Business Agenda 18 by Malta Business Bureau

THIS ISSUE

MBB Outgoing President George Vella talks about his experience at the MBB, its achievements and where it is heading.

page 11

Issue 18 | march – may 2014

business agenda

NEWSPAPER POST ep elections 2014 MEP candidates interviewed on the upcoming European Parliament elections.

page 16

THE Official Business publication of the Malta business Bureau

European Parliament Elections ‘crucial for Europe’ – President Martin Schulz

analysis The post-revolution Arab world presents new challenges and opportunities for business.

page 37

EU POLICY A new European Union policy, entitled the 2030 framework, was announced in late January. This will reassess energy and climate change.

page 41

ENVIRONMENT Businesses and hotels collaborating with the MBB’s EU LIFE+ Investing in Water Project are saving an overwhelming 118,000,000 litres of water every year.

page 46

As the European Parliament elections draw closer, Business Agenda interviews EP President Martin Schulz. Between 22nd and 25th May, European Parliament elections will be held in all member states to elect 751 members who will serve in the upcoming five-year legislature. Mr Schulz states that there will be a number of hot issues that will be debated in the coming months, which will have an impact on business. Priority will be given to the continued work on Europe’s economic recovery, including the completion of the banking union.

Mr Schulz claims that as of this year, the winning party of the European Parliament elections will have the opportunity to nominate a President for the European Commission, and this will be stimulating a greater interest in Europe's future. Even though Malta has a smaller share of MEPs in the European Parliament when compared to larger member states, Mr Schulz believes that Maltese MEPs still manage to select and prioritise strategically what to follow according to what matters most to their constituents in Malta.

Malta’s 10th anniversary as an EU member state This May, Malta will be celebrating its 10th anniversary in the European Union. Business Agenda talks to Prime Minster Joseph Muscat and Opposition leader Simon Busuttil about what this anniversary means for the island and its experience so far as an EU member state. Business Agenda also speaks to the Presidents of the Malta Busi-

ness Bureau, the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association, on what tangible benefits the EU has brought about and how they see Malta evolving as a member of the EU.

See full story on page 4.

See full interview on page 13.

Malta Tourism Product report to be launched imminently Tourism records are definitely great milestones and serve as benchmarks; however Tourism Minister Karmenu Vella believes that they do not constitute the be-all and end-all of Malta’s annual tourism objectives. Business Agenda talks to former MHRA president and tourism consultant George Micallef, who has compiled an analytical report that maps out a strategy which reflects the nature and extent of Malta’s tourism product at pres-

ent, and makes over 200 ambitious recommendations. Business Agenda also talks to Francesca Tudini, Head of Unit responsible for Tourism Policy Development within the European Commission, who claims that small island states such as Malta face various challenges, which, in turn, could be turned into opportunities. See full story on page 8.

BUSINESS AGENDA | march – may 2014

editorial

talking europe Malta’s membership in the European Union has come to a critical juncture. In May, Malta will celebrate its 10 year anniversary. Fittingly, the 2014 European elections are also around the corner. Come May, European citizens will vote and elect their representatives to sit on the 751-strong legislative body. The MEPs will voice their electorate’s opinions on various new EU laws and policies to be launched during the incoming legislature. Many issues debated at the European Parliament affect the business community at large. Lobbying is done at all stages of the legislative procedure with the intent of ensuring a satisfactory final legislative product, acceptable to all the affected parties. However, one must ask how effective lobbying procedures are, particularly for small businesses from micro states such as Malta. More often than not, the hard work and lobbying efforts of both the Maltese MEPs and the Maltese business community get lost in translation in the vast and dynamic forum that is the European Parliament.

We need to find ways in which we can be more influential at all stages of the European Parliament’s proceedings. Clearly, much remains to be done from our MEPs, but we, as business representatives, also have more to do, even before we start lobbying our MEPs. It is imperative that employers and business representative organisations work ever closer together on EU issues of common interest. Together we can make our voice stronger and consequently more likely to be listened to at the European Parliament. It is with this spirit of enhanced collaboration that the MBB together with the Employer Social Partners in Malta launched a Business Manifesto, entitled “We are in Business Together” for the upcoming EU elections. This was probably the first consolidated effort of its kind and we commend the European Parliament Information Office for coordinating such an initiative. We need to build upon this success by organising ourselves better. There is significant room for improvement in the way that elected Maltese MEPs engage

with the local social partners. It would be extremely beneficial if such dialogue and joint collaborative efforts are also sustained after the election. This would help strengthen our policy messages, provide valuable input to MEPs positioning, and most importantly, help us shift gear into a proactive rather than a reactive stance on EU pipeline acquis. To do this, MEPs must stay in constant contact with business organisations in order to ensure that there is a mutual exchange of up-to-date information and views in order to formulate a stronger position in the European Parliament. This can be achieved with the formalisation of working relationships between the teams of MEPs and the secretariats of Maltese business organisations. MEPs can also streamline their participation within the European Parliament’s committees and inter-groups. One must appreciate how hard it is for six MEPs to ensure adequate participation in the relevant fora to business. Consequently, elected Maltese MEPs should strive to attend the most important commit-

By Joe Tanti, Chief Executive Officer, MBB tees dealing with issues affecting competitiveness and job creation. Naturally, we understand that other committees are also relevant to the national interest. So where attendance to growthrelated committees is not possible, MEPs should create concrete links with other influential MEPs sitting on such committees in order to channel viewpoints and concerns through them.

Let us use this election as an opportunity to turn over a new leaf in the way we consult and are consulted. We are here to listen, but we are also here to speak up. Let us collaborate in a mutually rewarding manner so that together we succeed in projecting a stronger voice in the European Parliament.

COLLABORATING PARTNERS:

Publisher

Malta Business Bureau

Content House Group

Cornerline, Level 1,

Mallia Buildings

Dun Karm Street, Birkirkara, BKR 9039

3, Level 2, Triq in-Negozju Mriehel QRM3000

Tel: 00356 2125 1719 (Malta Office)

The Malta Business Bureau is a non-profit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels. Editor: Joe Tanti

Deputy Editor: Martina Said

Editorial Team: Omar Cutajar, Daniel Debono, Mark Seychell, Solange Vella Publication Sales Manager: Edward Magri

Advertising Sales Coordinator: Lindsey Ciantar

Tel: 0032 4859 81124 (Brussels Office)

Tel: 00356 2132 0713

Email: info@mbb.org.mt

Email: info@contenthouse.com.mt

infobrussels@mbb.org.mt

www.contenthouse.com.mt

www.mbb.org.mt

Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

BUSINESS AGENDA | march – may 2014

cover story

A decade later... Malta celebrates 10 years in the European Union

important political milestones including the achievement of independence, the creation of a republic and the relinquishing of economic dependence on the British Services operations. He states, “this great achievement for such a small nation should make us proud, and is yet further demonstration of how, despite our size and limited resources, Malta is capable of being considered on equal footing with the most important economies and countries of Europe.”

Widely considered as the most important milestone in the history of the Maltese Islands, Malta's accession to the EU on 1st May 2004 began a new chapter in the island’s history. 10 years on, Sarah Micallef looks into the significance of this milestone and its impact on the island in the last decade. George Vella Prime Minister Dr Joseph Muscat dubs 2014 as the year of anniversaries, noting that as well as 10 years of EU membership, it marks 50 years of independence, 40 years as a republic and 35 years since Freedom Day, when the last British forces departed. He states, “the Malta of today doesn't just stand on its own two feet; it punches above its weight. We are a respected independent nation, part of the European mainstream, enjoying excellent relations with our neighbours and countries worldwide.” Speaking of the significance of the 10th anniversary since Malta joined the European Union, Opposition Leader Dr Simon Busuttil notes that it “brings back fresh memories of this remarkable milestone” and maintains that it

Hon. Joseph Muscat is a good opportunity to assess Malta’s experience over the past decade as members of the EU family: “it is an opportunity to look back with pride but also to look forward with vision and ambition.”

Malta Chamber President David G. Curmi upholds that the last decade has seen Maltese citizens and companies start to benefit from the free movement of people, capital, goods and services between all EU member states. “The single market has allowed businesses to operate unhindered and without barriers across all EU member states. EU membership presented companies with the opportunity of having a huge potential market to tap with no concerns for customs duties or tariffs at internal EU borders. Businesses, irrespective of their size, were given the opportunity to maximise their efficiency and become more competitive,” he says. MHRA President Paul Bugeja looks back on the last decade,

stating that “10 years of membership in the EU equate to 10 years of a ‘new dimension’ to Malta’s economy” and asserts that while the EU is “no bed of roses”, it has proven to be the necessary and natural affiliation for Malta in today’s globalised dynamic markets. He explains, “being an intrinsic part of the EU means being part of a common vision; a vision that ensures that citizens of member states are provided with the best opportunities for work, a better standard of living and enhanced rights. To this end, Malta has become a key decision maker in assessing the diversity and capability of each member state, and acting upon the synergy that is thus created by such an important bloc in the global economy.”

Hon. Simon Busuttil Having said this, he points out that the 10 years since accession should not be viewed in a vacuum, maintaining that EU membership was the result of a long political, economic and social evolution that saw our country experience

Local businesses’ take on the effects of EU membership on business in Malta Ing. Mario Schembri, Managing Director, AIS Environment Ltd: “The environmental business sector is perhaps one of the best examples of how EU membership has improved and largely made a local industry. Prior to membership, the business activity in the environmental sector was sparse, uncoordinated and lacking purpose. Through membership, Malta inherited and became part of a sophisticated environmental programme which promotes sustainable development and business growth. The EU’s, and by association Malta’s environmental agenda, is globally regarded as the most advanced. Whilst in practice Malta is yet to be on equal footing with many of the other member states on a number of environmental fronts, EU membership has brought about an improved quality in our environment and our perceptions as well as new business opportunities in this sector. Many Maltese businesses are taking advantage of the opportunities brought about by EU membership, but local business is still very much inward focused and not looking at the EU market as ‘our own turf’ too. Despite trailing behind other front runners, and despite our small size and limited scale, Malta too has an environmental product that it can sell in the EU and beyond.” Since EU accession, Ing. Schembri was instrumental in Malta’s adoption of the Extended Producer Responsibility model for recycling. Apart from being the CEO of GreenPak – Malta’s largest recycling organisation, he is also a co-founder and board member of the European Extended Producer Responsibility Alliance (EXPRA).

Arthur D. Turner, Managing Partner at Parker Randall Turner, Chartered Certified Accountants & Auditors: “Through its membership within the EU, Malta has gained access to the global market leveraging companies within the gaming, shipping, investment, insurance and banking industries, enabling them to offer the services which are being offered today. Through the creation of additional services and the targeting of global markets, employment opportunities have also increased. Another factor which has strengthened the Maltese economy throughout these years is the close relationship which Malta has stabilised with its trading partners in Europe necessitating the need and increasing bilateral trading between various EU countries. We have seen organisations gaining a competitive edge in the global market through the extension of their physical operations in Europe. Other organisations have been extending their operations virtually through e-commerce initiatives, giving them access to a substantial market potential. Local organisations are also seizing opportunities to attract investment to Malta and are marketing their products and services on the international sphere, thus generating a very valuable impact on Malta’s economy. EU funding opportunities are assisting entities in achieving these goals together with other benefits in the fields of capital investment, training, education and employment.”

Meanwhile, MBB President George Vella views the anniversary as a unique opportunity to benchmark future aspirations with the achievements of the past, maintaining, “at the outset, it was very clear that we were not properly prepared for membership both at institutional and business community level. We have, in the last 10 years, quickly learnt the rules of the game but there is a lot that we still need to learn.” Indeed, Dr Muscat believes that while Malta is firmly anchored within the European Union and should seek to maximise the positives, it is now important to be open to the rest of the world too, building relationships, attracting investment and seeking new mar-

moil currently being experienced by various member states. He maintains, “we managed to not only retain a stable economy, but also see it experience growth in certain sectors, in particular the tourism industry. While many of our key European source markets were facing serious economic problems, the tourism industry in Malta enjoyed five consecutive record years.”

kets: “we should stay ahead of the game. That is what will keep us competitive.” Looking back on the past 10 years and the major milestones achieved by Malta as a result of EU accession, Dr Muscat considers the change of currency to be the most notable, stating, “the Maltese embraced the euro. It is now the cash in our pockets whether we are at home or in 17 other countries.” He also mentions the European Youth Guarantee as significant, claiming, “no school leaver should start adult life without hope. The Guarantee, which my government fully supports, is for every young person to get a job, further education or training.” According to Dr Muscat, the EU functions best when it pulls together, arguing, “we all came to the aid of Greece when it crashed financially. It's now time for the EU to help Malta as we deal with the challenge of irregular immigration. We are building alliances, especially with other Mediterranean countries, to gain support but there is still a lot more to be achieved.” Dr Busuttil is in agreement on the introduction of the euro as a noteworthy landmark, also mentioning accession to the Schengen zone, which made immigration controls a thing of the past. He notes, “EU membership has had such an impact on our lives as individuals and as a society. At times we tend to take these achievements for granted and almost believe that we always had them. But if you think about it, we have only had them for 10 years.” Mr Curmi expands on the benefits brought about by joining the Schengen Area, which saw Malta lift its sea and land borders to become part of the EU's border-

Patrick Hall, Managing Director, DF Business Advisory Ltd: “It is uncontested that accession to the European Union in 2004 and the subsequent adoption of the euro brought about a wave of change in the Maltese economy. As reported by the Times of Malta earlier this year, Malta ranked fourth in terms of member states having specialised economies and industries. Doubtlessly, such a ranking has been spearheaded and buttressed by Malta’s membership within the EU. Entry into the EU provided Malta with access to its internal market, reaching over 500 million consumers. This, coupled with the adoption of the EU’s single currency, has provided Maltese businesses with the perfect building blocks for growth and diversification. To date, the Maltese economy has benefitted from around €1billion worth of EU funds, a predominant amount of which were utilised to the advantage of SMEs in particular. To name just one of the means through which such funding was put to good use, April 2011 saw the introduction of the BOV JEREMIE Financing Package, enjoying a kitty of €51million. Such a scheme seeks to help SMEs gain access to finance by providing credit risk protection. In its first year, over 230 SMEs were recorded to have utilised this scheme.”

