Business Agenda Issue 10 by Malta Business Bureau

THIS ISSUE

MBB MBB's outgoing President John A. Huber talks about the experiences and achievements that coloured his Presidency.

page 11

BUSINESS AGENDA | April - june 2012

business agenda

NEWSPAPER POST EU budget Daniel Debono takes a look at a number of SMEs that have benefited from EU initiatives.

page 17

THE Official Business publication of the Malta business Bureau

eu policy As the European Commission seeks to boost the European tourism industry, MBB’s Permanent Delegate in Brussels, Omar Cutajar, discusses the development of a proposed European Tourism Quality Label.

page 29

INTERVIEW BOV CEO Charles Borg delves into the importance of identifying new opportunities and tapping into emerging industries in Malta.

page 30

ENVIRONMENT In celebration of World Water Day, Business Agenda explores Malta’s water scarcity problem and the current efforts employed by MBB to reduce water wastage. page 38

SPOTLIGHT ON FOREIGN DIRECT INVESTMENT IN MALTA Foreign direct investment in Malta stood at €12.4 billion at the end of June 2011, according to official figures supplied by the National Statistics Office, reflecting a substantial increase on the same month in 2010. The statistics also indicate that Germany is the major source of the island’s inward foreign direct investment.

Business Agenda talks to leading business players on how Malta can continue to attract foreign direct investment to its shores and how EU membership has helped to attract foreign investment to Malta.

See full story on page 5.

Beating the Economic Crisis and Restoring Confidence in European Businesses EUROCHAMBRES’ President and former Managing Director and Vice Chairman of Fiat, Antonio Barberis talks to Business Agenda about the current economic instability being felt throughout Europe and the sentiment among European busi nesses. Barberis also discusses the impor tance of SMEs in Europe’s econ omy and the variables which may

impede their performance in the coming year. In this regard, he dis cusses the EU’s efforts to restore the situation which will ultimately move Europe a step closer towards enhancing its competitiveness. The article also sheds light on the work carried out by EUROCHAMBRES to further the EU’s internationalisa tion strategy for SMEs. See full story on page 8.

European Commission Vice-President Antonio Tajani’s Meeting with Maltese businesses in Malta The importance of marketing Europe as a tourist destination, boosting industrial innovation, supporting SMEs on access to capital and internationalisation were among the main arguments put forward by the European Commission Vice-President Antonio Tajani during his visit and exclusive meeting held with lead-

ing business representatives in Malta in March this year. Business Agenda takes a snapshot of the main issues put forward by various participants during this business event which was organised by the MBB.

See full story on page 20.

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editorial

Focusing our resources on job creation By Joe Tanti, Chief Executive Officer, MBB While Governments are undertaking strong efforts to correct budgetary imbalances, stronger efforts are required to promote growth and employment. This is one of the key conclusions emanating from the informal European Council meeting held last January when the Heads of State of the EU-27 member states discussed the implications of fiscal consolidation on economic growth, in particular sustainable job creation. This position is in line with the Maltese business viewpoint that the current international economic crisis will not give way unless policy makers channel their energies onto sustaining and expanding economic activity, primarily via measures supporting entrepreneurship. Generating growth is critical for obtaining the necessary tax revenues and also to preserve social cohesion. No social welfare system is sustainable unless it is aptly propelled by sustainable rates of economic growth. Employment creation is the foremost challenge in times when public expenditure is harnessed and private investments are reluctant to pick up due

to the lingering uncertainties on the international markets. Beyond the political discussions, it is a fact that the erratic growth in employment remains to date the most tangible spill-over effect of the international financial crisis. Eurostat statistics show that by the end of 2011, the EU27 average unemployment rate stood at 10 per cent translating into an estimated 23 million people. The most worrying aspect of all this is the fact that the European Commission calculates that over 20 per cent (1 out of each 5) of unemployed in Europe are youth. Considering the current economic climate, many are questioning whether this is prompting a risk of a lost generation! With a high percentage of economically inactive youths, Europe is losing out on an important resource, while missing out on the contribution that the younger generation could provide to achieving growth. Unemployment can also result in both the flight of our best youths to other emerging economies, or a skills mismatch. In these economic turbulent times, the European Union needs to be more

sensitive towards SMEs in particular, not only because these comprise 99 per cent of businesses in Europe, but also because they are clearly the link tying both economic growth and employment. Businesses have tirelessly argued on the urgency to eliminate Single Market inefficiencies, to reduce unnecessary burdens and to simplify access to finance. But solutions do not solely lie here. The EU needs to also specifically address current labour market issues, in order to redress the structural nature of youth unemployment, which can seriously threaten the future of labour supply. During 2010 and 2011, high unemployment was registered partly due to skills mismatches. The modern labour market is a flexible one where career progression through job mobility is partially the consequence of the ever-increasing inclination of European economies towards growth in the services sectors. From a supply perspective, youths have to be adequately trained to make the best of the available opportunities. Digital liter-

acy within the context of continued professional development is critical in order to avert segmented labour markets as young people remain trapped at the lower end of the labour market without developing the necessary expertise to be eligible for more value-added posts. The MBB duly recognises the value of e-skilling, and it is with this thought in mind, that we will be organising a business seminar in conjunction with the ICT business section of the Malta Chamber and eSkills Alliance Malta later this spring. At the EU level, the ‘Youth Opportunities Initiative’ is a good step towards addressing skills mismatches in Europe. National governments need to ensure that greater use is made

of the European Social Fund (ESF) for active labour market measures targeting youths. It is disappointing to read that at the end of 2011 member states still had €30 billion in ESF programmes which had not yet been allocated to concrete activities. More needs to be done to develop a ‘workplace learning’ culture whereby the transition from schoolto-work is facilitated through apprenticeship and traineeship programmes that provide youths with practical experience in their respective future work environment. Vocational education needs to be set on a par with academic graduate education and dual-learning systems need to be promoted.

COLLABORATING PARTNERS:

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. Publisher Content House Ltd Mallia Buildings 3, Level 2 Triq in-Negozju Mriehel QRM3000 Tel: 00356 2132 0713 Email: info@contenthouse.com.mt www.contenthouse.com.mt

Malta Business Bureau Casa Leone Pjazza Robert Samut Floriana Tel: 00356 2125 1719 (Malta Office) Tel: 0032 4859 81124 (Brussels Office) Email: info@mbb.org.mt infobrussels@mbb.org.mt www.mbb.org.mt

Editor: Joe Tanti Deputy Editor: Yolande Spiteri

Editorial Team: Omar Cutajar, Daniel Debono, Mariella Scicluna, Chiara Bonello

Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise & Industry, all the members of the Malta Hotels & 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 | April - June 2012

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cover story

nso figures reveal that fdi in malta has exceeded €12 billion Official statistics obtained by Business Agenda from the National Statistics Office (NSO) show that foreign direct investment in Malta stood at €12.4 billion at the end of June 2011. This figure saw a substantial increase on the same month in 2010. There are various reasons that have contributed to Malta attracting such significant investment to its shores. Chiara Bonello speaks to people in the know about how EU membership continues to play an important part in attracting foreign investment. It is no secret that foreign investment is important for economic prosperity, and Malta has in the past been quite successful in attracting this investment. The flexible workforce, financial incentives and Malta’s location have often been cited as reasons for Malta’s attractiveness, however it is often said that this attractiveness was further enhanced when Malta joined the EU in 2004 and the euro zone in 2008. According to NSO statistics analysed by Business Agenda, at the end of June 2011 foreign direct investment stood at €12.4 billion, an increase of €518.8 million over the same month in 2010. Germany makes up the lion’s share of Malta’s inward foreign direct investment. With a small open economy such as Malta’s, foreign direct investment is all the more important for economic development. Setting up in Malta gives businesses easy access to other markets in the EU, North Africa and the Middle East, while at the same time providing an economically, politically and socially stable environment to operate in, according to Malta Enterprise Chairman Alan Camilleri. There is the added bonus of their getting better value for money, since it will cost significantly less to invest in Malta than in

other EU countries, and of various government and ME schemes and support offered. “The adaptability of the Maltese workforce enabled companies to ensure sustainability by diversifying their offering and seeking new markets throughout the period of economic turmoil,” Mr Camilleri says. Playmobil Malta CEO Helga Ellul agrees with Mr Camilleri, quoting Malta’s location in the southern part of Europe, and hub to the Middle East and North Africa, as well as the language, workforce, and climate and lifestyle as additional plus points.

“ Competition to attract foreign markets, especially from Eastern European countries, is always there, which is why it is important that Malta invests continuously, especially in education and the development of its people.” – Helga Ellul According to Chris Deering, Chairman of newly set up TRC Family Media Entertainment, Malta’s stable government, educated population and attractive corporate tax rate are some factors which make the island attractive. Moreover the bureaucracy is tolerable, living costs are reasonable and the lifestyle enjoyable and safe. Chairman of the ‘Manufacturers and Other Industries Economic Group’ within the Malta Chamber of Commerce, Enterprise and

Industry, Matthias Fauser's reply is an unequivocal yes, when asked whether Malta has the necessary infrastructure and skilled workforce to welcome further manufacturing investment. Malta has invested heavily in the necessary infrastructure, while MCAST and the University are collaborating with industry to make sure skilled workers are available, even looking at future possible growth, he says. The manufacturing industry is important for Malta, in that a country needs a mix of businesses; and a vital part of these must be manufacturing. “Malta must not repeat the mistake of other EU countries, who thought their economy could depend solely on services, and significantly on financial services,” Mr Fauser explains.

ADVANTAGES OF EU MEMBERSHIP The fact that Malta is part of a larger community such as the EU is surely an advantage, Mr Fauser says, especially in view of the fact that the EU is known for its strength in industry, development and so on. Moreover links with the EU can, and are, being used to further develop the industry in general.

