BUSINESS AGENDA Issue 21

THIS ISSUE

NEWSPAPER POST

Issue 21 | WINTER 2014 /2015

business agenda

FESTIVE SEASON The run up to Christmas is hectic, but it also provides time for you to take a break in celebration of your 2014 successes. Here’s how to take a load off in the coming weeks.

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INTERVIEW

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Stefano Mallia, Vice President of the Employers’ Group within the European Economic and Social Committee, talks about the committee’s role and its ability to bring about change.

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TOURISM A look at Malta’s cruise liner industry during 2014, which is expected to be a ‘record year’ of cruise liner passengers.

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HUMAN RESOURCES A discussion with stakeholders from the business and youth sectors on the current reality of low skilled youths in Malta and what measures are needed to help them integrate in the world of work.

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anniversary 2009

2009 2014 2014

THE Official Business publication of the Malta business Bureau

Business Agenda marks its fifth anniversary Business Agenda – a leading business title and the official business publication of the Malta Business Bureau published quarterly – is celebrating its fifth anniversary – an important milestone in the life of Business Agenda, as these five years have seen the publication grow in credibility, size and reputation.

Five years ago, the Malta Business Bureau – the official body that represents the interests of Maltese businesses in Brussels and provides regular information and assistance to Maltese businesses on business and EUrelated matters – and Content House Group – one of the leading media organisations in Malta – joined forces to create Business Agenda, with the aim of providing local businesses with a fresh

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and credible source of information on EU and business related matters.

Joe Tanti, Chief Executive Officer of the Malta Business Bureau, comments on the publication’s importance for Maltese businesses: “looking back, when I took over as CEO of the Malta Business Bureau in 2009, the Bureau’s development strategy was realigned primarily to strengthen the organisation’s own distinct identity, while focusing at the same time on the expansion of the services portfolio. Business Agenda was aimed at being a strategic element of the MBB’s evolving mission function, enabling the organisation to raise its profile and get closer to the business community. I am pleased to say that thanks to

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the hard work and enthusiasm of the team at MBB and Content House, Business Agenda has become a cutting-edge business publication with a difference, providing the latest business and EU-related news, analyses, features and interviews that are relevant to the Maltese business community.”

Jesmond Bonello, Managing Director of Content House Group, asserts that “this is an important milestone for Business Agenda.

We are very happy that after five years, Business Agenda has continued to grow and has become a strong leading business publica-

tion in the local market. I would like to thank all the team – both at Content House and at MBB – that works on Business Agenda as well as the hundreds of regular advertisers that believe in this successful project.”

Since the Malta Business Bureau is jointly owned by the Malta Chamber of Commerce, Enterprise and Industry as well as the Malta Hotels and Restaurants Association, Business Agenda is the only business publication that is distributed to all business sectors in Malta – be it retail, tourism and hospitality, services and the manufacturing industry.

“Enemalta will be reducing its debt by half” _ Energy Minister Konrad Mizzi

EUROPEAN AFFAIRS A closer look at the new College of EU Commissioners and their respective portfolios.

page 33

Energy Minister Konrad Mizzi speaks to Business Agenda about the Government’s strategy and initiatives aimed at developing Malta into an energy hub in the Mediterranean. As Government finalises the details in relation to Shanghai Electric Power’s equity in Enemalta, Minister

Mizzi proclaims that its impact on Enemalta’s as well as the national financial state of affairs will be a positive one: “the agreement means that Enemalta will be reducing its debt by half, placing the company on sound financial footing to invest in its infrastructure.”

Speaking of the reduction in tariffs for commercial entities as from 2015, Minister Mizzi comments that as announced in last year's budget, Malta had the second highest utility rates for industry – a scenario which hindered competitiveness and eroded profitability. “All busi-

nesses will be benefitting from a 25 per cent reduction of their electricity bills and 5 per cent on water, which will translate into a ¤50 million injection into the economy,” he asserts.

See full story on page 9.

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editorial

Increasing the take up of EU direct funds EU funds remain to this day among the most critical and sought-after means for businesses to finance projects and initiatives. The EU caters for two types of funds, each with its separate funding streams; indirect funding and direct funding.

Indirect funding can also take the form of financing for regular business investments. EU funds can be allocated to financial intermediaries such as banks to help SMEs source seed money, start up, expand, internationalise and transfer their businesses using equity financing and guarantees. An example of the latter is the JEREMIE loan guarantee administered by the Bank of Valletta.

Indirect funding can also be sourced through the Cohesion Policy programmes that are administered by national authorities. These are referred to as Structural Funds.

In Malta, several national authorities such as Malta Enterprise, the Malta Tourism Authority and the Employment and Training Corporation administer structural funds for training and re-training of employees, as well as offering financing models for expansion and internationalisation through the two main instru-

ments known as the European Social Fund (ESF) and the European Regional Development Fund (ERDF).

However, no pot of gold comes without hindrance. The major problem identified by beneficiaries and applicants of indirect funds lies in the plethora of paperwork that is required and the administrative burden that goes with it. In addition, the demand for these funding streams often exceeds the funds available and this leaves many applicants disappointed for not having benefitted from a grant. On this note, however, authorities must be commended for their admirable attempts to streamline access to structural funds.

Nevertheless, it is important that local businesses are not discouraged by bottlenecks in the slow reimbursement of locally administered funds and increase their efforts to tap into direct EU funds.

Direct funds consist of co-financing by the EU for business initiatives from various sectors, whose output addresses the European Commission’s policy objectives. These could range from (and are not limited to) innovative processes to technol-

ogy development, research and development to the green economy, education and more. The objective of the funds invested by the EU would be to help the beneficiary to become more competitive and through its initiative to potentially open new market opportunities.

There are a number of funding programmes that are centrally administered by the European Commission. Such funds include Horizon 2020, Creative Europe, LIFE+, COSME and Erasmus+, among others.

It is a well known fact that projects funded directly from the Commission are highly competitive to obtain, but are more straightforward in the application and implementation phases.

The Commission is usually also very efficient in the disbursement of the funds, which helps SMEs avoid cash flow problems.

Yet, the biggest challenge with direct EU funds in Malta is the lack of awareness of their existence within the business community. The second issue is that local SMEs require a lot of knowledge and training to be in a position to maximise on their limited resources in order to tap the right EU funding stream in

line with their project’s objectives.

The Malta Business Bureau has been very active over the past years, promoting the limitless opportunities provided by direct EU funds. Unfortunately however, we are very aware that the take-up of funds from local enterprises has been very low.

Aware of the pitfalls that SMEs find themselves in on numerous occasions when dealing with direct EU funding, the MBB had to act. In fact, we have recently been granted a European Social Fund project by the Planning and Priorities Coordination Division (PPCD) to train managers and executives from the private sector in a bid for them to obtain a better understanding of direct EU funding and put them in a position to develop strong and competitive proposals that would increase their chances of obtaining these funds.

Over the next 12 months, the MBB will be focusing and offering master classes on three of the most important EU Programmes: Horizon 2020, Creative Europe and Erasmus+.

Training will be delivered by the key experts of the Brussels based transnational partner, the European Projects Association

By Joe Tanti, Chief Executive Officer, MBB (EPA). As part of the training all participants will be expected to develop a simulated project proposal with the eventual intention of submitting it in ongoing EU calls. The most competitive proposals will be given further mentoring and training by the MBB and EPA during a study visit in Brussels that will take place in the latter of 2015.

More information will be available in due course on the MBB website www.mbb.org.mt

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.

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Malta Business Bureau

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Design: Nicholas Cutajar

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.

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BUSINESS AGENDA | WINTER 2014 / 2015

interview Interview with Stefano Mallia, a member of the European Economic and Social Committee

Further austerity or growth strategy: The EU still lacks a clear direction Since being appointed as a member of the European Economic and Social Committee four years ago, Stefano Mallia today occupies the role of Vice-President of the Employers’ Group. He speaks to Martina Said about his role within this official EU institution, his present projects and his commitment to helping Malta make the most of EU membership.

As Vice-President of the Employers’ Group within the European Economic and Social Committee (EESC), Stefano Mallia’s purpose is firm and clear. “The EESC is not as powerful as the European Parliament (EP),” he admits, “for the simple reason that the EP can take executive decisions while the EESC is a consultative body, but it still has the power to influence legislation.” Since embarking on this journey as a member of the committee four years ago, Mr Mallia has been driven by the desire to represent local business and to help facilitate change, and works primarily in the sections of external relations, internal market and economic and monetary affairs.