David G. Curmi less area. “Maltese entrepreneurs are now free to move across the EU’s national borders without the need for visa or passport checks,” he states, maintaining that the signing of the Schengen agreement has harmonised the conditions of entry and the rules on visas for short stays while also making enhanced police cooperation and stronger judicial cooperation possible. “This promotes trade and integration between the other signatories and Malta, while encouraging tourism,” he states. Speaking of the adoption of the single currency in 2008, he lists the advantages, citing the reduction in transaction costs and exchange rate risks as well as presenting further benefits to businesses by encouraging investment and bringing more certainty to business planning. While Mr Bugeja cites the change in our national currency as the first concrete measure that impacted our lives directly as a result of EU membership, stating that “it helped us discover the beauty of freedom of movement, capital and services across EU countries without any barriers,” he also refers to the improvement of Malta’s economic standing in light of the economic tur-

Indeed, Dr Muscat speaks of the tangible benefits that EU membership has brought about in relation to business and the economy, stating, “the open market allows Maltese businesses to sell, without barriers, to more than 500 million people. International investors also see Malta as a good place to base themselves. They know that once they come here they can freely trade across Europe. Malta offers the complete package: the open market, a highly attractive business environment and English, the language of business.” Drawing on this, Dr Busuttil asserts that from an economic standpoint, throughout the past 10 years “we have raised our economic prosperity at faster rates, we have experienced low inflation and low unemployment, and we now have one of the world's

Paul Bugeja

foremost currencies in our pockets.” On the level of citizens, “our rights have increased dramatically, not just because we have acquired EU citizenship over and above our Maltese nationality but also because we have acquired new political rights as EU citizens, empowering us to take on even the national authorities if they fail to fulfil their EU obligations.” Mr Curmi agrees that the biggest overall benefit for the Maltese economy has been the free access to the European single market, with the adoption of the euro eliminating the previous exchange rate fluctuations and resulting in a reduction in transaction costs. Moreover, he emphasises that EU membership has been instrumental in attracting foreign investment and helping Malta establish itself as a strategic hub for sectors like financial services, ICT and remote gaming. “As a result,” Mr Curmi upholds, “foreign direct investment in Malta more than doubled between 2008 and 2012, from €5.7 billion in 2008 to €12.5 billion in 2013. The tourism sector has also registered record performances since 2003, from just over 1.2 million tourists in 2003 to beyond 1.5 million tourists in 2013.” Speaking from his experience in relation to the tourism sector, Mr Bugeja maintains that above all, EU membership has provided access to a much wider and diverse market: “this has made it easier for people to travel, which in the case of tourism has been greatly advantageous and has had a ripple effect on the wider economy. The tourism industry in Malta reflects 30 per cent of GDP and cumulatively generates 35 per cent of Government’s total revenue, thus generating an unprecedented economic multiplier effect.”

Michael Debono, CEO, DConsulta Ltd: “The main tangible benefits brought about by EU membership were the possibility of tapping into EU funds, mainly under the ERDF programmes for industry and tourism. However, when one analyses the spend of the total EU funds allocated to Malta it is clear that there is an imbalance, as the vast majority of funds went to central government and government agencies. Personally, I hope that the percentage allocated to business, under the Economic Regional Development and Social Funds programmes, increases significantly in the recently commenced budgetary period 2014-2020. Maltese businesspeople are generally very entrepreneurial; however, many shy away from venturing abroad due to perceived size handicaps and a general lack of trust and reluctance to collaborate with others. In order to further exploit EU membership Maltese businesses must be more open to work in EU-wide consortia and tap into the huge centralised EU funds available for the 2014-2020 budget, such as HORIZON 2020. However, a major issue is whether the Maltese Government has learnt from the lesson of the previous budget, which saw a huge bureaucratic and cumbersome burden placed on businesses applying for and implementing EU projects.”

Joseph Borg, Managing Director, F X Borg Furniture Ltd: “The open market has practically changed the configuration of all local operations, be it in the manufacturing, retail or financial sectors. There was a change in all the parameters of the economic field. Though these effects are mostly positive and new opportunities were created, it takes years for a country to settle down into a new scenario. Although Maltese businesses have to a certain extent exploited EU membership, I feel that we are still lacking when it comes to tapping into EU funds, especially those related to research and development, and innovation. Being relative newcomers to the EU, we still have to train people in the Brussels corridors that can effectively direct available funds in these areas to our country. On the other hand, we as businessmen have to be innovative enough to present projects that can realistically qualify for these funds.”

BUSINESS AGENDA | march – may 2014

cover story He goes on to draw attention to the various funds available for the upgrade of our infrastructural projects via EU membership, which are, in turn, an investment in product Malta. Mr Vella expands on this, maintaining, “tangible benefits emanate from the utilisation of development funds to upgrade the country’s road network, strengthening the health infrastructure, increasing recycling of waste, reduction of dependence on fossil fuel and in refurbishing the heritage sites all across the country. The agricultural and fisheries sectors have also benefitted from significant funds earmarked at upgrading facilities, increasing the operators’ competitiveness and rightsizing the country’s fishing fleet. Additionally, specifically designed loan guarantee schemes have provided finance to businesses that did not have the assets that are normally required to borrow money from financial institutions.” Looking toward Malta’s future as an evolving member of the European Union, Dr Muscat states, “our plan is to be the best we can possibly be within the European family, while being mindful that our ambition should stretch even further afield. We want good relations with all our Mediterranean neighbours, including those to the south, and we welcome talent and investment from across the world.” He goes on to state that Government sees the Med as a hub for peace and prosperity for Europe: “Italy and Greece hold the Presidency throughout this year and it is time for Europe to take note of the Med Agenda. For the first time ever, Malta will take on the Presidency of the European Union in the first six months of 2017. This will be our chance to set the agenda and demonstrate our ability to do things as well as our larger neighbours. It will be another important milestone.” Meanwhile, Dr Busuttil argues that Malta’s evolution within the EU is largely dependent on the European policy implemented by Government. He comments, “Malta is yet to achieve its full potential as an EU member. EU membership is nothing but a tool and a tool that if left unused, or worse misused, loses its value. This means that for our country to achieve its full potential, we require a national Government that pursues a good European policy. How our membership will evolve will largely depend on how well our national Government manages its European policy.” On behalf of the Malta Chamber, Mr Curmi believes that although Malta has greatly benefited from its decade of EU membership, there are still many more benefits to be reaped. To this end, he asserts, the Malta Chamber created its Internationalisation Desk in 2008, with a mission to help members internationalise and tap into the EU single market and beyond by offering information,

co-operation and embarking on service projects. According to Mr Vella, Malta’s evolution within the EU is dependent on increased investment in the economy. For this purpose, he maintains, a good starting point is the allocation of EU regional development funds towards economic sectors that have the highest multiplier effect and a more lasting effect on economic growth. “Malta’s membership has coincided with a successfully implemented strategy of economic diversification into new

sectors such as pharmaceuticals, e-gaming and financial services. We have now set our sights on the development of the education, life sciences, digital media, maritime and aviation industries as key to our development in the next decade,” he states. Having said that, he warns that care must be taken that “forces within the Union that are adamant in driving such industries away from us do not get the upper-hand,” citing initiatives such as the Financial Transactions Tax and the possible over

regulation of e-gaming as potential de facto barriers to trade with the increased tax burden. Consequently, he asserts, “let’s ensure that the success that has come from EU membership is maintained and built upon. The single market still has so much untapped potential to offer.” Thinking along the same vein, Mr Bugeja equates the first decade of Malta’s membership with a first step in a 100 mile long voyage: “Malta has still a way to go to fully realise and absorb the EU values and economic vision into its gover-

nance structures. The good news is that history proves that we are competent enough to rise to the challenge, and while holding our Maltese identity and our national pride high, we must work hand in hand with the other EU member states in order to realise the European vision upheld and propagated by such political giants as Robert Schuman and Jean Monnet. Our dream should be to be one of the leading economies with one of the best standards of living in the EU. In unity, there is nothing that should stop us from achieving this goal.”

BUSINESS AGENDA | march – may 2014

tourism

Malta Tourism Product Report to be launched imminently

makes recommendations on the development of new niches, such as cinema location tourism, through a number of initiatives. Minister Vella adds that as global tourism continues to expand and more and more people gain an unprecedented level of travel experience, the quest for diversity and unique holiday experiences continues to grow in importance. The notion of boutique hotels, for instance – which is gaining ground in Malta – certainly shows promise and potential.

“ It was time for a holistic stock-take of the tourism product on offer” – Tourism Consultant George Micallef Former MHRA President and established consultant George Micallef has compiled an extensive, analytical report that also maps out a strategy which reflects the nature and extent of Malta’s tourism product at present, making over 200 ambitious recommendations. Martina Said speaks to the author as well as Tourism Minister Karmenu Vella about the report, which is expected to be published imminently. Last year was an all-time record for tourism in Malta, topping off already significant records in previous years. Arrivals reached a landmark figure of 1.5 million tourists, and the Malta International Airport hosted four million passengers in one year for the first time in its history. Records are certainly great milestones and benchmarks, but according to Tourism Minister Karmenu Vella, “they should not constitute the be-all and end-all of our annual tourism objectives.” “Sometimes you can register record results on one front, such as volume, by sacrificing another front such as yield,” the Minister explains. “Our policy and strategy are obviously based on the need to sustain growth but to do it in a manageable manner which does not come at a cost to the long-term survival and prospects of the industry itself.” With long-term prospects in mind, it was time to take a holistic approach towards improving the tourism product of our islands. The Malta Tourism Authority commissioned George Micallef to compile a report which represents an in-depth analysis and recommendations on the tourism product. Work began in December 2012, and the first months were spent researching and gathering information and data, followed by the development of a set of proposals. The full report was completed last year and is expected to be launched by the end of March. “Over the last years, the MTA and the Ministry for Tourism have been very focused on improving accessibility and introducing new routes to Malta, and this has produced very positive results. They also took a number of initiatives to improve the tourism product, but the time was ripe for a

holistic stock-take of the existing tourism product on offer and to evaluate where we are now, and where we need to be in the coming years,” explains Mr Micallef. The report seeks to achieve two primary objectives: principally, an improvement of the overall tourism product, both in terms of quality and diversity of the existing products on offer in order to enhance Malta’s competitiveness and improve revenue streams. The second objective is an introduction of new product components to strengthen the needs of existing market segments and to attract new ones that would particularly help extend business in the shoulder and winter months. As Mr Micallef says, “the 400page report sets out a framework which reflects, as accurately as possible, the nature and extent of the tourism product of the Maltese islands at present, and makes 230 sets of recommendations that cut across all aspects of the product,” including, for instance, how to prepare ourselves and exploit future trends such as demographics and climate change, which will influence travel behaviour in

George Micallef

“ We are working very hard to improve tourism operators’ profitability both by cutting Government-induced costs and also by improving the destination so that it commands a higher value for money in the eye of the consumer.” – Hon. Karmenu Vella

Hon. Karmenu Vella the future. It also proposes the creation of new product components that could make the country more appealing to prospective visitors in the framework of long-term sustainability. “One section is dedicated to MTA service providers – and highlights improvements that need to be made by hotels, restaurants, entertainment establishments, diving schools and other MTAlicensed service providers. There are also proposals on opportunities for private-public partnership projects and how best to synchronise the efforts between marketing and product development.”

“ The report also focuses on the delivery of quality across the entire customer value chain, as quality will become increasingly important in influencing travel behaviour.” – George Micallef

Based on the research made and subsequent findings, which aspects of Malta’s tourism industry need to be addressed more urgently? “The report reveals a very clear trend of a high level of satisfaction by the majority of tourists visiting the Maltese islands,” asserts Mr Micallef. “However, survey results also highlight the nature of the main negative comments that mainland Malta in particular receives, which are centred around the infrastructure, such as roads, pavements, road-signs and transportation, and levels of cleanliness in general. The report also focuses on the delivery of quality across the entire customer value chain, as quality will become increasingly important in influencing travel behaviour.” Minster Vella is in agreement, and says that in order for a tourism destination to be considered successful, it must undergo constant redevelopment and reinvestment, and needs to adapt in the face of constantly changing international demand. “It needs to offer value for money and respond positively to high levels of expectation. To achieve this, tourism operators need to generate a rate of return which not only cov-

ers their costs and keeps them afloat but also encourages them to take additional risks by being more innovative with their product. We are working very hard to improve such profitability both by cutting Government-induced costs and also by improving the destination so that it commands a higher value for money in the eye of the consumer.” Interest in agro-tourism projects appears to be gaining ground. Is this a feasible way forward for the industry? Minister Vella says that Malta’s agricultural sector has long enjoyed a good reputation, not only locally, but well beyond our shores too. However, over the past decades, urbanisation and industrialisation have alienated us from the quality of our local agricultural produce, “so much so that the agricultural sector has diminished to an almost negligible component of our GDP. However, I strongly believe that a sensitively managed agro-tourism sector, which truly develops in consonance with our rich agricultural heritage, would truly be an asset for our tourism industry.” Mr Micallef adds that a full chapter within the report is, in fact, dedicated to the development of a number of niche market segments such as nature tourism which encompasses agrotourism. “It looks at existing and new niche market segments that have growth potential particularly during the lean months, and focuses on issues concerning the present state of the product components supporting these segments.” He adds that it makes recommendations on how to register growth in existing niche markets such as rural tourism, gastronomic tourism, cultural tourism, sports and adventure, wellness and health, among others. The report also

“There is definitely a future for these types of properties and besides their attractiveness as a new type of tourism product they are also useful in the protection and re-instatement of previously abandoned or badlyutilised buildings in historic town centres, which is where we are seeing most of this type of development being channelled at the moment. Such hotels in places like Valletta might also help to revive the city.” Mr Micallef concludes that the report prioritises a number of tasks, from products and services that fall within the remit of the MTA as well as the Ministry responsible for tourism, to others that do not fall within their remit but are highly influential to the sector. “It also includes a number of proposals that need to be led by others, be they government ministries, public institutions or the private sector and also through public-private partnership opportunities. Although the report includes a number of specific proposals, in general the report was not intended to produce detailed proposals but only to make recommendations that could lead to a set of action plans following discussions between concerned parties.” The European Commission’s perspective on Malta’s tourism sector Francesca Tudini, Head of Unit responsible for tourism policy development within the European Commission, says that small island states such as Malta face various challenges, which, in turn, could be turned into opportunities. “One of the main challenges that Malta may face lies in its isolated status. Being an island implies issues with connectivity, and the need for enhanced transport services and the use of innovative technologies. The economic relevance of tourism is even more predominant in small and peripheral islands, one of the dominating sub-sectors of island destinations being coastal and maritime tourism. Also, islands may find it difficult to break away from the traditional ‘sun and sea’ holiday offer. However, these challenges represent huge opportunities. Connectivity issues leave space for innovation and the use of latest technologies. This can give a serious competitive advantage to

islands vis-à-vis other destinations, and may contribute to the sustainability and responsibility of tourism both by service providers and tourists. Using innovative technologies in tourism may also facilitate cooperation and experience exchange between destinations. In addition, a limited offer doesn't necessarily mean less on the offer. It often means a tourism offer that is unique and one-of-a-kind. Recognising and enhancing the uniqueness of the offer is an important factor that may help islands to improve tourism in their territories.”