“ Malta has invested heavily in the necessary infrastructure, while MCAST and the University are collaborating with industry to make sure skilled workers are available, even looking at future possible growth.” – Matthias Fauser

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cover story

Mr Camilleri explains that the removal of barriers which came with EU membership effectively meant anyone investing in Malta would be gaining access to a market of over 500 million people.

“ Malta also remained attractive to its traditional EU partners, which remain its strongest sources for trade and investment. These might have moved elsewhere within the context of the global economic crisis, which forced practically everyone to cut back on costs and make the best use of resources.”

It also meant Malta became party to various trade agreements the EU has with several other countries around the world. Adoption of the euro made Malta more attractive as it further facilitated trade exchanges and cross-border business cooperation, while membership of the Schengen area also facilitated movement to other countries within this zone, he explains.

THE THREAT OF EMERGING MARKETS

Mr Camilleri goes on to say that Malta also remained attractive to its traditional EU partners, which remain its strongest sources for

“Competition to attract foreign markets, especially from Eastern European countries, is always there,” Ms Ellul explains, which is why it is important that Malta

– Alan Camilleri trade and investment. These might have moved elsewhere within the context of the global economic crisis, which forced practically everyone to cut back on costs and make the best use of resources.

invests continuously, especially in education and the development of its people.

“ Malta appears to have a solid, professional approach to dealing with inquiries from outside and stimulating consideration of Malta as a welcoming place for expanding or relocating a business. However more help for native Maltese startups might enhance its already business friendly image.”

Mr Deering explains that emerging markets are less of a threat, as wage rates in Malta are lower than in many EU countries, and the country can supply high quality European goods and services to developing countries at competitive prices. He says Malta appears to have a solid, professional approach to dealing with inquiries from outside and stimulating consideration of Malta as a welcoming place for expanding or relocating a business. However more help for native Maltese start-ups might enhance its already business friendly image, he explains, adding that more targeted online advertising in business media or business TV stations would accelerate awareness. “Once businesses become aware of Malta’s benefits, the facts speak for themselves. It is not a hard sell once companies find out what’s on offer,” he says. According to Mr Fauser, Malta remains competitive in the right sectors, such as ‘higher value added’, where technology, design, product and process innovation and R&D play a major part. “International competitiveness is getting tighter and tighter, so we need to be positive and think of ways to

compete better, address our challenges and act smarter,” he says. Ms Ellul is of the opinion that Malta can continue to attract investments, but it must look for niche markets, where Malta can offer the needed resources and good investment packages. Attracting foreign investment should not be solely up to ME, but synergised through a national impact by all institutes, embassies and Government. Having weathered the economic crisis, and more recently the crisis in North Africa, Malta has man-

– Chris Deering

aged to maintain one of the lowest unemployment rates in the EU. This speaks for itself in the eyes of prospective investors, Mr Camilleri explains. Although the figures are evidence not only of Malta’s attractiveness for prospective investors, but of the continued confidence of existing businesses in the positive performance of the Maltese economy, it is crucial to keep striving to attract more investment, he concludes.

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BUSINESS AGENDA | April - June 2012

INTERVIEW

“ The economic crisis in Europe will not be over soon” – EUROCHAMBRES President Antonio Barberis As Europe faces another period of economic instability, the role carried out by EUROCHAMBRES in defending and voicing the concerns of businesses around Europe is essential not only for them to survive the rough seas ahead, but also to help identify opportunities that may have otherwise been left untapped and unnoticed. Yolande Spiteri talks to EUROCHAMBRES’ President and former Managing Director and Vice Chairman of FIAT, Antonio Barberis, to discuss the unfolding economic situation in Europe, the current business sentiment among EU SMEs and EUROCHAMBRES’ work and priorities for the months ahead. “The crisis will not be over soon,” admits Antonio Barberis, “however I am confident that Europe is taking decisive steps in the right direction to stabilise the situation. For this reason, budgetary consolidation is essential to safeguard the euro and its members.” This, as has been agreed by 25 EU members, will be achieved through the strengthening of the Stability and Growth Pact and the intergovernmental treaty on fiscal consolidation. When discussing the effect that this crisis may have on the political process of European integration and the future of the euro, Mr Barberis quickly explains how “structural reforms related to labour and competitiveness were undertaken in several EU countries and, though painful, will bear fruit by reinforcing the resilience of the euro zone’s common currency and its economies.” However, besides fiscal consolidation, what can Europe do to

enhance competitiveness? “In the short-to-medium term, Europe needs growth,” he asserts. “The Europe2020 strategy represents the reference framework in this respect, but it is based on longterm objectives, however recent European Council conclusions have finally aimed to tackle the issue of growth and jobs in the short-term.” Through this, EU leaders have pledged to invest more money in education and training, and to curb current bank lending problems by devoting more resources to the European Investment Bank.

Businesses in Europe According to EUROCHAMBRES’ latest Economic Survey (EES), based on some 70,000 businesses across 25 European countries, exports to foreign markets are the main source of optimism for 2012. The presence of SMEs in Europe is undoubtedly crucial for the European economy as the main source of GDP and job creation. “This is

why EUROCHAMBRES puts so much effort into making sure that European legislation takes the needs of SMEs duly into account,” explains Mr Barberis. When asked whether the current economic climate may be dampening business sentiment among Europe’s businesses, most particularly SMEs, Mr Barberis explains that “overall, the business confidence indicator is negative for only the second time in the EES' 19 years. As for employment, results suggest that while few new jobs will be created this year, most businesses are intent on maintaining current levels of staff.” At the same time domestic sales predictions are low, and mirroring the careful spending approach of end consumers, businesses themselves plan cautious levels of investment. In light of this, “clearly, structural reforms are needed in a number of EU countries to raise productivity, create jobs and enhance competitiveness,” explains Mr Barberis.

“ Structural reforms related to labour and competitiveness were undertaken in several EU countries and, though painful, will bear fruit by reinforcing the resilience of the euro zone’s common currency and its economies.” – Antonio Barberis

Unfortunately, Mr Barberis continues, the Small Business Act which was supposed to be the EU’s flagship policy initiative for small companies, has had a limited impact on European SMEs so far, with little significant progress. “We hope that a more robust system to monitor member states’ actions, as well as peer reviews and exchanges of good practices will prompt member states to redouble their efforts to ensure more favourable conditions for SMEs.” In view of this, EUROCHAMBRES has constantly

reiterated its calls for a systematic evaluation of the impact on SMEs of future business legislation.

EU businesses increasingly look abroad Fast-growing markets in emerging economies offer huge growth potential for EU businesses. “This is an opportunity they cannot miss considering the stagnation of their domestic markets. China and India, in particular, increasingly attract attention as the sheer size of these markets together with the

BUSINESS AGENDA | april - june 2012

INTERVIEW “ Our commitment to facilitating market access for European companies will clearly continue in 2012, with a view to possibly extend the ‘Centres’ concept to even more regions in the future.” – Antonio Barberis initiative to organise a wide consultation on the development of an EU internationalisation strategy for SMEs. The association expressed that in order for SMEs to set up business abroad, they require support in the form of guidance to identify the international potential of their products and hence through this develop a market entry strategy which is sensitive to the cultural and non-technical barriers, and to also help them use the various financial instruments available.

impressive growth rates suggest that developing business there is the solution for sustainable expansion,” Mr Barberis exclaims. However, when trying to enter these markets, EU companies still face major obstacles such as

lack of regulatory transparency, administrative burdens, frequent infringements and poor enforcement of intellectual property rights, just to name a few. Last year, EUROCHAMBRES welcomed the European Commission’s

EUROCHAMBRES is also offering its support in the coordination of EU Business Centres which were set up and co-funded by the EU. These business centres which include one set up in India, China and most recently also Thailand address the issues which might scare away potential business people and investors from Europe; they provide soft-landing solutions for European entrepreneurs and take them from the point of only considering foreign markets, to the point

of actually developing a business plan and setting up their operations there. “Our commitment to facilitating market access for European companies will clearly continue in 2012, with a view to possibly extend the ‘Centres’ concept to even more regions in the future,” continues Mr Barberis. Being appointed as EUROCHAMBRES President two years ago in a very crucial period for the global economy, Mr Barberis explains that the events may have changed the association’s strategic perspective and agenda but for sure not its mission, that of influencing the decision-making process at the EU level, while respecting the needs of its members. Over the past months EUROCHAMBRES has been increasing its participation in the major EU dialogue platforms, so enhancing its visibility among the European institutions. The Memorandum of Understanding signed with

BUSINESSEUROPE, the European Employers’ Federation, has given further impulse to the whole process. As a result, EUROCHAMBRES is today one of the most relevant counterparts of the European institutions in the decision-making process with regard to the issues which are crucial for businesses: in particular access to finance, internal market and internationalisation. “More remains to be done to accredit our organisation in other fields like education and training which we are continuously working to achieve,” asserts Mr Barberis. On a lighter note, when asked about how his past experiences, amongst them serving as Managing Director and Vice Chairman of FIAT, have helped contribute to his current role, Mr Barberis says that “all my past experiences have been useful in supporting me in what I do today. In particular, I have learned that every problem always has at least one solution, and often talking and listening to others is the best way of identifying it.” EUROCHAMBRES – The Association of European Chambers of Commerce and Industry represents over 20 million enterprises in Europe – 93 per cent of which are SMEs – through members in 45 countries and a European network of 2,000 regional and local Chambers. www.eurochambres.eu

