BUSINESS AGENDA ISSUE 14

businessagendaTHe Official business publicaTiOn Of THe MalTa business bureau

THIS ISSUE neWspaper pOsT

compETITIvEnESSEuropean Commission proposal for

a revision of the Insurance Media-tion Directive seeks to improve com-

petition and protect consumers.

page 12

BUSInESSHow small and micro businesses can work together to significantly reduce the burden which results from the limited economies of scale afforded to them.

page 20

cASE STUDY Corinthia Hotels share their experience of the water saving recommendations made by the Life+ Investing in Water project.

page 35

IssuE 14 | MarCH - MaY 2013

“sudden lOss Of funds WOuld Have HarMed MalTa’s ecOnOMy” – eu perManenT represenTaTive Marlene bOnnici

MalTa seT TO elecT THree neW Meps

Malta’s Permanent Representative in Brussels Marlene Bonnici has revealed that on the table of nego-tiations for EU funds for the period 2014-2020, Malta argued success-fully that a sudden loss of funds would be harmful to the economy, as EU Cohesion Policy funding remains important for the eco-nomic development of Malta. The permanent handicaps which result from Malta’s status as an island member state were also brought up during negotiations at EU level, she explained.

In an interview with Business Agenda, she said that the deal reached by Malta for the next pro-gramming period is indeed ‘very positive’, particularly since this is one of the most sensitive dossiers in the EU which also requires una-nimity. Ambassador Bonnici also asserted that the deal was posi-tive for Malta, particularly with a decrease in the overall Multi-Annual Financial Framework in the current programming period and the fact that the island no longer enjoys Objective 1 status.

Malta’s top man in Brussels, Eu Commissioner Tonio Borg, has revealed that a new Tobacco Direc-tive will seek to regulate emerg-ing products in the tobacco industry that are currently unregulated by the existing Directive. In an interview with Business agenda, Dr Borg also announced that the new Directive will be making photo warnings on tobacco products compulsory across the Eu.

Dr Borg has filled the seat vacated by then European Commissioner for Health and Consumer Policy John Dalli back in October 2012. The latter resigned following an investigation by the Eu’s anti-fraud office into a complaint made by tobacco producer swedish Match. When asked how he plans to restore Malta’s somewhat tarnished reputation following Mr Dalli’s resignation, Dr Borg reiter-ated what he has insisted on so far;

“I am here to do a job well, and will spare no effort to finish the job on time. There are a number of impor-tant issues on the table, where there is a clear benefit for all Eu citizens, and this is where I will concentrate my efforts. It is not for me to judge my predecessor’s case. Everyone should be entitled to forward his own views in defence of his position.”

See full story on page 5.

“nOT fOr Me TO judge My predecessOr’s case”

EU polIcYa look at what the creation of the European Banking union will mean for the banking and financial services industries.

page 14

EnvIRonmEnTThe role of electric cars in reaching Europe’s energy tar-gets and whether they are a viable option for all in today’s world. page 9

Following their election in Malta’s General Election, three out of the six MEPs who have represented Malta in Brussels over the past four years will now be replaced with three new MEPs. The majority of the candidates who stand a chance to get elected are women.

In the case of the Labour Party, entrepreneur Marlene Mizzi is the front runner to replace Deputy Leader Louis Grech, whereas con-tenders to replace Edward scicluna are Glenn Bedingfield and Claudette abela Baldacchino. The winners will depend on who will manage to inherit most votes from the outgo-ing MEPs.

The candidate of the 2009 MEP election most likely to get elected from the Nationalist Party is roberta Metsola Tedesco Tric-cas, who achieved 5,880 votes back in 2009 and will be replacing Dr simon Busuttil. Nonetheless casual elections can be quite sur-prising as the successful candi-date might not necessarily be the one having the highest first-count votes, so it could well be the case that PN President Marthese Por-telli or GrTu Director General Vince Farrugia, who were both can-didates in the European elections, could make it instead as everything will depend on who will inherit the majority of Dr Busuttil’s votes.

– eu cOMMissiOner TOniO bOrg

See full story on page 22.

BUSINESS AGENDA | mArch - mAy 20132

3BUSINESS AGENDA | mArch - mAy 2013

Malta’s Eu membership is approach-ing its tenth year. In order to ensure the success of our membership we must abide by certain Eu legisla-tive and policy obligations that were agreed upon at European Council level in recent years. such obliga-tions include, but are not exclusive to, the Europe 2020 strategy for Growth and Jobs, as well as the environmen-tal 20-20-20 targets enshrined within the Eu Climate and Energy Pack-age. Meeting these targets is of the utmost importance as the European Commission, in preparation for these targets, has drawn upon the experi-ence of all member states to evalu-ate the direction a modern Europe should take to remain competitive.

The Malta Business Bureau has ana-lysed the targets which could have the greatest impact on local com-mercial activities, and has drawn up a set of recommendations which highlight how the targets could be reached. These were included in a policy document entitled ‘Deliv-ering the Europe 2020 strategy in Malta’ that was published recently. The key topics revolve around three important pillars for our economy: supporting businesses in becom-

ing more competitive, addressing labour market reforms and provid-ing for a sustainable environment resource management.

a strong and flexible labour mar-ket is required to meet the demand of businesses in order to acceler-ate growth in the coming years. To date, imbalances still exist. Particu-lar attention needs to be devoted to special categories such as youths, females and the elderly. They need to be adequately trained and multi-skilled to transition into the labour market more easily, and to be able to contribute towards the Maltese economy. Interestingly, a recent Eurobarometer survey released in 2012 showed that 61 per cent of Maltese prefer to be employed rather than be self-employed. This demonstrates the strong need for a change in culture to instil a stronger entrepreneurial mentality.

From an environmental perspec-tive, statistics confirm that Malta extracts nearly 50 per cent more groundwater than is sustainable. Water, like energy, is an essential element feeding into the production processes of several industrial prod-

ucts. Current rates of extraction are not sustainable and the business community is concerned that this could impact on future operations. In this respect, the MBB is helping businesses and hotels sustainably reduce their water consumption through the Eu LIFE+ Investing in Water project. However, water-sav-ing programmes for other sectors could also contribute substantially to lowering water demand. at the same time, initiatives are required to increase the use of second-class sources of water such as rainwater or treated sewage, to complement water saving efforts and further reduce pressure on over-exploited aquifers.

It is a common saying that sMEs are the backbone of the European economy, and this is also true for the Maltese economy; with par-ticularly more than 99 per cent of companies categorised as small and micro enterprises. The coun-try therefore owes its progress and ability to achieve its targets through the economic activity generated by its enterprise and industry. access to finance remains challenging for sMEs across Europe, not least

those based in Malta. schemes made available for local businesses in recent years such as MicroInvest, MicroGuarantee and JErEMIE were very positive and highly welcomed. During the next programming period 2014-2020, the strengthen-ing of such instruments will go a long way in ensuring availability of sufficient liquidity for businesses to undertake new ventures or develop existing ones. The MBB has recently finalised an assessment study, pro-actively identifying alternative credit instruments available in the Eu, mainly in the area of loan guarantee funds and securitized mezzanine finance. The results will be commu-nicated to Government, in order to raise awareness on further micro-credit schemes that may be set up.