Ms Tudini explains that there a number of existing and future tourism policy initiatives that aim at improving competitiveness in island states. One of the European Commission’s main priorities here is the diversification of the tourism offer, such as aiming at increasing tourism flows of specific target groups, such as seniors or young people, in low and medium seasons. “We are also working, in cooperation with the European Travel Commission, to enhance the visibility of Europe as a collection of sustainable, responsible and high-

quality destinations, particularly towards visitors from outside Europe. “In addition there are two recent initiatives, adopted on 20th February by the Commission: a new strategy for coastal and maritime tourism and a proposal for a set of recommendations on tourism quality principles.”

Francesca Tudini

BUSINESS AGENDA | march – may 2014

mbb

LEADING THE MBB HAS BEEN AN EXCITING JOURNEY Message by outgoing MBB President George Vella

During the past two years, I sought to build on the organisation’s strong foundations and continue to increase its relevance to the local business community. The MBB’s role today has evolved from the one that it was originally set up for in 1996. While the organisation was founded with the purpose of assisting Maltese businesses

to prepare for EU membership, the way forward for the Bureau is to become a more effective lobby organisation in Brussels, and to use its experience to guide local enterprises to make the best out of EU opportunities.

tively. The report was presented to the Prime Minister and Leader of the Opposition. Furthermore, we had the opportunity to make a business case for Malta with the European Commission VicePresident Michel Barnier.

In order to build a strong case to lobby for the betterment of the business community, the MBB requires constant feedback from the ground. In this respect, I am pleased to note that in the past two years we initiated a process that has already achieved encouraging results. As part of the commemoration of the single market’s 20th anniversary, we conducted a number of sector-specific focus-group consultation sessions with the participation of various enterprises, which shared their experiences and challenges of being part of the single market since Malta’s EU accession. This exercise served as a basis for the MBB to draw up a number of recommendations on how to make the single market work more effec-

A key issue emanating from the report was the lack of access to finance opportunities for SMEs. In view of this, the MBB decided to take a closer look at this problem, and conducted a detailed study to get a real snapshot of access to finance limitations in the Maltese credit market. More than 100 enterprises, covering all stages of development from seed stage to internationalisation, and a wide-range of economic sectors participated in the survey. As a result, the MBB argued for more varied financial instruments, given that currently the only realistic ones available for businesses are bank loans and overdrafts. Based on the conclusions of the study, the MBB decided to con-

duct a follow-up report on the need for a more efficient use of EU Structural Funds. Here we argued for a larger allocation of EU funds to be exclusively invested in the private sector, compared to the previous programming period 20072013. Detailed economic arguments were provided, explaining the proven positive impact this would have on the Maltese economy. As an organisation, we do not want to base our actions simply on discussing the issues, but also by proactively doing something to address the situation. With this in mind, the MBB has been developing an exciting project that will be launched in the coming weeks, which will see the introduction of the first crowdfunding platform in Malta. Crowdfunding is the pooling of financial resources from a large number of investors to support new, exciting projects.

Also, during the past two years, the MBB was responsible for the implementation of various EU funded projects; the most prominent being the EU LIFE+ Investing in Water Project. Recently we were proud to announce that over 118 million litres of water are being saved on a yearly basis by collaborating businesses and hotels. In the coming years, more challenges lie ahead for the MBB; among them the key role that the Bureau is expected to play during Malta’s EU Presidency in 2017. Furthermore, I believe that the organisation can be ambitious and aim even higher in the coming years. I would therefore like to take this opportunity to thank my Board members for their continuous support and the Executive team at MBB for their sterling work in making this experience a memorable one. I augur my successor all the best in steering the MBB forward.

BUSINESS AGENDA | march – may 2014

interview

European Parliament Elections ‘crucial for Europe’ “ Through their sound input, proactive approach and cooperative spirit, MEPs can make a difference even when in small numbers. This has been the case with Maltese MEPs since Malta’s accession to the EU.” – President Martin Schulz European Parliament elections are fast approaching – a time which, in the words of the President of the European Parliament Martin Schulz, will be “crucial for Europe”. Martina Said interviews the incumbent President. This year marks the end of the term of office of European Parliament President Martin Schulz. In a few months’ time, between 22nd and 25th May, EP elections will be held in all member states and the institution will continue working towards its target goals. The tasks at hand, however, are both pressing and taxing. “The next Parliament should put all regulations to the test if they throttle job creation and growth, but the European Commission and the European Parliament are also called upon to complete the

internal market, because regulatory complexities are also holding back productivity gains,” says Martin Schulz, in an exclusive interview with Business Agenda. “It's not just a question of regulating less and more cleverly. We must relearn how to create a climate of cooperation between business leaders and public authorities at all levels.” Mr Schulz claims a number of hot issues will be debated following elections this May, which will have an impact on business,

one priority being continued work on Europe’s economic recovery, including finishing the work started on the banking union. “We must continue to strengthen the single market, particularly in the financial services sector. To unlock the potential of industry we must create an innovationfriendly environment. For one, this means reducing the regulatory burden imposed both at the European and national levels,” he says. “It's what we can do in Brussels, Paris, London or Val-

letta to create a strong market for new economy products, and kick-start investment so that our businesses are certain about our collective commitment.” Europe’s so-called ‘democratic deficit’, a term coined to define the EU’s lack of legitimacy and transparency especially in the eyes of European nationals at large, does not appear to be improving or taking a positive skew. This year, however, the winning party of the EP elections will have the opportunity to put forward a President

for the European Commission. To what extent could this initiative combat the democratic deficit in the EU? “The European elections from 22nd to 25th May 2014 will be crucial for Europe. They will not only determine the composition of the European Parliament but will also have a huge impact on the EU's policies and budget over the next five years,” explains Mr Schulz. “Furthermore, for the first time, there are candidates from the European political parties for the post of European Commission President, which is engendering a greater interest in Europe's future. A thorough, factbased conversation on the virtues of deepening European integration needs to take place across the Union in the period ahead.” He adds that the stakes in these elections are high, with 507 million people represented in a unique supranational parliament with 24 official languages. To this end, “let the debates and decisions be taken with full access to the facts.” Mr Schulz says Europe will be stronger in the next five years if it can support the right policies for sustainable job-rich recovery with popular democratic support. “The so-called democratic deficit is more a crisis of politics at all levels. The election of the Commission President by the European Parliament is one step in the right direction. It will be necessary to further strengthen European political parties and review the EU budget, especially on how the EU is funded as the current method is outdated and inefficient.” Malta’s presence within the European Parliament is minimal in comparison to significantly larger European countries, each one tugging its own strings. How can small states such as Malta make themselves seen or heard within their own parliamentary group and European parliamentary proceedings with merely six members? “Through their sound input, proactive approach and coop-

BUSINESS AGENDA | march – may 2014

interview asserting that there is the need to get back to those levels as quickly as possible, “and ideally go further by improving the flow of credit to the real economy and by targeting public spending.”

erative spirit, MEPs can make a difference even when in small numbers. This has been the case with Maltese MEPs since Malta's accession to the EU,” says Mr Schulz. He adds that by putting forward good persuasive positions, Maltese MEPs can make their voices heard in various fora, “not least within their own political groups and at committee level, where a big part of the Parliament's work takes place. Then there are other effective tools MEPs can use – such as parliamentary questions and interventions within their group, to mention just a couple.” As an experienced MEP, having worked within the European Parliament since 1994 until his election as President, Mr Schulz might understand the difficulty faced by the Maltese team of six MEPs in attending all 20 parliamentary committees. What advice can he offer to prospective Maltese MEPs on dealing with the hectic schedule of the European Parliament? “In my view, Maltese MEPs manage to select and prioritise intelligently and strategically what to follow according to what matters most to their constituents in Malta. This is in fact what others do as well, including countries that are much bigger than Malta. Based on their peers' past good practice, I am sure your newly elected MEPs will quickly adjust

He makes reference to small and medium-sized firms, which encounter difficulties in obtaining loans, in spite of the fact that these firms have kept Europe’s economy afloat. Between 2002 and 2010, 85 per cent of all new jobs in the EU were created by small and medium-sized firms, particularly by start-ups, he cites.

“ The next European Parliament legislature should enjoy better economic conditions in the EU than the current one. However, much still needs to be done. To unlock the potential of industry in Europe, part of the answer is the smart regulation for these new markets.” to the lifecycle of the institution in order to maximise their impact.” Looking towards Europe’s notso-distant future, prospects, as well as hurdles, undoubtedly lie ahead. What major challenges should the next EP legislature, ending in 2019, expect to face from a business and private sector perspective?“ A priority no doubt will be maximising the resources

available and setting the right conditions to reduce youth unemployment. Europe simply cannot continue to be credible with youth unemployment at these extraordinarily high levels. “The next European Parliament legislature should enjoy better economic conditions in the EU than the current one. However, much still needs to be done. To

unlock the potential of industry in Europe, part of the answer is the smart regulation for these new markets,” says the EP President. Notwithstanding this, however, public investment still has a role – “to stimulate demand, as some member states are doing with advanced broadband; to help finance the infrastructure – and here we should work more closely with the European Investment Bank; to improve the quality of training and apprenticeships; and to reach that research target and create a community of research in the EU, this is the only way to attract and keep scientific talent.” Mr Schulz adds that investment is still below pre-crisis levels,

“We already have instruments like the European Investment Bank and COSME; the new EU programme to improve access to finance for SMEs, and 120,000 SMEs have benefited from EU programmes during the last six years. But we are called upon to step up our efforts and develop innovative financial instruments.” With merely months to go until the end of his role as President of the European Parliament, has Mr Schulz got a word of advice for his successor? “I think the next President will make his or her own mark on the job. But some mild suggestions: be yourself, be proud of your job and be humble, always keep in mind Europe’s people, work hard and show respect. And listen to your colleagues.”

BUSINESS AGENDA | march – may 2014

ep elections 2014

Meet the MEP Candidates Ahead of the upcoming European Parliament elections in May, Business Agenda meets the MEP candidates hoping to be elected to the European Parliament.

Name: David Casa Age: 45 Profession: Politician Contesting for: Nationalist Party

Why vote? – A message from Dr Peter Agius, Head of the European Parliament Office

Career profile: David is a founding member and the Secretary-General of the Moviment Iva, as well as the Secretary of the Malta-EU Steering and Action Committee. He is also a member of the Council of the Confederation of Malta Trade Unions and the Executive Committee of the Union of Bankers. “I have worked in the EP for the last 10 years and believe that I have succeeded in effectively representing my constituents, as well as the interests of Malta. I would like to be given the opportunity to continue to serve my country.

''Most of the aspirations of Maltese businesses depend, apart from the energy of their promoters, on legislation adopted at the European level which is then implemented by the national government or applied directly to the Maltese businesses. Virtually all pieces of legislation related to business and market rules are adopted by the European Parliament after detailed negotiations at committee level. It is these committees in the European Parliament which shape the future business environment in Europe and in Malta. These committees are the battleground for the plight of businesses for a more competitive Europe, for the reduction of administrative and regulatory burdens and for an enhanced emphasis on research and innovation.

Name: Therese Comodini Cachia Age: 40 Profession: Lawyer Contesting for: Nationalist Party

I have been an MEP since 2004 and have a proven work track record. My background within the EP has provided me with the knowledge, experience and contacts that are instrumental toward being an effective MEP.”

Name: Carmel Cacopardo Age: 58 Name: Lino Bianco Age: 48 Profession: Professor, Architect, Consultant and Ambassador Contesting for: Labour Party

Career profile: Lino Bianco studied at the Universities of Malta, Leicester, London and Sofia. He has a Doctorate in politics and architecture, and is a consultant to the World Bank and the Ambassador-Designate to Bulgaria and Romania. He is also a lecturer in Malta, and a professor of architecture and visiting professor of planning overseas.

