an impact on both the Commission and more urgently on the European Parliament.” The Opinion produced by Mr Mallia also generated considerable interest from the international media with various specialised journals and on-line magazines giving the report extensive coverage.

Stefano Mallia appointed as EESC rapporteur on EU Common Strategic Framework

Stefano Mallia calls on EU budget Commissioner to present ambitious budget

The EESC appointed Maltese member Stefano Mallia to prepare a report on the European Commission’s proposed approach to the next round of European Funds, referred to as the Common Strategic Framework (CSF). The report which was drawn up by Mr Mallia was strongly approved during the EESC December plenary session. The report was approved with 154 votes in favour, 3 against and 3 abstentions, and is now the formal Opinion of the EESC on what is known as the Common Strategic Framework. During the debate on the same report, Mr Mallia was critical of the EU budget discussions which ended in a stalemate. Mr Mallia said that “it belies belief that in an effort to satisfy the demands for more funding for agriculture and for Cohesion Policy, EU President Van Rompuy proposed obtaining the required funds by reducing them from key areas such as competitiveness, research and innovation, and from the Connecting Europe Facility.” This, Mr Mallia said, “amounted to robbing Peter to pay Paul and if we really want the EU to achieve the goals set out in the Strategy 2020 and to start achieving growth again, then the EU must be given the required resources.”

Commissioner Lewandoski, responsible for the EU budget, presented the Commission’s proposals for the next budgetary 2014-2020 period to the EESC during the July 2012 Plenary session. During this Plenary session Stefano Mallia, EESC member was asked to intervene on behalf of the employers group. When addressing Commissioner Lewandowski, Mr Mallia said that the proposals put forward by the Commission were ambitious and realistic – “in saying this we must of course be sensitive to the difficulties that our citizens are facing in their everyday lives. It is however exactly for this reason that the EU must present an ambitious budget that will allow it to make a difference to its citizens.” During his intervention Mr Mallia praised the proposal to introduce a ‘connecting Europe facility’ which would be aimed at investing in pan-European infrastructure creating better connections between member states. This investment would be assisted through the creation of EU investment bonds.

Sections and Study Groups The following are the sections and study groups to which Mr Mallia was appointed during the period 2012-2013.

Latvian Government invites Stefano Mallia on fact finding mission in Latvia

Sections Economic and Monetary Union (ECO); Internal Market (INT); Environment and Agriculture (NAT); Single Market Observatory.

Stefano Mallia, the EESC rapporteur on the new EU Structural Funds was invited by the Latvian government to meet the main social partners and key government officials responsible for EU funds in Latvia. The aim of the two-day visit was for Mr Mallia to listen to key stakeholders about the difficulties faced by Latvia in managing and absorbing EU funds. Discussions also focused on the preparations underway in preparation for the new EU funding programming period 2014-2020.

Study Groups The Single Market Act – Identifying missing measures; Towards a strategy to develop cohesion in the Mediterranean region; Macro-Regional strategy in the Mediterranean; On-line gambling action plan; Access to finance for SMEs; Smart and inclusive growth; The EU Common Strategic Framework; Inclusive digital internal market; Integrated production in Europe; Illegal immigration by sea in the Euro-Mediterranean area.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Malta Council for Economic and Social Development Over the course of 2012, the Malta Chamber was actively engaged in discussions on the conduct of social dialogue at the national level, in particular through a very active participation within the Malta Council for Economic and Social Development, where it was represented by its highest officials and the technical support of the Director General.

Analysis of Economic Data and Forecasts

may and will go elsewhere and the country will not generate the wealth it needs to sustain our social security structure – the safety net.

The Malta Chamber participated in a number of MCESD meetings dedicated towards the analysis and discussion of local economic trends and forecasts. These meetings were addressed by the Minister of Finance, the Economy and Investment. During such meetings, ample comparisons were made with other EU and euro-area member states with such comparisons being complemented by periodic assessments made by the international credit-rating agencies and the European Commission. The Malta Chamber stressed throughout that, irrespective of its relative economic success, the country needed to remain competitive, as was recommended by all independent entities. The Malta Chamber also queried the progress of implementation of certain proposals it had been consistently making, in particular the revision of the COLA mechanism and the inclusion of productivity in its formula. During a similar discussion, the Malta Chamber referred to a significant statistic which showed that between 2009 and 2012, costs and labour compensation continued to rise whilst companies operating surplus fell sharply from 2010 onwards. The Chamber insisted that this scenario needed to be addressed urgently through a concerted effort to improve national competitiveness.