As an official institution of the European Union, established by the Treaty of Rome, the EESC represents social partners at a European level and is split into three groups: employers, unions and civil society. “The role of the committee is to give its opinion on a number of key areas of legislation and policy of the EU.

The European Parliament and the European Commission are obliged to consult with the EESC in a number of key areas of EU policy. The EESC studies the legislation being proposed by the Commission and gives its view as civil society or as social partners. The other institutions are obliged to take into account the committee’s views, which is why I emphasise with the local authorities and the constituted bodies that they should make more use of the EESC,” he explains. “It is not the be all and end all, but the EESC can influence the decisionmaking process within the EU.” Mr Mallia explains the process that the committee undertakes when reviewing a proposed legislation: “a study group of around 12 people is set up with members from all three groups, and hosts a number of meetings and discussions, drafts a report and sends it to the relevant section within the committee, such as internal market, transport or external policy.

The members within the relevant section can then propose amend-

ments to the draft which are then discussed and voted upon. This amended version of the Opinion is then presented at plenary where all 353 members of the EESC vote whether such an Opinion is to be accepted or not. Once approved the report becomes an official Opinion of the EESC and it is passed on to the other EU institutions, namely the Commission, the European Parliament and the Council for their consideration.”

While the committee’s opinion is still in the process of discussion, Mr Mallia makes it a point to touch base with Malta’s Permanent Representation to the European Union as well as national employer bodies for their views on the topic at hand. “The aim is to obtain various perspectives, what they favour and what they are against, and then it is up to me to push for change with their propositions in mind, propose amendments and defend the amendments,” he says. “We do not have support staff in Malta, and work in the committee is very time-consuming, so a clear line

of communication with other bodies is very important to me.” It is also, however, one of Mr Mallia’s chief challenges.

“Often enough, in Malta we get to know about a decision taken at EU level when it is too late to influence it. So we, together with the MEPs alert Government and employer bodies of upcoming proposals to try and influence the process and make it benefit us too.”

“Communication with local entities is my greatest challenge, but it is also my prime responsibility, which is why I give presentations when I’m in Malta, predominantly to employer bodies, on current issues being discussed within the committee,” he argues. “Often

enough, in Malta we get to know about a decision taken at EU level when it is too late to influence it.

So we, together with the MEPs alert Government and employer bodies of upcoming proposals to try and influence the process and make it benefit us too. The agenda at EU level is not always at par with the national agenda, which is a challenge, but communication has improved and so has awareness of the EESC.” Being solely a consultative body, Mr Mallia says that individuals will have most influence, and can make themselves most relevant, if they act as rapporteur of a report or opinion, as they are the ones who set the tone of a report; thoroughly researching it, writing it and defending it when the time comes. “With this in mind, I always try to be rapporteur on issues that are of relevance to Malta and employers, such as immigration and EU funding. I was involved in writing one of the recent opinions of the EESC on the subject of immigration, together with a Greek member, but rather

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INTERVIEW

than doing things the formal way, we went out of our way to make it as factual and relevant as possible,” he explains. “We went on a Frontex night mission out at sea,

visited detention centres and spoke to Maltese and Greek authorities to get varied view points on the matter.”

occurred, where close to 400 immigrants died at sea, making the discussion that much more poignant. “You might ask what came out of it – well, we helped influence the process, influence decisions being taken on the matter.”

there are rules of the game which must be clarified and respected.

There was and still is a lot of strong sentiment against online gaming, with a number of members within the EESC expressing the view that it is anti-social, addictive and could endanger

He says that speaking to people in detention centres sensitised him somewhat, and it so happened that when the time came around to vote for the report in plenary, the Lampedusa tragedy had just

Among a number of other issues he fronted as rapporteur within the committee was that of online gaming, which proved to be a baptism of fire for him, early on in his involvement within the EESC. “Most of the member states want to restrict online gaming however

“I was involved in writing one of the recent opinions of the EESC on the subject of immigration, together with a Greek member, but rather than doing things the formal way, we went out of our way to make it as factual and relevant as possible.”

minors’ rights. Yet, I also understand that this kind of service online is safer than a ‘bricks and mortar’ casino, because there are many more controls and verifications online,” he says. “When many realised the rapporteur was Maltese they were quick to

say I was there to defend national interests, but in my role as rapporteur what I wanted to do was find a middle ground that was in the best interest of the European Union. What good would it be if the industry is forced to go underground? ” Among the most pertinent issues for Malta currently being discussed within the EESC, says Mr Mallia, are industrial policy and Europe’s direction in view of greater austerity or greater growth. On the former, he says “the future of industry is an ongoing debate both in Malta and across the EU, and the EU is trying to bring back to Europe some of the industry that has moved to Asia by providing better working conditions and technology.”

On the other hand, the issue of whether Europe should engage in further austerity or growth, he says, is still lacking direction at EU level. To contribute to the debate on a local level, Mr Mallia did, however, organise a conference in Malta on behalf of the EESC on the matter last year, where members from different member states recounted the experiences their countries are facing in view of the financial crisis, enabling Maltese and foreign employers and bodies to learn from each other’s knowledge.

On a personal level, Mr Mallia has decided to fully focus on his role within the EESC following his involvement in the MEP elections earlier this year. “After going through it once, I have taken the decision to not continue in politics. I joined the political fray driven by the fact that I want to contribute towards the development of my country. If I had to be honest I did not feel entirely comfortable in the political environment. I will be working towards ensuring that Malta continues to make a success of EU membership through institutions such as the Chamber of Commerce, the EESC and other similar fora,” he concludes. “I am driven by the fact that we are so small and have so few resources, that every resource we have must be used to push our national agenda. It is what other countries do, and we must do the same but with even more energy, focus and conviction due to our small size and numbers.”

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cover story

“The building blocks of our entire energy plan are falling into place”

Photo by Ray Attard

Much has been said about the Government’s vision to develop Malta into an energy hub in the Mediterranean.

Energy Minister Konrad Mizzi speaks to Sarah Micallef about the Government’s strategy and initiatives to achieve this objective, as well as milestones we can expect in relation to the energy sector in the coming year.

“Malta believes that the Mediterranean region offers an untapped potential in terms of oil and gas, and energy related services,” Energy Minister Konrad Mizzi asserts, pointing to the island’s strategic, geographical and neutral position. “The very idea of creating a Mediterranean Energy Platform is precisely to encourage more cooperation between

the Mediterranean countries.

This is a concept which was born in the Malta Energy Conference of July 2014, and is being explored further under the Italian Presidency and with the European Commission,” he says.

Outlining the Mediterranean region’s strategic location in terms of oil and gas services to

the EU, Minister Mizzi explains that not only is it located close to significant gas reserves (with the Eastern Mediterranean and North Africa currently considered prime gas sources); the Mediterranean region is also among the world’s busiest waterways for global shipping, facilitating trading and possessing a role that is expected to increase over

time. It is for these reasons, he maintains, that Government has forged tangible partnerships with Shanghai Electric Power and World Fuel Services to provide energy related services in the Mediterranean region.

As Government finalises the details in relation to Shanghai Electric Power’s equity in Enemalta,

Minister Mizzi proclaims that its impact on Enemalta’s as well as the national financial state of affairs will be a positive one. “The agreement means that Enemalta will be reducing its debt by half, placing the company on sound financial footing to invest in its infrastructure,” he maintains. With Enemalta no longer on the brink of bankruptcy, he states that both

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cover story

the company and the country can look forward to a brighter future: “we have drafted a seven year plan in which Enemalta has to return to profitability. The massive investment into Enemalta will create new opportunities for the company both in Europe and in the region.”

In recent weeks the Government was criticised for the delay in the building of the new gas power

station. Explaining that one of his main priorities was to analyse Enemalta’s finances upon the start of his tenure, Minister Mizzi asserts that his findings revealed a cash flow problem, extensive electricity theft as well as an inability to collect dues from utility bills aside from the known ¤840 million in debt. In order to tackle Enemalta’s financial problems, the Government embarked on attracting foreign investment.