Profession: Architect and Civil Engineer Contesting for: Alternattiva Demokratika

“Given my experience, together with my expertise, I agreed to be of service directly to my country, our nation, at the European Parliament. I am seeing it as a call, a vocation, to better serve our people.

Profession: Entrepreneur Contesting for: Nationalist Party

Career profile: Ray has worked with international organisations in Europe for 32 years and in Asia and South America for six. He is qualified through an FCCA and MBA, and is in the final stage of a DBA; he is a member of the Chartered FCSI and fellow member of the Institute of Directors. He speaks six European languages. “I seek to contribute to the strengthening of the EU for the benefit of all its member states, with the ultimate aim of bringing tangible benefits and prestige to Malta. EU policies and laws are formulated within the Committees and voted for in Parliament. An MEP therefore needs a professional – as well as a political – dimension. I have extensive professional and entrepreneurial expertise, as well as the maturity that comes with age and experience. With its EP seats, Malta can obtain benefits from the EU by contributing to and influencing EU policies rather than through any negotiating strength. This is where I believe I can make a difference.”

“An ever increasing amount of decisions which affect Malta are taken at an EU Parliament level. A number of these decisions tend to be ‘one size fits all’ decisions which do not take sufficient consideration of Malta’s circumstances. Taking an active part in the process which leads to these decisions is what attracts me to the European Parliament. We need a Green voice speaking up in Malta’s interest in Europe.

Name: Arnold Cassola Age: 60 Profession: Professor in Maltese and Comparative Literature at University Contesting for: Alternattiva Demokratika

Name: Clint Camilleri Age: 26 Profession: Architect and Civil Engineer Contesting for: Labour Party

Career profile: Clint has served as President of the Labour Youth Forum in Gozo and is currently the President of the Gozo District of the Labour Party. In 2012, he became one of the youngest mayors in Malta and Qala's first Labour mayor. Clint is Projects Coordinator at the Ministry for Gozo. “I decided to contest the upcoming MEP election primarily because it gives me the opportunity to help our citizens feel closer to the European Union. Unfortunately, many Maltese citizens may perceive the European Parliament as being a detached institution. My first priority therefore is to help them understand how decisions taken at a European level affect them. Being the youngest of the candidates, I am determined to exploit my energy to deliver a strong voice in the EP while keeping contact with the Maltese citizens to push issues which are of national interest. I’d work towards ensuring that citizens are fully aware of the various opportunities available to them for the furtherance of their development.”

“I believe that through my experience garnered in European politics, I will contribute to bettering the general quality of life of the Maltese and Gozitan people with regards to social, economic, environmental and democratic aspects. Moreover, through the election of a third Green Party representative in Malta, even in the MEP elections, we will begin breaking the two-party mindset which has perpetuated an ‘us and them’ mentality for the last 52 years.

Name: Miriam Dalli Age: 37 Profession: Advisor at the Ministry of Energy and the Conservation of Water Contesting for: Labour Party

Name: Peter Cordina Age: 65 Profession: Pensioner Contesting for: Labour Party

Career profile: After serving for 44 years in the services in Malta (the Police, the Armed Forces of Malta, the Correction services and the Civil Protection Department), Peter was appointed Administrator for a Home for disabled persons three years ago. “Politics is not a question of separation and distinctiveness. It is based on teamwork, networking and consensus building. I feel lucky to be part of a great team – the team which brought the PL to a historic victory in the national elections last year, and which is day by day bringing about the promised change for the better within our country. The forthcoming EP elections are an important link in this chain. As part of the PL team, I look forward to making a valid contribution by identifying the best opportunities for our country within the work of the EP, especially in the areas of active ageing, sustaining the vulnerable and environmental improvement.”

Career profile: Miriam is a graduate of Law and Communication studies, and obtained an MA in European Studies as well as an MBA. With over 15 years of experience in the communications sector, she was the first female news editor heading a TV and radio newsroom. She was recently employed as Corporate Affairs Senior Executive by Vodafone Malta. “I believe I can represent our citizens to the best of my abilities. What happens at EU level impacts our families directly, which means our citizens need to be aware of how they will be affected by decisions taken in the European Parliament. A politician can spearhead a positive difference in our families’ lives and I want to be of service to the Maltese people in the European Parliament, and work to achieve the best results for Malta in the EU with loyalty and determination.

I believe I will contribute to the increased participation of civil society in the decision-making process, whilst spurring our government to adhere to European directives with regards to the quality of life of the Maltese people. In particular, a Maltese Green voice in the European Parliament could strongly contribute towards the drastic revision of the Dublin convention to ensure that migrants who are saved from the high seas and land in Malta, can relocate to the other 27 countries of the EU after they have applied for refugee status in Malta.”

My major areas of interest are the environment (in particular the regulation of cross boundary impacts), tourism and transport, and regional development. It is in these areas which are of substantial relevance to Malta where I propose to be active. In addition, given that as an island state we are dependent on the state of our surroundings, we should take a more active interest in ensuring that our neighbours live up to their environmental responsibilities. The European Parliament is the appropriate forum for such action.”

May 2014 is the third round of MEP elections in Malta. Since accession, Malta endorsed and embraced the positions of the EU on a number of issues. As an MEP, I will not simply assume such a role. Malta is a nation as unique as any other member state in the EU, and I will ensure that we will be leaders and not just followers. I will work to be one voice in Europe – we are neither unachievers nor, much less, beggars. We are survivors and dealers.”

Name: Ray Bugeja Age: 62

Career profile: A graduate of the Universities of Malta (Architecture & Civil Engineering) and Staffordshire (Sustainability & Environmental Management), Carmel has worked in both the private and public sectors. He is author of the book Time for Radical Change – The introduction of eco-taxation in Malta, and currently Deputy Chairman of Alternattiva Demokratika.

“My career has focused on advocating for people’s rights and against abuse of authority. Within the EU, Malta requires representatives with such experience in advocacy so as to enable effective representation of the different sectors of Maltese society. I bring a professional approach to Maltese representation at the EP: an approach that listens to all relevant stakeholders, forms an informed opinion based on sound arguments, and proceeds to convince others. This strengthens Malta’s voice that, in turn, is translated in regulation, policy and measures that take into consideration the needs and specificities of Maltese business and stakeholders.”

In this context, it is vital for Maltese businesses to engage, in particular through their representatives, in the process of communication and consultation shaping up the will of the European Parliament. The upcoming election offers a renewed opportunity to rethink our expectations from Europe. With the elections as a background, the next legislature will also afford us the occasion to intensify and reshape in a structured way the communication channels leading to the European Parliament.'' Career profile: Arnold is co-founder of Alternattiva Demokratika – The Green Party and was elected Secretary General of the European Green Party for seven years. He can get by in seven languages and is the author/editor of around 30 books on the history, literature, language and culture of Malta, as well as publications on Green politics in Malta and Europe.

Career profile: Therese is a lawyer focusing on human rights and administrative law, representing briefs before the Maltese courts and the European Court of Human Rights. She was also appointed national expert on EU networks.

Sometimes, we do not realise the extent of the decisions taken by the European Parliament and at EU level. To this end, I will be committed to promote the proper representation of my country, to ensure transparency and accountability in my work and to disseminate the relevant information to Maltese and Gozitan citizens.”

Name: Kevin Cutajar Age: 35 Profession: Lawyer Contesting for: Nationalist Party

Career profile: Kevin earned his first degree in languages and history, and his second in law and European studies. In 2006 he joined GVTH Advocates and in 2009 moved to Simon Tortell and Associates. His areas of specialisation are financial services and taxation. “The EU is an ideal of peace and prosperity, and, although sometimes perceived as an imperfect system, remains an ideal that we should strive for. The EU is relatively new and needs to be strengthened. Furthermore, I think that Malta can reap more benefits from it. Various aspects distinguish me from other candidates. The most obvious one is that I’m blind. I want to send out the message that disability does not stop a person from contributing within society. This also applies to any person facing other social disadvantages. I’m also a lawyer specialised in the financial sector. This helps me to understand the world of business, the need to encourage investment and job creation. Additionally, I am Gozitan and this helps me understand the specific needs of Gozo, including accessibility and employment.”

BUSINESS AGENDA | march – may 2014

ep elections 2014

Name: Cyrus Engerer Age: 32 Profession: EU Funds & Policy Advisor Contesting for: Labour Party

Career profile: Following his graduation in European Studies and Communications, Cyrus Engerer read a Master Degree in European Politics at the College of Europe in Bruges, Belgium. Since 2008, he has filled various roles advising Government, Local Councils, NGOs and Private Enterprises on EU funding, EU policy and EU law. “I have always believed that one should be the change he wants to see in the world. With that in mind, I entered the political sphere after campaigning for civil rights and liberties in Malta. In the same way, I am contesting the EP elections, because I believe and want to be a part of Malta’s current drive for change. If elected, my main preference for work would be in the Internal Market and Consumer Affairs Committee as well as the REGIO one that deals with EU Structural and Cohesion Funds that can also benefit Malta’s private enterprise for economic growth.

Name: Stefano Mallia Age: 42 Profession: EU Affairs Specialist Contesting for: Nationalist Party

“During my professional career I have managed to link the needs of the local economy with the EU dimension, and this has allowed me to garner a good experience both on a local economy level and an EU level. It is important at this stage that Malta climbs another decisive rung in its economic development, for this is what leads to an improvement in quality of life. I have faith in constant, continuous progress across the whole business front that underrates no sector and forgets no economic activity that is useful for our economy. I also believe that some of the benefits of growth must be devoted to the development of the human side of our society, the arts, our historic heritage and quality of life.”

Standing up to be counted is not always easy. However, I have done it in the past and will continue doing it even within the European Parliament. The time is ripe for Malta to start leading in Europe, especially on issues that have a direct impact on our national interest. I believe in a proactive, positive and energetic approach that leaves result.”

Name: Charlon Gouder Age: 32 Name: Helga Ellul Age: 66 Profession: Business Consultant Contesting for: Nationalist Party

Career profile: Best known for her work at Playmobil Malta, where she was CEO for over 30 years, Helga also served as President of the Malta Chamber of Commerce and Enterprise, and as MCAST Governor. Appointed to several public and private boards and committees, she also participated in delegations aimed at attracting investment to Malta.

Profession: Private Secretary of Parliamentary Secretary for Culture and Local Government Contesting for: Labour Party

One of the main issues that needs to be tackled is dialogue between the Maltese citizens and EU on several matters such as immigration, social justice and inclusion, as well as issues that are of relevance to Gozo. By following European matters I think that there are certain advantages that can be put into practice on a local level and disadvantages that need to be mitigated.”

I believe I have the skills necessary to debate and negotiate successfully on issues that matter to the Maltese. Europe is not about ‘us and them’. For me, being European is a statement of fact – it’s a way of doing business, it’s who I am and how I propose to act if elected as a Member of the EP.”

Age: 43 Profession: Senior Secretariat Officer in the Prime Minister's Private Secretariat Contesting for: Labour Party

Career profile: Mario joined Mid-Med Bank in 1990 and worked in the Accounts, Foreign Monies and Investment fields until he retired from HSBC in 2012. Mario is a member of the Labour Party National Executive and has been involved in the party since 2008. “I am a firm believer in social democracy and see politics as a powerful tool to help those who are most vulnerable. I believe every political decision should have this aim in mind. In contesting the EP elections, I want to take this agenda to Europe. I also believe in the special role Malta can play, being situated in the middle of the Mediterranean Sea. Malta has a traditional role as a bridge between Europe and North Africa. Years back, Malta had insisted that Europe recognise that there can be no peace in Europe unless there is peace in the Mediterranean Sea. Nobody is in a better position than Malta to make the EU understand this concept. With my background, I am perfectly suited to bring this issue to the table.”

Career profile: Charlon Gouder is a BA graduate in Communication Studies. He began working as a journalist in 2003, wherein he produced and presented a number of investigative political programmes and was awarded best journalist by the Institute of Maltese Journalists. He is in his sixth year reading for a Doctorate of Law. “I feel I can contribute extensively to the issues discussed at European level to bring to the forefront issues and concerns I am confronted with on a daily basis through my contact with different strata of society. I believe I can be a local voice on this European platform, as the European Parliament is a democratic medium in which issues affecting the quality of life of such individuals are expressed and worked upon.

“I strongly believe that the EU’s institutions provide the key to the resolution of most of the challenges we are facing today and which we will continue to face in the future. Decisions taken at EU level will continue to influence our lives and those of our children.

Name: Mario Farrugia Borg

Career profile: Stefano has been involved in EU affairs since 1998, when he took an active role in the campaign in favour of EU membership. Stefano is a member of the European Economic and Social Committee (EESC) where he has been actively involved as Rapporteur.

Name: Roberta Metsola Age: 35 Profession: Member of the European Parliament; European Affairs Lawyer Contesting for: Nationalist Party

Career profile: Roberta is a lawyer, and served within the Permanent Representation of Malta in Brussels for a number of years before becoming legal advisor to the High Representative of the EU. She was later elected to replace Simon Busuttil as an MEP. “I have always believed that, if you want something changed you should put yourself forward to do just that. Politics is the means to change things and push forward issues that may otherwise be left on the backburner, which is why I will contest to remain one of Malta's representatives in Europe. As soon as I was elected, I knew that I had to hit the ground running and was determined to make a difference. There is a lot that has been done, particularly in relation to online gaming and financial services, immigration and mobile phone roaming rates; but a lot that remains to be done, which is why I have put myself forward to remain the voice of the Maltese in Europe for the next five years.”

BUSINESS AGENDA | march – may 2014

ep elections 2014

Name: Ivan Grixti Age: 47 Profession: University Lecturer in Accountancy Contesting for: Labour Party

Career profile: Ivan completed an undergraduate course in Accountancy at the University of Malta in 1991. He read for a Masters in Accounting and Finance at the University of Lancaster and has just presented his doctoral thesis at the University of Southampton. “As a full-time member of the academic staff at the University of Malta, I enjoy being objective in my arguments. The MEP elections provide the right space to do just that – beyond partisan politics, healthy discussions can be engaged in for the best of our country.