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mbb

“The MBB is a consistently developing organisation, which is positively establishing itself as a relevant player in Maltese civil society.” – MBB President John A. Huber Following two years at the helm of the Malta Business Bureau, John A. Huber’s term as President has come to an end. BUSINESS AGENDA talks to the outgoing President about his experience at the MBB, the organisation’s achievements and where it is heading. “I have always believed in the potential of this organisation and it was for this very reason that I accepted the position in the first place,” Mr Huber said when asked for his reaction after being asked to serve as President of the MBB two years ago. “A lot of good work was done by my predecessor, George Micallef, in re-structuring the MBB and this enabled us to focus on other important projects; such as extending the number of services for the members of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association (our parent organisations), and increasing our efforts to voice business interests with the respective authorities, both in Malta and in Brussels,” he continued. Mr Huber also referred to the positive experience of hosting important conferences during his term. “Two particular events come to mind: the exchange of views with European Commissioner John Dalli on ‘Business Competitiveness and EU Legislation’, as well as the most recent business breakfast with the European Commission Vice-President Antonio Tajani discussing the EU’s industrial and tourism policies,” he noted, while recalling the string of high-profile events organised by the Bureau. “The MBB led debates on numerous issues of national and sectoral interest, whose purpose was to inform the business community about the latest EU developments and also provide respective stakeholders with an opportunity to discuss such themes with key politicians and experts,” he said.

the impact of the Pregnant Workers’ Directive in 2010, last year we commissioned a study on the Commission’s proposals for a Common Consolidated Corporate Tax Base (CCCTB). The results are being published in April 2012,” he stated. Mr Huber also noted that the Board is already discussing the theme for the next economic impact assessment study to be conducted later this year. According to Mr Huber, another achievement was the MBB’s participation in a number of EUfunded projects which ultimately benefit both local businesses and the Maltese economy. He highlighted that “the MBB is currently active in three projects of national importance, whereby it is the lead partner of the EU LIFE+ Investing in Water Project and SHIFT – Supporting Human resources In Family-friendly Training. Furthermore, the MBB is part of a consortium in the AMIE project – Ambassadors in Malta for Increasing women Entrepreneurs.” On a personal level, one of the most satisfying achievements during his Presidency materialised last December, whereby following a two-year pilot project the MBB signed an agreement on businessacademia collaboration with the University of Malta, which accredits students for undergoing traineeships at the Bureau. “We have made it part of our mission to provide prospective European Studies undergraduate students with an opportunity for a practical experience in our Malta and Brussels offices to work in the area of EUbusiness affairs,” he said.

MBB’s achievements According to Mr Huber, a major achievement of his Presidency was the commitment towards conducting economic impact assessments. “When I became MBB President two years ago, we set a milestone for the organisation to conduct economic impact assessments in order to scientifically quantify the impact of Directives decided upon at an EU level on our economy. Following the success of our first pilot-project on

MBB’s participation in EU-funded projects When asked how MBB’s participation in EU-funded projects is contributing to the Maltese private sector, Mr Huber pointed out that “the Bureau is all for responsible business and these part-funded projects allow us to implement our vision with local stakeholders.”

BUSINESS AGENDA | April - June 2012

MBB “ The MBB is a consistently developing organisation. It is the MBB’s intention to build on the reputation developed in recent years to become a stronger and more effective lobby voice for Maltese business in Brussels.” – John A. Huber

Referring to the biggest project awarded to the MBB to date, Mr Huber commented that the EU LIFE+ Investing in Water Project aims to achieve a reduction in water consumption by businesses and hotels. “We believe that through the solutions offered by our expert team for our enterprises to save water, the utility costs will be reduced,” he said. Importantly, Mr Huber highlighted that the project will help ease pressure on natural water in Malta – a scarce resource which is quickly deteriorating due to unsustainable use; stating that “this is a quantum leap where we can show that business and safeguarding the environment can go hand in hand”.

The second project, SHIFT, is a Leonardo Mobility Programme providing a number of HR Managers coming from companies which are members of the parent organisations, with training opportunities in Denmark and Germany, specifically on flexible-work arrangements and family-friendly measures. Mr Huber explained that: “following our position with respect to the EU proposals and the Maltese Government’s decision to extend maternity leave, we firmly believe that the solutions rely on actions such as thoes trying to be achieved by this project. Rather than employees staying away from the workplace for longer periods, the MBB supports the introduction of policies at the workplace which result in a win-win situation by providing a work-life balance for employees, while helping to increase productivity for employers,” he continued. The third project which the organisation is active in is the AMIE

project, whereby the MBB is part of a consortium which conducts a campaign to promote female entrepreneurship in Malta. Mr Huber observed that: “through this project, the MBB and the projectpartners shall spearhead an initiative to promote an increase in female participation in the entrepreneurial arena, which shall contribute towards job creation and economic growth. This will also help in Malta’s contribution to reach the EU’s 2020 economic goals.”

MBB and the future When asked what the MBB needs to work harder on, Mr Huber suggests that the MBB is required to increase its efforts in supporting Maltese businesses to exploit the vast opportunities offered by the European Single Market. “After all, this was the main reason that convinced business representatives to opt in favour of Malta’s EU membership,” he affirmed.

“In addition, despite the MBB having already led a national debate on the re-launch of the Single Market, in my view, its role does not end there. The MBB needs to campaign further with all stakeholders at EU level to remove Single Market imperfections, but also to safeguard Maltese businesses whenever EU policies can potentially go against our interest,” Mr Huber said.

supported him during his Presidency of the MBB. “I would like to thank my fellow colleagues on the Board which I had the pleasure of chairing for the past two years for their participation and commitment. I would also like to thank the respective Councils and Director Generals of both our parent organisations for their guidance. Special thanks go to MBB CEO Joe Tanti and all the MBB team.”

According to Mr Huber, “the MBB is a consistently developing organisation, which is positively establishing itself as a relevant player in Maltese civil society. Given the limited resources Malta has in responding to the fast-developing political and economic legislation taking place at EU level, it is the MBB’s intention to build on the reputation developed in recent years, to become a stronger and more effective lobby voice for Maltese business in Brussels,” he continued. “This can be achieved in a two-fold process,” Mr Huber believes. “First, by improving the consultation process with local businesses in order to form strong positions in response to EU draft legislations and secondly by identifying more effective means of putting our message across to those who have a direct influence on the draft policy-making and the decision-making process.”

“My gratitude also goes particularly to the Minister of Finance, the Economy and Investment, Tonio Fenech, the Permanent Representative of Malta to the EU, H.E. Ambassador Richard Cachia Caruana, Malta Chamber President Tancred Tabone, MHRA President Tony Zahra; and all the heads of the various EU organisations in Malta, without whose relentless support we would not have reached this level of success.”

Some final words… In conclusion, Mr Huber acknowledges a number of persons who

“Finally, I would like to take this opportunity to congratulate George Vella, who will be succeeding me as the next President of the MBB. Mr Vella will take over a proactive Board which is supported by a committed Executive Team, providing a good chemistry to build upon the success of the organisation. I wish Mr Vella all the best for the upcoming year at the helm of the Malta Business Bureau,” he concluded.

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MBB

MBB announces new President The Malta Business Bureau has the pleasure to announce its new President, George Vella. Mr Vella is the Director heading the Business Advisory arm at Grant Thornton and has over 17 years of experience in corporate and project finance, research and development, strategic and project management. After graduating in 1995, Mr Vella joined PwC and worked in the assurance and advisory arms of the firm. He was later seconded to their office in the West Midlands, UK where he specialised in risk management. In 2001 he joined the Corinthia Group – a multi-national hotel chain headquartered in Malta – and fulfilled a number of roles both locally and abroad. In 2003, he took on the role of Finance Director at the Corinthia Grand Hotel Royal in Budapest, Hungary, and was involved in transforming the hotel into a profitable operation. As Corporate Finance Executive of the Corinthia Group, Mr Vella was involved in the preparation of a number of feasibility studies and acquisition bids, negotiations of syndicated bank loan facilities and raising of bonds on the local stock exchange.

MBB Publishes Annual Report 2011 The Malta Business Bureau has recently published its Annual Report 2011. It outlines the various activities undertaken and events held by the organisation, both in Malta and Brussels. During 2011, the MBB celebrated 15 years of service. To mark this occasion, a timeline of events since MBB’s inception was included in the report. Also, Political and business leaders also give their review of MBB’s role over the past 15 years, including at critical times in Malta’s challenging journey leading to EU membership and in the post-accession scenario. A copy of the MBB Annual Report 2011 can be requested on info@mbb.org.mt or viewed from www.mbb.org.mt

Mr Vella also fulfilled the role of Head of Corporate Strategy at APS Bank where he was responsible for the preparation of a three-year business plan. He was a member on the bank’s risk management and credit committees and was involved in the introduction of the bank’s internet banking infrastructure.

audit, evaluation services, assistance in the preparation of business plans, feasibility studies and cost benefit analyses, business valuations, assistance with mergers and acquisitions, project finance and corporate finance advisory services for a range of private sector and public sector organisations.

In his current post, Mr Vella leads a team of three consultants who provide financial control, internal

Mr Vella holds a Masters in Business Administration, is a Certified Public Accountant and a Certified

Information Systems Auditor. He is an Associate of the Malta Institute of Accountants. The MBB thanked John A. Huber who has been at the helm of the organisation for the past two years, for his dedication and commitment to see the Bureau grow and increase its services to the Maltese private sector. Mr Huber will remain contributing towards the organisation as a member of the Board of Trustees.