“Foreign investment in Enemalta is now secure and Shanghai Electric Power will be acquiring 33 per cent equity in Enemalta – a majority stake in the BWSC along with the financing of the conversion to gas,” he states. “In this respect, it was critical to integrate the SEP plan to convert the BWSC plant to gas with the plans of Electrogas (Siemens, SOCAR, Gasol and GEM Holdings). We could have proceeded with the

implementation of the project or take time to secure a ¤320 million investment from a AAA company. We decided on the latter, which ensured we will have a sustainable Enemalta, reduced tariffs and security of supply.”

It has recently been announced that preparations for the closing and dismantling of the Marsa Power Station have been accelerated. When asked about this

state of affairs, Minister Mizzi maintains that despite promises by previous administrations that it would be closed down following investments at Delimara, it has remained in operation. “The problem I can think of for failing to close it down in the past is that to ensure security of supply, you need enough generation capacity equivalent to the largest plant.

This was never the case and the power station had to remain in operation,” he says.

“All the building blocks of our entire energy plan are falling into place, and once completed, we can safely say that we have placed Malta at the forefront of the regional energy infrastructure.”

So what has changed? “The energy plan we are implementing envisages security of supply and alternative energy mix. It is only due to the project we are spearheading that we can safely close down the Marsa power plant.” Speaking of the works in progress, the Energy Minister explains that works in the last couple of weeks have focused on dismantling the old plants, with the removal of HFO tanks visible behind the plant to commence in early 2015.

Moving on to the cable between Malta and Sicily, which will form part of the interconnec-

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cover story tion between the Maltese and European electricity networks, Minister Mizzi asserts that works are progressing well, following the commencement of laying the subsea cable at the end of December 2013. “Most of the 19-kilometre stretch of underground cables, from the landing point in Marina di Ragusa to the substation, has already been laid. Final trenching, laying and jointing works are expected to be completed in the coming months. In the meantime, at the Ragusa substation, Enemalta is also finalising the construction of its terminal station, including the installation of shunt reactors and other protection and control equipment,” he affirms.

Speaking of the reduction in tariffs for commercial entities as from 2015, as announced in last year’s budget, Minister Mizzi comments that Malta had the second highest utility rates for industry – a scenario which hindered competitiveness and eroded profitability. “As promised in our electoral manifesto, the reduction of utility tariffs was our main objective and all businesses will be benefitting from a 25 per cent reduction of their electricity bills and 5 per cent on water.

These reductions will translate into a ¤50 million injection into the economy. We believe that these reductions will trigger a strong multiplier effect which can transform our economy and

turn it into a stronger force in the Mediterranean region,” he maintains.

When asked about the Government's plans in relation to the EU’s Energy Efficiency Directive, Minister Mizzi highlights that the directive sets a target for energy savings by 2020 and puts the compliance responsibility on the State, which in turn has to engage with stakeholders and encourage cooperation. In addition, it lays out basic guidelines for improvements in all sectors of energy consumption, including an Energy Efficiency Obligation Scheme on distributors and retailers of energy; energy audits and management systems; consumer information programmes; qualification and accreditation schemes for auditors and suppliers of energy services; and energy performance contracting.

“The Government through MEH, SEWCU, MRA and other entities has already started with a programme of measures in order to make the implementation of this directive as effective and sustainable as possible. Moreover, some of the most important actions that are envisaged in the directive were already planned out in the energy roadmap of the present administration. The industry at large, SMEs, non SMEs and residential consumers will, in the coming months and years, be contacted or positively affected

through a variety of schemes and education campaigns in order to encourage the most efficient use of energy on the islands,” the Minister maintains.

“These reductions will translate into a €50 million injection into the economy.”

Lastly, asked about the Government’s priorities and milestones in relation to the energy sector for 2015, the Energy Minister reveals an ambitious list, naming the Shanghai Electric Power investment in Enemalta, the reduction in tariffs for businesses, the introduction of a solar farms policy, the plan for Enemed and the relocation of the Birzebbuga fuel depot, as well as new investments by Enemalta in partnership with SEP. “This is an exciting moment for Malta, for our people and for our businesses,” he says, “all the building blocks of our entire energy plan are falling into place, and once completed, we can safely say that we have placed Malta at the forefront of the regional energy infrastructure.”

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tourism

Cruising to success With the first nine months of this year attracting a substantial increase of 2.5 per cent more cruise passengers than during the same period in 2013, Malta is certainly doing something right in this sector. Jo Caruana discovers what’s working, as well as what can be done to boost the industry even further.

The 2014 cruise season has been a busy one for Malta, and one to be proud of. The number of passengers making their way to our island by sea is expected to be 510,000 on 305 cruise calls by the end of year, which is approximately a 7 per cent increase on 2013 – and that does not even include the arrivals into Gozo.

“Next year is also looking strong, with 520,000 people expected to arrive by cruise ship in 2015,” explains Stephen Xuereb, Chief Executive Officer of the Valletta Cruise Port.

“This is, in part, thanks to the island’s unique selling points. As highlighted by numerous passengers, cruise liners and seasoned captains, Valletta has one

of the most beautiful cruise ports in the world and that, in itself, is a draw,” he says.

here, and to then take its passengers off to explore the rest of the region.”

“In Malta you also have so much history concentrated in one area.

Across the whole island you can experience the history of humankind from the prehistoric until the modern age within a onehour radius. That is unique and people are drawn to it.”

Explaining other key aspects of Malta’s success as a cruise destination, Paul Bugeja, Chief Executive Officer of the Malta Tourism Authority, highlights that our offering is “not congested, but is well organised, efficient and well-kept.

The safety aspect is another key selling point. “Passengers come here and feel safe to explore the islands,” Mr Xuereb continues. “Plus, our unique position in the centre of the Mediterranean makes it relatively easy for a cruise line to start a western Mediterranean cruise or an eastern Mediterranean cruise

“The port also offers competitive berthing rates, short distances to sites and attractions for day visitors, as well as quick connectivity with the airport,” he says. “For ‘Cruise & Stay’ and home porting operations, Malta has also now established excellent flight connectivity with practically all main European airports, with a mix of

legacy and low cost airlines. This flight connectivity is crucial for further growth in these areas,

out by visitors as the favourite port of call on their cruise.

“At Valletta Cruise Port we believe that, in the long term, there should be improvements made in the port infrastructure so as to put us at the forefront to cater for the ever-increasing vessel sizes.” – Stephen Xuereb including those already in place with well established and internationally-renowned companies such as TUI Mein Schiff, Costa Crociere and other cruise lines.”

Mr Bugeja goes on to explain that in surveys published by different cruise line companies, Malta and the port of Valletta always score very highly and are often picked

“Meanwhile, another important factor in this sector is that the private companies that operate in this area are very professional,” he says. “They organise a variety of programmes that allow an efficient flow of visitors to different areas, sites and attractions in Valletta, Rabat, Mdina, the Cottonera region and, time permitting, also in Gozo.

Stephen Xuereb “Beyond that, the Maltese islands offer excellent value for money and, thanks to our small size, are also great value for visitors’ hours on shore. Little time is lost travelling between one attraction and another, which is something cruise passengers appreciate.

We have also been happy to note that many visitors do return for a longer stay in Malta after sampling it on a cruise. All of this has a knock-on effect to other sectors on the island – from transport companies to restaurants.”

But, despite Malta’s success in 2014, the cruise industry in general did take a hit in recent years – especially in relation to the Costa Concordia incident.

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TOURISM “That came as a big shock to the industry,” continues Mr Bugeja, who explains that that particular accident was then followed by smaller, less serious accidents, which instilled a fear of cruise holidays in many potential passengers. “This in turn reduced demand and forced many liners to lower their prices to fill their cabins, which had its own repercussions.

“Cruise line companies also became more cost conscious, and several liners re-designed their itineraries to save on fuel

"Our prime objective is to help set up more home porting operations, as well as to attract more longhaul markets."

– Paul Bugeja costs (by lessening cruising time from port to port). Thankfully, the industry has since recovered quite well and we have now seen an increase in cruise holidays

worldwide, as can be noted from international cruise statistics.

“Cruise line companies are, however, still very cost-conscious and Malta is suffering in this aspect, as some companies are preferring the shorter route to Tunisia, which, apart from the fiscal benefits of less fuel costs for the shorter route, also offers other fiscal benefits in terms of VAT (as cruise line companies can avoid paying VAT if they include a port outside the EU in their itinerary),” Mr Bugeja says.