Pensions Sustainability The Chamber participated in the consultation process held within MCESD on the Sustainability of the Pensions System. The Chamber has been at the forefront of this subject for several decades publishing numerous studies over the years. For the purposes of the latest consultation process, our internal Policy Research team formulated a position on an official consultation document compiled entitled ‘Strategic Review on the Adequacy, Sustainability and Social Solidarity of the Pensions System’. This document was presented to MCESD in May by the Chairman of the Pensions Working Group, David Spiteri Gingell. In its representations, the Chamber urged the timely implementation of a voluntary third pillar scheme to supplement the existing Pay-As-You-Go (PAYG) system because, clearly, this has become unsustainable and recent measures taken, left it with limited room for manoeuvrability. With the necessary safeguards, voluntary schemes are to be encouraged because they tend to decrease the burden on public finances and allow more private sector initiative. Above all, the Chamber insisted that clear blue-prints needed to be published in good time, giving companies the time to plan and adapt to the reform’s changes. Proposals needed to be considered in the light of all the related factors, such as health, education and income, in order to safeguard economic stability. Active Labour Market Policy

Utility Tariffs Malta Chamber representatives participated in MCESD meetings which discussed the impact of utility tariffs on the economy. Presentations were given by both the Malta Hotels and Restaurant Association (MHRA) as well as the Chairman and Chief Financial Officer of Enemalta, Louis Giordimaina and Antoine Galea respectively. Following these presentations, a number of interventions were made. The Malta Chamber gave two concrete proposals regarding the procurement of energy, particularly for large private users.

The Malta Chamber welcomed a presentation made by – addiema Magh-qudin during a meeting held in June Union H on Active Labour Market Policies. The aim of the document was to seek the co-operation of all social partners towards measures which could lead to increasing incomes via an improvement in skills and value-added. This objective was in line with that of enhancing Malta’s economic development and could assist in the solving of certain topical issues such as minimum wage, public finances and pensions amongst others. Consequently, the Malta Chamber commented that this was a commendable strategy and was prepared to contribute towards it. In fact, it had already been doing so by being active in strengthening the links between industry and academia through participation in various projects aimed at identifying skills gaps and subsequently providing the necessary educational programmes. Examples of such training include the joint Diploma in Manufacturing Excellence organised with MCAST, as well as

Minimum Wage The Malta Chamber also attended an MCESD meeting which focused on the minimum wage issue, which was brought to the forefront of discussion by a study commissioned by Caritas. During the meeting, the Malta Chamber stated that by increasing the minimum wage, all wages will be affected and added that the proposal to increase the minimum wage is clearly unsustainable and any socio-economic benefits of increasing the minimum wage will be short-lived. Wage is a function of productivity and is equivalent to the value that a person gives to their employer, not spending power. It concluded that by interfering with basic economic fundamentals, we risk the collapse of our socio-economic structure. Investment

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

the courses delivered in collaboration with Quality Austria. Moreover, the Malta Chamber commented that higher skills needed to be aligned to efficient working practices. A significant proportion of the best educated workforce was working on half-days during the summer months, while another significant proportion (women) opted out of work because the support mechanisms for working mothers remained inadequate. Additionally, the Malta Chamber pointed out that as stated in – M document, accessibility to educational programmes the UH sustaining the availability of skills in various sectors is a must. In this regard, the Chamber encouraged Government to invest further in successful educational programmes and schemes. Over the years, programmes such as the Training Aid Framework (TAF) and the Employment Aid Programme (EAP) have been excellent examples to combat unemployment and create training programmes though the delays in payment of dues to companies to the detriment of their cash-flow positions and this severely hampered the future attractiveness of such schemes. The Malta Chamber was party to the signing of a document on Active Labour Market Policies entitled Jobs Plus which was held last January.

need for Malta to embrace a balanced economy and that the country’s competitiveness position needed to be continuously enhanced. At the same time, fiscal consolidation was advocated to complement Malta’s relative economic strengths as well as to make certain of a stable economic environment which could generate enough wealth to finance the social security system that our people have become accustomed to. After the presentation of the 2013 Budget, the Malta Chamber was satisfied to note that a vast number of its proposals had, in fact, been included in the Budget Speech. Among the important proposals made by the Chamber and included in the Budget Speech were the reduction in income tax burdens; renewed investment in training schemes; a guaranteed longer period for feed-in tariffs for commercial installations of renewable-energy generating equipment; the elimination of certain anomalies which had been negatively affecting the property market (the 12 per cent Final Withholding Tax situation and post-contract property valuation system by government architects); the introduction of tax reliefs for investors who purchase equity in new, higherrisk, innovative companies; the creation of a business angel network to incentivise local start-up companies; and renewed investment in the National Research and Innovation Programme. As stated elsewhere in this report, the Malta Chamber expressed itself in favour of the measures announced in the Budget and was indeed the only social partner to voice its serious concern on the prospect of entering 2013 without the national Budget. Despite such calls, the outcome of the Budget vote in Parliament was a negative one and the Chamber, yet again, expressed its disappointment and economic concern.

2013 Budget The Malta Chamber participated actively in the 2013 Budget consultation process taking place within MCESD with a number of dedicated meetings with the Minister of Finance, the Economy and Investment. Throughout such discussions, our Chamber consistently promoted the need for Wealth Creation to precede Wealth Distribution. To this end, the Chamber emphasised the

The Malta-EU Steering Action Committee (MEUSAC) In 2012, the Malta-EU Steering Action Committee met on a regular basis to discuss various issues of importance on an EU level. Representing the Malta Chamber in the MEUSAC Core Group were Board of Management member Anton Borg, Director General Kevin J. Borg and Head – Policy Development Andre Fenech.