Finally, on behalf of the MBB, I would like to congratulate Prime Minister Joseph Muscat, for being given a clear mandate to form a gov-ernment and to manage our country in the next five years. I reiterate the MBB’s commitment to work hand in hand with the new Government in the coming months on various fronts, particularly in the imple-mentation of measures to achieve Europe 2020 obligations to bring Malta to the forefront of the Euro-pean union.

‘Delivering the Europe 2020 Strat-egy in malta’ can be viewed from the mBB website www.mbb.org.mt

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Editor: Joe Tanti Deputy Editor: chiara Bonello

Editorial Team: omar cutajar, Daniel Debono, Geoffrey Saliba, mariella Scicluna, mark Seychell

Deputy advertising sales Manager: leigh pisani

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.

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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.

ediTOrial

By Joe Tanti, Chief Executive Officer, MBB

a cOllecTive cOMMiTMenT TO acHieve eurOpe 2020 ObligaTiOns


cOver sTOry

malta’s net Balance from the EU Budget 2014-2020 million euro

Hypothetical

June 2011 Commission proposal

13 November 2012 Cyprus Presidency

proposal

22 November 2012 President of the

European Council proposal

7-8 February 2013* Malta Objective 1

7-8 February 2013 European Council

Conclusions

1. Cohesion Policy and Agriculture of which

715 656 879 892 914

- Cohesion Policy 602 551 776 791 776- agriculture 113 105 103 101 138

2. Migration and Internal Security, Education** and Fisheries

139 135 123 120 120

3. Connecting Europe Facility, R&I and the Environment

165 150 134 94 94***

4. Total funding to Malta (1+2+3) 1019 941 1136 1106 1128Less:

5. Malta’s contribution to EU Budget

(541) (515) (515) (501) (501)

of which:- Own resources (515) (480) (480) (474) (474)- rebates (26) (35) (35) (27) (27)

6. Net balance (4-5) 478 426 621 605 627

Total EU Budget as a % of GNI

1,045,284 1.09%

973,234 1.01%

971,929 1.01%

959,988 1%

959,988 1%

* This column represents the situation with respect to allocations to and payments to be made by Malta, had the country remained within the less developed (Objective 1) category. ** Includes the Education Programme Erasmus for all. *** Includes an indicative €63 million to support projects in the energy sector such as connection to the European gas network.

eurOpean cOuncil agrees On an eu budgeT: WHaT’s in iT fOr MalTese business?

following lengthy negotiations between all member states, in february 2013 the european council concluded the Multiannual financial framework (Mff) for the next programming period 2014-2020. daniel debOnO provides an overview of the conclusions and discusses what the financial package will mean for local business with Malta’s permanent representative to the eu, ambassador Marlene bonnici.

On 7th and 8th February 2013, fol-lowing a failed attempt in a previous European Council summit held in November 2012, Eu member state governments reached a highly antic-ipated agreement on the Eu’s Mul-tiannual Financial Framework (MFF) for the next programming period that will run from 2014 to 2020.

In communicating the agreement, European Council President Her-man Van rompuy stated that this was not just any budget: “it is a balanced and growth-oriented budget for Europe for the rest of the decade.” European Commis-sion President Jose Manuel Bar-roso pointed out that “the deal is not perfect, but it was the highest possible level of agreement that the heads of state and government could reach at unanimity.”

Member states have, in fact, reached a political agreement for a maximum expenditure of €959,988 billion, a figure which represents 1 per cent of the Eu’s Gross National Income (GNI). These funds will be oriented towards achieving the Europe 2020 strategy goals by increasing growth and jobs, encouraging greener agriculture and creating more environmental awareness, increasing research and innovation, and education and training. Other funds shall

be used for external relations, to fight crime and terrorism, as well as for migration asylum poli-cies in Europe. The deal made at the European Council is still to be

approved by the European Parlia-ment, and in fact the Parliament’s four largest political groups have already warned that this will not be a straightforward process and that

much more intense negotiations will be required prior to approval. according to ambassador Bonnici the outcome of the MFF negotia-tions is no mean feat, consider-

ing that all 27 member states, each having their own priorities and domestic political pressures, managed to reach an agreement: “there was really very little space


cOver sTOryfor manoeuvring, which makes the result all the more significant. Member states were, however, aware of the importance of reach-ing a deal, albeit this being one of the most sensitive dossiers in the Eu that also requires unanimity,” she said.

ambassador Bonnici argued that “the MFF deal itself is a very posi-tive result. In this regard, one should note the context of the aus-terity policies which many member states are currently implementing. However, at the same time the out-

come places the proper focus on growth and jobs, mainly through Cohesion Policy Funds.” she con-tinued “for Malta, the result was a particular success when con-sidering a decrease in real terms in the overall MFF over the cur-rent (2007-2013) programming period, and also in view of the fact that Malta is exiting Convergence (Objective 1) status under Cohe-sion Policy.” undoubtedly, negotia-tions were extremely difficult, with so many interests at stake, a fact recognised by ambassador Bonnici who confirmed that this is a fairly

common situation in the Eu when negotiating sensitive and difficult dossiers.

However she acknowledged that “generally member states, as well as the Commission, realise that compromise is the ‘name of the game’ and that small national concessions are far outweighed by the benefits of a common accord which has far-reaching and tan-gible gains for the entire Eu.” she believes that “in this regard, how-ever, it is very important to pres-ent sound arguments and justifi-

cations. The final package of the MFF negotiations is beneficial to all member states as it channels financial resources into the sec-tors which need them the most and supports the overall objective of growth and jobs.”

The increase in Malta’s funding level happened despite Malta los-ing its Objective 1 status. This came about because Malta’s eco-nomic development has meant that it now exceeds the 75 per cent of the Eu GDP per capita thresh-old, under which Objective 1 status

is granted. ambassador Bonnici explained that the Maltese Govern-ment made its argument that Eu Cohesion Policy funding remains important for the economic devel-opment of Malta. “We consistently argued that given that Malta is a single region member state exit-ing Objective 1 after only one full programming period (2007-2013), it would be harmful to subject Mal-ta's economy to the shock of a sud-den loss of funds,” she said. In this regard, she continued, “we argued that in Malta’s case this would not just affect one or two regions, but the entire member state and the entire population. at the end, our arguments were sound.”

she also explained Malta’s argu-ment that due to the permanent handicaps resulting from Mal-ta’s status as an island member state, it was important to rec-ognise the additional needs that such territorial specificities bring about. ambassador Bonnici fur-ther explained that Malta’s final package includes different types of funds, the bulk of which are directly allocated to Malta, subject to the presentation of the relevant strategies and programmes. These include Cohesion and structural Funds; Malta’s allocations for the agricultural (including rural devel-opment) and fisheries sectors; funds under the migration enve-lope and other programmes such as ‘Erasmus for all’. Malta will also benefit from other funds and instruments which member states compete for from programmes managed at a European level such as the Horizon 2020, the Connect-ing Europe Facility and COsME.

ambassador Bonnici commented on how Maltese businesses will benefit from the new programming period and any changes to the state-aid classifications Malta has in the funding period that is com-ing to an end in 2013. “With regard to state aid rules, the Commis-sion recently presented its draft guidelines on regional aid and this is currently under consultation. Malta is seeking to build a case to mitigate the impact of any change in the relevant classifications. This policy area is very important as it will determine aid intensity – irrel-evant of whether the aid is from the national budget or Eu funds,” she said.