As a result, and looking to the future, both Mr Xuereb and Mr Bugeja agree that there are aspects that need to be addressed to ensure Malta continues to enjoy success and increasing cruise passenger numbers.

“At Valletta Cruise Port we believe that, in the long term, there should be improvements made in the port infrastructure so as to put us at the forefront to cater for the ever-increasing vessel sizes,” Mr Xuereb says.

“We are also in discussions with

the Government about what can be done to further improve our facilities, even though the services provided by the Valletta Cruise Port are already well recognised internationally. So much so that, for three years running, we were nominated as the best turnaround port by the cruise lines.

“In terms of infrastructure, we are in discussions with the Government about how else to improve facilities in this area too. We are considering further increasing the lengths of the quays and, perhaps, looking into how to improve the ships’ manoeuvrability when entering through the breakwater in the Port of Valletta. We are also keen to ensure further support from the MTA and other stakeholders, because, ultimately, the biggest beneficiary from the cruise industry is the economy and the community at large.”

Paul Bugeja Mr Bugeja also has clear objectives in mind for the future.

“MTA’s, and our industry partners’ primary objective is to help set up more home porting operations,” he says. “They would be on the same lines as the successful Mein Schiff operations of the past few years, which, I am happy to say, have also been confirmed for 2015 and which will be starting earlier than usual (in April, instead of June).

“Plus, aside from our core markets like the UK and Germany, we’ll also be attracting long-haul markets like the US and Canada, China, Japan, India and Russia.

“With this in mind, the MTA, the Ministry for Tourism and other key stakeholders like Air Malta, the Malta International Airport and the cruise sector agents, are continuously in contact with cruise line companies, exploring ways to strengthen co-operation and grab opportunities as they come along.

“We will also be thinking beyond that to new and important prospects that will arise when the situation in North Africa stabilises.

We plan to cooperate greatly with countries on the North African coast, so that an important and exclusive new cruise itinerary can be developed to give Malta and its partners a competitive advantage on European cruise destinations,” he adds.

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FASHION

Suit up!

Choosing and wearing the appropriate outfit for work events could be a daunting task. Martina Said breaks down the dos and don’ts of dressing for business events ahead of the hectic festive season. you should own more than one. A classic dark suit is always a winner – nicely tailored with the correct fit, combined with a statement tie and polished shoes, but you could wear it every day at the office, so a change when attending an event would be refreshing both for yourself, and for those who see you often.

The closer we get to Christmas, it seems, the more our social calendars fill up with events to attend and people to network with. With this, in most cases, comes a sense of anxiety caused by a lacklustre wardrobe or simply not enough outfits for too many occasions.

Corporate events or straight-

the wrong reasons, and to avoid blending in by under-dressing.

If you are unsure of what other attendees will be wearing, ask around to ensure you are not the only one without a suit or misinterpreted the dress code on the invite. When in doubt, however, business casual is always a safe bet.

When invited to events that tend to emphasise culture or entertainment, you could afford to be a little more fashion forward by donning your favourite

after-work dos can often leave us feeling a little worked up, because striking a balance of smart but stylish is not always that easy.

The thing about networking outside the office is that it gives you a golden opportunity to meet new people beyond your immediate circle, but it is also a no man’s land when it comes to the dress code. Networking events are not the same as a formal meeting, therefore rigid dress code rules outside of the office do not really apply. However, it is up to the individual to dress up enough to make an impact – without going overboard so as not to stand out for all

colours and some stylish accessories, always keeping in mind to keep it tame and classy.

FOR HIM A suit is a wardrobe staple, especially for men in business, and if you tend to wear one often, then

When attending a business lunch, for instance, you could afford to tone it down somewhat and pair dark, smart jeans or trousers with a crisp button-down shirt.

There is no need to wear a tie – it would actually be better if you do not so as to keep the mood cool and casual – but a neat blazer to top it off together with a sleek pair of shoes will send just the right message of professionalism backed by a laid-back approach.

The dress code for a cocktail party tends to change a little – mainly for women though – and men are generally still required to wear a suit, but rather than opting for a black suit, change your look by donning a dark blue or grey one.

Subtle brown tweed has also made a comeback, and could be matched with a white shirt and burgundy tie. Small print or solid coloured ties are a better choice for an evening cocktail party, and add a matching pocket square for a finishing touch.

ever, mix and match dark corporate colours with a few of your own favourite ones wherever possible, such as a dark blue trouser suit with a mustard blouse, or black trousers with a cream blouse and solid colour blazer.

If you will be heading to the nearest bar after work, then this is the right time to adjust your daytime look a little without needing to head home and change from head to toe. The look for men is quite simple – lose your jacket, roll up your shirt sleeves twice and loosen your tie a little for a laid-back feel. You could also replace your suit jacket with a more casual cover-up, such as a stylish tank top or sport jacket.

If you are more into dresses than you are into trousers, however, there are a multitude of options that are appropriate for various business events. Be sure to choose a shape that works for your figure, and stick to a flattering palette of black, navy, dark green and grey. For smarter networking events, opt for delicate jewellery and keep it to a minimum, but finish off with a matching blazer and chic tote bag (which can take a few documents besides the bare essentials), and you should be good to go.

For her The choice of outfits for women – even in the world of business – is always more varied than it is for men.

Networking events could introduce you to your potential business partner or client, so you should be dressed to make a good impression. A nicely tailored suit or smart trousers with a blouse could just about do the trick, but be sure to opt for colours that you feel comfortable in. Avoid white or cream if you feel self-conscious in light colours, and remember that dark colours can never fail to please anyway. You should, how-

When attending a business lunch, you could afford to let loose a little with your choice of outfit – ditch the jacket, large handbag and formal heels and go for your favourite separates, such as a solid

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FASHION

Deciphering Dress Codes How often have you been invited to a business do which stipulates a dress code that does nothing other than confuse you? Here are some of the most common dress codes, deciphered: Business Smart/Casual: This works for events during the day when guests are popping in from work to attend after-work events. It encourages guests to project a professional image while enjoying more casual clothing, and could include smart jeans, but worn with a smart blazer.

Business/Professional: Not all business events require a dress code, and for those that don’t – especially for the larger kind of networking seminars – which could involve overseas guests and lots of attendees, it is safest to assume a smart and professional dress code, namely a suit and tie for the men, and a skirt or trouser suit for women.

colour pencil skirt teamed with a printed blouse, and seal the deal with a pretty pair of heels and a smaller pouch bag.

For the cocktail events, a dress is always a good option, but be sure to wear one that exposes just the right amount of skin, therefore avoid plunging necklines, low backs, short hemlines and overly tight dresses. A classic cut that

tends to flatter any woman’s figure is the sleeveless dress with a boat neckline, fitted waist and A-line skirt – it tends to work best in solid colours that look good at night, such as shades of red, blue and grey, rather than fussy prints.

Team this look with open-toed shoes, a neat clutch and some eye-catching jewellery, and prepare to mingle.

Cocktail: This stipulates a glamorous, party type of outfit, which generally spells dresses for women (although for businessrelated cocktail parties, avoid too-short lengths) and dark suits with a tie for men.

Formal or Black Tie: Black tie simply means traditional elegance, and is a sliver smarter than the formal dress code. A black tie event calls for maximum effort, which is what the organisers do and expect their guests to do the same. This means tuxedos for men, and long dresses or dressy evening separates for women. With formal, below-the-knee formal dresses are accepted, but men still need to wear a suit.

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business update

CHIVAS

A NIGHT OF WHISKY, WATCHES, AND GOOD COMPANY: CHIVAS 12 ‘MADE FOR GENTLEMEN’ BY BREMONT LAUNCH PARTY

Craftsmanship, style and generosity are at the heart of the recent collaboration between Chivas Regal and award-winning British watch company Bremont.

Known for crafting beautifully engineered chronometers, Bremont has partnered with Chivas to design the latest Chivas 12 Made for Gentlemen by Bremont Limited Edition gift tin. To further commemorate this collaboration, 12 handcrafted Bremont Chivalry Limited Edition watches have been created exclusively to feature in auctions around the world to help raise funds for a

selection of charities. The handcrafted, individually numbered, timepieces feature a piece of oak cask used in the maturation of malt whiskies destined for Chivas, the signature of James and John Chivas etched on the rotor of the timepiece and the Chivas crest subtly embossed on the dial. An engraved copper plate, taken from a retired Scotch whisky copper still, sits on the leather presentation pouch.