Name: Jonathan Shaw Age: 40 Profession: Managing Director Contesting for: Nationalist Party

I bring my expertise as an accountant and researcher to the table. Apart from engaging in various committees relating to the internal market, I will also attempt to make a difference in attracting the much needed Foreign Direct Investment which will ensure the creation of new employment opportunities for our younger generations.”

Name: Kevin Plumpton Age: 30 Profession: Legal Practice Contesting for: Nationalist Party

Career profile: Kevin graduated with a Bachelor in Psychology in 2005, and worked with an established firm specialising in health tourism management. He graduated with a Bachelor of Laws and obtained his Notary Public Diploma in 2012. He is currently in his last year of studies for the degree of Doctor of Laws. He is also completing his legal training in civil and commercial cases with PCM Legal.

Name: Alfred Sant Age: 66 Profession: Management Consultant, Politician, Writer Contesting for: Labour Party

Profession: Entrepreneur and Politician Contesting for: Labour Party

“This is the second time I am contesting the EP elections, having missed being elected in 2009 by a whisker. European politics offers one the opportunity to look beyond our shores and expose one to problems, challenges and opportunities which do not necessarily arise when dealing with local politics. The most important role of an MEP is to be a watchdog and contributor, to ensure that what is debated and decided in the EU does not affect your country and its citizens negatively. I believe that my academic background together with my experience in a wide spectrum of economic sectors will assist my mission. I want to be the people’s ear in Malta and the people’s voice in Europe.”

Career profile: Diplomat (Brussels, early seventies); management consultant and top executive in public and private institutions (seventiesnineties); Labour Party: President, Leader, MP; Leader of the Opposition, Prime Minister (eighties–2013); editor, columnist, economic correspondent (EIU), novelist and playwright. “Malta needs to reposition itself within the EU to be able to deal successfully with accelerating changes inside and outside the EU. On the basis of my experience and record, I would like to contribute as a Labour Party representative from within the European Parliament to ensure that this much needed change happens. I bring a strong nationalistic sense of commitment to Malta that is imbued with a longstanding knowledge and appreciation of all things European – from political to economic, linguistic and cultural.”

My mission is to create a long-term microalliance with micro-businesses, community organisations, local organisations and the selfemployed. I want to assist them in better understanding EU legislation and its impact on their objectives, while assisting them in acquiring easier access to EU funds. I also want to create a stronger link between Europe and its citizens.”

Name: Marlene Mizzi Age: 59

“I was never actively involved in politics before this campaign. However, I eventually realised I could put my experience to better use and contribute to the public sector, being especially relevant with regard to the EU context, which is all about sharing ideas, creating opportunities and negotiating the best deal for our citizens. The more people I meet, the more I realise the strong demand that exists for politicians who are honest, hard-working and innovative in their approach. My strengths lie in my background in business, my positive track record and my attitude to life in general. I am results-oriented, forward-looking and able to adapt to various situations. While it’s important to work within a European mind-set and level, it’s as important to be able to deliver results and manage perceptions in an effective manner on a local level.”

“I hope to get Malta's position heard within the European Institutions. It is also important to increase the low level of trust Europeans have in their political representatives, so I am committing myself, if elected, to total transparency on the administration of EU funds allocated to MEPs. I am also determined to work for more effective legislation to safeguard the interest of southerners in Europe, especially as we are facing tougher challenges than ever on immigration.

Career profile: Marlene Mizzi is a graduate in Economics and an entrepreneur owning companies in retail, insurance and IT. She has served on a number of boards, including Bank of Valletta, and served as Chairman of Sea Malta. She was the only woman elected to the officer group of the Council of the Malta Chamber of Commerce, prior to its merger with the FOI. Marlene has been an MEP since April 2013 following a by-election.

Career profile: Jonathan currently heads a leading fashion franchise company. Previous ventures include business development consultancy and the co-founding of an online travel company. Jonathan has been Chairman for a supermarket franchise, non-executive director for the Malta Film Commission and committee member on the Aviation Supervisory Committee within Transport Malta. Holding a Masters degree in Business Administration, he also co-founded Teatru Unplugged.

Name: Norman Vella Age: 37 Profession: Immigration Officer Contesting for: Nationalist Party

Career profile: Norman Vella is a former TV journalist with a creative career in broadcasting that led to the successful Xarabank production. More than just a successful entrepreneur and TV producer, Norman became an anchor point for bringing to light social, economic, business and political issues affecting both mainstream and non-mainstream Maltese society. “The continued progress of Maltese society depends heavily on a healthy and thriving business sector, without which employment and job creation will suffer and unemployment increases. By contesting the MEP elections, I have decided to fight this fear head on. Only if we painstakingly rebuild trust at all levels of society will we regain strong economic growth. In my work in journalism and broadcasting, I did my best to give a voice to the voiceless, and so believe that standing for the EP elections is the best way available at the moment to voice the concerns of those suffering various forms of discrimination in Malta. I want to ensure that our EU experience translates into jobs and opportunities for citizens, especially young people. In this respect, Malta needs MEPs who are focused primarily on transforming our EU membership into full rights and economic opportunities for all Maltese people.”

BUSINESS AGENDA | march – may 2014

MEPs Name: Deborah Schembri Age: 38 Profession: Lawyer and Member of Parliament Contesting for: Labour Party

Career profile: Deborah is a practicing advocate and occasional lecturer in family law. She was chairperson of the pro divorce movement before being elected as a Member of Parliament in 2013. She now chairs the Social Affairs Parliamentary Committee and is a representative of the Maltese Parliament on the Council of Europe. “What pushed me into politics is the knowledge that it is a platform for social change. When I was asked to contest the general election I promised our Prime Minister to give my services to the nation. If elected as an MEP, I will serve with the peace of mind that I'll be serving the Maltese people’s interests, be it at European or national level. I have always been a problem-solver and a good mediator in my professional life and have found good use of these qualities in politics. What I believe I can bring to the table, rather than expertise in a particular subject, is methodology – an effective, result-oriented kind of politics. My special interests lie in civil rights and liberties including topics such as immigration and work.”

Name: Fleur Vella Age: 36 Profession: Marketing Manager Contesting for: Labour Party

Career profile: Fleur worked with the Government on research necessary to form Malta’s pre-accession negotiating positions prior to its entry into the European Union, and lectured at the University of Malta as a visiting lecture. She worked on Malta’s EU budget between 2007 and 2013, and has worked in a small business for the last seven years. “My experience working on EU negotiations has taught me that when a country has arguments based on solid research, even a small nation like Malta can change the way the European Union works. While working in a small business, I started to understand the difficulties microenterprises face. I want to offer a voice for microenterprises to communicate their circumstances to other members of the EU. I will see that laws passed to decrease the bureaucratic burden on micro-enterprises are implemented locally, and advise the Government on new rules which jeopardise their operation. I also aim to disseminate information about the opportunities offered by the EU to micro-enterprises.”

Name: Francis Zammit Dimech Age: 59 Profession: Advocate Contesting for: Nationalist Party Career profile: At 14, Francis founded the 4Ts youth movement, and later served as President of KSU (University) and MZPN. Aside from being a lawyer, he has a degree in financial services and in business management. Francis has been uninterruptedly elected to Parliament since 1987 and held different ministerial posts for 16 years.

“I have accepted my party’s call to contest the MEP elections out of loyalty to it and to my country. I stand for faithful and honest service to my electorate and to Malta, furthering and defending Malta's interests in the EU. It is also my intention to remain in close contact with my electorate since I believe that politics is about being of service and remaining close to the people. I humbly believe I have the experience to scrutinise European legislation from the perspective of its impact on Malta. My areas of focus will include jobs in Malta, maximising how NGOs can benefit from the policies of the EU, safeguarding the needs of small island states within the EU, and, last but not least, being incessant and vocal within the EP to assert that Europe must stand up to its fundamental principle of solidarity and help Malta when it comes to the tragedy of irregular immigration.”

BUSINESS AGENDA | march – may 2014

business update

The benefits of EU membership for local business By Arthur D. Turner, Managing Partner at Parker Randall Turner, Chartered Certified Accountants & Auditors

For starters, the financial services industry in Malta has and still is experiencing exponential growth, generating consequential growth in other sectors of the economy. Throughout these years, we have witnessed the development of numerous financial services in Malta and the diversification of services previously offered by financial institutions and other companies within the gaming, shipping, investment, insurance and banking industries. Through its membership within the EU, Malta has gained access to the global market, leveraging companies within these industries, enabling them to offer the services which are being offered today. The increased competitiveness and the access to the global market have created opportunities in many respects. Through the creation of additional services and the targeting of global markets, employment opportunities have also increased. The labour market and fresh graduates are nowadays being offered increased opportunities within the working environment which previously did not exist or were lacking. This has created the need for our students to have access to an increased number of academic specialisations and to

Photo by Clive Vella - viewingmalta.com

Malta’s economy fared very well over the past decade. This may be seen in a plethora of industries and facets of the Maltese market. The Maltese economy was already a robust one; however Malta’s membership within the EU has given rise to numerous benefits which have played a very important part in Malta’s financial and economic performance throughout the past years.

I do not truly believe that local businesses are exploiting EU membership to the full extent. Some industries are doing better than others. We have seen organisations gaining a competitive edge in the global market through the extension of their physical operations in Europe. Other organisations have been extending their operations virtually through e-commerce initiatives, giving them access to a substantial market potential, which potential could not have otherwise been possible given the size and the restrictions of the local market.

enhance the quality of their academic uptake and their readiness to penetrate the labour market. Consequently, opportunities have been created for our students, in particular, in experiencing student exchanges and internships which contribute to their academic preparation and their eventual deployment in the labour market. Malta has experienced a growth in the number and quality of indirect investment being generated. More and more entrepreneurs are being attracted to our island, consequently generating economic growth and a general improvement in society’s standard of living. Investment is being directed to our country within the

“ Malta’s membership within the EU has given rise to numerous benefits which have played a very important part in Malta’s financial and economic performance throughout the past years.” property and real estate markets, whereby we have seen an increase in the number of EU citizens settling in Malta and purchasing high-end property, contributing in the uplifting of the country’s profile and the continued increase in investment. Another factor which has strengthened the Maltese economy throughout these years is the close relationship which Malta has stabilised with its trading partners in Europe, necessitating the need for and increas-

ing bilateral trading between various EU countries. The implementation of the euro has also contributed to the improvement of the local economy. The island has not only increased its market stability and its control over pricing, which was lacking prior to our membership within the EU, but it has also cushioned Malta against the global economic crisis. Even though Malta did have a good regulatory system and

effective legislation, the implementation of EU directives and the harmonisation of legislations have left a positive impact on various facets of the local economy, with local citizens nowadays benefiting from a system which is common to other EU citizens. Moreover, Malta is no longer isolated from the rest of Europe and notwithstanding its size, it has a say within the EU similar to its counterparties. The access that Malta nowadays has to EU funds has also helped the local economy. We have witnessed numerous companies and businesses on the local scene benefitting from such funds, encouraging them to invest in their organisations.

Local organisations are also seizing opportunities to attract investment to Malta and are marketing their products and services on the international sphere, thus generating a very valuable impact on Malta’s economy. EU funding opportunities are assisting entities in achieving these goals together with other benefits in the fields of capital investment, training, education and employment, to mention but a few.

“ Local organisations are also seizing opportunities to attract investment to Malta and are marketing their products and services on the international sphere, thus generating a very valuable impact on Malta’s economy.” Local businesses have been assisted financially in the recruitment of new human resources, which had a positive effect not only on the employability within the labour market but also on the local businesses’ quality of product and service, together with an inevitable positive effect on profitability. A number of businesses have also seized the opportunity to benefit from financial assistance being directed to the creation of

new start ups, encouraged by the potential to infiltrate substantial EU markets.

prepared students. EU funding has been extended to financially assist in the training of people who are already within employment. This has encouraged local organisations to invest in their human resource potential, leveraging a positive effect on their final product or service and on the economy in general.

EU funding has also been deployed in other facets of the economy. Our students are not only assisted financially through their student life, but are now also given the opportunity to benefit from financial assistance through academic programmes and scholarships; the latter giving rise to cross cultural experiences and more holistically

Malta has experienced an increase in tourism in the past years. This may also be attributed to the financial assistance which companies and organisations are availing themselves of within the tourism industry. These entities are being assisted to ameliorate their services through the creation of innovative ideas and the packaging of an augmented ser-

vice. Financial assistance is also available in relation to the core product that these organisations have to offer in order to increase the standard of service in parallel with that being offered in other EU countries. Environmental awareness is another benefit which Malta, or more specifically, the generations to come, will avail themselves of. The enforcement of EU directives in relation to the green economy is helping to favourably change certain mentalities of the past. The creation of awareness on waste management and recycling of products will continue to leave a positive impact on the environment our children and grand children will live in.