With respect to Eu funds spe-cifically allocated to businesses, ambassador Bonnici explained that “support to sMEs is a major priority for the Eu and for Malta. There will be a continuation of funds for enterprises available under the various programmes, primarily under Cohesion Policy (ErDF and EsF), rural Develop-ment, as well as the Maritime and Fisheries fund. These will build on the experiences and lessons learnt in the 2007-2013 period. Of course, investments have to focus more and achieve targets on increas-ing employment rates, generating growth and sustaining competi-tiveness. Therefore, new schemes have to be more targeted and investments have to achieve clear results,” she concluded.


envirOnMenT

elecTric cars:a viable OpTiOn fOr MalTa?luxury item or a viable option for everyone? jO caruana looks at the incentives and advancements that hope to make electric cars a very real part of our driving future.

Electric cars can seem like a bit of an enigma. are they luxury items best suited to those with money to burn? Or do they offer an eco-friendly method of saving money and helping the planet?

Either way, it seems that Malta still has some work to do when it comes to encouraging more people to buy electric cars. after all, it’s nearly four years since the European Commission adopted an environmental strategy to reduce the Eu’s greenhouse gases by 20 per cent, to increase the share of renewable energy by 20 per cent and to decrease the consumption of energy by 20 per cent – all by 2020. By that date, Malta needs to work towards generating up to 10 per cent of its electricity from a mix of renewable sources.

and while the Eu’s overall target is to transform 10 per cent of its vehicle fleet to those powered by renewable sources by then, Malta has set an indicative target for the uptake of 5,000 plug-in elec-tric vehicles by 2020. so far the response has been slow, but is there any reason why electric cars shouldn’t drive the island’s future?

Tonio Darmanin, a renowned local car enthusiast and the presenter of popular programme PaqPaq, thinks not. He believes Malta is probably one of the world’s most ideal environments for the use of electric cars. “I know quite a few people with electric cars now – including two young men who chose to refit traditional cars themselves – and the response has been positive. I used an electric car myself for a while, and I found it to be very convenient. Having said

that, these vehicles do currently come at a premium, which is the most off-putting thing, but I think people are coming round to the idea in general.”

Mr Darmanin explains that, over-seas, electric cars are often at risk of running out of power on longer trips. “But here, with 100-150 kilo-metres of autonomy, you can usu-

ally go a couple of days without recharging, and that’s great. In that regard, they make a lot of sense locally. Plus, they are virtually maintenance-free as they don’t have many of the moving compo-nents that traditional cars do. On the flipside, though, you currently need a garage to recharge the car, so that rules some people out immediately.” Meanwhile, Mr Dar-

manin stresses that, while some advancements have been made, Government will need to do more to encourage people to dig deep enough to make the initial invest-ment that goes hand-in-hand with buying an electric car. “I think the Government needs to create an

infrastructure of solar-powered public chargers, where electric car owners can charge up cost-free,” he says. “It would be ideal if these were set up in car parks or other public spaces. I think people need a few incentives such as these to encourage them to make the


envirOnMenToriginal outlay.” as for costs com-ing down on the cars themselves, Mr Darmanin thinks it will take another few years before the econ-omies of scale enable that to hap-pen. “But when they do, I believe electric cars will provide a very via-ble alternative to traditional vehi-cles and that people will love them. In the meantime, electric scooters are an excellent option,” he adds.

and it seems that Maurice Mizzi, president of the association of Car Importers Malta, agrees with him. “There are many pros to electric cars,” he says. “There’s no pol-

lution, they are cheaper to run, silent and, eventually, they will cost much less than petrol cars to pro-duce. These vehicles are also very convenient– you just plug your car in at home and are ready to go a few hours later.

“Of course there are cons too – such as the cost of the battery, as well as the car itself. as pro-duction of vehicles is still in its infancy, there is little economy of scale. at this stage I think a subsidy of between €10,000 and €15,000 would help. after that we

can expect production to ramp up and costs to subside, so they should become very popular in the future,” he continues.

and it seems plans are in place to make some things easier for the people who do want to buy an electric car now. according to a spokesperson from the Ministry for resources and rural affairs, the National strategy for the Intro-duction of Electromobility foresaw a number of initiatives and recom-mendations that would promote electric cars locally.

These developments follow on the introduction of the National strat-egy for Electric Vehicles, which was launched on 31st July 2012. In line with that, the Government aims to have 5,000 electric vehicles on the road by 2020 and there are various pilot projects and incentives on the go to make that happen. The main incentive scheme is a rebate of 25 per cent towards the total cost of the electric vehicle up to a maxi-mum of €4,000. Furthermore, the licence for these cars has been reduced from €75 to €10.

“The Ministry believes that elec-tric cars are ideal for Malta,” the spokesperson says. “aside from them being perfect for short dis-tances, generally, the Maltese are environmentally friendly, like to be trendy, and know when to make a bargain. Electric vehicles are the cleanest transportation you can get with no direct air pollution from the vehicle itself. Thus they are fast becoming a symbol of prestige, just like mobiles or smart-phones were a few years ago. Besides, in terms of cost per kilometre, elec-tric vehicles are much cheaper than conventional vehicles. Obvi-ously, the issue of capital invest-ment remains, but it should help to know that prices are falling fast.”

additionally, the spokesperson explains that charging infrastruc-ture should be installed within a matter of months, which will make owning an electric car much more viable for everyone. “We know people have been worried about the range of the vehicle, and some were put off by it. But the ongoing Demo-EV scheme, which strives to demonstrate the feasibility of these cars, has been very encour-aging, with over 200 applicants volunteering to help pilot the proj-ect. The Government certainly has ambitious targets and is confident it will reach them.”

Finally, the European Commis-sion is also behind Malta’s move towards electric vehicles. In fact, in January this year it launched its own Clean Power for Transport package.

European Commission Vice Presi-dent siim Kallas, who is responsi-ble for transport, said: “developing innovative and alternative fuel is an obvious way to make Europe's economy more resource efficient, to reduce our over dependence on oil and to develop a transport industry that is ready to respond to the demands of the 21st cen-tury. Between them, China and the us plan to have more than 6 million electric vehicles on the road by 2020. This is now a major opportunity for Europe to establish a strong position in a fast growing global market and we are making strides towards it.”

“ The government aims to have 5,000 evs on the road by 2020.”

“ electric vehicles are the cleanest transportation you can get with no direct air pollution from the vehicle itself.”


The European Commission has agreed to the revision of the Insur-ance Mediation Directive, aimed at strengthening effective consumer protection across all financial sec-tors. The Directive has the objective of improving competitiveness within the field of insurance as well as to provide for a more informed con-sumer base. The previous Directive, adopted in 2002, was a minimum harmonisation instrument which contained high level principles which had been implemented in mem-ber states in substantially different ways; therefore a uniform method of implementation was needed.

aside from providing for unifor-mity among the Eu member states, the proposed Insurance Mediation Directive seeks to improve competi-tion and creates a level playing field within insurance markets. It also looks to provide European consum-

ers with better advice on the insur-ance products available. Moreover, it introduces simplified and less burdensome rules on the free pro-vision of insurance services as it foresees the establishment of a sin-gle European registry for insurance intermediaries that want to provide cross-border services.