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eu budget

Why the EU Budget makes business sense While discussions at EU level on the forthcoming Multiannual Financial Framework (2014-2020) are ongoing, Daniel Debono takes a look at how a number of locally-based SMEs have benefited from EU budget initiatives. In recent weeks, the Malta Business Bureau and the European Commission Representation Office teamed up to produce a joint publication on how the EU budget (technically known as the EU Multiannual Financial Framework) can support local enterprises to invest in their businesses to help them flourish. Both organisations believe that it is imperative to engage the business community in the ongoing discussions on the new EU budget because the amounts and the way the money will be spent will have a direct bearing on the long-term economic development prospects of our country. For Maltese business, it is particularly welcome that the new EU budgetary arrangements covering the period 2014-2020, will focus particularly on competitiveness-related objectives, as laid out in the Europe 2020 Strategy. Therefore, fostering economic growth and improved competitiveness lie at the top of the agenda. The tools to achieve this can be divided into four categories: Research and innovation; External Trade; Standards; Education and training.

Research and Innovation Research and Innovation are critical for the improvement of the competitiveness of Maltese industry in an ever-changing global industrial environment where highend added-value manufacturing generates the greatest economic returns. The European Union attri-

external trade

“ The EU budget aims at promoting R&D which is an integral part of our business and this will surely help improve Carlo Gavazzi’s performance in the international market.” – Charles Brincat

butes considerable importance to research and innovation policy as a key tool for delivering jobs, ensuring prosperity and securing quality of life. Several companies have successfully applied for FP7 projects in areas as wide-ranging as health, the creative industries, and manufacturing. Carlo Gavazzi, which is an international group active in designing, manufacturing and marketing electronic equipment,

continuously invests in its R&D department, focusing on innovative technology. This helps the group to target global markets. In respect to the investment in research and innovation, General Manager Ing Charles Brincat said that: “the EU budget aims at promoting R&D which is an integral part of our business and this will surely help improve Carlo Gavazzi’s performance in the international market.”

External Trade is crucially important because it is one of the main factors providing for economic development and also because the EU is the world’s largest trader, accounting for 20 per cent of global imports and exports. Investment in internationalisation to expand Maltese business operations abroad is of great added value to generate growth and create new jobs locally. Camilleri Wines is a good example of an ERDF beneficiary of an external trade scheme entitled ’20 Million for Industry’. It used EU funds to develop its marketing plan, to train its human resource complement in managing their exports planning and to participate in a number of international fairs where its products were promoted to widen the company’s international customer base. While sharing Camilleri Wines’ experience in International Fairs, General Manager Louie Camilleri said that: “having our wines tasted by a wide audience coming from all over the world was a very proud moment for all of us, confirming that Maltese wines compare at the same level with international wines.”

standardisation Standardisation is the voluntary process of developing technical specifications based on consensus among all interested parties, including SMEs, consumers, trade unions, environmental NGOs and public authorities amongst others. It is carried out by independent standards bodies, acting at national, European and international levels. A key challenge for European standardisation is to fine-tune the process to the needs and realities of small businesses.

– Louie Camilleri

Camilleri Wines is a good example of an ERDF beneficiary... It used EU funds to develop its marketing plan, to train its human resource complement in managing their exports planning, and to participate in a number of international fairs where its products were promoted to widen the company’s international customer base.

BUSINESS AGENDA | April - June 2012

eu budget Maypole Ltd is one of the beneficiary companies of the ERDF Innovation Actions Grant Scheme and of funds available to improve internal quality assurance procedures. The company’s new and modern production facilities help in the implementation of quality assurance and food safety systems that give the organisation the capability to operate in a market conducive to competition, specialisation and to an increase in economies of scale. Carmelo Debono, Director at Maypole Ltd, confirmed that: “investment in innovative production processes would have been slightly harder for us to implement without the funds allocated in the EU budget for SMEs under the European Regional Development Fund.”

education and training Education and training of the work-force are critical investments for without human capital there is no industrial capital that can deliver growth and further job creation for people seeking employment. Top-quality education and training are vital if Europe is to become the most dynamic and competitive knowledge-based economy in the world by the end of the decade as laid out in the Europe 2020 strategy. In recent years Hotel Excelsior benefited from EU funds via the Malta Tourism Authority to train more than 30 managers and supervisors from various departments, including food and bever-

“ The hotel management believes strongly in lifelong learning and is committed towards supporting employees who continue to pursue their studies and develop their skills, both academic and vocational. This however would not be as successful without funding from EU initiatives.” – Norbert Grixti

age, kitchen, housekeeping, IT and sales. General Manager Norbert Grixti maintained that: “the hotel management believes strongly in lifelong learning, and is committed towards supporting employees who continue to pursue their studies and develop their skills, both academic and vocational. This however would not be as successful without funding from EU initiatives.”

A copy of the 'Why the EU budget makes business sense' leaflet can be collected from MBB, Malta Chamber or MHRA offices, or viewed from www.mbb.org.mt

“ Investment in innovative production processes would have been harder for us to implement without the funds allocated in the EU budget for SMEs under the European Regional Development Fund.” – Carmelo Debono

BUSINESS AGENDA | april - june 2012

BUSINESS AGENDA | April - June 2012

business

“ Boosting industrial innovation, supporting SMEs on access to capital, and internationalisation, should be amongst the key elements of our strategy for growth.” – European Commission Vice-President Antonio Tajani

A business breakfast organised by the Malta Business Bureau (MBB) on the 5th March provided a unique opportunity for leading business representatives from the Malta Chamber of Commerce, Enterprise and Industry (Malta Chamber), and the Malta Hotels and Restaurants Association (MHRA) to exchange views with the European Commission Vice-President Antonio Tajani on matters relating to industry, entrepreneurship, tourism and SME internationalisation. The conference which took place at the Grand Hotel Excelsior, Valletta also saw the participation of officials from various EU offices, Members of Parliament, MEPs and other distinguished guests. BUSINESS AGENDA takes a snapshot of the main arguments put forward by the different speakers during the event.

European Commission Vice-President Antonio Tajani “My commitment is very specific: drive and accelerate the transition to a ‘third industrial revolution’, which Europe must lead. No industry should be left alone. The risk of European economic and political decline is directly linked to industrial decline.” “I believe it is necessary to develop and adopt a European quality brand, which will recognise products and services of excellence, strengthening the trust of consumers and compensating those operators which distinguished themselves in this manner.” “Malta is an ideal venue to share experiences and ideas on tourism, a sector increasingly strategic and decisive for the fate of the European economy.”

BUSINESS AGENDA | april - june 2012

business

Minister for Finance, the Economy and Investment Hon. Tonio Fenech “Faced with pressure from competitors and shifts in their operating markets, enterprises cannot afford to rely solely on their own research. Open innovation thus becomes an opportunity for enterprises to overcome the limitations imposed by their own boundaries to tap into the infinite knowledge that is already available elsewhere.”

MBB President John A. Huber “Indeed, in a climate characterised by the swift growth of foreign competition by emerging economies, Europe cannot afford to aim to secure financial stability at the expense of economic competitiveness.” “Our focus on the relaunch of the European Single Market is not accidental. We firmly believe that industry (be it manufacturing, service, wholesale or retail) and tourism are the pillars for Malta’s future economic growth. The crisis has shown that neglecting the manufacturing sector comes at one’s own peril.”

Minister for Fair Competition, Small Business and Consumers Hon. Jason Azzopardi “Continuous dialogue between academia and industry should serve to beat the skills mismatch that may exist between the two sectors. A specific study by the Sociology Department in the University of Malta is also seeking to identify the requirements of industry and hence encourage Government to tailor make policies to suit the needs of SMEs.”

Malta Chamber President Tancred Tabone “The Malta Chamber agrees with the European Commission’s decision to emphasise the promotion of SME internationalisation through clusters and networks. These need to be recognised in Malta as important facilitators and become more integrated into business support schemes aimed at enhancing SME internationalisation. Malta places very high in terms of the percentage of internationalised SMEs – with a figure in excess of 80 per cent – due to the fact that once a Maltese SME reaches a certain level of growth, its only option to grow further is to venture abroad.” “The Malta Chamber expressed surprise with the lack of concrete support for SMEs affected by the Libya crisis after it appealed for help by means of a letter to European Commission President José Manuel Barroso. We asked for help for SMEs that experienced a sudden halt in business and payments – whilst being exposed to foreign principals and needing to maintain payroll costs – for social reasons and to ensure that they could continue to serve this market once the conflict was over. North Africa continues to face instability and the EU must look into possible support mechanisms for SMEs in the event of further crises.”

Minister for Tourism, Culture and the Environment Hon. Mario De Marco “In order to beat seasonality we should focus on diversifying our local product. Although beaches and history are what attract the majority of tourists to visit our country, we should look into furthering other niche sectors such as nature, rural and religious tourism.”

MHRA President Tony Zahra “Air Malta is important not only for Malta’s tourism industry but also for other economic operators. Malta is not asking for money from the EU; it is only asking it to allow an injection of capital from the Maltese Government to Air Malta so that our tourism, manufacturing and financial service industries can continue to thrive.” “It is ironic that whilst the European Commission talks about the help that the EU can provide to Maltese SMEs, including funding, the nod to the Maltese Government to keep such a strategic operator as Air Malta alive (and this at no cost to the EU), seems to be so difficult for the EU to agree to. As a small country I find it difficult to understand how the EU can grant billions of euros for bailouts to other larger countries and also ask Malta to join in financing other EU countries’ bailouts; and yet it seems to find difficulty in agreeing for the Maltese Government to bail out Air Malta.”