MEUSAC Core Group Meeting about the National Reform Programme (NRP) and Active Ageing

He explained that Malta’s targets should be achieved by the year 2020. In the case of excessive deficit, the country had already met its target. With regards to pensions, he explained that the Pensions Working Group had finalised its strategic reviews which should be published in the forthcoming weeks. He explained that Malta had already taken steps in 2006 to increase the retirement age to 65. Various schemes in relation to education had been implemented over the last years which included scholarships for post secondary and tertiary students, vocational degrees and a number of pilot projects. Mr Spiteri said that the next step was to reduce the number of early school leavers.

Malta Chamber Policy Development Head, Andre Fenech attended a MEUSAC Core Group meeting on 27th April. The main items on the agenda included presentations about the NRP and active ageing. Martin Spiteri, Director or Policy Development within the Ministry of Finance, explained that Malta’s NRP focused on a number of country specific recommendations. These included: • the sustainability of Government expenditure • sustainability of pensions • the improvement of access to higher education and • the review of the Cost of Living Adjustment (COLA) mechanism and energy.

With regards to COLA, it was explained that the Economic Policy Department (EPD) in collaboration with the Central Bank of Malta (CBM) was finalising an analysis which would be discussed at MCESD level.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

ELV dismantling facilities therefore providing a streamlined way forward in line with the provisions of the EIA Directive.

On the subject of energy, the main aim was to strengthen efforts to reduce the country’s dependence on oil by investing more in renewable energy sources (RES). The main activities to reduce this dependence include the establishment of the energy interconnector between Sicily and Malta which should be commissioned by the end of 2013, the extension to the Delimara power station, the continuation of the national RES action plan and further investment in successful aid/grant schemes for households and Industry to invest in RES.

The wording of the current regulations is in practice hindering environmentally - friendly upgrading of wastehandling facilities. To this effect, the main changes of the proposed amendments relate to streamlining of references to waste ‘treatment’ and ‘processing’ activities.

MEUSAC core group meeting about the Proposal for a Banking Union

During his intervention, Mr Fenech insisted that active ageing was directly linked to further reform in Malta’s pension system and stated that Government should lead by example in not implementing policies such as early retirement schemes for employees within the public sector.

Andre Fenech, Head – Policy Development, attended a MEUSAC core group meeting on 28th September. The purpose of the meeting was to discuss the European Commission’s proposal for a Banking Union with an introductory presentation by H.E Marlene Bonnici, Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Malta to the European Union.

MEUSAC consultation session about amendments to the Environment Impact Assessments law (EIAs)

Dr Joe V. Bannister, Chairman of the Malta Financial Services Authority (MFSA) delivered a presentation about the draft proposal for the supervision of Banks forming part of the Banking Union, which would see the European Central Bank (ECB) gaining new powers to monitor the performance of the banks in the Eurozone. The arrangement would be known as the ‘single supervisory mechanism’.

The Malta Chamber was invited to a MEUSAC consultation meeting on the proposed amendments to the EIA regulations. Charlene Smith from MEPA delivered a presentation explaining the details of these new amendments. The aim of this Legal Notice is to amend Schedule IA of the regulations in order to streamline and improve the assessment and environmental permitting of waste management activities.

Members present expressed their concerns and implications on local banks and certain activities which would require approval from the ECB. In effect this would limit the sector’s flexibility. Dr Bannister explained that the proposal was in its early stages and he would keep members present informed of any developments.

The proposed amendments aim to facilitate waste facilities to come in line with MEPA’s environmental permitting regime. This amendment focuses on waste installations associated with incineration and treatment, disposal and recovery facilities and

Business Section Executive Committee Members and Policy Committee Members Business Sections Electrical and Electronics Mr Simon Alden – Chairperson Dr Ing. Conrad Pace – Deputy Chairperson Noel Micallef Ing. Anthony Galea Mr Robert Tabone Valetta

Financial Services Mr Peter Sant – Chairperson Mr James Bonello – Deputy Chairperson Mr Julian J Mamo Mr Mark Hogg Mr Michael Scerri Mr Andre Fenech

Food and Beverage Processors Mr Stephen Bonnici – Chairperson Mr John Sammut – Deputy Chairperson Mr Benjamin Brincat Mr Mario Delicata Mr Joseph Pace

Mr Chris Degiorgio (co-opted) Mr Michael Farrugia (co-opted) Mr Robert Tabone Valetta

HealthCare Mr David Stellini – Chairman Mr Reuben Demanuele Mr Marcel Mifsud Mrs Vanessa Said Salomone Mr Raymond J Vella Miss Johanna Calleja

Importers Mr Alfred Cuscheri – Chairperson Mr Jonathan Cardona – Deputy Chairperson