On 24th October 2014, the first live auction event took place in Malta at VASCAS in Naxxar,

a leading Maltese jewellery retailer and the official agent for Bremont in Malta. Stephen Lee, Area Sales Manager for Bremont, brought watch ‘number seven’ to be auctioned on the night and remained present for the event. The evening, organised

by Farsons Beverage Imports Company Ltd and VASCAS Enterprises Ltd, was a great success, and raised ¤7,800 which will go towards The Malta Community Chest Fund. The organisation, headed by the President of the Republic of Malta, Marie Louise Coleiro-Preca, collects funds

for various philanthropic institutions. The organisers of the event will be meeting up with the President to present the donation in person. The Chivalry watch was auctioned by Pierre Grech Pillow from Obelisk Auctions Ltd following speeches by Mark Vassallo, Co-Director of VASCAS, Pierre Stafrace, General Manager for FBIC Ltd, and Stephen Lee from Bremont.

To mark the special occasion, Chivas cocktails were served throughout the night and included the signature Chivas-

Bremont cocktail, ‘The English Quaich’ to commemorate the collaboration. Food items, catered

by Zest, were carefully selected to accompany the three Chivas cocktails: the Cooler, the Chivalry and the English Quaich. At the end of the night guests were given goodie bags that included Chivas whisky stones, thus ending the perfect evening of whisky, watches and good company.

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Business News

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MBB Update 2nd October –

13th October –

MBB CLASSIFIED RUNNER-UP AT THE EUROPEAN ENTERPRISE PROMOTION AWARDS

MBB Project Manager awarded by European Projects Association

The MBB’s EU LIFE+ Investing in Water Project, which was implemented over 30 months between 2011 and 2014, classified as runner-up in the ‘Supporting the development of green markets and resource efficiency’ category at the 2014 European Enterprises Promotion Award held during the SME Assembly in Naples.

This was only the second time that a Maltese project has been

shortlisted since the start of this EU initiative nearly ten years ago. The project was led by the MBB in partnership with the Malta Chamber and the MHRA. By the project’s end, enterprises which had adopted water saving measures were saving an estimated 141 million litres of water every year – enough to supply the needs of two medium-sized four-star hotels and three large water consuming factories.

The winner of the category was a Portuguese project by the Agency for Investment and Foreign Trade of Portugal, Public Enterprise (AICEP) that implemented a project that resulted in greenhouse gas reduction.

The MBB’s participation was sponsored by the European Commission.

16th October –

MBB officials part of Malta Chamber’s delegation to THE European Parliament FOR Enterprises

MBB project manager Geoffrey Saliba was presented with an award by the European Projects Association for his role in managing the EU LIFE+ Investing in Water Project, at an awards event held at the European Parliament.

This is the fourth consecutive year that the European Projects Awards were held. The awards this year featured 12 examples of excellence in European projects, and rewarded personalities that contributed to the development of the European Union during the programming period 2007-2013.

won the 2014 National Enterprise Support Awards, and classified as runner up in the 'green markets and resource efficiency' category at the European Enterprise Promotion Awards, which was organised by the European Commission.” He also reiterated the MBB’s commitment to continue maximising on EU funding opportunities by submitting new projects, which would benefit the local private sector, the environment and the economy at large.

Mr Saliba was acknowledged for his management and communications role in the successful implementation of the project.

MBB CEO Joe Tanti said “this award comes after the MBB

21st-22nd October –

MBB CEO participated in a round table debate at a CEDEFOP workshop in Thessaloniki MBB CEO Joe Tanti participated in a round table debate on emerging new roles of training providers at a CEDEFOP workshop. The event was entitled ‘Designing, implementing and supporting effective work-based learning in continuing vocational education and training’.

MBB President Mario Spiteri, CEO Joe Tanti and Permanent Delegate Omar Cutajar, accompanied the Malta Chamber delegation at the European Parliament for Enterprises in Brussels.

The Maltese delegation was led

by Deputy President Anton Borg and also included members of the Chamber’s Council and Board of Management.

Mr Borg addressed the plenary meeting of the European Parliament of Enterprises. During his intervention, which focused

on the needs of island states and regions, he explained that the external dependencies and remote insularities of island states and regions such as Malta seriously hamper the capability of such countries to be competitive.

to address certain inherent disadvantages.

He appealed for the adoption of the principle of common but differentiated responsibilities, rather than a ‘one-size-fits-all’ approach, so as to recognise differences between countries’ economic and technical capacity

The meeting was organised by the Maltese employers' representative, Stefano Mallia.

During the same visit, the delegation met with the Employers’ Group President of the European Economic and Social Committee (EESC), Jacek Krawczyk.

This visit was partly sponsored by the European Parliament Office in Malta

With the role of training providers continuously changing and expanding, they are becoming more involved in collaborating with employers in the design of training. Trainers therefore have a key role to reinforce the quality of training and its ability to meet job requirements and firms’ specific needs.

The workshop event was addressed to European and national policy-makers, including social partners and other key stakeholders working in the field

of continuing vocational education and training (CVET) such as human resources managers, training providers and researchers. The workshop focused on the effective use of work-based learning in CVET in firms, and how this can be supported through public policies and different modes of governance. It aimed to share new knowledge and practical experience in WBL for adults, to discuss their implications for policy and practice, and to inspire action.

Mr Tanti was also invited to moderate one of the workshops entitled, ‘The emerging new roles of training providers’.

Mr Tanti’s visit was sponsored

by CEDEFOP.

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mbb update 23rd October –

24th October –

SME WEEK 2014: BUSINESS SEMINAR ON START UPS AND CROWDFUNDING

MBB CEO participates in panel debate on Access to Finance seminar

Vanessa MacDonald, editor of The Business Observer, moderated the panel debates with the participation of other speakers including Dr Alexandra Bush from ISIS Innovation – the commercialisation arm of Oxford University, George Vella from the Malta Business Bureau, Tyron Lloyd Baron from Inbound Muse – a local start-up, and Kris Micallef who has funded a project through crowdfunding.

The MBB and the Ministry for the Economy, Investment and Small Business organised a business seminar on start-ups and crowdfunding as part of the 2014 SME Week activities.

Among other key note speakers, Oliver Gajda, President of the European Crowdfunding Network, addressed the seminar.

Mr Gajda discussed the surge of crowdfunding in recent years and how this offered an alternative financing means to start-ups and SMEs at a time when the credit market was slowly recovering from the economic crisis.

The presentation was given in the context of a debate aimed to explore Malta’s potential to attract and nurture start-ups, particularly through business

incubation. It then discussed how crowdfunding can serve as a financing instrument to finance innovative and creative projects that usually find it hard to secure traditional financing such as bank loans.

The seminar was first addressed

by Ing. Ray Muscat, who took stock of the start-up offering in Malta and put forward policy recommendations on frameworks as well as incentives required in order to increase Malta’s potential in becoming a regional start-up hub. Dr Anton Bartolo discussed the role of business incubators, particularly of the University of Malta’s Take Off incubator, to support and direct innovative start-ups in setting off to the right business direction.

In the introductory note, MBB President Mario Spiteri made a case for the need of varied financing instruments in Malta.

“While crowdfunding is buzzing all over Europe, in Malta, it is still rather dormant. Very few have so far sought to use crowdfunding to finance their business initiatives,” he said. “The Malta Business Bureau believes now is the opportune time to put this instrument on the local credit map and discuss how it can further support enterprises in Malta,” he continued.

The event was also addressed by the Minister for the Economy, Chris Cardona. He noted that “crowdfunding is certainly intriguing – not just because it can be used for market research, financing or marketing. It works at an emotional level too, with funders becoming ambassadors for the project or business they support. And, let’s face it, where a funder brings business skills as well as finance that is to be welcomed too.”

MBB CEO Joe Tanti was invited to participate in a panel debate during a business seminar hosted by the European Commission Representation in Malta. In this session businesses and public officials received information on the EU financial instruments and had an exchange of views on the situation of access to finance in Malta.

In his intervention, Mr Tanti talked about the MBB report published last year on Market

Gaps in Access to Finance, which for instance highlighted that 72 per cent of SMEs in the start-up phase are currently using ‘traditional’ lending products such as loans and overdrafts when these are not necessarily the best solution for companies that are going through their stage of development. 30 per cent of local enterprises also said that they found it difficult to raise the finance required to further their development.