I believe that a lot of ground still needs to be covered for local organisations to exploit our membership within the EU. This needs to be achieved through the creation of increased awareness among the local business community on the benefits they may avail themselves of when using this tool to its full potential. This cannot be achieved without the reduction of unnecessary bureaucracy which not only increases the time to implement actions but deters the motivation created among businessmen through strategies being implemented in order to raise awareness. The exploitation of our membership within the EU is a very important player in the contribution of the country’s performance and thus the increase in the awareness of this factor cannot be taken lightly. www.parkerrandallturner.com.mt

BUSINESS AGENDA | march – may 2014

Business News MBB Update 10th January –

16th January –

Towards World-Class Clusters: Promoting Cluster Excellence

Facilitating CrossBorder Business and Debt Recovery in the EU

MBB CEO Joe Tanti participated in a kick off project meeting promoting cluster excellence. The meeting was organised at Malta Enterprise and discussed Malta's role as one of the seven partners in an EU-funded project, Pooling4Clusters, including Belgium, Slovenia, Estonia, Greece, Germany and France. The project, which is aimed at providing

a set of policy recommendations to improve the effectiveness of local support policies to clusters, is executed by Malta Information Technology Agency (MITA), with the active support of the Malta Council for Science and Technology (MCST), Malta Enterprise and the Malta Chamber of Commerce, Enterprise and Industry. When discussing the involve-

ment of other potential stakeholders beyond the project’s scope, Mr Tanti pointed out that the MBB can provide support to formally structured groupings such as clusters to participate in working groups and technical advisory groups in Brussels as well as within some other lobby groups.

15th January –

MBB and MHRA present recommendations on the contribution of grey-water treatment to Minister Leo Brincat The MBB and MHRA presented recommendations, submitted as part of the EU LIFE+ Investing in Water Project, to Minister Leo Brincat, who is responsible for Sustainable Development, the Environment and Climate Change. The recommendations focus on the contribution of greywater treatment by the hotel industry as a green economy initiative.

The recommendations highlight that if a policy encouraging grey-water treatment were adopted, the hotel industry could reduce its water consumption by nearly 500,000m3 per annum, representing savings of around €1,000,000. Apart from strengthening the competitiveness of the hospitality industry, this would also generate around 20 fulltime jobs in the private waste water treatment sector.

The recommendations support the adoption of a policy encouraging the voluntary implementation of grey-water treatment, twinned with a financing system for environmental upgrade projects for hotels. The policy should aim at a widespread adoption of grey-water treatment over a medium term, as this would give hotel operators time to upgrade plumbing during infrastructural renovations.

21st January –

European Elections 2014: A Maltese Business Manifesto The European Parliament Office in Malta, along with representatives of the main business organisations, launched a process leading to the drawing up of a joint manifesto of the expectations of Maltese businesses for the upcoming European Parliament legislature and in view of the elections that are taking place in May. Senior Representatives of the Malta Chamber of Commerce, Enterprise and Industry, the General Retailers and Traders Union (GRTU), the Malta Hotels and Restaurants Association (MHRA), the Malta Employers' Association (MEA) and the Malta Business Bureau exchanged views with prospective MEPs on their expectations of the EU in the coming mandate of the European Parliament.

The discussion started with a presentation on the stakes for businesses in the forthcoming European Parliament legislature by Peter Agius, Head of the European Parliament Office. Dr Agius described the work of the European Parliament committees as the battleground where proposals and ideas are promoted or axed to finally end up as European laws affecting all businesses. The business organisations then intervened to highlight their perspectives in view of the upcoming elections and outstanding issues on the EU agenda. Reduction of regulatory burdens, ‘one size fits all’, access to finance, EU funding, public procurement and employment conditions were among the themes discussed.

Participating in the discussion were also MEP candidates Carmel Cacopardo for Alternattiva Demokratika, Helga Ellul and Jonathan Shaw for the Nationalist Party, and Ivan Grixti and Dr Alfred Sant for the Labour Party. The interventions were followed by an exchange of views between the business representatives and the MEP candidates.

The European Commission, in collaboration with the MBB, held a business seminar aimed at the European business community at large. The aim was to inform participants about the EU’s measures in facilitating cross-border business and cross-border debt recovery in the European single market. The event was held as part of the European Commission’s campaign to help SMEs recover debts across borders. The campaign aims to inform SMEs on how to take advantage of existing laws and tools in order to pursue debtors in other countries more easily and successfully. Martin Bugelli, Head of the European Commission Representation in Malta, introduced the event and emphasised the crucial importance of keeping stakeholders informed about developments within the single market, whilst George Vella, President of the MBB, gave insight into the European Commission’s initiatives aimed at facilitating crossborder debt recovery in the single market. A presentation on pre-contractual issues and contract design was delivered by Hugh Ward, from Hugh J Ward & Co Solicitors in Ireland. Dr Ward gave a practical overview identifying parties to the contract and issuing credit checks, and rectifying potential data protection issues. The importance of

specifying payment periods was stressed, particularly in so far as the EU’s late payments directive. An overview on internal management and effective payment monitoring was delivered by Simon Camilleri, representing CreditInfo. Mr Camilleri explained basic safeguards a company should undertake before committing to trade with another business. Such safeguards can significantly cut down on the burden of having to initiate debt recovery procedures. This is particularly important due to the problematic effect late payments can have on cash flow, especially in small businesses. Domestic and EU enforcement procedures were delved into by Daniel Buttigieg and Adrian Attard from Fenech & Fenech Advocates. Dr Buttigieg and Dr Attard also explained the stepby-step process businesses can undertake in order to ensure a smooth recovery process. At the end of the seminar, an openpanel discussion with all the speakers was chaired by Josef Busuttil from the Malta Association of Credit Management. The seminar was very well attended and included the participation of the Ambassador for Ireland to Malta, H.E. Excellency Jim Hennessy and a number of MEP candidates.

BUSINESS AGENDA | march – may 2014

mbb update 28th January –

BusinessEurope Day

MBB on television, radio programmes 21st January –

MBB Executive Mark Seychell was invited to discuss cross-border business in the EU on Campus FM 103.7. The interview was featured on an information and news programme coordinated by the European Commission Representation in Malta. During the interview, Mr Seychell discussed the opportunities and challenges Maltese businesses encounter when operating in a European single market of over 500 million consumers. Cross border business is now a reality which businesses face every day. One only needs to compare trade statistics from 2004 to today in order to gauge the overwhelming success of our participation in the single market.

Among others, the high-level event was also addressed by José

In a brief intervention, the Malta Chamber Deputy President remarked that the BusinessEurope position on the European Industrial Compact was clear, decisive and well-timed. The Malta Chamber supported the

view that production in Europe has increasingly involved value chains stretching across countries, with each country specialising in one or several stages. In this regard, he recommended that Europe needed to ensure that peripheral regions and states were given a fair opportunity to make their contribution to European industry. This could be achieved through the adoption of the principle of common but differentiated responsibilities rather than the easy ‘one size fits all’ approach.

Director General, Kevin J. Borg

Deputy President and MBF Board Member Anton Borg

Head of Sectors Lino Mintoff

Malta Chamber Deputy President and MBF Board Member Anton Borg travelled to Brussels on 28th January for the first BusinessEurope Day where the Industrial Compact was presented to European Presidents Barroso and Schulz besides other dignitaries. On this occasion, Mr Borg was accompanied by Malta Chamber Director General Kevin J. Borg and Head of Sectors Lino Mintoff.

Manuel Barroso, President of the EU Commission, Martin Schulz, President of the European Parliament, Antonis Samaras, Prime Minister of Greece and President of European Council, and Antonia Tajani, Vice-President of the European Commission.

27th January –

MBB CEO Joe Tanti was invited to participate in a TV programme on One TV titled ‘One Breakfast’ along with Dr Peter Agius from the European Parliament Office. Mr Tanti spoke about the messages emanating from Maltese business as reflected in the Business Manifesto that was published in view of the European Parliament elections.

30th January –

MBB CEO Joe Tanti was interviewed on a radio programme produced by MEUSAC on EU affairs titled ‘Sehemna fl-Ewropa’. Mr Tanti highlighted the importance of EU funding for businesses and how these are beneficial for the growth and competitiveness of Maltese SMEs.

11th February –

Roundtable on financial 7th February – services and impact on local Business Experiences economy on EU Funding

The objectives, good use and existing shortcomings of EU funding were discussed by representatives of businesses with candidates for the European Parliament elections in a roundtable discussion organised by the European Parliament Office. The event was one of a series of similar discussions being held as part of an information campaign leading up to the elections in May. The discussion followed a brief overview on EU funding given by Geoffrey Saliba and Mark Seychell from the MBB, in which they referred to the various streams of funding available from which

Maltese enterprises have benefited so far. Hon. Ian Borg, Parliamentary Secretary for EU funds, referred to proposals made at EU level for a minimum portion of Structural Funds to be committed in favour of SMEs. Malta, he said, welcomes this proposal and the Government is exploring how best to ensure access to such funds. He also stressed the importance of diligent use of EU funds as the abuse of the few could tarnish the reputation of other beneficiaries. He called on business representative bodies to be proactive in flagging any misuse of funding opportunities.

Omar Cutajar, Permanent Delegate of the MBB in Brussels, moderated a roundtable debate on financial services during an event that was held at Europe House in Valletta. Following the economic crisis, decisions had to be taken to support the banking sector and eventually to ensure that the proper safeguards be put in place to avoid a similar meltdown in the future. This scenario

dominated the EU’s agenda over the last five years. Meanwhile, the banking sector in Malta remained relatively strong, thanks to a traditionally prudential approach and a solid regulatory framework, and the financial services industry in general was not badly hit compared to elsewhere in Europe, where governments had to step in to save ailing operators. Building on the success achieved in this field in the past 20 years, Malta has been

opposing proposals for a Financial Transaction Tax (FTT) and a Common Consolidated Corporate Tax Base (CCCTB). These were some of the issues discussed by financial services practitioners and MEP candidates. This event was one of a series of information events being organised by the European Parliament Office.

BUSINESS AGENDA | march – may 2014

mbb update 14th February –

24th and 26th February –

Launch of Maltese Business Manifesto

UK experts address Workshop on Food Labelling and Allergen Disclosure

The main bodies representing Maltese business launched a joint document which highlights their priorities and expectations in view of the European elections. In the presence of a good number of MEP candidates, they discussed the focus areas pointed out in the document. The need for better dialogue between stakeholders and MEPs stood out as a recurrent theme. It remains key for representatives of Maltese business in European fora to point out Malta's specific circumstance but, at the same

time, SMEs ought to draw on the existing opportunities and better exploit the potential of the European single market. The manifesto, entitled ‘We’re in business together’, was drawn up jointly by the Malta Chamber of Commerce, Enterprise, and Industry, MHRA, MEA, GRTU and MBB. MBB Vice President Mario Spiteri represented the MBB on the panel discussion at a business seminar that was coordinated by the European Parliament Office in Malta.

Recommendations put forward by the MBB highlighted ways through which the MEPs can improve the promotion of business interests in Europe. One recommendation is for them to have constant contact with business organisations to ensure that MEPs are up-to-date with what is currently at European Commission proposal stage, as well as with the position of Maltese business towards it. MEPs should also pursue better inter-parliamentary collaboration between the European Parliament and the shadow committees tasked with the equivalent scope of activities within the national House of Representatives. This would allow for a framework whereby the House of Representatives tasks elected MEPs with debriefings of the ongoing work in various European Parliament committees in order to ensure that the national Parliament is kept as up-to-date as possible.

6th march –

BusinessEurope Executive Committee Meeting Omar Cutajar, permanent delegate in Brussels attended BusinessEurope’s Executive Committee meeting. The meeting discussed competitiveness, growth and employment, international trade and the EP elections. The Executive Committee meeting also focused on a number of aspects that will be included in BusinessEurope’s message to the Spring Council on 20th-21st March 2014. BusinessEurope states that urgent action is

required to improve European competitiveness as a strong industrial base is essential for Europe’s recovery and long-term competitiveness, growth and job creation. The Executive Committee meeting also highlighted that BusinessEurope is calling on the European Council to endorse the goal of increasing the contribution of industry to 20 per cent of the EU GDP by 2020 and the European Union to urgently adopt an industrial compact, putting in place a 360° strategy to improve

industrial competitiveness and better integrate EU companies in international value chains. BusinessEurope’s message to the EU Spring Council stresses that industrial development is key to increase growth and employment in Europe. European companies count on the European Council to define an ambitious and comprehensive industrial competitiveness strategy and effective tools to ensure its proper implementation.

A new EU regulation on the provision of food information to consumers will change existing legislation on food labelling. This includes a requirement to state nutritional information on processed foods and the origin of unprocessed meat from pigs, sheep, goats and poultry. Under the new regulation it will also become mandatory to highlight allergens, such as peanuts or milk, in the lists of ingredients. Anticipating the changes, the MBB, in conjunction with the British High Commission, organised two practical workshop sessions aimed at educating and informing the hospitality sector and food importers. Lecturers and students from the Institute of Tourism Studies (ITS) also participated in the workshops. Operators had the opportunity to learn about the new food label-

ling requirements of the new EU regulation. The workshops also served to train the participants on how to handle allergens during the preparation, cooking and final presentation of freshly made meals. The workshops were organised with the support of the MHRA and ITS. Two senior food policy experts from the UK Food Standards Agency, Dr Chun-Han Chan and Tendy Lindsay, conducted the workshops. They led discussions on the new EU food safety rules and outlined ways to make mandatory information about all food allergens more accessible to customers. Dr Chan and Ms Lindsay also had the opportunity to meet senior officials from the Malta Tourism Authority and the Environment Health Directorate.

BUSINESS AGENDA | march – may 2014

mbb update 11th and 12th March –

Brussels Meeting – MBB CEO nominated on a Working Group on ‘Modernisation of Higher Education’ upcoming event 28th March –

EU Life+ End of Project Conference The EU LIFE+ Investing in Water Project is coming to a close in March. A preliminary assessment shows that enterprises collaborating with the project are collectively saving 118,000,000 litres of water every year – enough to operate two medium sized four-star hotels and a large factory. On 28th March, the project partners MBB, Malta Chamber and MHRA will hold a closing event that will be followed by a networking lunch. During the event, the project partners will announce the final figure of water savings throughout the project’s lifetime as well as other important project findings. Ministers Konrad Mizzi and Leo Brincat will be addressing the attendees.