Mr Josie Ellul Mercer Ms Gabriella Cuschieri Mr Anthony T. Camilleri Mr John B. Scicluna THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Information Technology Mr Keith Fearne – Chairperson Mr John Wood – Deputy Chairperson Mr Marcel Cutajar Mr John Ambrogio Ms Claudine Cassar Mr John B. Scicluna

Pharmaceutical Manufacturers Dr Claude A. Farrugia – Deputy Chairperson and Acting Chairperson Mr Claude Vella Bonanno Dr Dino Mangion Mr Vittorio Giromini Mr Robert Tabone Valetta

Pharmacists Pharmacy Owners Mr Reginald Fava – Chairperson Mrs Marisa Dalli – Deputy Chairperson Mr Anthony Sant-Portanier

Prof. Anthony Serracino-Inglott Mrs Eliza Vella Miss Johanna Calleja

Remote Gaming Ms Simona Camilleri – Chairperson Mr James Palmier Gonzi – Deputy Chairperson

Plastics and Rubber Manufacturers Mr Olaf Zahra – Chairperson Mr Joseph Borg – Deputy Chairperson Mr Robert Borg Mr Kenneth Caruana Mr Walter Vigar Mr Robert Tabone Valetta

Real Estate Mr Trafford Busuttil – Chairperson Mr Ian Casolani – Deputy Chairperson Mr Joe Mercieca Mr Douglas Salt Mrs Sara Tabone Grech Mr John B. Scicluna

Mr George Debrincat Mr Edward Mifsud Mr John B. Scicluna

Road Contractors Mr Vincent Borg – Chairperson Perit David Bonnici – Deputy Chairperson Mr Joe Vella Mr Mario Agius Perit Joe Cachia Mr John B. Scicluna

Shipping and Bunkering Mr Ernest Sullivan – Chairperson Mr Karl Gollcher – Deputy Chairperson Mr Michael Cooper Mr Leslie Brooks

Mr Peter Sullivan Miss Johanna Calleja

Wines, Spirits, Beverages and Tobacco Mr Alexander Arrigo – Chairperson Mr Louie Camilleri – Deputy Chairperson Mr Martin C Borg Mr Tarcisio Piscopo Mr Stephen Rausi Mr John B. Scicluna

Yachting Mr Edward Anthony Woods – Chairperson

Dr Ann Fenech – Deputy Chairperson Mr Mark Vassallo Mr Roland Darmanin-Kissaun Mr John Huber Mr John B. Scicluna

Policy Committees Environment and Energy Perit David Xuereb – Chairperson Mr Godwin Micallef Mr Adrian Mallia Ing. Carmel J. Cuschieri Mr Mario Duca Ing. Adrian Vigar Ms Mary Gaerty Ing. Mario Schembri Mr Martin De bono Mr Andre Fenech

Fast Moving Consumer Goods Mr Norman Aquilina – Chairperson Mr Pierre Fava Mr Matthew Camilleri Mr Victor Galea Mr Kevin Magri Mr Ray Portelli Mr Paul Bonnici Mr Martin Borg Mr Jonathan Cardona Mr Kevin J. Borg Mr Andre Fenech

Human Resources Ms Antoinette Caruana – Chairperson Mr Louis Azzopardi Ms Catherine Calleja Ms Madeleine Camilleri Mr Paul Gauci Mr Noel Vassallo Ms Ruth Farrugia

Mr Joseph Pace Mr Joe Tanti Mr Ivan Refalo Mr Edmund Tabone Ms Marisa Xuereb Ms Theresa Fabri Mr Martin Gregory Mrs Jeanelle Brincat

RTDI

Internationalisation

Mr Stefano Mallia Mr Matthias Fauser Mr Charles Brincat Mr Joe Pace Mr Robert Abela Mr Kenneth Caruana Mr Tonio Bugeja Mr John Scicluna

Ing. Roger Galea – Chairperson Prof. Ing. Jonathan C. Borg Prof. Joseph Cilia Dr Jeanine Rizzo Ing. Joseph Grima Miss Marylyn Hili

Mr Peter Grima – Chairperson Mr Tonio Casapinta Mr Michael Farrugia Mr Karl Aquilina Mr Kevin J. Borg Mr Klaus Pedersen

Marketing Mr Louis Olivieri – Chairperson Mrs Emma Zammit Ciantar Mr Morgan Parnis Mr Charles Mizzi Mr Kevin J. Borg Miss Diane Seychell

Quality Management Mr Patrick Camilleri Mercieca – Chairperson

Ing. Jeremy Micallef Mr Mario Mansueto Miss Jeannette Zammit Miss Marylyn Hili

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Factory Rents

Service Charges Mr Julian Mamo Mr Matthias Fauser Mr William Wait Ms Marisa Xuereb Mr Jason Cole Mr Joseph Gingell Mr Alexander Zammit Mr John Scicluna

Business Section Executive Committee Members and Policy Committee Members Continued Business Council Executive Committee Members

German-Maltese Business Council

Scandinavian Business Forum Malta

Tunisian-Maltese Business Council

Mr Karl Aquilina – Chairperson Mr Matthias Fauser Mr Michael Farrugia Mr Armin Eckermann Mr Sylvain Heydlauf Mr Ivan Mifsud Mr Kevin J. Borg Mr Klaus Pedersen