27th October –

Information session on The SME Instrument

The MBB co-organised a business seminar with the Malta Chamber and the European Commission Representation in Malta with the objective of providing information on the current EU funding and technical assistance opportunities for innovative start-ups and SMEs, particularly through ‘The SME Instrument’.

Pierre Roubaud, Head of Sector Coaching, Reporting and Stakeholders from EASME gave an interactive presentation on the opportunities offered under the SME Instrument through which innovative start-up companies can initially benefit from.

Dr Joanna Drake gave a general overview of the EU financing programmes for SMEs and showcased the European Commission’s initiatives over the last programming period. She reiterated the Commission’s commitment to continue supporting SMEs and explained how enterprises can benefit from future programmes.

Malta Chamber’s Deputy President Anton Borg set off the discussion with a presentation on the need to set up an innovation, research and development strategy for innovative start-ups in Malta. The seminar was also addressed by the Parliamentary Secretary for EU Funds, Ian Borg.

Concluding the event, MBB President Mario Spiteri said that the EU, hand in hand with business organisations, should do more to help businesses understand the nature of EU funds and how best they can be put to use. He augured that more local SMEs put effort in developing innovative initiatives and successfully manage to receive funding to implement projects that in the absence of such capital would be very difficult to implement. The session was chaired by Mr Peter Sant from the Malta Chamber.

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mbb update 28th October –

MBB bid to implement European Social Fund project approved Over the next 12 months, the MBB will be implementing a European Social Fund Project 4.245 entitled ‘Innovation Leaders: Improving Knowledge on EU Direct Funds'.

The project has been awarded to the MBB following an open call for applications issued under the Operational Programme II Priority Axis 4, programming period 2007-2013.

The project’s objective is to increase the capacity building within companies by training managers from the private sector to tap direct EU funds. The MBB,

in partnership with the Brusselsbased European Projects Association, will be organising intensive training programmes on three EU funding streams: Horizon 2020, Creative Europe and Erasmus+.

The training sessions will take place early in 2015. As part of this training, the participants would be expected to develop a detailed project proposal with the intention of submitting applications for EU funding. The most innovative proposals will receive further mentoring by the Malta Business

7th November –

Project Coordinator joins MBB The MBB is pleased to announce that Karla Chetcuti Bonavita has joined the MBB team as a Project Coordinator. Her role will be to oversee the implementation of the ESF Project 4.245 ‘Innovation Leaders: Improving Knowledge on EU Direct Funds’.

Ms Chetcuti Bonavita has extensive experience working in project management and co-ordination in the private sector. She has graduated from the University of Edinburgh with a Bachelor of Science.

Bureau and the European Projects Association.

More information on the ESF Project 4.245 ‘Innovation Leaders: Improving Knowledge on EU Direct Funds’ will be forthcoming by the MBB in the coming days. Any queries can be directed to the MBB on karla@ mbb.org.mt or 2125 1719.

4th November –

MBB President participates in Eurochambres panel debate in Brussels MBB President Mario Spiteri was invited to participate in a panel debate by Eurochambres.

Mr Spiteri shared his experience as an entrepreneur as well as his views on the challenges of SMEs to access finance.

The workshop’s objective was to come up with a set of recommendations for SMEs in general to improve their prospects

of accessing finance, and for national and EU institutions to set up a vision and introduce effective solutions for SME financing.

During his visit in Brussels, Mr Spiteri had the opportunity to hold other meetings with Ben Butters, a Director at Eurochambres; Christian de Barrin, Hotrec CEO; Therese de Liedekerke,

Managing Director at BUSINESSEUROPE; H.E. Marlene Bonnici, Malta’s Permanent Representative to the EU; and H.E. Ray Azzopardi, Malta’s Ambassador to Belgium.

Mr Spiteri was accompanied by the MBB Permanent Delegate Omar Cutajar.

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HUMAN RESOURCES

Bridging low skilled youths to businesses

With around 23 per cent of youths currently unemployed in the EU, education and life skills are key tools to allow them to take on opportunities and have a respectable standard of living. Daniel Debono discusses with stakeholders from the business and youth sectors the current reality of low skilled youths in Malta and what measures are needed to help them integrate in the world of work. market.

But should the incidence of low skilled youth be solely blamed on the failures of formal education?

While the economic crisis in recent years and slow recovery have contributed to the high levels of youth unemployment in the EU, one factor that should not go unnoticed is how more difficult it is for low skilled youths to be able to land a job in order to move forward in life, given this reality. As a result, youths, which should be the most productive segment of the population, are being left idle, with the conse-

quence of increasing pressures on the welfare system.

In order to address this situation, there is an evident need to first understand the factors keeping youths from obtaining sufficient skills and then assess what measures are required to offer a second opportunity that would make them more able and competitive.

It is also true that Malta has a lower rate of youth unemployment at 14 per cent; yet the island has one of the highest incidence of early school leavers at 22 per cent, compared to the EU’s 13 per cent. It is safe to say that the majority of early school leavers will be the ones with low or insufficient skills to meet the demands of the modern labour

Miriam Teuma, CEO of Agenzija Zghazagh, believes that a positive, supportive and encouraging home environment is crucial in the development of a young person's self-esteem and in fostering his or her abilities. “If we want young people with high level skills and competences, we have to try and strengthen their socio-economic environment

and foster a learning culture in their homes and communities as well as in the education and training system,” she states.

Miriam Teuma

Ms Teuma notes that, “while the education and training systems have the main role in ensuring effective transfer to the labour market, youth work and non-formal learning can play a positive role in supporting young people with low level skills in making the transition.”

“Young people with low level skills often are ill suited to the formal education and training system, they may have a history of low level achievement at school, may have left school early

and consequently have poor selfesteem, lack confidence in their abilities and find it more difficult than their peers to navigate the transition from childhood to adulthood,” she observes.

Assessing the situation of low skilled youths in Malta, Kevin J. Borg, Director General of the Malta Chamber, relates to the issues of skills mismatches and a very low attainment of basic skills and competencies, which is resulting in a very high early school-leaving rate. “Admittedly, over the last decade, the rate has gone down drastically. Yet we are also facing new challenges in relation to those youths who are not in education, employment, or training (NEET),” he says.

Mr Borg refers to the recently launched ‘Youth Guarantee Scheme’ and notes that this is a good way to counteract this phenomenon. “This initiative helps unemployed youths to either retrain or up-skill themselves.

Unfortunately the take-up has been very low. We must ascertain that these youths do not reach the age of 16 without the basic skills needed in life,” Mr Borg states.

Joe Tanti, CEO of the Malta Business Bureau notes that in spite of the schemes and initiatives launched by the authorities to reduce the incidence of early school leavers, unfortunately there will always be a number of students who decide to drop out of the educational system with no qualifications. The probability is that these same students have low skills and struggle to integrate in the world of work.

Joe Tanti According to Mr Tanti, “the authorities should not give up on their attempt to provide educational opportunities for these individuals, even outside the normal educational structures. This should be done in a more innovative and interactive manner.”

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HUMAN RESOURCES “I am certain that when low skilled youths come across the difficulties of the labour market, particularly at the low skill end, they would at least consider giving education another shot in order to improve their prospects for the future. Professional services such as mentoring, for instance, should therefore be in place to act immediately on this possibility,” he continues.

With private sector enterprises striving to retain competitiveness, what skills do they expect all employees to have, including those who do not necessarily have any qualifications? According to Mr Borg, “it is very clear that employers in general are not requesting specific technical expertise. Indeed several sectors and companies offer in-house or external training in this respect, so technical and specialised training can be a skill acquired on the job.”

“What employers tend to find lacking in new recruits is motivation, work ethic, and what are known as ‘soft skills’, which include communication and language skills, as well as personality traits, compared to the previous generation of workers,” he notes. Mr Borg expresses concern that unfortunately such skills cannot be gained at such a late stage in life as these need to be inculcated from day one and parents and educators have a strong role to play in this regard.

Making reference to Malta Chamber’s recently published Economic Vision for Malta, Mr Borg notes the point on ‘inculcating a culture of excellence’ across our population, as a new mind-set that is needed across the board. He also conveys the Chamber members’ fear that what has made us competitive in the past, namely our workforce flexibility and the excellent command and proficiency of the English language, have slowly eroded over the last decades.