The new proposed Directive also includes improvements in dealing with conflicts of interest between the seller of the insurance product and the potential client. To give a simple example, a customer needs to understand the status of the person who is selling the insurance product. The salesper-son will therefore have to clearly demonstrate the role in which he is acting (agent, broker, direct writer, etc) by presenting a busi-ness card when selling the insur-ance product.

speaking to Business agenda on the subject, the Director General for the Malta Insurance associa-tion, adrian Galea, draws empha-sis on how the Maltese insurance industry, together with its Euro-pean counterparts, contributes significantly to the Maltese econ-omy in a direct and indirect man-ner. “aside from being a major employer and tax contributor, the industry is extremely competitive and tightly regulated; two ingredi-ents which reassure and provide peace of mind to consumers. Yet, when reaching out to customers, insurance undertakings adopt dif-ferent models and distribution channels which may vary from one country to another.” so, he adds, while the industry welcomes any added protection to consum-ers, it would be wrong to assume that there is a ‘one size which fits all’ solution.

cOMpeTiTiveness

neW eu direcTive gives HigHer prOTecTiOn On insurance prOducTs

in 2012, the european commission adopted a proposal for the revision of the insurance Mediation directive. business agenda provides an overview of the directive and discusses its impact on the local market with the director general of the Malta insurance association adrian galea.


cOMpeTiTiveness

“a higher level of protection for all consumers purchasing insurance products is welcome to the Maltese insurance sector, but any new requirements should be sufficiently flexible and proportionate to accommodate the diversity of con-sumer demands and needs.”

– adrian Galea

“ The Malta insurance association acknowl-edges that the distribu-tors should be properly trained.”

– adrian Galea

When asked about its impact on the local economy, Mr Galea con-firms that Malta will be clearly affected by the European Commis-sion’s new proposal. “a higher level of protection for all consumers purchasing insurance products is welcome to the Maltese insurance sector, but any new requirements should be sufficiently flexible and proportionate to accommodate the diversity of consumer demands and needs.”

Mr Galea explains that the new Directive also provides for a num-ber of requirements, particularly those affecting the registration and professional suitability of interme-diaries, and their freedom to oper-ate within the Eu. These, in his view, are definitely clear improve-ments on the first Directive.

The new proposal also extends the professional requirements to direct sellers. “The Malta Insur-ance association acknowledges that the distributors should be properly trained as this is essen-tial to the creation of adequate internal controls and to the fair treatment of customers,” says Mr Galea, whilst adding that since the continuous professional develop-ment of direct sellers and insur-ance distributors is already widely practiced in the local industry, this addition is seen as an opportunity rather than a challenge.

“another positive proposal requires the compulsory setting up of alter-native mechanisms for the resolu-tion of disputes; however, on the other hand, other proposals such as the regulation of conflicts of interests and disclosures require some further improvement.

The Commission’s proposal will require the disclosure of the basis and amount of the remuneration of insurance intermediaries and employees of insurance undertak-ings, and in our view this will not benefit consumers, and will only add burden and cost for our indus-try and consumers,” Mr Galea argues.

Adrian Galea, Director General Malta Insurance Association

Many have emphasised that this revised Directive will help increase consumer protection, however, in Mr Galea’s opinion, although this Directive will increase disclo-sure and hence allow consumers to take better decisions, in many

cases consumers do not need or want advice. “This is particularly so with regards to standardised insurance products. Consumers should therefore be able to pur-chase any insurance products without advice,” he maintains.

Before the new Directive can come into force, the proposal must first be adopted by the European Par-liament and the Council. This is likely to happen later this year and the Directive’s entry into force will most likely be 2015.


Various Eu regulatory initiatives have been unveiled in response to the international financial cri-sis most of which were aimed at curtailing the possible eventuality of a large-scale bail-out of banks, consequently putting at risk the solvency of national states and the private savings of Eu citizens. The most ambitious political response to date was the decision taken by the European Council in June 2012, when Eu leaders agreed to deepen economic monetary union as one of the remedies of the crisis. The European Council mandated the Commission to design the building blocks of a ‘Banking union’. The Commission published its propos-als, elaborating a pathway towards the establishment of a single banking supervision mechanism in the euro-area in september with the original intention of concluding an agreement on these new rules by the end of last year.

WHAT IS THE BAnkInG UnIon?In brief, the Banking union rests on the core idea that a single supervisory system needs to be put in place to ensure better and more consistent supervision of retail and investment banks across the Eu-27 member-states. In its official proposals the Commis-

sion stresses that the Banking union based on the single super-visory mechanism “will not change rule-making for the single Market of 27 countries, but change the way banks in the euro area will be supervised.” Essentially this will be done by transferring key super-visory tasks for banks established

in the euro area from the national level to the European Central Bank (ECB) with the responsibil-ity for early-warning and detection of risks threatening the viability of banks.

according to the Commission’s precepts, the Eu Banking union

would rest on the ECB’s enhanced powers, as the institution that would be responsible for tasks such as authorising credit institu-tions, compliance requirements with capital and liquidity require-ments and conducting the super-vision of financial conglomerates.

On the basis of these proposed transfers of financial supervisory powers to a European level, it is evident that the Banking union is devised on the premise that the coordination of national banking supervision is no longer an option for the euro area. a move to an integrated system is not only nec-

eu pOlicy

The eu banking union– what does it mean for the banking and financial services industries?– By Omar Cutajar, MBB Permanent Delegate in Brussels


eu pOlicy

essary, but an indispensable pre-requisite for ensuring the stability of the single currency and avoid-ing the over-exposure of sovereign states’ finances to possible future costly bank rescues.

THE pRocESS So fAR...The delays encountered so far on the creation of the Eu Banking union have partly emanated from the complexity of the Eu legisla-tive process and partly from the political criticism and sensitivities arising from what is being per-ceived as a further encroachment on national sovereignty in relation to the regulation of the financial services’ industries.

Out of these proposals, agreement has so far been reached only on the Directive on capital require-ment for banks, which will see the incorporation of global stan-dards on the requisite bank capital agreed at G20 level into Eu legisla-tion. The European Parliament and member states have found a com-promise on the Capital require-ments Directive by resolving an outstanding but highly contentious issue related to executive remu-neration in the banking industry. The political agreement, which is yet to be approved by the ECOFIN Council of Ministers at the time of writing, revolves around the prin-ciple of capping banker bonuses to a maximum of an annual salary. The compromise obtained in nego-tiations would mean that bonuses will not exceed salary, but share-holders will be able to approve an increase in bonuses to twice the level of pay.

pRoSpEcTIvE ImpAcTS of THE SInGlE SUpERvISoRY mEcHAnISmThe introduction of a single super-visory mechanism resting on the enhanced powers of the Euro-pean Central Bank will inevitably imply a re-balancing of the role and responsibilities of the national authorities. On the basis of its sep-tember 2012 proposals the Com-mission argues that whilst ulti-mate responsibility for specific supervisory tasks would now lie with the ECB, national supervisors will continue to run the day-to-day supervision, the preparation and implementation of ECB decisions. There is certain validity to the criti-cism leveraged with regard to the sovereignty argument, however it is also pertinent to recall that the financial crisis obtained a momen-tum of its own precisely because of the spill-over effect of cross-border investment banking activi-ties. such activities, which though perhaps limited to a number of member states, can have critical repercussions across the entire euro area.