Dr Mark Fenech – Chairperson Mr Pierre Mifsud Mr Stefan Magnusson Mr Christer Gustafsson Mr Petri Tuokko Mr Karl Diacono Mr Neville Cutajar Mr Klaus Pedersen

Mr Simon Alden – Chairperson Ms Mary Gaerty Mr Mario Duca Mr Kevin Alamango Mr Anthony Farrugia Mr Patrick Spiteri Staines Dr Hugh Peralta Mr Klaus Pedersen

Malta Chamber Commissions set up by Statute Commercial Agents Commission (Statute Art 11.1) Electoral Commission (Statute Art 6.1)

Conflicts Resolution Panel (Statute Art 10.1) Ethics & Disciplinary Commission (Statute Art 8.2)

Mr Louis A. Cuschieri (Chairperson) Mr Anthony T. Camilleri Mr Josie Ellul Mercer Mr Frank V. Farrugia Mr Charles A. Zahra Mr Josie Ellul-Mercer (Chairperson) Mr Louis Apap-Bologna Mr Victor Camilleri Mr Michael Cutugno Mr David Borg-Cardona

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Mr Michael Mallia (Chairperson) Mr David G. Curmi Mr Mario Duca Mr Michael Scerri Mr Joe Pace Mr Albert P. Mamo (Chairperson) Mr Louis Apap-Bologna Mr Louis A. Farrugia Mr Martin Galea Mr Michael Scerri

Nominees on Boards & Committees Malta Chamber Nominees on Government Boards and other Committees Be Smart Online Advisory Board Building Industry Consultative Council (BICC) E.Business Awards Committee eSkills Board of Governors Employment Relations Board & Gurantee Fund Administration Board Enterprise Consultative Council Financial Services Consultative Council Government Induced Costs Steering Committee Health Division Consultative Group on Clean Air Industrial Tribunals MCA eBusiness Awards Malta Council for Economic & Social Development (MCESD) Malta Council for Science & Technology (MCST) Board of Directors Malta Enterprise Board of Directors Malta Environment & Planning Authority (MEPA) Users’ Committee Malta Qualifications Council Malta Statistics Authority (representing all employers) Malta-EU Steering Action Committee (MEUSAC) MCST Manufacturing Research Strategy Steering Committee Monitoring Committee for Operational Programme II, Cohesion Policy 2007-2013: Empowering people for more jobs and better quality of life

Mr George Sammut Mr Ian Casolani Mr David Xuereb Mr John Ambrogio Mr Keith Fearne Mr William Wait Mr John B. Scicluna Mr Andre Fenech Mr Julian J. Mamo Mr Kevin J. Borg

Monitoring Committee for Operational Mrs Jeanelle Brincat Programme I, Cohesion Mr Joe Tanti Policy 2007-2013: Investing in competitiveness for a better quality of life Monitoring Committee for the Mr Joe Tanti Structural Funds National Accreditation Board (Malta) Mr Charles M. Mercieca Mr Adrian Zahra Ing. Noel Micallef Ing. Charles Brincat National Commission for Mr David Xuereb Sustainable Development National Consultative Council Mr Marcel Cutajar on Information Technology Mr Keith Fearne National Employment Authority Mr Reginald Fava National Information Society Advisory Mr Keith Fearne Council (NISCO) National SEPA Coordination Committee Mr Peter Sant Property Market Value Index Mr Louis Apap-Bologna Mr Douglas Salt Retail Price Index Consultative Committee Mr John B Scicluna Social Security Act Panel of Assessors Mr Lino D Abela Sotto Kumitat Settorjali dwar L-Ambjent Mr David Xuereb u t-Tibdil fil-Klima Sotto Kumitat Settorjali dwar Mr Ernest Galea L-Agrikoltura u s-Sajd Sotto Kumitat Settorjali dwar L-Aççessibilita’: Focus Group 1 – Transport Mr Joe Bugeja Focus Group 2 – Mr Keith Fearne ICT & Communications Sotto Kumitat Settorjali dwar Mrs Antoinette Caruana l-Edukazzjoni, ix-Xogh-ol Sotto Kumitat Settorjali dwar Mr Kevin J. Borg it-Tkabbir u l-Kompetittivita’ Mr Andre Fenech (alternate member) Valletta Alive Foundation Mr Anthony T. Camilleri Valletta 2018 Foundation Mr Tancred Tabone/ Mr Stefano Mallia* Working Committee on Pricing Mr David Stellini of Medicine Products Mr Daniel Vella Friggieri Working Group Mr Joe Gerada – Cruise Liner Operations Working Group between the VAT Mr John Degiorgio Department, Ministry of Finance, the Mr Colin German Economy and Investment, and the IT Community in Malta