For more information on the event contact EU Life+ Project Manager Geoffrey Saliba on T: 2125 1719 or E: gsaliba@mbb.org.mt

BUSINESS AGENDA | march – may 2014

business update

MBB CEO Joe Tanti was nominated on the European Commission Working Group on the modernisation of Higher Education. The activities of the working group will focus on modernisation of higher education under the strategic framework of ‘Education and Training 2020’. The

working group aimed at enabling policymakers, on the basis of country evidence, national and institutional good practices, to develop effective strategies for reforms and to identify the conditions needed for implementing them. Mr Tanti’s visit was funded by the European Commission.

MEDITERRANEAN BANK TAKING THE NEXT STEP INTO EUROPE MARK WATSON CEO In 2009, at a time when the word ‘bank’ was a dirty word worldwide, Mediterranean Bank was acquired by London-based private equity firm Anacap Financial Partners in Malta, a financial services specialist with over €1 billion in assets under management. Within less than five years Mediterranean Bank plc established itself locally in a particularly successful savers’ niche which has grown locally and expanded propitiously. A specialised bank with seven branches including a newly refurbished Gozo branch, Mediterranean Bank offers some of the most attractive savings products on the market while the high-tech e-banking and e-wealth system allows 24/7 access to accounts and a multitude of investment products from the world’s leading investment centres. This is further complemented by the friendly expertise of its 230 staff complement. Mediterranean Bank is now reinventing itself and taking the next step – in Europe. Mediterranean Bank Chief Executive Officer Mark Watson speaks about how this local bank has sought out a specific role in a particular market and how this model is now being positioned in a different format in the heart of Europe, Belgium. Mr Watson explains how Mediterranean Bank established its market presence, at a time when the global economic market was in total chaos, by positioning the bank to provide particular attractive products for the mass-market savers, introducing an e-banking system with total access to a number of investments and saving services through a low cost base. In only a few years of operation this succeeded in attracting a rapidly growing client-base. “We had a different strategy from that of local banks. What you find here in Malta are banks to which people go mostly to borrow – loans for houses and cars. We also looked at what the market had to offer and saw that there were a lot of traditional products being sold in the traditional way. We aimed at a different strategy. We sought those who already have some savings, not necessarily millions, across a wide swathe of the population and offered a sweep of attractive investment products in an innovative way of investing online.” Mr Watson says that the bank is very satisfied with the growth of these past four and a half years in

the local market, which has seen them open several branches with a staff complement of 250 – 230 of them in Malta. It has now been decided to take this model to the next step – abroad to Belgium. Describing the next step of the bank’s strategy, Mr Watson says, “having established ourselves rather well at a disastrous time when most were looking at banks with more than scepticism, and having achieved such fast growth with a client base that is constantly on the increase, we looked at what we have and asked ourselves what we can do with it.” “We built this operational capability in Malta efficiently, and this is still work-in-progress, and we realised that we can use it to support a business outside Malta. And that’s effectively what we’ve done.” In fact, last September Mediterranean Bank opened a branch in Belgium under the brand Medirect Bank online. “We gave it a different brand.”

“ What we positioned in Malta is an online base that attracts cost-efficient, transparent investment products.” “We are now using the Malta experience model and are taking that one step further where we offer suitable portfolio investment strategies online, and Belgium is the ideal place for this.” He clarifies further, “what we have in Malta is hybrid technology where the online possibility exists together with the chance to speak to our experts face to face. The Maltese are a bit sceptical vis-à-vis online investing and we have thus opened up six local branches where people can come to us and talk about their investments. If you look at our advertising campaigns they are all about the facility to work online, but with the possibility to interact with our staff and experts at our branches.” “What we have here is a very interesting hybrid model. The execution has been very strong and you find that customers, once they are introduced to the potential of online access, realise how valuable the service really is… and all that at no added cost. It’s not just your dynamic professionals who are

active, it’s also some of our older customers who previously we thought would have been highly conservative.” With regard to the Belgian initiative he explains that “it is a new business that we are talking about here. And it works very well for us in Belgium, where we do not have the physical presence that we have in Malta.” The choice of Belgium, Mr Watson insists, was obvious. He clarifies why. “Belgium is the home of online banking. Online banking has a big penetration there. It is 20 years ahead. You cannot even write out a cheque in Belgium! That just tells you how fast online banking has moved ahead.”

“Belgium is also a very rich country with €400 billion in deposits, an excellent banking system and the highest financial assets per household in Europe.” As he emphasises, “if you’re going somewhere with an online bank you choose somewhere where the facilities are already available and established.” According to Mr Watson, if you put all the ingredients together, the size of the country, the wealth, the banking technology, the regulatory aspect, etc, Belgium is an obvious choice. “We are a bank that goes after the mass affluent savings market and Belgium has a large proportion of people like that.”

Mr Watson speaks of a whole host of online and investment banks and services that are available in Belgium but that Medirect is in a position to introduce a new product.

“ The challenge is there, but Belgium makes a lot of sense for us and we are very happy with the reaction we have had and very encouraged by the response.” “It is a big step but not a ridiculous one. It is contained but the positive results are already there to be seen in such a short span of time since being launched.”

BUSINESS AGENDA | march – may 2014

business update

Global College Malta partners with Bluhull Group to promote its oil and gas education courses Global College Malta (GCM), the first tertiary education facility at SmartCity, has signed an agreement with Bluhull Group to partner on promoting GCM’s oil and gas related courses to Bluhull partners, stakeholders and staff. Bluhull believes in the importance of education, with oil and gas degree and post-graduate courses for professionals in the field taking centre-stage, by leading oil and gas educator Robert Gordon University (RGU) as its primary hub in the Mediterranean.

“ Global College Malta is delighted to be working with Bluhull and RGU to bring world-class oil and gas postgraduate education to the strategic location of Malta. The course, commencing in March, is of great significance to the region and Malta, particularly as Malta begins a new round of exploration in its territorial waters and should be a key factor in helping to meet the government’s objective of growing the provision of higher education to foreign students on the island.” – Brian Smart

three continents. Candidates are screened and interviewed to identify the right candidates for the right job. The founders provide Bluhull Group with over 25 years of valued reputation and experience in the industry with direct involvement on board drilling installations and marine vessels, project management and personnel management. Managing Director of Bluhull Group, Jonathan Borg says, “I

development of other capabilities in the industry such as rig stops, project support services and engineering provisions of design, human resources management and other specialist services. Having access to best practice and consulting through GCM will reinforce that position, as will a steady flow of graduates emerging from GCM’s advanced teaching facility. When you look at the Mediterranean today and see the drilling activities going

One of Bluhull’s most important missions is to promote higher education in the oil and gas sector. GCM sees the importance of cooperation with the local business sector and professionals in the field, which can lead to lasting value in numerous ways, such as supplying graduates to Bluhull or offering students of GCM’s degree courses internship within the company. These shared values and a keen understanding of the increasing importance of higher education in the industry led to the landmark agreement being signed. Robert Gordon University announced late last year that it is working in partnership with Global College Malta to deliver three of its oil and gas engineering courses. To be launched in March, the partnership agreement will see industry experts from RGU’s teaching staff travel to GCM to deliver an MSc Oil and Gas Engineering. GCM, which opened in September last year, is the first higher education establishment in SmartCity Malta and currently offers four British-style business and management related courses. Targeting students from Malta, Africa and the Middle East, the RGU courses will mirror the content delivered at RGU’s home campus in Aberdeen, Europe’s oil capital, and are tailored to reflect the latest industry demand, equipping the Malta-based students with the relevant skills and knowledge required for successful graduate employment within the oil and gas segment. The teaching programme will combine a mixture of on campus lectures delivered at GCM by RGU staff and distance learning. On completion of the courses, GCM students will graduate with an RGU degree certificate at a ceremony held on GCM’s campus. Brian Smart, Rector at Global College Malta said he was delighted to partner with Bluhull

“ Through Bluhull I want to secure Malta’s long-term presence in the development and growth of the oil and gas sector in terms of creating a regional hub for oil and gas investors, in various fields such as research and production, development of other capabilities in the industry such as rig stops, project support services and engineering provisions of design, human resources management and other specialist services.” – Jonathan Borg who have established a global business from their base in Malta: “GCM is delighted to be working with Bluhull and RGU to bring world-class oil and gas postgraduate education to the strategic location of Malta. The course, commencing in March, is of great significance to the region and Malta, particularly as Malta begins a new round of explora-

tion in its territorial waters and should be a key factor in helping to meet the government’s objective of growing the provision of higher education to foreign students on the island.” Bluhull Group is an expert in the Human Resources Management and Development areas of the oil and gas industry across

consider myself a link in a larger movement aiming to secure a responsible energy future through sustainable development with very high-quality education being at the heart of this philosophy. A key comparative differentiator for us is technology, in terms of equipment, research and implementation, which Bluhull Group brings into its operations. With Professor Smart’s impeccable credentials in the field and with GCM aligned to RGU, we feel this is the most viable route to securing global talent from the tertiary sector.” Mr Borg adds, “through Bluhull I want to secure Malta’s longterm presence in the development and growth of the oil and gas sector in terms of creating a regional hub for oil and gas investors, in various fields such as research and production,

on in our neighbouring countries and with the arrival of RGU on our doorstep, I cannot but think that Malta can be the centre of excellence in developing into a platform in exporting services to the oil and gas industry. We look forward to working closely with Professor Smart and his team.”

Bluhull Group, Orange Grove, Birbal Street, Balzan. T: 2144 5807; E: info@bluhullgroup.com; www.bluhullgroup.com

BUSINESS AGENDA | march – may 2014

analysis

Trade in the North African region in a post-revolution Arab world – an opportunity for Maltese business? The Mediterranean region has always been a politically and economically dynamic region. It has always been strategically important, being the key trade route between the European and North African markets. Despite its economic importance, its political volatility has long given the region a degree of uncertainty, with instability affecting commercial activities. MARK SEYCHELL looks at the challenges and opportunities affecting business in the post-revolution Arab world. The Mediterranean region is characterised by an eclectic mix of races and cultures of the people from the lands surrounding the Mediterranean Sea. It is the central motorway of transport, trade and cultural exchange between a diverse range of people, spanning from Southern Europe, Western Asia, and North Africa. Throughout history, it has proved to be one of the most dynamic regions in the world.

flict over the years, the most recent being the Arab Spring. The revolutionary wave of protests in the Arab world began in December 2010 in Tunisia. Over the months and years since, it has encompassed most of the Middle East and North African (MENA) region, and the budding democratisation process is still being contested in Libya, Egypt and most notoriously Syria, to the present day.

The Mediterranean has played the role of host to many a con-

In the light of recent upheavals that have characterised the

political landscape in the Arab countries, a new economic reality is unfolding in the Mediterranean region. This, in turn, is unveiling new challenges and opportunities for Maltese and European enterprises. Dr John C Grech, Chairman of FIMBank, a prominent player in the MENA market, believes that there are considerable challenges, but so are there potential rewards. “One of the biggest challenges is establishing the right environment to attract For-

eign Direct Investment (FDI) in the region,” he says. Dr Grech explains that “political stability will prove critical to putting potential investors’ minds at rest. Local legislators are well aware that attracting FDI is the way forward for future development. They need to strike the right balance between protecting indigenous industries and welcoming FDI. A healthy economy requires a balance of both local and foreign investment.”

Tonio Casapinta “The private sector is taking advantage of liberalisation by setting a boom in the sector and the market has become very competitive.” – Tonio Casapinta Tonio Casapinta, Chairman of the Malta Chamber’s Middle East Business Council (MEBC), believes that the volatility affecting the region can prove a stumbling block. In fact, companies looking to invest in the market in the medium to long term are looking to identify safe havens. “Political stability is becoming the single most important parameter for market selection,” Mr Casapinta asserts. “Where before the Arab Spring, business used to be mainly carried out with government entities,

BUSINESS AGENDA | march – may 2014

analysis “ Countries such as Libya have a huge potential, and these are markets to consider for the long term.” – Dr John C Grech now, the private sector is taking advantage of liberalisation by setting a boom in the sector and the market has become very competitive.” Dr Grech believes that Maltese and European companies willing to exploit this market would be prudent to partner up with local companies. This would ensure a certain level of knowledge transfer on the characteristics of the country and its economy which would enable a business to read the market well. Due to the prevailing lack of political stability in the region, Dr Grech says that “one must consider, however, that market trends are not always constant. There was a strong belief that post the Arab spring, the market would rapidly develop into an open market economy, but this was not the case.” Another reason for partnering with companies in the MENA

Dr John C Grech region is the different business culture that exists. This needs to be understood and appreciated in order to be successful. Such knowledge can give an edge over competitors. The reality is that the pace of economic reform is proceeding very slowly in North Africa and the Middle East,” claims Dr Grech, and “the influx of business did not materialise as one would have anticipated.” Despite this, Maltese businesses can

still exploit such opportunities to their benefit. Mr Casapinta believes that, “now is the time for new companies to establish themselves in these markets. Once normality is attained, they would ensure that they are well represented.” Several markets exist in which Maltese business can gain a firm foothold. “Countries such as Libya have a huge potential, and these are markets to consider for the long term,” affirms Dr Grech.

Mr Casapinta agrees, citing the most relevant emerging markets. “Apart from oil, there will be other sectors of strategic importance for the development of Libya, such as education, housing, transport, health, energy generation, telecommunications and water. These are expected to absorb the lion’s share of the Libyan government's budgets in the years to come.” Looking at all the factors that have to be taken into consider-

ation, one can appreciate the complications that can arise. This is why companies need to be able to make an informed decision on whether to compete in the MENA market or not. The Malta Chamber and the MEBC have taken steps in organising inter-business dialogue about Arab culture and the political situation in the region in order to set the ball rolling.