BUSINESS AGENDA | April - June 2012

BUSINESS AGENDA | april - june 2012

Business News MBB Update

20th December –

MBB and University reach agreement on business-academia collaboration The Malta Business Bureau (MBB) and the Institute for European Studies within the University of Malta signed an agreement that will make it possible for students to obtain credits through traineeship programmes with the MBB. The collaboration between the MBB and the Institute has been successfully evolving over the past two years resulting in a mutuallybeneficial relationship now culminating in a formal agreement signed by MBB’s CEO Joe Tanti and The Institute for European Studies Chairperson Prof. Roderick Pace to strengthen the business-academia collaboration. This partnership will provide invaluable opportunities for European Studies undergraduate students to gain a practical and professional experience. Second-year students of the Institute will have the possibility to choose the traineeship as an elective study unit during their second

semester. The traineeship entails a total of 112 hours over a period of 14 weeks, which will cover a total of 4 ECTS (European Credit Transfer and Accumulation System). The MBB executive team will mentor students on an individual basis and assist them in developing and enhancing practical knowledge in the area of European affairs. At the end of the traineeship, an assessment of each individual will be determined by a board of examiners on the basis of a logbook held by each student consisting of all the work done during the traineeship programme, in addition to a report drafted by the mentor. Vivienne Bajada, Justine Cuschieri and Roderick Muscat are the first three students to undergo a traineeship at the MBB Malta Office and benefiting from the accredited programme.

23rd January –

MBB hosts European Commission official for Enterprise Experience Programme

As part of the Enterprise Experience Programme (EEP), the MBB had the pleasure to host The Administrator of Industrial Politics and Economic Analysis (European Commission) Alan Van Raek, for a week in Malta. EEP is a unique action to give civil servants working in the European Commission's Directorate Gen-

eral for Enterprise and Industry practical and hands-on experience in a small or medium-sized enterprise (SME). During his stay, Mr Van Raek held meetings with the MBB, Malta Chamber and MHRA, and was introduced to the Enterprise Europe Network officials within Malta Enterprise. The highlight of

the EEP was an enterprise experience held with four Maltese enterprises – namely Island Caterers, Mirabelle Enterprises, Maypole, and Greenskips Group Malta – that participated in the programme by sharing the respective day-to-day running of their business with Mr Van Raek. See page 33

BUSINESS AGENDA | April - June 2012

MBB UPDATE 15th March –

MBB and European Commission Representation Office issue a publication on the future EU Budget

5th March –

Business Breakfast with European Commission VicePresident Antonio Tajani Maltese business had a unique opportunity to meet with the European Commission Vice-President Antonio Tajani during a high profile business breakfast debate that was organised by the MBB. The conference was also addressed by the Minister for Finance, the Economy and Investment, Tonio Fenech, who delivered a presentation about the need for innovation to spur industrial competitiveness

in Malta. Interventions in reaction to the Vice-President’s address on Small Business and Tourism were presented by the Minister for Fair Competition, SMEs and Consumers, Jason Azzopardi, and the Minister for Tourism, Culture and the Environment, Mario De Marco. An interactive session between Vice-President Tajani and the audience present followed. This was moderated by MBB CEO Joe Tanti.

Subsequently, a panel debate took place which saw the participation of Commissioner Tajani, MBB President John A. Huber, Malta Chamber President Tancred Tabone, and MHRA President Tony Zahra. This session was moderated by Stefano Mallia – an Employers’ representative at the European Economic and Social Committee (EESC). See page 20

Maltese businesses need to be well-equipped to continue tapping into the potential of the European Single Market, as part of their quest to internationalise their operations. Having more education and training opportunities, a solid standardisation mechanism, a stronger voice in international trade and more support in research and development is essential to maintain a healthy business environment. The MBB and European Commission Representation Office believe that it is their role to communicate the EU budget as an exercise that makes business sense in so far as it supports the effective implementation of polices that are conceived to facilitate things for enterprises, provide businesses with opportunities to expand their operations overseas, as well as to enhance their operational set-ups. For this reason, both organisations have joined forces to improve the visibility of the debate on the future EU budget with the publication of an informative leaflet entitled ‘Why the EU budget makes business sense’. A copy can be collected from the MBB, Malta Chamber or MHRA offices; or viewed from www.mbb.org.mt

BUSINESS AGENDA | april - june 2012

BUSINESS AGENDA | April - June 2012

BUSINESS AGENDA | april - june 2012

mbb update 19th March –

MBB SHIFT Project: First group of HR Managers starts a two-week visit in Denmark Supporting Human Resources In Family-Friendly Training (SHIFT) is a project which seeks to contribute towards enhancing expertise on innovative measures required within the human resources field. The MBB intends to gather best practices to raise awareness about flexible work arrangements and family-friendly measures. This is crucial to help increase productivity, female participation in the labour market and ensure equal opportunities. The need to invest in such measures was also underscored by the HR committees of the Malta Chamber and MHRA, in respect to the EU2020 strategy, which highlights the importance of flexibility to achieve smart, sustainable and inclusive growth. The first group composed of eight HR managers, coming from a

cross-section of Maltese enterprises along with MBB Executive Mariella Scicluna as project leader, visited Denmark, where they had the opportunity to carry out on-site visits within well established Danish companies that have advanced policies in this field. In the coming weeks the MBB will issue a second call for applications for those companies interested in participating in a two-week visit which will take place in Germany. Once both overseas experiences are completed, the MBB is planning to hold a Masterclass on Improving Family Friendly Measures in the Private Sector. The participating HR managers will act as envoys to promote knowledge gathered through their experiences. SHIFT is a Leonardo Mobility Programme (PLM) Funded Action NO: LLP/LDV/MT/MOB/PLM/13/2011

20th March –

21st March –

Public Hearing on Public Hearing on Tax and Horizon 2020 at the Financial Havens – A threat European Parliament to the EU’s Financial Market at the European Economic and Social Committee (EESC) The MBB Brussels office is keeping tabs on the development of the Horizon 2020 – the new funding programme for research and innovation activities set to replace the FP7 programme as of 2014. During a public hearing on the proposed Horizon 2020 programme held at the European Parliament, four panel debates were organised, touching on the various issues of Excellence in Science, Societal Challenges, Industrial Leadership and SMEs, and Participation Priorities. High-profile speakers addressing the participants included European Commissioner Máire Geoghegan-Quinn, and Burton H. Lee from Stanford University. Horizon 2020 is the financial instrument proposed by the European Commission meant to fast-track the delivery of financing aid for the purposes of rolling-out the results of research and innovation onto the commercial markets. During the discussions it was argued that the EU must become a smart, sustainable and inclusive economy. Research and innovation are crucial aspects for the continued growth of the economy and society. These, however, require significant investments. It was pointed out that the right focus on innovation in the private sector is something that the EU seemed to have overlooked. Cooperation in between and across various economic sectors is necessary, while making sure the available funds are effectively used. Finally, it was suggested that cooperation between private and public sectors should be enhanced and adequately supported.

Tax and financial havens are territories where taxes are levied at a low rate or entities are completely exempt from paying tax. At the same time, these territories are often characterised with good governance and a low corruption rate. On the other hand, there is often the perceived fear of criminal activity (money laundering). Moreover, governments of interested states lose potential revenue streams from savings taxation which is instead channeled to the benefit of these jurisdictions with lower taxation regimes. This public hearing brought together civil society representatives and EU policy-makers. The speakers sought to define the extent of the regulatory challenge inherent in dealing with such jurisdictions. The discussions during the proceedings helped to outline the necessary steps required to

enact potential regulatory responses to the issues arising from tax and financial havens siphoning off income revenues at a time when many EU member states are operating within fiscal margins. Several speakers spoke of the need for the EU to take appropriate measures. The costs arising from tax avoidance have increased rapidly. One potential measure that could effectively curtail this practice would be the inception of a reciprocal and automatic information exchange, ideally developed as an effective international standard, between the EU and those jurisdictions considered tax and financial havens. Ms Zuzana Vackova, who is currently undergoing an internship at the MBB Brussels Office, represented the Malta Business Bureau in these public hearings.

22nd March –

EU LIFE+ Investing in Water Project celebrates World Water Day In reaction to threats faced by natural freshwater resources worldwide, in 1992 the United Nations declared the 22nd of March World Water Day, to advocate the sustainable management of freshwater reserves. To celebrate this day the MBB and MSV Life teamed up to identify water saving opportunities, through a Water Audit of the MSV premises carried out by the EU LIFE+ Investing in Water Project.

MSV Life committed to implementing the recommendations in line with its ethic, as an environmentally responsible organisation. The project partners MBB, the Malta Chamber and the MHRA thanked MSV Life for their support and commitment to environmentally responsible business. The partners also urged their members to take advantage of the project expertise to identify water saving opportunities in their operations.

EU LIFE+ Investing in Water Project launches website The MBB launched its EU LIFE+ Investing in Water Project website. The new project website acts as a one stop reference point for anyone interested in finding out about the key issues relating to water scarcity in Malta. The website will also go a step further and provide detailed information on water saving solutions, and testimonies of best practice examples from the local industry.

Visit www.investinginwater.org See page 38

BUSINESS AGENDA | April - June 2012

BUSINESS AGENDA | april - june 2012

eu policy

The European Tourism Quality Label – The Way Forward MBB’s Permanent Delegate in Brussels, Omar Cutajar, discusses the European Commission’s recent efforts to boost the European tourism industry and the development of a proposed European Tourism Quality Label.

Following the entry into force of the Lisbon Treaty, the EU acquired a new competence in the field of tourism. This new competence is in its infancy and is mainly limited to support, coordinate and complement action by the member states. This new EU political framework for the development of a European tourism policy was ushered in with a Commission Communication adopted and published in 2010, whereby a total of 21 initiatives were unveiled primarily aimed at helping the European tourism industry to improve its economic, social and environmental sustainability without undermining its overall competitiveness. One of the actions envisaged in this landmark Communication was Action 13, which articulated the need for the development of a European Tourism Quality Label (ETQ). This ‘European’ quality label is being conceived as a new umbrella-like quality assurance scheme implemented at a European level; however strongly deriving from the significant experiences already obtained through similar or comparable schemes already in existence at national level in several member states.