Democratic scrutiny of the new ECB powers is being guaranteed by making the new supervisory tasks

subject to the review of the Euro-pean Parliament, including the obligation for the ECB to submit regular reporting requirements. In this regard, the Commission’s pro-posal also foresees that the Euro-pean Central Bank’s supervisory board would be obliged to reply to

official questions from MEPs and its officials can also be invited to public hearings.

ImpAcT on mAlTESE BAnkSBeyond implications on the regula-tory authorities, it is rather prema-ture to forecast the direct impact

of the single supervisory mecha-nism on the operations of Maltese banks and all other Eu-registered banks with domiciled operations in Malta. Currently, the daily super-vision of cross-border banking activities takes place thanks to coordination between the home supervisor (where the bank is originally licensed) and the host supervisory authority (where the bank has established branches or subsidiaries). With the eventual advent of the single supervisory mechanism, much of the regula-tory oversight will be taken over by the European Central Bank, since

this will exercise the powers of the former home supervisor and the former host supervisor simul-taneously. Therefore, the func-tions of the home and host country authorities will become redundant in so far as cross-border banking activities within the euro zone are concerned. The only exception to this rule will be the continued (as at present) coordination of regula-tory supervisory activities vis-a-vis banks operating in the non-euro zone member states.

“ [The banking union] will not change rule-making for the single Market of 27 countries, but change the way banks in the euro area will be supervised.”– European Commission


a group of six Bank of Valletta p.l.c. (BOV) employees have just returned from a two-day training programme at Insight Investment Management (Global) Limited, JO Hambro Investment Management Limited and Bank of New York Mellon offices in London. The participants had the opportunity to receive first hand information from the various fund managers that manage

Valletta Fund Management Limited (VFM) investment solutions.

During their visit, the BOV employees attended briefing sessions with fund managers and fixed income specialists on the bond market, and held discussions on the outlook for investment grade bonds in Europe. The group also discussed the opportunities of the high yield bond

market, which provides investors with a superior level of income at a higher level of risk. The BOV employees attended an interactive session with market specialists on current economic uncertainties and market volatility, and discussed the importance of diversification in an investment portfolio. a presentation was also given on the multi-asset fund strategy which invests across the investment landscape including equities, bonds and cash, and provides

diversification within one fund. The group also met with experts in the Far East market and discussed the opportunities in asian markets, as well as the benefits of a thematic stock picking approach within a long-term investment horizon.

The group was briefed on the stock selection process and on-going research, analysis and monitoring which is carried out by the fund managers and their

investment teams. VFM remains committed to provide such opportunities to financial advisors and to keeping them abreast of market developments. This training programme was made possible thanks to BOV’s business partnership with Insight Investment Management (Global) Limited, a subsidiary of Bank of New York Mellon.

six bank Of valleTTa p.l.c. eMplOyees aTTend TWO-day Training cOurse in lOndOn

The European Commission has launched an investigation on solar panel imports from China to estab-lish whether the manufacturing of these products is being unfairly subsidised by the government in China and whether such imports are damaging the European union’s industry.

The production of solar panels comprises three main segments, namely the production of solar wafers, which are then converted into cells, and then eventually assembled into modules or panels. The investigation will be looking at all three segments, irrespective of whether these are carried out in an integrated process by a sin-gle manufacturer or whether the process is split between different manufacturers. Throughout the investigation, all interested parties have a right to provide comments

to the European Commission and participate in the hearings to make their views and arguments heard. On the basis of the information col-lected, the European Commission will establish if there is subsidisa-tion and whether the injury alleg-edly suffered has been caused by the subsidised imports.

In this sense, the EEN Office within Malta Enterprise is gather-ing information from importers, retailers and producers in Malta to evaluate the local scenario and contribute in providing better feed-back to the Commission.

eu iniTiaTes anTi-subsidy invesTigaTiOn On sOlar panel iMpOrTs frOM cHina

Established 40 years ago by the Group’s current Chairman, John a. Gauci-Maistre K.M., the Economi-card Group of Companies started out by offering the then very inno-vative cash discount card. Mr Gauci-Maistre, never one to rest on his laurels, soon began to seek out niche markets in which to special-ise. In the second part of the sev-enties Economicard contributed significantly to introducing the concept of desktop computers and computer gaming in Malta. Hav-ing made the Commodore brand a household name throughout the eighties and nineties, it is no won-der that the mere mention of the Commodore 64 or amiga 500 gives rise to nostalgia for so many of us.

Whilst many of us were happily playing Pac Man or sensible World of soccer on our Commodore com-puters, Mr Gauci-Maistre was busy

carving out his name in the mari-time industry. By the end of the seventies, he had already begun to emerge as a pioneer in the ship registration industry, an industry he holds dear to his heart until this very day. Immediately sens-ing the importance that the Mal-tese maritime flag could have in the international maritime sector, he was relentless in his efforts to get the Maltese ship registry off the ground. It is no wonder there-fore that today GM International services Limited remains a mar-ket leader in the industry and has become synonymous with ship registration under the Malta flag.

Towards the end of the eighties, Mr Gauci-Maistre saw the finan-cial services industry as a natural corollary to many of the services he was offering, dove straight into the industry and has never looked

back. always at hand to ensure that levels of quality and passion never dwindle, plans to build on the suc-cess of the last four decades have already been put into motion.

ecOnOMicard grOup celebraTes iTs 40TH anniversary

Past performance is not a guarantee of future performance. For further information on the full range of Valletta Fund Management’s funds visit: www.vfm.com.mt. 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, and the Key Investor Information Document which may be obtained from Valletta Fund Management (VFM), Bank of Valletta p.l.c. branches/investment centres and other licensed financial intermediaries. VFM is licensed to provide investment services in Malta by the MFSA. All funds managed by VFM are licensed by the MFSA. The Vilhena Funds SICAV p.l.c. is licensed as a Collective Investment Scheme by the MFSA and qualifies as UCITS. 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 BKR3000. Tel: 2122 7311; Fax: 2275 5661; Email: [email protected]; Source: VFM.

business updaTe


april/May 2013 seMesTer TiMeTable

ONLINE MarKETING Thursday 25th aprilWEBsITE DEsIGN Thursday 25th aprilFLasH Cs6 FOuNDaTIONs Friday 26th april WEBsITE DEVELOPMENT Friday 26th april PC TECHNICIaN saturday 27th aprilILLusTraTOr Cs6 FOuNDaTIONs saturday 27th aprilInDEsIGN Cs6 FOuNDaTIONs saturday 27th aprilMasTErING PHOTOsHOP Cs6 saturday 4th May3D sTuDIO MaX saturday 4th MayMTa WEBsITE DEVELOPMENT Monday 6th MayauTOCaD 2D & 3D Tuesday 7th MayPHP aDVaNCED Tuesday 7th MayGraPHIC DEsIGN Tuesday 7th MayCIsCO CCNa EXPLOraTION (*) Wednesday 8th MayPHP FOuNDaTIONs Wednesday 8th May3D sTuDIO MaX PrOFEssIONaL Thursday 9th MayPHOTOGraPHY Friday 10th MayJaVa sE7 PrOGraMMEr I Monday 13th MayMCsa sErVEr aDMINIsTraTOr 2008 (*) Tuesday 14th MayMOs EXCEL 2010 saturday 25th MayMCsa sQL sErVEr 2008 Wednesday 16th June