Mr Godwin C Micallef Mr Reginald Fava Mrs Mary Gaerty Mrs Marlene Seychell Mr George Sammut Mr Stefano Mallia Mr Tancred Tabone/ Mr William Wait* Mr William Wait/ Mr Anton Borg* Mr John A. Huber Mr Anthony J. Tabone Mr Tancred Tabone/ Mr Stefano Mallia* Mr Julian J. Mamo Mr Ian Mizzi Mr David Xuereb Mr Keith Fearne Dr Emanuel P Delia Mr Anton Borg Mr Kevin J. Borg or Mr Andre Fenech Mrs Marisa Xuereb Mr Andre Fenech Mr Joe Tanti

*Following Mr Tancred Tabone’s resignation from the post of President in February 2013, his seat was filled as denoted above

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Nominees on Boards & Committees Continued

Employers’ Nominees on Boards and Committees of The European Community (Representing All Malta’s Employers) European Agency for Health and Safety at Work – Bilbao Agency European Centre for the Development of Vocational Training (CEDEFOP) European Community Advisory Committee on Free Movement of Workers European Community Advisory Committee on Safety & Health Protection at Work European Community Advisory Committee on Social Security for Migrant Workers European Economic and Social Committee

Mr John B. Scicluna Mrs Jeanelle Brincat Mr John A. Huber Mr John B. Scicluna Mr John A. Huber Mr Stefano Mallia

Malta Chamber Nominees on Non-Government Boards and other Committees Brewers of Europe BUSINESSEUROPE - The Confederation of European Business BUSINESSEUROPE Entrepreneurship and SME’s Committee BUSINESSEUROPE Executive Committee CEPS - European Spirits Association Conservatorio Vincenzo Bugeja Committee Enterprise Policy Group EUROCHAMBRES Board of Directors EUROCHAMBRES DG’s Committee EUROCHAMBRES Strategic Committee Board of Directors Eurofound Governing Board European Organisation for Quality Industrial Management Development Foundation (IMDF) Malta Business Foundation Malta Community Chest Fund Malta Trade Fairs Corporation Maltese-Arab Chamber of Commerce Stop Discrimination Campaign Swiss-Maltese Chamber of Commerce

Mr Louis A. Farrugia Mr Anthony J. Tabone (alternate) Mr Norman Aquilina Mr Omar Cutajar, Mrs Jeanelle Brincat (alternate) Mr Kevin J Borg Mr Anthony Miceli-Demajo Mr Andrew W.J. Mamo Mr Gino Cutajar Mr David Xuereb Mr Norman Aquilina Mr John A. Huber Mr Kevin J. Borg Mr John A. Huber Mr Martin Borg Mr John B. Scicluna Mr Edmund Tabone Mr Anton Borg Mr John A. Huber Mr Charles Brincat Mr Mario Spiteri Mr Andrew W.J. Mamo Mr Mario Spiteri Mr Gino Cutajar Mr Aldo Calleja Mr Mario Spiteri Mr Charles A. Zahra Mr Frank V. Farrugia Mr Joseph Pace Mr John B. Scicluna Mr Reginald Fava

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Public Relations Television

He said that this scheme will create more jobs and it will aid businesses, especially SMEs, identify new markets, engage in new projects and ultimately grow their business and create more employment opportunities. He also said that the Malta Chamber continuously follows the problems businesses encounter which hinder their performance.

In March, former Malta Chamber President gave a comment to NET TV on the issue of Hon. Tonio Fenech’s announcement that Government would not be increasing the electricity tariffs, in spite of the rising price of oil. The Malta Chamber said it was encouraged by this decision, as even higher prices would affect the operating costs and competitiveness of our businesses.

In November, President Stefano Mallia was interviewed by a number of TV stations regarding the Malta Chamber’s 2013 impressions post-MCESD meeting, where the Hon. Tonio Fenech had just presented the main Budget measures. Following the Budget Speech, Director General Kevin J. Borg gave reactions to numerous TV stations. He also presented the Malta Chamber’s reactions on TV show Bondi+.

During the same month, Kevin J. Borg participated in an edition of the Bondi+ programme dedicated to Family-Friendly Measures. The programme took the form of a debate with a representative of the Malta Confederation of Women’s Organisations. On this occassion, the Director General put forward the Chamber’s views in favour of implementing certain family-friendly measures on a national level such as supporting child-care centres and the extension of school hours. The implementation of these measures will minimise the need for additional measures taken at enterprise level, at the cost of business.

Former Malta Chamber President Mr Tabone also gave his comments on the budget rejection on Bondi+ in December. He explained the Malta Chamber position, which states that the prime objective of the forthcoming budget must be to ascertain the right environment for the private sector to generate economic growth.

The Director General subsequently commented on NET TV regarding the proposed amendments of commercial licenses regulations.

Radio

In May, Malta Chamber Council Member and Chairman of the Energy and Environment Committee Perit David Xuereb participated in TVAM, a current affairs programme on TVM. The programme focused on parking issues with particular reference to Sliema and Valletta. Perit Xuereb explained that in terms of development, all developers and entrepreneurs are first expected to provide on-site parking to ensure proper accommodation and access. When this is restricted, then developers are compelled to pay contribution to parking funds administered by MEPA. In line with the position of the Malta Chamber, he argued that these parking funds should be suitably used without further delay, with the intention of ensuring ease of access and mobility.