The work done so far The lead on this initiative lies with DG Enterprise, which is the service responsible for the tourism policy within the European Commission. Preparatory work on the development of a ETQ Label was kick-started in March 2011 when an informal working group was tasked with the development of a first draft concept of the ETQ Label. The main result of this preparatory work was that all stakeholders agreed that the ETQ Label should take the form of a voluntary ‘umbrella’ label which assesses and recognises quality systems. The relationship between the national bodies entrusted with the recognition of quality labels and the envisaged scope and extent of EU-level coordination lies at the very core of the operational options mapped out by the European Commission as the possible way forward for a rapid development of a European Tourism Quality Label.

These ‘operational options’ can be summed up in three potential organisational arrangements:

• Full European coordination whereby all management tasks and the decision on the recognitions are taken at the European level.

• European coordination with delegation to the national boards, meaning that certain administrative tasks and the pre-assessment of the quality schemes would be delegated to national governance bodies, with decision-taking remaining at European level.

• Assessment and decision at national level, implying that most management tasks as well as the decision-taking processes are delegated to the national bodies, with the role of the EU-level body restricted to a political one. These options fuelled the debate on the future development of a European Tourism Quality Label, during the proceedings of a major conference organised by the European Commission on 25th January in Brussels. The conference brought together industry stakeholders such as business associations, consumer protection groups and trade unions from the tourism sector, as well as government representatives from the ministries and authorities responsible for tourism matters from across the EU member states. The event was structured as an open conference with the intent to elicit the widest possible views from both public and private organisations concerned with quality labelling in the tourism industry.

Open issues The conference proceedings revealed considerable divergences within the stakeholders’ viewpoints particularly on the organisational options and the scope of the recognition granted by a prospective European Tourism Quality Label. Despite the divergent views, the Commission’s own assessment of the conference proceedings highlights that overall there was a majority of opinions, espe-

Despite the divergent views, the Commission’s own assessment of the conference proceedings highlights that overall there was a majority of opinions, especially among the industry stakeholders, expressing a preference towards full European coordination of the ETQ. cially among the industry stakeholders, expressing a preference towards full European coordination of the ETQ Label. During the proceedings, it was pointed out that the coordination of an ETQ Label at a European level would ensure the best possible level of transparency, clarity on the awarding criteria whilst also ensuring a level playing field for all potential quality-labelling schemes submitted for the certification evaluation. Whilst the discussions remain ongoing on the final organisational structure of the ETQ Label, the conference also served to test the waters on the issue of whether a pilot launch of the label should be

pursued in the near future. No consensus was obtained on this point and the thinking remains that any pilot testing whether restricted to a specific sub-sector or to a few willing member states requires the necessary budgetary support. This viewpoint was echoed by MEP Carlo Fidanza, the rapporteur for the European Parliament’s report on the 2010 Commission Communication on Tourism. The conference proceedings closed with a discussion on the kind of EU legislation that will be chosen to establish the European Tourism Label. The Commission announced its preference for a regulation. Some business repre-

sentatives have flagged this as a potential problem since a regulation would directly transpose the ETQ Label into national legislation without room for manoeuvre with regards to national adaptations. It was argued that such a straightjacket approach might prove counterproductive, rendering the ETQ Label an unattractive proposition for hospitality businesses. The tourism industry concerns revolve around the restrictive nature of a quality label implemented by an EU regulation which would set in common standards applicable across the board, irrespective of the national context where the quality label is already in place. The political will to establish and implement a European Quality Label is clearly there and the Commission is committed to table an official proposal, in time for further discussions with stakeholders to take place at this year’s edition of the European Tourism Forum which is expected to be held at the end of October.

BUSINESS AGENDA | April - June 2012

interview

“ Imperative to identify emerging industries” – BOV CEO Charles Borg

BOV CEO Charles Borg speaks to Chiara Bonello about the importance of identifying new opportunities and emerging industries, and how Malta remained resilient to the impact of the global crisis, despite its vulnerability.

It is always important to look ahead, and it is currently even more imperative that Malta looks to the coming years, in order to identify niches of opportunity where we can enjoy a competitive edge, says BOV CEO Charles Borg.

“ The euro zone crisis was partly the result of the financial crisis of 2007-09, when a number of governments were compelled to bail out their countries’ banks, to the extent that they are now experiencing their own financial difficulties. Such was the case with Ireland. Other countries, such as Greece, are suffering the results of years of fiscal indiscipline and structural budget deficits.” – Charles Borg

“With Malta’s limited resources, this is the only way,” he starts, adding that Malta can hardly be described as sheltered, due to its open economy which is dependent on imports and exports, and it is of the essence that businesses direct their resources towards emerging industries. Service industries such as aircraft maintenance and financial services, and manufacturing industries such as pharmaceuticals, are clear examples of fast-growing sectors which add value and hold great promise for the future.

ereign crisis that is nowhere near its end yet.

Mr Borg states that the international crisis, which has been with us for a number of years and which started as a financial crisis, has evolved. It first evolved into an economic crisis, and then, in 2011 was succeeded by a euro zone sov-

The euro zone crisis was partly the result of the financial crisis of 2007-09, when a number of governments were compelled to bail out their countries’ banks, to the extent that they are now experiencing their own financial dif-

ficulties. Such was the case with Ireland. Other countries, such as Greece, are suffering the results of years of fiscal indiscipline and structural budget deficits. Countries are now in a situation where they have to put in place a number of severe austerity measures in a bid to correct their fiscal imbalances.

As the financial crisis spread from one bank to another, and from the financial markets to the real economy (from Wall Street to Main Street), so now is the euro sovereign crisis spreading to the banking sector, which is the largest holder of European sovereign debt, and from there back to the real economy. Mr Borg opines that the root of the EU problem is the fact that it has

one single monetary policy, but diverse fiscal policies. Therefore on paper the solution to this problem would be to harmonise the euro zone members’ fiscal policies, to the same standard of discipline as practiced by Germany and the Nordic countries, he explains. Such a remedy does not, however, come about easily; the truth is the various fiscal imbalances had to be addressed, and this was why there was no immediate solution.

BUSINESS AGENDA | april - june 2012

interview Mr Borg says that the markets are seriously concerned by the crisis, and rightly so. He describes this as a critical time for the euro zone, because many European banks today are suffering the fallout from the sovereign crisis and are facing tight capital and liquidity situations – at a time when regulatory constraints on capital and liquidity are becoming ever more stringent. Banks are finding it hard to keep the flow of credit to the economy going, so that businesses are not always finding the necessary funding for certain projects, which in turn accentuates the problem of lack of growth in the economy. The European Central Bank is trying to mitigate the situation by granting extended credit to banks at extremely low interest rates, in order to ease the flow of liquidity and keep the economy going. The direct impact of the euro zone sovereign crisis on Maltese banks has been minimal, in view of the very small exposure which the local sector has to the so-called ‘euro peripherals’. Malta is, however, a very small and open economy, so anything which negatively affects the economies of our trading partners will inevitably impact us. It is this indirect impact which we must aim to mitigate, Mr Borg explains. The banking system in Malta varies from that in other countries, since it has remained conservative and is still dependent for its funding on stable customer deposits, rather than relying on volatile money markets. This prudent business model has helped to cushion the impact of the crisis, he says, adding that the Maltese Government follows the same model. While countries like Greece and Italy are at the mercy of ‘ruthless’ international markets, Malta’s debt is held by Maltese retail and institutional investors. The Government’s intervention to support certain local companies which suffered the brunt of the economic recession has helped to support employment, an important ingredient for a healthy economic environment. Mr Borg says that in his opinion, some sectors within the ‘new economy’ will continue to grow in 2012. Others, such as the construction industry which is heavily dependent on ERDF funding, need to look beyond and seek new business opportunities. He says that as long as sectors such as tourism, finance and services remain strong Malta should keep its head above water during a tough 2012, although growth will be more anaemic than in previous years. BOV’s aim for 2012 is to continue to finance the economy in a responsible manner, and ensure the Maltese economy continues to grow in a sustainable way. “I think it is safe to say that this is also our main objective for 2013,” he concludes.

“ BOV’s aim for 2012 is to continue to finance the economy in a responsible manner, and ensure the Maltese economy continues to grow in a sustainable way.” – Charles Borg

BUSINESS AGENDA | April - June 2012

BUSINESS AGENDA | april - june 2012

enterprise

Bringing the EU closer to SMEs Mariella Scicluna looks into the European Commission’s Enterprise Experience Programme and discusses how it offers a win-win situation to both policy makers and local SMEs. Small and medium enterprises (SMEs) play a crucial role in innovation and economic growth. Given the purpose of the European Commission’s Directorate General for Enterprise and Industry to focus on the needs of SMEs, the Enterprise Experience Programme (EEP) was specifically designed to set out a unique agenda allowing civil servants to gain practical and hands-on knowledge of the dayto-day business within small and micro firms in Europe. The DG had set a target for a substantial number of its officials to visit SMEs and shadow key entrepreneurs and managers to grasp the different functions or departments of particular companies by 2009. Following the successful first stage of this project, the EEP was extended as the importance for the European Commission to be continuously close to SMEs became extremely evident. This experience allows a direct link for businesses to exchange views and share their concerns with Commission officials, which consequently prompts policy makers to formulate legislation in the best interest of enterprises. In recent weeks, the Malta Business Bureau (MBB) was pleased to host Alain Van Raek, who is an Administrator of Industrial Politics and Economic Analysis at DG Enterprise and Industry, by coordinating a week-long visit to Maltese employers’ associations and individual companies. Mr Van Raek held meetings with the Malta Business Bureau, the Malta Chamber of Commerce, Enterprise and Industry, the Malta Hotels and Restaurants Association, and with the Enterprise Europe Network. Subsequent visits were organised to Maypole, Green Skip Group, Mirabelle Enterprises and Island Caterers. Talking to Business Agenda about his experience in Malta Mr Van Raek stated that “the Enterprise Experience Programme is of mutual benefit for both. For the Commission official, it is a way to understand the actual issues which SMEs face on a daily basis. It shows how similar some of these issues can be, in general, across sectors and across Europe. However, visiting several enterprises from different sectors, I could also familiarise myself with the specific challenges that SMEs in Malta are faced with, in different industry

areas (tourism, food, environment and waste, hotels and resorts). Each enterprise is an individual!” He further commented that “this programme offers a unique opportunity for enterprises to know more about ‘Brussels and the institutions’. They now have a contact point, a familiar face within the administration. Furthermore, these visits have facilitated networking between enterprises and their representative associations from which further better coordination can be now expected.” When asked about Malta’s challenges Mr Van Raek remarked that “in spite of the challenges ahead, the country has a lot of assets. All this can be put together so that opportunities can be found between the various partners.” Business Agenda also talked to the host companies which all had words of praise for the direct contact that this programme created between themselves and European officials. Pierre Fenech from