On this subject, Mr Tanti states that businesses have a commercial activity to run and therefore expect their employees to dedicate their utmost for the enterprise to achieve its objectives.

“Two virtues that are expected from all employees, irrespective of their skill levels, are a positive attitude and loyalty. Employees should appreciate the risk taken by the employer to invest personal capital to run the business.

A negative attitude and lack of commitment will turn away clients and may risk the very workplace of the same employee.”

Ms Teuma sees an important role for the private sector in helping to bridge youths to businesses.

“The private sector needs to tailor its training and support to the particular environment in which it operates; be it the family, the community or the school. In the non-formal education sector, for instance, the private sector could provide appropriate work placements for young people that facilitate the development

tance. We are aware that there are many good employers in Malta that do so already, and the positive outcome in their business operations is very evident,” Mr Tanti notes.

and practical expression of their basic skills and competences,” she suggests.

On his part, Mr Tanti believes that the private sector has an important obligation towards its workforce and a good employer is expected to invest in the employees; first of all so that they can offer a value-added service to the business, but also to improve the career prospects of the individual, which in turn would keep them motivated.

Kevin J. Borg “Training and opportunities to move up the ladder – no matter at which level – within the company is of the utmost impor-

Mr Borg agrees that the private sector has a strong role to play in this respect. He refers to the German and Austrian models of the vocational education system that places work exposure at the heart of the learning process.

“The Malta Chamber believes that the current apprenticeship scheme needs a major overhaul.

Specific schemes for low-skilled youths are also warranted, but first and foremost we need to attract these youths back to school so that they can up-skill themselves. We cannot have thousands of inactive youths, especially given our ageing population. The Maltese economy does not have the luxury to lose these youths. Therefore the private sector is willing to collaborate with the authorities in any way,” Mr Borg concludes.

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EUROPEAN AFFAIRS

The new Juncker Commission: Will it ‘make it’ or ‘break it’?

By Omar Cutajar, MBB’s Permanent Delegate in Brussels The new European Commission headed by Jean Claude Juncker, officially took over the stewardship of the Commission as of 1st November following its successful endorsement by the European Parliament in a plenary vote on 22nd October. The resounding backing offered by MEPs strengthens the institutional credibility of the incoming Commission, whilst it lends a political legitimacy to the political mandate which President Juncker had already expounded through his political programme unveiled earlier on this summer.

“Breaking with past conventions, President Juncker has created the post of First VicePresident – a position occupied by Frans Timmermans.”

President Juncker’s new team comes in with significant expectations to deliver a new start to EU politics and deliver practical benefits to companies, workers and on a wider scale to the European citizenry. President Juncker is on record having stated that this is a ‘last-chance Commission’, whereby his primary concern is to win over the citizens, governments and social partners of Europe.

Significant efforts have been channelled to present the new Juncker Commission as a heavyweight Commission, composed of senior and experienced politicians from the EU member states. This enhanced political dimension is bound to rectify the perception that EU Commissioners in recent years were somehow reduced to being spokespersons flagging the policies and

repeating the mantras contrived by the overtly bureaucratic European civil service.

President Juncker has often stressed that his Commission will be ‘very political’, even publicly stating in his speech at the European Parliament prior to the investiture vote, that “all the Commission Directorate-Generals will have to obey to the orders of Commissioners, and not viceversa.”

New Structural Governance Beyond the political grandstanding, the new Commission is already acknowledged that for all intents and purposes it will focus much more than the outgoing

College, on better regulation and better law-making. This is the spirit underpinning the new governance structure of the European Commission.

Breaking with past conventions, President Juncker has created the post of First Vice-President – a position occupied by Frans Timmermans, who has already been billed as Mr Juncker’s righthand man and gate-keeper to the Commission President himself. Although the scope of Mr Timmerman’s position remains unclear, it is evident that in overseeing better regulation and inter-institutional relations, his functional perimeter is rather wide and encompasses a range of policy areas beyond the imme-

diate reach of his official portfolio.

Besides the position of First VicePresident, the new Commission structure envisages a total of seven vice-presidents, each leading a ‘project team’ mirroring a flagship priority of Juncker’s political guidelines: Energy Union; Jobs & Growth; Foreign Affairs; Digital Single Market; Euro & Social Dialogue and Budget & Human Resources.

This new structure has attracted considerable criticism and the occasional sceptical observation that it is bound to generate operational difficulties as a result of a ‘de facto’ new layer of governance, further fragmenting the

work and command chain within the College of Commissioners.

Inevitably, there are overlaps between the different portfolios and it is far from clear how coordination will work in practice.

From a business perspective, the potential pitfalls of such an approach are too evident not to miss! For instance, one sensitive area of risk lies with the governance of the Economic and Monetary Union (EMU); there are at least three Commissioners responsible for this remit: VP Valdis Dombrovskis (Euro & Social Dialogue), VP Jyrki Katainen (Jobs & Growth) and Pierre Moscovici (Economic & Financial Affairs). Another trouble spot could lie with the responsibilities

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EUROPEAN AFFAIRS entrusted to Elzbieta Bienkowska – Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, who will have her work coordinated by no less than four Vice-Presidents.

President Juncker has aptly countered criticism by claiming that the new governance structure does not create a hierarchy where Vice-Presidents would be super Commissioners, but that their role would be to ensure cohesion and coherence in their respective areas. Despite the evident merits of such a viewpoint,

the new structure is a doubleedged sword and whilst it could indeed focus the Commission’s work to keep it in line with President Juncker’s priorities, it could also create unnecessary havoc and consequently undermine the proper functioning of the EU’s executive arm.

Delivering on substance – the European Investment Plan The real litmus test for the Juncker Commission will ultimately be its ability to deliver.

The biggest expectation is on the

delivery of the so-called ‘Investment Package’ worth up to ¤300 billion, aimed to re-launch the EU economy whilst acting as palliative to the rigour of financial austerity that many are increasingly seeing as a dangerous spiral of permanent economic stagnation and structural unemployment.

Questions and doubts about the ‘Investment Package’ are plenty.

To start with, it is unclear how and from where the money will be put together. The package is meant to be a mix of public and private investments.

“The real litmus test for the Juncker Commission will ultimately be its ability to deliver.”

Clearly, the largest chunk will be derived from the EU budget itself, mostly from unspent funding lines but also critically from the European Investment Bank (EIB).

This will however depend on the member states’ will and ability to increase the EIB’s capital and the investment proposition that the EIB will put forward in order to entice private investors to partner on such new project initiatives mostly of a cross-border infrastructural and digital nature.

Responsibility for a swift delivery of this investment package has been delegated to VP Katainen and its adoption is expected already before the end of 2014.

Targeted public investments are desirable from a business perspective to create a multiplier effect and to generate consumer trust, thereby stimulating consumption. What is more important than simple public spending is however the efficiency and the quality rationale of the public investments at EU level. Conversely, public investments at member state level should focus on those structural factors that are considered the fundamental ingredients for ensuring sustainable growth in those sectors demonstrating clear, evidencedriven prospects for success. In practical terms, this means that in the case of the ICT industry, investment in broadband infrastructure is key but not enough for ensuring success.

In short, the new Juncker Commission has several daunting and pressing challenges in the immediate short-term, with the efficient testing of its own internal working structure, the launch of the so-called ‘European Investment Plan’ and the activation of a social dimension to EMU governance being the most oft-cited instances of such trials.

The first months of the Juncker Commission will therefore provide the first test-cases and early indicators as to whether the new Commission will either break it or make it in the long term.

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FESTIVE SEASON

Time to unwind

Photo by Paolo Meitre LIberatini - viewingmalta.com

The run up to Christmas may be hectic, but it also provides time for you to take a break and relax a little in celebration of your 2014 successes. Jo Caruana looks at the best ways for you to take a load off in the coming weeks.

Christmas is a time to relax and rejuvenate.

Now, I know what you are probably thinking: ‘what rubbish!

Christmas is a time for running around like a headless chicken and ticking madly at my to-do list, not relaxing and kicking-back.’

Indeed you are right. The stress-

ful thing about Christmas is that it feels like one long race towards 25th December – work backlogs to sort, shopping to do, events to attend and oh-so-many presents to wrap. But you do need to add one more item to that list, and that is you.

“You service your car every few months to keep it on the road, so how can you expect to keep working without servicing your body and mind at some point?”