In March, Kevin J. Borg participated in current affairs radio programme ‘Gh-andi Xi Ngh-id’, hosted by Dr Andrew Azzopardi. This programme focused on poverty, with particular reference to the study published by Caritas. Mr Borg said that poverty can be alleviated through employment and that it was the role of the social partners and government entities to focus on helping genuine cases through social benefits. On the issue of raising the minimum wage, Mr Borg said that this was a simplistic solution to the problem of poverty as the solution was much more profound and involved investment and education to enable the country to earn itself a better standard of living. In May, in an interview with the Times Business, former Malta Chamber President Tancred Tabone stated that unsustainable electoral promises may compromise Malta’s competitiveness. On the issue of social dialogue, Mr Tabone said the Malta Chamber has always been an active contributor and highlighted that it has and continues to dedicate precious time and resources to the MCESD because it firmly believes in the importance of such dialogue.

In June, Kevin J. Borg represented the Chamber on TV discussion programme Dissett. The edition in question discussed Pensions Sustainability where the Director General debated with a representative of Forum Unions Maltin. On this occasion, Mr Borg explained the Chamber’s position in favour of the immediate implementation of a voluntary third pillar scheme to supplement the existing Pay-As-You-Go (PAYG) System. He insisted that clear blue-prints needed to be published in good time, giving companies the time to plan and adapt to the reform’s changes. Proposals needed to be considered in the light of all related factors such as health, education and income, in order to safeguard economic stability.

In September, in view of the issuing of the Malta Chamber’s pre-budget proposals, then President Tabone was interviewed via telephone by RTK news. Following the Budget Speech, Malta Chamber Board of Management member John Huber represented the Malta Chamber on a Radju Malta programme, where he discussed the Malta Chamber’s reactions to the Budget.

In July, Malta Chamber President Stefano Mallia spoke to maltarightnow.com and Net News about the impact the Micro Guarantee Scheme will have on Maltese businesses.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Public Relations Continued Print

In May, Mr Tabone was interviewed in an article for The Economic Update, and also by The Times Business, where he discussed how unsustainable electoral promises threaten the economy.

Former Malta Chamber President was interviewed by Star Communications for MT Magazine in March. MT Magazine is distributed with CNBC Business Magazine, which has approximately 670,000 readers across 33 countries worldwide. Mr Tabone spoke on a number of issues, including the general outlook on the Maltese economy, trends and developments in various sectors, the global financial crisis and Malta’s position and level of competitiveness.

In November, Malta Chamber Director General Kevin J. Borg gave the Malta Chamber’s reactions to various TV stations and online portals with regards to the Budget 2013. A full list of press releases issued can be found in an appendix at the end of this Annual Report.

Media Releases Date

Description

2012 01 27 2012 02 08 2012 02 17 2012 02 22 2012 03 05 2012 03 07 2012 03 16 2012 03 23 2012 04 02 2012 04 03 2012 04 18 2012 04 20 2012 04 25 2012 06 01 2012 06 06 2012 06 20 2012 06 22 2012 07 10 2012 08 13 2012 09 07 2012 09 10 2012 09 11 2012 09 12 2012 10 15 2012 10 16 2012 10 25 2012 10 31 2012 11 01 2012 11 12 2012 11 28 2012 12 03 2012 12 04 2012 12 06 2012 12 07 2012 12 11

Finance Minister introduces Business First to Malta Chamber members Malta Chamber opposes shops opening on public holidays Malta Chamber - Resolve current impasse for the benefit of the economy Malta Chamber - ACTA protects jobs and investment Internationalisation of SMEs Commissioner Tajani invites Malta Chamber President on mission for growth AGM 2012 - Malta Chamber urges authorities to focus on competitiveness Air Malta European Economic and Social Committee votes in favour of EU Financial Transaction Tax Malta Chamber-Israeli delegation Malta Chamber wins first prize for National Enterprise Support Malta Chamber to establish Maltese-Qatari Business Council Better regulation vital for competitiveness EU Commission recommendations Malta Chamber signs MoU with Baltic Chambers Malta Chamber President meets Commissioner Reding Malta Chamber President addresses conference on water sustainability Bavarian beer Ambassador for second German-Maltese Business Council event Latest proposals are dubious and discriminatory - Malta Chamber Malta Chamber welcomes payments of eco contribution refunds Launch of the Scandinavian Business Forum Malta website The Malta Chamber presents its 2013 pre-budget proposals Malta Chamber - Quotas not the solution to improving gender balance in boardrooms Malta Chamber congratulates Valletta 2018 Foundation on its winning bid for 2018 European Capital of Culture Real Estate operators welcome the Malta Retirement Programme Rules 2012 Corporate Social Responsibility: Ensuring Business Benefits Corporate Social Responsibility: Ensuring Business Benefits conference Mr John Huber elected on board of directors of EUROCHAMBRES Remote Gaming Business Section set up within the Malta Chamber Malta Chamber: A stable budget in the interest of fiscal consolidation and jobs Malta Chamber endorses Prime Minister’s request to postpone electioneering until New Year Prime Minister witnesses signing of historic agreement for Malta Leaving the country without a budget is the height of irresponsibility Placing the country’s economic well-being before political differences Malta Chamber applauds non-electioneering over the Christmas period