BUSINESS AGENDA | march – may 2014

eu policy

Looking beyond 2020: the new EU climate and energy framework Omar Cutajar, MBB’s Permanent Delegate in Brussels, reviews the EU’s new climate and energy framework The European Union is currently reassessing its policies on energy and climate change. This reassessment is being carried out in the wake of the impact that the economic crisis is leveraging on the price structures of energy supplies, the long-term competitiveness of industry and the upcoming international negotiations which should lead towards a global climate agreement at the end of 2015. A new EU framework on climate and energy, entitled the 2030 framework, was announced in late January. The main changes being proposed constitute a reduction in greenhouse gas (GHG) emissions by 40 per cent below the 1990 level as well as the adoption of an EU-wide bind-

andrew Vassallo A5

ing target for renewable energy of at least 27 per cent. This will be supported by renewed ambitions for energy efficiency policies and by a reinforced governance and monitoring system. Taking stock of the 20-20-20 targets by 2020 The new proposals build on the progress achieved to date towards meeting the infamous 2020 targets agreed back in 2007. These so called ‘20-2020’ include a 20 per cent reduction in emissions; an increase of 20 per cent of energy obtained from renewable sources and a 20 per cent increase in energy efficiency, all of which have to be secured by 2020. The European Commission reports that the EU is on track to meet its 2020 target

“ The Commission is now proposing a single renewable energy target at EU level, rather than individual targets for member states.” of reducing emissions by 20 per cent below 1990 levels. Despite this success, it remains clear that a number of member states need to make additional efforts to meet their national targets. On renewable energy, the EU has met its interim targets but, once again, more efforts will be needed from member states to reach the pre-agreed 20 per

cent target in 2020. Also, with regard to the 2020 target to achieve energy savings of 20 per cent in the EU’s primary energy consumption, the Commission reports that “significant prog-

ress has been made, despite the fact that this target is not legally binding,” for member states. New targets and a new time perspective There are a number of novel elements featured in the new EU 2030 energy and climate framework, some of which usher a change in approach from the current approach. The most notable departure is certainly in the ambit of renewables, where the Commission is now proposing a single renewable energy target at EU level, rather than individual targets for member states. In practice, this means that unlike in the current framework, the EU target for the share of renewable energy consumed in the EU would not be translated into national targets via EU legislation. Predictably, the Commission’s argument is that this is advantageous for member states since it affords greater flexibility to governments in opting for the most cost-effective means of achieving the right energy mix. For Malta, this is clearly a welcome policy development, given the inevitable constraints the country faces in generating renewable energy from less developed and therefore costlier technologies such as biomass and increased biofuel production. On renewables, the single target

BUSINESS AGENDA | march – may 2014

eu policy at an EU-level should help steer the Malta Government’s objective of investing in solar energy, this being the most cost-effective energy source in terms of return on investment and ease of roll-out for both household and industrial consumers. Equally welcome is the implication that increased flexibility for member states has to be inevitably combined with an increased emphasis on the need to complete the EU internal energy market. For a small isolated energy market such as Malta’s, the security of supply is of critical concern. Consequently, the interconnectivity with the European grid via the completion of the sub-marine interconnector with Sicily should be considered as the first cross-border infrastructural development. This, along with other long-term energy investments, will look to guarantee a secure and competitive energy market for economic operators. A new EU energy and climate policy approach respectful of industrial competitiveness The inception of an EU-level target for renewables will mean, according to the Commission’s own forecasts, that the share of renewable energy in the electricity sector would increase from the current 21 per cent to at least 30 per cent in 2030. To achieve these forecasted levels, the Directive on renewable energy sources will need to be substantially revised for the period post2020, if the announced target of 27 per cent of energy consumption is to be attained by 2030. Beyond the legislative changes, the achievement of this ambitious target can only be obtained with the appropriate public support schemes both at EU and national level. This would ensure that the capital investment costs in renewables are not detrimentally passed on to the final consumer. Needless to say, economic competitiveness depends, to a considerable extent, on energy pricing structures. In this regard, urgent action is required to alleviate industry from the excessive cost burden induced by spiralling utility costs. This is a common challenge for European industry, especially the more energyintensive sectors including the hospitality industry in Malta’s case. According to BusinessEurope, industrial electricity prices have risen by 37 per cent in the EU, in just seven years (20052012), compared to an overall fall of 4 per cent in the US, mainly due to the exploitation of shale gas resources across the Atlantic. However, the net result is that energy prices are making it considerably difficult for EUbased industries to compete on the global markets.

From a business perspective, it is therefore vital that the EU’s energy and climate framework for 2030 is construed on a continuous appraisal of its direct impact on competitiveness, including investment leakage and the price burden on economic operators. Particular attention should therefore be assigned to the international dimension to ensure that the EU continues to follow the most economically advantageous transition to a low-carbon economy. Industrial competitiveness should remain a core guiding principle in all forth-

coming legislative, regulatory and investment-related decisions that will need to be undertaken over the 2030 time-perspective. Maltese businesses hope that the lessons learned in the recent past by an over-ambitious EU climate and energy framework within the ambit of the failed international climate negotiations in Copenhagen, should now serve to better inform EU policy-makers on the right, balanced and competitiveness-friendly approach to a more sustainable and secure energy supply across the EU.

BUSINESS AGENDA | march – may 2014

business update

Elevated Floor Decking

Andrew Vassallo General Trading Ltd provides one of the best decking and raised flooring solutions used internationally. We offer real wood decking, porcelain stoneware tiles and also composite decking. Our Softline®System is a 100 per cent invisible fastening system for your wooden deck. We work with 6 kinds of wood, including Padouk, Ipe and teak, all guaranteed to last over 25 years. Our method of attaching slats or tiles onto the joists ensures durability and assurance of a smooth, perfect finish without splinters, for the pleasure of walking barefoot on wood. Also available is composite decking, which is an alternative to traditional wooden deck-

ing. It comes in a choice of various colours and three different profiles. The product is durable, easy to work with and has minimal expansion or contraction due to the weather. The fixings have been specially designed for ease of fitting, leaving a good, clean finished appearance. The decking requires no maintenance beyond cleaning, requires no staining or painting, and is resistant to the following: • Mould, mildew or fungi • Rotting, splintering or warping • Water and moisture • Insects Furthermore, we offer the Kronos Tecnica brand on order, which promotes the qualities of porcelain stoneware tiles with the promise of giving customers

GO launches new Business Duo Pack

a high level of professionalism, from raised floors to ventilated facades. Kronos reproduces the look of natural materials such as marble, natural stone and wood using porcelain stoneware. These systems are supported by polypropylene screw jacks which can take a load of one ton on each pedestal. They come in various adjustable heights enabling the finished floor levels to be levelled out with inner rooms. These are suitable for internal, external, domestic and industrial use. For more information about our products: T: 2169 2917; E: info@andrewvassallo.com; W: www.andrewvassallo. com; F: www.facebook.com/ andrewvassalloltd

GO plc, Malta’s first quad play telecommunications provider, is uniquely placed to offer bundles of services tailored to the specific needs of customers. GO’s limitless concept, which offers domestic customers access to mobile, telephone, internet and TV services for a reasonable monthly fee has been well received. A new Limitless Duo Pack plan, covering specifically phone and internet access was also launched recently. As part of its efforts to provide all of its customers with straightforward access to the services they need, GO also offers a Duo Pack plan specifically for businesses. This gives customers 500 free minutes to all GO numbers, while calls to all other local numbers are charged at 3 cents per minute. Calls to all mobiles cost 4.9 cents every 15 seconds. Business Duo Pack also includes limitless internet usage with a download speed of up to 20Mbps, including 20 e-mail boxes, anti-virus and anti-spam protection as well as 24/7 customer support. The GO Business Duo Pack is available from €33.90 per month.

Jonathan Said, Business Marketing manager at GO, said, “GO is constantly listening to the needs of all its clients, including business customers, and developing products which meet their needs. Business Duo Pack provides businesses with the phone and internet access they need at a great price. Bearing in mind that today’s businesses are dependent on our products to communicate, we are investing heavily to make sure that Maltese businesses continue to have access to the latest technology infrastructure, whilst employing specialised people and training them to assist our customers with all their telecommunications solutions.”

For more information call GO on our freephone or visit www. go.com.mt/buisness

Modern Shireburn relocates furniture for to SkyParks Business the outdoors Centre

Thinking of re-furbishing your pool area or café? This is the right time to check out our offers on contract furniture. With a wide range of products for the hospitality industry supplied by our partners Resol, we at Tabonedirect can surely revive your establishment and give it a more vibrant and modern look at an affordable price tag. From basic parasols to large hanging parasols complete with base, indoor or outdoor dining contract furniture, rattan or faux rattan and outdoor sunbeds, we can deliver the best one can buy. We also offer a vast range of banqueting furniture, including folding tables and chairs, trolleys and more. This season, we will be

introducing new parasol models such as the Tulip Parasol, which opens oppositely to what we are used to, giving a new modern dimension to your outdoor area. From the sophisticated and elegant poly rattan range to the lower budget Injected Rattan range, you will surely find the best solution for the refurbishment of your outdoor space while keeping within your budget. We’ve recently introduced new gas BBQ models which are very sleek and modern, including basic two-burner ones to full style three-burner BBQs with additional side burners, all at very reasonable rates.

Tabone Enterprises (Malta) Ltd. Mriehel Industrial Estate, Triq L-Imprendituri. T: 2144 3193. Visit www.tabonedirect.com or www.resol.es for the full contract range.

Shireburn Software has relocated to the SkyParks Business Centre at Malta International Airport as of 24th February. The state-of-the-art and environmentally friendly new offices will facilitate the further expansion of the Shireburn team as more resources are employed to continue to lead the local market with business software solutions and to further invest in the international market. “It is with great satisfaction that we begin a new chapter in our 30-year history with our move to a top-grade working environment, in what is regarded to be the leading business address in Malta,” explains John de Giorgio, Managing Director of Shireburn Software. “Our stay in Ta’ Xbiex has been a memorable one but this move will enable us to expand the 35-strong team at Shireburn Software, whilst also developing new markets. We look forward to reaching new milestones at our new SkyParks offices and to welcoming our clients and suppliers to our new home.” The SkyParks Business Centre offers what is considered to be the highest standard of office

accommodation in Malta with Malta's first BREEAM certified Grade A environmentally sensitive offices, an important consideration for a company such as Shireburn which is conscious of its environmental footprint. SkyParks also offers a set of facilities and amenities for staff to make their working environment as convenient as possible. Shireburn Software leads the local market with practical business software solutions and an excellent reputation for software support. Its solutions include accounting, inventory, retail and point-of-sale solutions, payroll

and HR, an integrated eCommerce solution, a business intelligence offering and a document management system among others. Shireburn has also made its mark internationally on more than one occasion, and is currently successfully marketing globally a world-first solution for airports to manage their nonaviation sector revenues.

Shireburn Software Ltd, SkyParks Business Centre, Level 3, Malta International Airport, Luqa. T: 2131 9977; E: rebecca.vassallo@shireburn.com

BUSINESS AGENDA | march – may 2014

environment

businesses and hotels saving 118,000,000 litres of water yearly A preliminary exercise verifying savings by industry show that a sample of the businesses and hotels collaborating with the MBB’s EU LIFE+ Investing in Water Project are saving a staggering 118,000,000 litres of water every year. The savings are a result of upgrades carried out by businesses and hotels over the past year. These include installation by the Seabank Hotel of a sewage treatment plant, where treated water is used for second class purposes, the installation by Trelleborg Sealing Solutions Malta of a process waste-water recycling plant, rainwater harvesting by Bank of Valletta, installation of flow rate valves in wash hand basins and replacement of showers in the Corinthia Palace, Marina Hotel at the Corinthia Beach Resort and The Corinthia Hotel – St George’s Bay, and toilet flushing volume reduction by the Rafael Spinola Hotel, among others. The amount of water being saved is enough to meet all the water

needs of two medium sized fourstar hotels and a large factory. MBB Project Manager Geoffrey Saliba says that “constant innovations and decrease in cost of technology are allowing industry to become more efficient and effective in its water consumption. A considerable body of knowledge has been built by industry leaders on which technology works best in which circumstances – sharing this knowledge base widely is allowing industry to reduce its consumption significantly.”

water, Malta's only natural source of freshwater, with over 50 per cent more groundwater being extracted every year than is sustainable. Yet groundwater is relied upon by various sectors, with treated groundwater also forming part of the tap water provided by the Water Services Corporation.

The project audited enterprises’ systems, identified their water saving potential and made recommendations on how to increase efficiency based on existing best practice. Training was also provided to technical staff on the most attractive water saving solutions.

“Tackling the threats facing Malta’s groundwater requires all stakeholders to take action. Industry and hotels proved that there are practical and economically feasible water saving solutions. The very large volume of water being saved shows that demand management can be an important tool to counter water scarcity, ensuring that consumption is as efficient as possible,” argues water treatment engineer Marco Cremona, who was engaged by the MBB for this project.

Efficient use of water is particularly important for Malta – one of the world's top ten water scarce countries. Water scarcity has led to over-exploitation of ground-

The 118,000,000 litres of annual water savings result from the first set of enterprises for which the project has verified savings. The project is currently verifying

Testing the flow – businesses and hotels collaborating with the MBB’s EU LIFE+ Investing in Water Project are saving 118,000,000 litres of water every year. This figure is expected to increase as more enterprises savings are verified. Photo by MBB.

savings for another set of enterprises, and project partners the MBB, Malta Chamber and MHRA expect this figure to increase significantly by the end of March. Successful case studies of water saving enterprises and details of the most attractive water saving solutions for industry may be viewed at www.investinginwater. org

The MBB’s EU LIFE+ Investing in Water Project receives 50 per cent co-financing under the European Community’s LIFE funding programme, with the Ministry responsible the environment as the main co-financier, further co-financing and sponsorship from Easydry Malta, APS Bank, Island Hotels Group and MSV LIFE.

BUSINESS AGENDA | march – may 2014