Pat Vella, the spa manager at the Athenaeum within the Corinthia Palace Hotel & Spa, Attard, asks with a smile.

“It is extremely difficult to focus on anything, whether at work or home, if you are stressed. After a while, the body gets used to the chemical signals of stress and it gets more difficult for you to relax, which makes things even more challenging. So making time to relax is not a luxury but a necessity – and this time of year provides the ideal opportunity.”

“Making time to relax is not a luxury but a necessity – and this time of year provides the ideal opportunity.” – Pat Vella With spas in mind, a day of shameless pampering provides the ideal opportunity to switch your phone off, disconnect from technology and commit to some serious relaxation.

Before you dismiss the idea of the spa as too frivolous when compared to all the important things you need to do, think again. As Pat explains, stress is often associated with major health complications, such as heart disease, and therefore it must be addressed if you wish to move into 2015 with

the strength to achieve more success.

“When you experience anxiety, your body produces a lot of the stress hormone cortisol,” she says. “Having a massage, for instance, lowers cortisol levels and also gets rid of the muscle tension caused by anxiety disorders. Using massage on a regular basis creates a domino effect of positivity for your whole body.

It will help you to reduce stress, sleep better and focus more easily – which is hardly something that should be overlooked!”

Beauty specialist and owner at Alfie’s Hair and Beauty, Francesca Scerri Rizzo, agrees that Christmas gives the perfect excuse to rebalance body, mind and soul.

“Everyone needs a getaway at some point, and even a trip to the spa or salon can give your life the balance back. Therapists today offer an array of holistic therapies to release tension, help you destress and reenergise, which is especially handy during the busy festive season. It is important to book in with a therapist who will give you the privacy to discuss your needs and achieve what you really want out of the ses-

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FESTIVE SEASON “Even when your calendar is overflowing, make time for exercise. It could just be a walk along the seafront or a quick jog round the block.” sion – ideally with gentle music, light therapy and aromatherapy to help maximise the benefits of your ‘you time’.”

During this busy period, Francesca recommends that everyone should commit an hour-or-so each week to pampering themselves. It might not be salon time, but a swim in a heated pool, or a

long walk instead, but it is something that will ensure you stay on the right track.

“A good grooming session could also give you a boost,” she says with a smile. “This could be a new hairstyle to usher in the festive season, a fresh make-up look, or a facial. Even if you just give yourself an at-home pampering session, the time you invest will doubtlessly prove invaluable in ensuring you feel great throughout the festive season, and progress strongly into 2015.”

QUICK TIPS

for Instant Relaxation • Don’t feel like you have to do everything. Sometimes, even simply saying ‘no’ to an invitation, request or event will take the weight off your shoulders and free up some time in your schedule.

• Book a break. Giving yourself something exciting to look forward to will extend your holidays into the New Year. There are some great deals available on city breaks (especially to lesser known destinations), and a few days off from the world after the festive rush will do you a world of good.

• Even when your calendar is overflowing, make time for exercise. It could just be a walk along the seafront or a quick jog round the block, but your body will get a valuable boost of endorphins (the ‘happy hormone’) to help you feel great. Ideally, commit to exercising for at least half an hour three times a week. Yoga, pilates and tai chi are all good choices for this.

• Have some fun. In between all the things you have to do, it’s easy to forget the things you want to do. Each week in the run up to Christmas take a couple of hours off from the world to do something you really love – even if that’s just diving between the sheets and catching up on your favourite box-set. You deserve it!

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41 business update

Head of Global Banking & Markets at HSBC Bank Malta, James Woodeson on Malta Trade for Growth initiative Malta is at the cross roads of contrasting economies, cultures and natural environments. Its strategic location on the cusp of Europe and Africa has attracted visitors for years. Building on this unique geographical advantage, we launched the Malta Trade for Growth (MTFG) initiative to encourage Malta-based companies to expand their international business.

Through the initiative, we have offered a range of incentives specifically designed to help companies bolster their international portfolio. HSBC Malta’s drive to encourage and support international trade continues and we are actively considering a further multi-million injection to the initial ¤50 million MTFG fund.

Additionally, as an emerging markets-led and financingfocused business that provides tailored financial solutions to government, corporate and institutional clients worldwide, we at HSBC Global Banking and Markets serve our clients by teams that bring together relationship managers and product specialists to develop financial solutions that meet individual client needs.

Further, HSBC’s Capital Financing provides clients with a single integrated financing business, focused across a client’s capital structure, while HSBC’s Debt Capital Markets group takes a holistic approach to providing financing and related services to a broad range of corporate, financial institutions, and public sector clients globally in the developed and developing world.

Malta today is ranked as one of the most stable economies in the region. This is a result of a prudent, long-term vision of transforming the destiny of the country. Importantly, this vision has allowed Malta to serve as a reliable and trusted centre of excellence on the international stage for years to come.

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business update

Cleland & Souchet opens a new C&S WINE CAFÉ at MIA Cleland & Souchet, the leading lifestyle retailer and wine merchants, have opened their second C&S WINE CAFÉ outlet in the departure lounge of the Malta International Airport to rave reviews. They have designed their area with the same distinctive orange umbrellas and stylish bar counter as their original outlet in Portomaso, and they offer an incredible selection of their quality wines and tasty light meals. “We have tried to remain as close to our original C&S WINE CAFÉ concept as possible and we are delighted with the positive response from both local and foreign travellers at the airport,” declares Richard Cleland with a beaming smile. “Over the coming weeks, we shall be introducing a new range of healthy meals and non-alcoholic drinks in both outlets and we are look-

ing forward to the feedback of our clients.”

With over 20 quality wines and champagnes available by the glass and delicious fresh sushi and sashimi on the menu, the C&S WINE CAFÉ has certainly introduced an exciting new dimension to the catering available at the airport. Richard plans to open a third outlet next year in yet another prime location on the island which will make it easier for all to experience the flavours and service that are the trademark of the Cleland & Souchet brand.

Middlesea’s SME Insurance Policy

Quality recognition for restaurants Restaurants in Malta and Gozo can soon get recognised on a national level for their overall quality offer following the recently launched Malta Tourism Authority Quality Assured seal. This recognition scheme will also assist both locals and tourists in making an informed decision when selecting a place to eat.

Embarking or growing a business venture involves hard work, dedication and ongoing investment. Your hard earned achievements should be accompanied by an insurance policy to help to safeguard yourself, your enterprise and your employees.

Middlesea’s Insurance Policy for Small and Medium enterprises is a tailor-made and flexible insurance business solution to protect your business risks. It is ideal for restaurants, bars, offices, retail outlets and other service providers which provide a service from their premises.

The Middlesea SME policy includes a number of benefits to ensure your business is properly covered if something goes wrong. It provides cover for Prop-

erty, Stock and other Trade Contents, Public and Products Liability, Employers Liability, Loss of Income, Money and Personal Accident Cover, Fidelity Guarantee, Equipment Breakdown as well as an Annual Travel Cover for the insured or any other employees. The SME Policy also includes as standard cover, the Business Emergency Assistance to cater for all your emergency needs 24 hours a day 7 days a week through our Call Centre.

For more information call us on 2124 6262 or contact any of our authorised intermediaries. You may also visit our website at www.middlesea.com.

Middlesea Insurance p.l.c. (C-5553) is licensed by MFSA.

The criteria were developed following extensive research and consultation with MHRA, the industry and Visit Scotland.

The latter are also involved in training the mystery guests who will be assessing the restaurants. The criteria cover quality of food, service, hospitality and ambience, together with less visible aspects of the restaurant.

The QA seal is assessed through a system of points which takes into consideration the budget category of the restaurant, thus allowing all classes of restaurants the opportunity to be recognised.

Restaurants will gain extensively from this initiative – both structured feedback from the mystery guest as well as extensive publicity. Indeed, a promotional campaign on local media is planned following

the first award ceremony, together with a dedicated Facebook page, exposure on the Visitmalta website, and exposure at MTA Tourist Information Offices with the possibility of a brochure naming all the quality restaurants.

Only a few days are left until the applications close and so far the MTA has already received a good number of applications from all types of restaurants vying to be recognised by this national symbol for quality.

For more information on the QA seal contact the Quality and Industry HR Unit on T: 2291 5272; E: qualityassured@visitmalta.com or visit www.mta.com.mt/quality-seal

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