(*ParT OF THE GET QuaLIFIED sCHEME BY MaLTa ENTErPrIsE ENTITLING

sTuDENTs TO rECEIVING 80 PEr CENT OF THEIr COursE FEEs BaCK)

We're a young, dynamic team of professionals from various fields and we want our marketing to be a mirror image of what we truly offer at ICE Malta. We are focused on establishing and developing our institute’s personality, perspective and image, in order to develop a clear ‘loved by all’ brand. Our mar-keting strategy will bring forward creative and innovative content and ideas to bring students closer to our institute. We’re firm believers that if a company has no creative direction, then it shouldn’t exist, so we’re driven to be creative in our business approach.

The ICE Malta marketing strategy for 2013/2014 includes a number of unique collaborations, a series of Learn & WIN competitions, the sponsorship of Malta’s National rugby Team and the rugby World Qualifying match against switzerland, together with vari-ous targeted campaigns themed according to different motivational messages which are launched each semester.

Our 2013/2014 strategy is part of our three-year plan designed to continue to position ICE Malta as a leading ICT institute and to ensure that Malta is truly looked upon as a centre of ICT excel-lence. We have decided to share our 2013/2014 strategy as we want our tutors, students, parents, ICT industry players and collaborators to understand our vision and to be a part of what we consider a very exciting development in the ICT era on our islands.

Following weeks of brainstorm-ing meetings, strategy ses-sions and internal discussions we have launched our slogan for the 2013/2014 scholastic year – IcE malta, keeping you one step ahead. Our line of thought is sim-ple - we need to keep ourselves on the ICT front line, to ensure that we are the first to launch the courses requested by industry leaders, offer world-wide recognised cer-tifications with our esteemed ven-dors Microsoft, CIsCO, adobe and autodesk among others, as well as to be one step ahead to ensure that our students are also one step ahead. We feel that our slogan cel-ebrates the institute's strategy and vision for the upcoming scholas-tic terms, whilst it was designed keeping in mind the fact that edu-cational institutes must inspire creativity.

ICE Malta has now embarked on its ‘fAcES – Real life Stories’ cam-paign, which showcases people from all walks of life who share their real life stories. Individu-als chosen are unique and have diverse stories, yet have one thing in common – they are all past or present ICE Malta students. The first quarter of this campaign introduces a university of Malta student studying at ICE Malta, a yoga instructor, a united Nations lawyer now based in Malta, a young graduate, a TV producer, our Creative student showcase win-ner and editor of the popular TV show ‘Deceduti’ and a south afri-can web developer among others, who share how ICT is an essen-

tial part of their career and per-sonal lifestyle. recently termed Malta's 'doctor turned Eurovision superstar', Gianluca Bezzina has confirmed his participation in ICE Malta’s FaCEs campaign, together with Malta’s National rugby team. In both cases, our ‘stars in the ICE Malta spotlight’ will be encour-aging students to invest in their personal ICT knowledge and keep themselves ‘one step ahead’.

During the 2012/2013 semesters a number of sub-brands under the umbrella of ICE Malta were launched, including ICE Plus, The ICE Malta Creative showcase 2013, Learn & WIN, The ICE Malta Busi-ness Connection and ICE Days. These brands, together with a new sub brand, ‘The ICE Malta scholar-ship programme’, will continue to be marketed during the 2013/2014 season with respective marketing campaigns for each target mar-ket. simultaneously together with industry leaders and our highly acclaimed vendors such as Micro-soft, adobe, autodesk and CIsCO, we will continue to guarantee that ICE Malta students gain world-wide recognised certifications, practical 'hands-on' experience in a 'small classroom' school phi-losophy, together with guidance from the finest professional and dedicated mentors, and are truly as our new slogan promises 'one step ahead'.

The ICE Malta April/May semester timetable may be viewed on right and on www.icemalta.com

neW slOgan launcHed:ice MalTa – keeping yOu One sTep aHeadTHe insTiTuTe Of cOMpuTer educaTiOn (ice MalTa)’s direcTOr MaTTHeW saMMuT Handles THe insTiTuTe’s creaTive visiOn – THe lOOk, THe feel and THe TOne Of WHaT is nOW a recOgnised brand in icT educaTiOn in THe MalTese islands.

Matthew Sammut, ICE Malta's Director

Behind the scenes shot of the FACES Real Life Stories campaign 2013Behind the scenes shot of the FACES Real Life Stories campaign 2013

TVM crew during ICE Malta’s Creative Student Showcase 2013

business updaTe


business

One of the key problems facing local businesses is a saturated local market with stiff competition. The only way to improve our com-petitiveness is to expand our mar-kets beyond our shores, and benefit from increased economies of scale. This, however, is no easy task.

sue Vella, CEO of Malta Enterprise explains that “success in interna-tional markets requires products and services that are innovative and competitive. This may prove chal-lenging at times for small, local enterprises. This is where the ben-efits of clusters can be exploited. Through clustering, enterprises collaborate to synergise their respective strengths and meet the specific requirements of a particu-lar international market.”

Businesses internationally are increasing their level of sophistica-tion. sophistication, including the adoption of modern best-practices, in day-to-day business operations provide added productive efficiency; thus contributing to overall com-petitiveness.

It is vital that local businesses simi-larly invest in their level of sophis-tication to prevent falling behind competitors.

One of the key elements in busi-ness sophistication is quality net-working and inter-business, even inter-industry, collaboration. Busi-ness clusters are groups of inter-connected companies, suppliers, service providers and relevant insti-tutions. an example of clustering is a group of businesses sharing cen-tralised operations, such as finance, or marketing, or other sectors.

some might argue that these par-ticular benefits – increased sophis-tication – could be gained through internal development. However, it is very common for businesses to decrease in efficiency and perfor-mance while expanding. a solution to growing without losing efficiency and performance is Business Clus-tering. Clustering is a means for small companies to enjoy some of the economies of scale and their lucrative gains – gains which are usually only accessible to larger enterprises.

There are numerous ways through which clusters can help businesses boost their competitiveness. If cor-rectly set up, clusters can provide quick access to specialised suppli-ers, employees, information and training, and hence exponentially increase the available parameters

business clusTers can cOMbaT ecOnOMies Of scale

The Maltese economy has a multitude of micro and small businesses aggressively competing in a saturated market. This limits their ability to operate with economies of scale. Mark seycHell discusses the concept of business clusters and how they can reduce costs through collective cooperation.