Mr Alain Van Raek visiting Maypole premises

“ This programme offers a unique opportunity for enterprises to know more about ‘Brussels and the institutions’. They now have a contact point, a familiar face within the administration. Furthermore, these visits have facilitated networking between enterprises and their representative associations from which further better coordination can be now expected.” – Alain Van Raek

Island Caterers said: "in January I had the opportunity to meet Alain Van Raek and spend the day with him focusing on the way Island Caterers operate and conduct business here in Malta. Another aspect of this visit focused on how we could benefit from the various programmes and business prospects within the EU. This proved to be beneficial to us mainly due to the fact that during the discussions we were given a better explanation of how the DG Enterprise and Industry works within the European Union. Although certain issues raised during his visit were not in his remit, he promised and actually followed through by providing us with the relative feedback."

Mary Gaerty and Doris Sammut, owners of Green Skip Group, stated that “the visit by Alain Van Raek was an experience and a possibility for us as Green Skip Group to discuss issues that we as an SME face on a daily basis. The items included discussed were, competition in our sector in Malta, mostly the unfair type, tendering processes in Malta and the cancellations of tenders and the Government’s involvement in the waste management sector, thus causing an imbalance in the growth of this important part of the sector. Visits such as this, will definitely assist SMEs particularly as we know that concerns outlined will

be addressed at a high level,” they concluded. Joseph Muscat, representative of Maypole commented that "Alain Van Raek's visit to Maypole's factory, as part of the EEP, gave management the possibility to discuss the opportunities and threats facing SMEs throughout the European Union and specifically in Malta. The visit focused on giving Mr Van Raek an insight into Maypole's drive to modernise its production facilities, offered the opportunity of evaluating the challenges encountered by the enterprise in implementing good manufacturing practices, and was useful in highlighting the efforts

put in the implementation of environmentally friendly measures.” Mr Muscat added that “Mr Van Raek discussed with management Maypole's operations giving valuable and measured advice on the endeavours of the enterprise to strike a balance between innovation and the safeguarding of indigenous products that are still the backbone of the product range." The MBB was praised for the EEP coordination by the European Commission and has in fact already been requested to host similar visits in the upcoming weeks.

BUSINESS AGENDA | April - June 2012

AWARENESS

Le Méridien MICE Facilities RENT BY THE HOUR SERVICE If you are searching for a practical and professional set-up to hold your company meetings, look no further. Le Méridien St Julian’s Hotel & Spa presents its new option for small meetings, with a rent-by-the-hour service to suit your exact requirements. Le Méridien St Julians Hotel & Spa presents a whole floor dedicated to meeting and conference facilities, and the following meeting rooms are now available for rental by the hour: • Aquarius (max capacity 59 pax*) • Aries (max capacity 18 pax) • Virgo (max capacity 24 pax) • Capricorn (max capacity 22 pax) • Sagittarius (max capacity 24 pax) • Taurus (max capacity 38 pax) • Leo (max capacity 35 pax)

*The seating capacity depends on your selected set-up. Please visit lemeridienmalta.com/meetings to consult all set-up meeting plans. Show-rounds are available at your best convenience. An appointment request may be sent on events. malta@lemeridien.com The hourly rate for the rental of any of the above mentioned room is at €20 per hour, including setup, flipcharts, stationery, water, tea and coffee for a maximum of 10 people.

You may also want to enhance your work environment with a welldeserved coffee-break at only €10 per person, including baked pastries and fruit juices. Additional equipment is available upon request.

Send your query to events.malta@ lemeridien.com for your personalised quote or for any complement of information.

Standards for ITalent:

Mapping IT talent to the requirements of the ICT industry Being a member of the ICT industry in Malta signifies being part of a developing sector that has so much potential for growth. But it is not without its challenges, and there has long been need for better occupational guidance within the industry, which can help and guide ICT students, employees and employers on the best practices. This is where the recentlylaunched Standards for ITalent comes in, serving as a set of ICT occupational standards and e-skill guidelines. The Standards were originally developed by eskills UK (the Sector Skills Council for Business and Information Technology in the UK) with multi-national

employers in the ICT industry. The Standards set clear guidelines on what is expected from ICT practitioners at every level of competence and progression. Additionally, it helps to link organisational and personal objectives, providing employees with a clear understanding of how to perform in their roles and how best to ensure career progression.

appraisal systems fairer and more transparent. MITA is currently piloting these Standards together with five companies and the goal is to update and tailor-make the Standards according to local requirements. Have a look at the Standards for ITalent on www.mita.gov.mt/ eskillsalliance

The Standards for ITalent will help the industry in achieving greater consistency of e-skills through the development of a better-qualified workforce, increase efficiency during the talent management process, making recruitment and

New Managing Director for Actavis Limited, Malta Actavis has recently announced the appointment of Patrick Cachia as the new Managing Director for Actavis Limited Malta, effective from 27th February. Until recently, Patrick held the post of Production Division Manager for Actavis in Malta, where he was heavily involved in the upgrade and operation of the site. Patrick holds an Executive MBA and a Bachelor of Pharmacy degree from the University of Malta. He joined Pharmamed in 1994 as Production Registration Officer. He was later promoted to Production Manager of Pharmamed Parenterals (PPL) in 1997 and to Production Manager of Pharmamed in June 2004. Pharmamed was acquired by Actavis (Delta) in 2002.

Six Bank of Valletta p.l.c. employees attend a two-day training course in London Six Bank of Valletta p.l.c. employees attended a two-day training programme at Insight Investment (Global) Management Limited, JO Hambro Investment Management and Bank of New York Mellon offices in London. The participants met various Fund Managers responsible for Funds managed by Valletta Fund Management Limited. Representing the fixed income team, Bonnie Abdul Aziz delivered an update on the La Valette Sterling Income Fund, La Valette Monthly Income Fund and La Valette Euro Income Fund. Bonnie Abdul Aziz outlined the opportunities currently available in the corporate bond market and an in-depth analysis on the performance and asset allocation of the funds. Aiming to achieve a level of income*, with the possibility of capital growth, these Funds are considered an ideal investment vehicle for those looking for periodic income* streams. Azhar Hussain gave an update on the La Valette High Yield Fund, which as at 29 February 2012 generated an income yield of 6.66 per cent*. The Fund aims to achieve a high level of income through investment in a diversified portfolio of securities consisting principally of debt instruments which are of a sub-investment grade credit rating. Shantanu Tandon gave an update on the three regional Vilhena Multi Manager Funds and the Vilhena Absolute Return Funds. He explained that, in the prevailing challenging market conditions investment opportunities that fit the funds’ diversified portfolio, still exist. He emphasised that before investing one has to ensure that the fund’s objective meets his/her financial goals.

The group also met Jennifer Fisher, Fund Manager of the Vilhena Global Themed Fund at JO Hambro Investment Management. Jennifer Fisher explained the company’s global equity investment approach and their proven track record, while highlighting the importance of the stock selection and investment process. She concluded that “the macro shocks of 2011 – US growth scare, euro zone crisis and Chinese inflation – have not disappeared but appear to be improving and that valuations are attractive and profits appear to hold up much better than some expectations.” Mark Mc Partlin and Caroline Keen from Bank of New York Mellon, who are responsible for the La Valette Far East Opportunities Fund met the group and stated that “we continue to invest in companies that stand to benefit from the long-term structural growth opportunities while remaining cautious on the outlook for 2012.” Finally Matt Meritt from Insight wrapped off the two-day training with an overview and outlook of the International Markets. This training programme was supported by Insight, a fully owned subsidiary of Bank of New York Mellon Corporation. Valletta Fund Management Limited is jointly owned by BOV and Insight (Global) Management, with 60 per cent shareholding and 40 per cent equity stake respectively. Past performance is not a guarantee of future performance. For further information on the full range of Valletta Fund Management’s funds please visit: www.vfm.com.mt

In the last years, Patrick was involved in the upgrade and operation of the site, in the introduction of blister packaging and the purchase of a number of new technologies, in regulatory and compliance audits as well as in participating in a number of collective agreement negotiations. Patrick’s vision for Actavis Malta is to establish the Malta facility as a key site for the group through strong customer service, first-to market launches, strong GMP and EHSs commitment whilst maintaining cost competitive edge through continuous improvement philosophy. He believes strongly in teamwork and that the company’s greatest asset is its employees.