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Make it an event to remember at The Exchange Buildings The Seat of the Malta Chamber Background The Exchange Buildings are the work of Architect Giuseppe Bonavia. The Exchange Buildings were completed and inaugurated in 1857 â&#x20AC;&#x201C; nine years after the formal establishment of the Malta Chamber. Today, the unique neo-classical style of the Exchange Buildings is viewed, not only as the seat of the Business Community, but as an elegant and prestigious location for Business and Social Events. Over the years the building has been maintained to the highest of standards providing a magnificent venue for a variety of events.

A tour around the building... The Courtyard The imposing entrance of the Exchange leads on to the naturally-lit Lewis Farrugia Courtyard. The Courtyard is an ideal venue for Exhibitions, Press Conferences, Receptions, Lunches and Meetings.

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

The Sir Agostino Portelli Hall An elegant staircase and landing take one to the Sir Agostino Portelli Hall on the first floor. A graceful ballroom, the hall is adorned with portraits of past presidents by Maltaâ&#x20AC;&#x2122;s foremost artists. The hall opens up onto a spacious balcony overlooking Republic Street. The hall may be used for Business Lunches, Dinners, Receptions, Conferences, Seminars, Meetings, Product Launches, etc. The landing can be made available for drinks and coffee breaks.

Aula Conciliaris Also on the first floor is the Aula Conciliaris also known as the Council Room. Reminiscent of a gentlemanâ&#x20AC;&#x2122;s club this handsome room is mainly used as a meeting room. It has also been the venue for exclusive business lunches and dinners with guests including HRH the Duke of York, Heads of State and Prime Ministers. The beautiful period furniture includes three magnificent 18th century paintings of the Grand Harbour and a board/dining table which can comfortably accommodate 20 persons. THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

The Conference Room The second floor facilities are geared towards modern day business requirements. The Conference Room is extremely versatile and can be set up in boardroom, theatre or classroom styles according to requirements. It is equipped with projection equipment and a PA system. The Ante Room to the Conference Room may be used for break-out sessions and/or coffee breaks.

The Banif Bank Lecture Hall

The BOV Meeting Room

The Banif Bank Lecture Hall is another facility offered by the Malta Chamber. Seating 36 persons, this room is perfect for company workshops and training courses.

Another smart addition to the Malta Chamberâ&#x20AC;&#x2122;s facilities is the BOV Room. This Board Room seats twelve people and is ideal for less formal gatherings.

WIFI cordless internet facilities are available throughout the building. All the rooms are fully air-conditioned and equipped with audio and visual aids for presentation purposes.

For further information, please contact Johanna Calleja on johanna.calleja@maltachamber.org.mt or Tel: 21 233 873

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

The Malta Chamber welcomes all companies interested in continued business development and growth. Your Voice in Business

The Malta Chamber is a leading voice for the business community, providing a central national organisation for the representation, promotion and protection of all membersâ&#x20AC;&#x2122; interests. It acts as an authoritative medium of communication between members sectors, Government, national boards, and authorities, as well as European institutions. The Malta Chamber organisation also aims to establish and support initiatives which lead to the establishment of new business venture, in turn fostering economic growth and employment opportunities.

meetings to social evenings, from small committees to seminars and conferences, you will find a way to get involved that will open up a network of more than 1,000 business peers. The strongest part of our efforts comes directly from the expertise and energies of member volunteers, who offer their guidance and spend their time on specific issues, through our economic groups, business sections, and committees. By working towards a specific goal YOU will help in making a positive impact on the issues most important to our business climate.

By joining the Malta Chamber, you will widen your business contacts and plug into a new source of information and knowledge â&#x20AC;&#x201C; key to your business success. From information

To ensure that we understand your needs and concerns, please ask us to set up a meeting, to learn more about the benefits of membership.

For further information, please contact Miss Johanna Calleja on tel: 21 233 873 or email: johanna.calleja@maltachamber.org.mt

Expression of Interest for Membership I express my interest to become a Member of the Malta Chamber of Commerce, Enterprise and Industry. The relevant documentation will follow receipt of this expression of interest form. The following are my particulars for purpose of registration:-

Full Name of Applicant

Nationality (include title, etc)

Name of Firm

Telephone Number(s)

Date of Birth

Fax

VAT Reg. No.

Business Address

E Mail

Name & Address of Bankers

Year Business Established

Position in Firm

Main Lines of Business

No. of Employees (FTE)

I am interested in: Individual Membership

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT

Corporate Membership

Signature

Notes

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY 2012 ANNUAL ADMINISTRATIVE REPORT