“ The strategic thrust behind the vision of cluster development is to transform the icT sector into a nerve centre for a series of inter-linked specialisations enabling to tap into eu and international research and development pro-

grammes and initiatives.”– Daniela Busuttil Dougall

The MBB 2012 annual report outlines how the MBB re-structured its operations, focusing its work on three important pillars reflecting the priorities of Maltese business and the Maltese economy, namely Business Competitiveness, Employment and Environmental sustainability.

Other initiatives and events undertaken by the MBB included:

- Assessment studies – (i) impact assessment on the Common Consolidated Corporate Tax Base (CCCTB); (ii) and the launch of an assessment study on ‘Market gaps in access to finance and the feasibility of new financing instruments in the Eu addressing the credit needs of Maltese business’.

- Events – (i) a high profile conference with European Commission Vice-President antonio Tajani; (ii) an international conference on ‘Bridging business opportunities for sMEs in North africa’; (iii) and a National Water Conference.

- The implementation of two MBB led EU-funded projects – (i) Eu Life+ Investing in Water Project; (ii) and the Leonardo Mobility sHIFT Project.

The Annual Report can be requested on [email protected] or viewed on www.mbb.org.mt

Mbb publishes its 2012 annual report

Micael Gustaffson, European Cluster Manager of the Year 2012


what is traditionally seen as ‘the competition’.

“The largest challenge is probably that in small economies companies tend to see each other as competi-tors on the local market. The most important thing for a cluster man-ager in a small economy is actually to build trust between the compa-nies,” suggests Mr Gustafsson.

The options are simple; compete aggressively over a small pot or collaborate to access a much larger one. Malta Enterprise had the fore-sight to start providing assistance to

forward looking enterprises which would like to benefit from cluster-ing and access this larger pot.

“Malta Enterprise offers a num-ber of incentives that support col-laboration in different scenarios. studies indicate that the most suc-cessful networks and clusters hap-pen 'bottom up' and so our incen-tives were designed to strengthen such initiatives,” confirms Dr Vella. Malta Enterprise offers incentives for innovative clusters within the research and development sector ranging from cash grants to part-finance investments.

The drive to develop a clusters culture is gaining momentum in Malta. Malta Information Tech-nology agency (MITa) also recog-nises the importance of clusters and is encouraging government to adopt the necessary clusters infra-structure. MITa has partnered with six other Eu member states in a regional initiative project entitled Pooling4Clusters (P4C). Daniela Busuttil Dougall, a consultant at MITa explains that “the scope of the project itself was to have knowledge sharing to build capacity for policy-making for clusters.” The main out-come of the project is recommenda-

tions to local authorities on how to improve their support frameworks for clusters, drawn up with consul-tation from the private sector.

In the ICT sector, clustering has far-reaching benefits according to Ms Busuttil Dougall: “the strategic thrust behind the vision of cluster development is to transform the ICT sector into a nerve centre for a series of inter-linked specialisa-tions enabling to tap into Eu and international research and develop-ment programmes and initiatives.”

businessfor productivity. such a solid base also creates the best foundation to innovate, while at the same time reduces barriers to entry within a given area and simplifies start-up procedures. This is all due to the presence of specialised services and products resulting from clus-tering. By collaborating, firms are able to benefit from the cluster’s pool of expertise and skilled work-ers, as well as from easy access to suppliers.

Dr Vella reiterates this, “the ulti-mate objective of a business cluster is to actively share knowledge and resources to develop competitive advantages that give their products an edge in terms of quality, price, service or other defined attributes.”

Micael Gustafsson, Managing Director of Cluster 55, an IT Cluster in sweden, and European Clusters Manager of the Year 2012, confirms that “a business cluster is all about collaboration. When many compa-nies start working with each other you create a critical mass and an innovative environment.”

Developing the business environ-ment and facilitating the adop-tion of day-to-day operational best practices will increase operational efficiency. Knowledge sharing and clusters are important in the transi-tion to a highly developed economy.

Firms all share the same opera-tional strategic values in branding, marketing, access to finance and innovation, all of which contribute to sophisticated modern business practices. a clusters policy could consist of a model that applies for specific economic sectors; with solid structures for knowledge sharing and market research, busi-ness restructuring practices, online marketing and promotion, as well as access and identification of fund-ing programmes. Pooling infra-structural resources can also help, for example, for automated sys-tems, such as for bookings, invoic-ing, human resources and more. There can also be common man-agement of on-site maintenance and engineering services.

Often, Maltese businesses find dif-ficulty in negotiating prices when importing in bulk; for the simple reason that bulk importation for the local market is done on a smaller scale than in foreign markets. If local businesses were to pool their resources to import on a larger scale, prices would decrease in a proportional manner upon negotia-tion – this is a benefit which clus-ters bring that is particularly rele-vant to local industry.

Mr Gustafsson explains that “all types of industries will gain from creating clusters. The best thing is to find out what are the strong sec-tors in a region and start building around them.”

clUSTERS on A locAl lEvElClustering on a local level is still a novel concept. The general sen-timent is that in such a small and competitive market, enterprises may find it difficult to take the ini-tiative and collaborate closely with


inTervieW

prOpOsed direcTive aiMs TO regulaTe eMerging prOducTs in THe TObaccO indusTry

Tobacco, medical devices, clinical trials and cross-border health threats are issues which rank high on european commissioner Tonio borg’s list of priorities for 2013. MalTa’s eu cOMMissiOner TOniO bOrg talks plans and priorities with cHiara bOnellO.

– Interview with EU Commissioner Tonio Borg

on his agenda. Dr Borg points out that besides proposals, the Com-mission’s role also includes driv-ing the process of co-decision to ensure that proposals are adopted by the Council and the European Parliament, and effectively imple-mented on the ground.

“recently adopted proposals on alternative Dispute resolution and Online Dispute resolution have real potential to deliver benefits to consumers, and consequently the single Market. Other propos-als such as on cross-border health care (which enters into force in October 2013) aim to deliver real benefits to patients,” he states, adding that his primary aim is to deliver, for the benefit of patients and consumers alike. He asserts

that a number of these proposals will impact the Maltese as Eu citi-zens, both from a public health as well as a consumer's point of view. The proposal for patients' rights in cross-border health care and the legislation on alternative Dispute resolution and Online Dispute resolution are two such instances.

Commissioner Borg was nomi-nated and approved to fill the seat vacated by then European Com-missioner for Health and Con-sumer Policy John Dalli back in October 2012. The latter resigned following an investigation by the Eu’s anti-fraud office into a com-plaint made by tobacco producer swedish Match. When asked how he plans to restore Malta’s some-what tarnished reputation follow-

“ it is not for me to judge my predecessor’s (john dalli) case. everyone should be entitled to forward his own views in defence of his position.”

“My priorities for 2013 relate to making progress on files which are already on the table of the Euro-pean Council and the European Parliament,” Commissioner Borg explains.

Tonio Borg, who has now settled in his role as Eu Commissioner for Health and Consumer Policy, lists tobacco, medical devices, clini-cal trials and cross-border health threats as among the top priorities


inTervieWing Mr Dalli’s resignation, Dr Borg reiterates what he has insisted on so far; “I am here to do a job well, and will spare no effort to finish the job on time. There are a number of important issues on the table, where there is a clear benefit for all Eu citizens, and this is where I will concentrate my efforts. It is not for me to judge my predecessor's case. Everyone should be entitled to forward his own views in defence of his position.”

at the time of his hearing a num-ber of MEPs had their reservations about the former Deputy Prime Minister’s conservative stance on some issues; however he was con-firmed with a comfortable major-ity. Dr Borg believes it emerged clearly in his hearing that there were many misconceptions about Maltese culture and values.