*Income Yield net of the Fund’s fees and expenses. This yield constitutes the income that the assets of the Fund generate in relation to their value or market, and the frequency of payment may vary and are not guaranteed. The value of the investment may fall as well as rise and any initial and exit charges may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus, which may be obtained from Valletta Fund Management (VFM), Bank of Valletta p.l.c. branches and other licensed financial intermediaries. VFM is licensed to provide investment services in Malta by the MFSA. The La Valette Funds SICAV p.l.c. are licensed by the MFSA. The Vilhena Funds SICAV p.l.c. is licensed as a Collective Investment Scheme, qualifying as UCITS, by the MFSA. Insight Investment Management (Global) Limited is authorised and regulated by the Financial Services Authority (UK). Issued by VFM of TG Complex Level 3, Suite 2, Brewery Street Mriehel. Tel: 2122 7311; fax: 2123 4565; email: infovfm@bov.com

BUSINESS AGENDA | april - june 2012

BUSINESS AGENDA | April - June 2012

BUSINESS AGENDA | april - june 2012

business

Malta Chamber Partnership Agreement with Creditinfo With a volatile business environment in Europe and throughout the world, managing risks and thus improving one’s cash flow has become extremely fundamental for the survival of any business.

during 2012, with a special member’s discount.

The Malta Chamber of Commerce, Enterprise and Industry (Malta Chamber) is pleased to announce a partnership agreement with Creditinfo whereby all its members will be eligible to benefit from special packages on all services offered by Creditinfo

• A Creditinfo helpline to handle

Over the next 12 months all Malta Chamber members can avail themselves of the following:-

enquiries;

• 15 per cent to 30 per cent discount depending on the size of package purchased – four packages to choose from, starting from as little as

€170 (excluding VAT) which includes Membership Discount. Packages vary according to members’ needs but all include Company Analysis Reports, Credit Reports, Monitoring and International Reports. “The Malta Chamber is pleased to have partnered with Creditinfo on this initiative,” says Malta Chamber President Tancred Tabone. “As part of the Malta Chamber efforts to assist members through these volatile times and help them to

trade in confidence locally and abroad, the information provided by Creditinfo will benefit members by decreasing their business risk through well informed decisions.” Creditinfo believes the partnership with The Malta Chamber is important in these times of uncertainty as business needs as much support as it can get, in order to flourish. Simon Camilleri, Country Manager for Creditinfo Malta, states that “both organisations

are working to support local enterprise while minimising risk, in an effort to encourage trade both locally and abroad.”

Members are advised to email: lorrieann.vella@maltachamber. org.mt or sales@creditinfo.com.mt or call on tel: 2131 2344 for further information.

Business First providing over 50 services for businesses under one roof Business First offers a one-stopshop for businesses, providing them with a number of services previously entrusted to different entities and units. BUSINESS AGENDA takes a look at the details. More than 50 Government services for businesses which were previously provided by different departments and entities have now been gathered under one roof at Business First, the one-stopshop operated by Malta Enterprise at its new premises at the former Institute of Health Care within St Luke’s Hospital, Pietà. Business First provides services related to employment, VAT, tax, utilities, visa permits, as well as various licenses including several tourism-related licenses, thus saving a lot of unnecessary running around for businesses which require more than one service. This service allows businesses to focus more on the running of their business rather than on bureaucratic processes. Additionally, businesses are also able to obtain authoritative information on the permits required to set up and run a business, which might vary according to the nature of the operation, as well as comprehensive guidance to the funding opportunities available for the particular enterprise. Indeed, through Business First, businesses are also able to learn about and apply for the services,

schemes and support provided by Malta Enterprise to facilitate the businesses’ successful operation and growth, including through EUfunded initiatives. While the service is being provided to any business, irrespective of its size and the sector in which it operates, it will be particularly beneficial for SMEs, which often have fewer resources with which to operate. Given that they often have an extra burden due to their lack of familiarity with the business environment, start-up companies stand to benefit even more from the service. The policy context is clear: SMEs are the backbone of the Maltese economy, with more than 35,000 SMEs representing more than 99 per cent of local enterprises. Between them, SMEs employ nearly 90,000 workers and contribute over 70 per cent of the national added value. Yet, as is also identified by a survey carried out among almost 200 respondents by Misco International on behalf of Malta Enterprise, SMEs often find it difficult to gather clear information on the services they require and on the formalities that need to be taken care of.

European Commission Vice-President Antonio Tajani's visit to the Malta Enterprise premises in Pietà

“ Business First provides services related to employment, VAT, tax, utilities, visa permits, as well as various licenses including several tourism-related licenses, thus saving a lot of unnecessary running around for businesses which require more than one service. This service allows businesses to focus more on the running of their business rather than on bureaucratic processes.” Business First not only responds to these requirements by providing information and assistance to its clients – who are also supported to register the formalities and apply for the services from one centralised location – but is also an ongoing development with the possibility of adding more services to its offering in response to feedback gathered from clients. Moreover, clients are also given a clear indication with regards to when they can expect each of

the services they required to be delivered, meaning that they will also be in a better position to plan accordingly. In most cases, businesses will be able to obtain the service requested within 10 working days. Having opened its doors on January 23rd 2012, Business First will be extended further in the coming months with the opening of other smaller offices in Gozo and in SmartCity Malta, with the aim of extending as much as possible the

services offered before eventually providing an end to end service online. Despite being located at Malta Enterprise’s new premises in Pietà, Business First has its own dedicated area as well as a separate entrance. The office is designed to be as convenient as possible for those who require Business First’s service, having a front office layout as well as space for meetings. Free parking is also provided for Business First clients. Business First opens from Monday to Friday between 08:15hrs and 17:00hrs, with extended opening hours until 19:00hrs on Tuesday and Thursday.

A full list of the services offered can also be viewed on Business First’s dedicated website, www. businessfirst.com.mt. Clients in Malta can also call on 144 for any assistance.

BUSINESS AGENDA | April - June 2012

environment

Acting to save water on World Water Day The 22nd of March celebrated International World Water Day. Geoffrey Saliba, EU LIFE+ Investing in Water Project Manager, discusses the problem of water scarcity in Malta and provides an update of the events that took place as part of the LIFE + Investing in Water Project.

With only 40m3 of natural freshwater per capita in Malta, water is a scarce resource. The bad news is that it is only getting scarcer. In fact, current agricultural, domestic and industrial demand combined is well above what nature can sustainably supply. This scarcity has forced Malta to rely on reverse-osmosis for freshwater. Reverse-osmosis however, is an energy hungry technology and therefore far more expensive than sustainably utilising naturally existing freshwater reserves. Whilst we can continue to generate large amounts of electricity to counter water scarcity by generating freshwater from the sea, it is worth first examining our current consumption and ensuring that it is as efficient as possible. To this end the Malta Business Bureau (MBB) and MSV Life teamed up on the 22nd of March, World Water Day, to identify the water saving opportunities present on the MSV Life premises through a Water Audit carried out by the EU LIFE+ Investing in Water Project.

consumption, making it possible to win significant and easy savings by interventions in this area. In keeping with the spirit of World Water Day, MSV Life last March committed to implementing the recommendations, in line with its ethic as an environmentally responsible organisation. The 22nd of March was declared by the United Nations as World Water Day in 1992. This was done to advocate the sustainable management of freshwater reserves, in reaction to threats faced by natural freshwater resources worldwide. Apart from being a scarce resource, freshwater bodies in Malta are also under threat and have deteriorated in recent decades – a trend continuing today. Groundwater stored in aquifers is Malta's major source of naturally occurring freshwater. This water

Joe Tanti, MBB CEO thanking David G. Curmi MSV Life CEO, for the financial support offered to the MBB's EU LIFE+ Investing in Water Project and MSV Life’s commitment to environmentally responsible business.

The water audit highlighted areas of best practice – one of the MSV Life premises is already self-sufficient through rainwater harvesting. The audit also revealed that further savings could be achieved. “MSV Life is committed to supporting and helping communities sustain a good quality of life, therefore we are very pleased to associate ourselves with this (water savings) project,” stated David G. Curmi, MSV Life CEO. “We have already taken steps to keep our water consumption as low as possible, however thanks to expert advice from the EU LIFE+ Investing in Water Project we have identified further easily achievable savings.” In MSV Life’s case savings could be achieved by reducing flushing volumes on office toilets and regularly checking the water meter, to identify spikes in consumption caused by leaks. The EU LIFE+ Investing in Water Project estimates that water used to flush toilets could represent as much as 80 per cent of an office’s water

Testing the flow rates of wash hand basin taps during a Water Audit of the MSV Life premises carried out on World Water Day by the EU LIFE+ Investing in Water Project.

holds a poor status with excessive nitrates present in 90 per cent of groundwater bodies, and MEPA estimating that 48 per cent more groundwater is extracted every year than is naturally replenished. Commenting on this deterioration in Malta’s freshwater reserves, Mr Curmi added “MSV Life feels it is important for commerce to do its bit in reducing pressure on Malta's scarce freshwater. We believe in this so strongly that apart from taking in-house action, we have decided to go a step further and financially support the EU LIFE+ Investing in Water Proj-

ect to help other enterprises save water.” MBB’s EU LIFE+ Investing in Water Project has carried out around 40 audits with companies in various sectors, including MSV Life, Trelleborg, Playmobil and the Qawra Palace Hotel. Through the project the partners aim to guide businesses and hotels in better managing their water consumption. This will help stop the deterioration of Malta’s natural freshwater reserves while also reducing expenses for caring enterprises – a win-win situation for all.

Ing. Marco Cremona, Water Expert engaged with MBB’s EU LIFE+ Investing in Water Project, tests the flow rates of wash hand basin taps during a Water Audit of the MSV premises, held on World Water Day.

MBB’s CEO Joe Tanti thanked Mr Curmi on behalf of the project partners MBB, the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association for MSV Life’s financial support, and commitment to environmentally responsible business.

Would you like to reduce your enterprise’s water consumption? If so contact Geoffrey Saliba, EU LIFE+ Investing in Water Project Manager at the MBB on gsaliba@ mbb.org.mt or 2125 1719

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

BUSINESS AGENDA | april - june 2012

BUSINESS AGENDA | April - June 2012