“The hearing gave me the oppor-tunity to emphasise that my duties as Commissioner are regulated by the provisions of the Treaty, which will serve as my guiding rule,” he explains.

Describing the first few weeks as hectic and engaging, as during his first hours in office he asked his services to launch the inter-ser-vice consultation on the Tobacco Directive, Dr Borg says that since the proposal was adopted, nego-tiations have started in earnest.

“as one can expect in the first weeks in a new post, a consider-able amount of time is dedicated to meeting stakeholders and insti-tutional partners. I would say that I am still learning the ropes, but am already getting a keen sense of how this institution functions. I am focused on the issues that need my attention. I have already met with a number of MEPs, many of whom had been critical of me during the hearing, and they have appreciated this gesture. That chapter is closed and my aim is to deliver results,” he asserts.

Commenting on the Tobacco Direc-tive, Dr Borg says that “overall the existing Directive is not in line with international commitments, with the new products on the market or with the latest scientific evidence.” By way of example, it fails to regu-late nicotine containing products, such as electronic cigarettes, and has no provisions on novel prod-ucts, whereas the new proposal seeks to regulate emerging prod-ucts.

Furthermore the existing Directive does not regulate flavours, while the new proposal prohibits prod-ucts with characterising flavours that are more enticing, particularly for young people.

The proposed Directive also seeks to make photo warnings on tobacco products compulsory. It foresees that all cigarette and roll-your-own tobacco must carry a picture and text health warning which cov-ers 75 per cent of the front and back of the package, although member states remain free to introduce plain packaging in duly justified cases. a notification for internet retailers and an age veri-

fication mechanism also form part of the Directive, to ensure tobacco products are not sold to children and adolescents. Finally, a track-ing and tracing system and secu-rity features (eg holograms) are intended to ensure that only prod-ucts complying with the Directive are sold in the Eu.

Dr Borg shares that the latest Gen-eral Election is the first one in 20 years that he did not contest; and describes the experience as some-what nostalgic. “Local politics exposes you in an intimate way to people's needs and expectations,

whereas at a European level the constituency is more varied and vast,” he claims. Negotiations on proposals by the Commission are also more complex, he explains, since there has to be final agree-ment among all member states and the European Parliament; nev-ertheless this is necessary given that the moment a proposal is adopted, its application will affect the entire Eu.

asked if he would consider return-ing to local politics, Dr Borg says; “I am a pragmatic man and for the time being will focus on the job at

hand. That said, in my final address in the House I said this would be arrivederci, not addio. They say one

week is a short time in politics, so I really cannot say I have thought about what happens next.”


business newsMbb updaTe7Th JANUARy –

MBB MOVEs TO NEW PrEMIsEsDue to new developments at Casa Leone in Floriana, the Malta Busi-ness Bureau took the opportunity to move to new premises that are bet-ter equipped to accommodate its ever-growing number of Eu-busi-ness related projects and services.

The move took place in the first week of January and the new offices are now located at the fol-lowing address:

an MBB delegation composed of President George Vella, CEO Joe Tanti and Permanent Delegate in Brussels Omar Cutajar paid a courtesy visit to European Com-missioner Michel Barnier in stras-bourg. The purpose of the meeting was for the MBB to communicate the results of a study conducted towards the end of last year on the experience of Maltese businesses in the European single Market.

Mr Vella informed Commissioner Barnier that the general conclu-sions of the study indicated that Maltese businesses remain pre-dominantly satisfied with form-ing part of the European single Market. However Mr Vella also informed the Commissioner of the problems derived from Malta’s natural peripheral geographical location and its inherent insular-ity. During the meeting some of the key results were discussed, including the urgency of improving access to finance and improving accessibility to cross-border public procurement for Eu-wide sMEs.

Commissioner Barnier expressed his satisfaction at the study under-taken by the MBB. He stated that such exercises provide the Euro-pean Commission with important feedback from the ground, allow-ing it to develop policy and legis-lation with full knowledge of sME perspectives’ from different Eu member states on the single Mar-ket. at the end of the meeting Com-missioner Barnier was pleased to accept Mr Vella’s invitation to a high-profile event in Malta later this year which will address key single Market related issues with the Mal-tese business community.

In a separate visit that took place in Brussels in February, an MBB delegation composed of CEO Joe Tanti, Permanent Delegate in Brussels Omar Cutajar, Execu-tive Daniel Debono (Coordinator of the Competitiveness Pillar), and MBB’s Brussels-based trainee Claire Gillespie presented the single Market recommendations report to a number of Members of the European Parliament. These included the Internal Market Com-mittee (IMCO) Chair MEP Malcolm Harbour and the European People Party’s IMCO Coordinator MEP andreas schwab.

13Th JANUARy –

MBB PrEsENTs sINGLE MarKET rEPOrT TO EurOPEaN COMMIssION VICE-PrEsIDENT MICHEL BarNIEr

MBB PRESENTS REPoRT To MEPs

malta Business Bureau Head office, cornerline, level 1, Dun karm Street, Birkirkara, BkR9039.

other contact details remain unchanged: Tel: 2125 1719; email: [email protected]; website: www.mbb.org.mt


Mbb updaTe

a seminar entitled ‘The Way For-ward towards the development of the Maltese creative industries’ was co-organised by the European Commission representation in Malta and Bank of Valletta plc, in collaboration with the MBB and the Creative Economy Working Group. This was held in view of Valletta 2018 European Capital of Culture, which will inspire economic growth and innovation on the Maltese eco-nomic arena.

The workshop provided a forum for discussion among stakeholders on the economic viability of the cre-ative sector in Malta and within the Eu. The potential of the creative industries in encouraging innova-tion and industrial change in Malta, any market failure faced by the creative sector and the new forms of financing for creative industries were discussed. Particular impor-tance was also given to culture and media strands.

4-5Th FEBRUARy –

MBB OrGaNIsEs TraINING PrOGraMME ON ‘TaPPING DIrECT Eu FuNDING FOr BusINEssEs’

19Th FEBRUARy –

MBB CEO ParTICIPaTEs IN a sPECIaL ECONOMIC aND MONETarY aFFaIrs COMMITTEE HEarING aT THE EurOPEaN ParLIaMENT

21ST FEBRUARy –MBB CO-OrGaNIsEs a sEMINar ON DEVELOPING THE MaLTEsE CrEaTIVE INDusTrIEs

MBB CEO Joe Tanti, as editor of Business agenda, was invited by the European Parliament Informa-tion Office in Malta to participate in a special hearing of the Economic and Monetary affairs (ECON) Com-mittee in Brussels. The ECON Committee was addressed by the President of the European Central Bank, Mario Draghi, who is also Chairman of the European sys-temic risk Board.

Further discussions took place on a number of important sub-jects, including MEP Gáll-Pelcz’s report on a Common system of Value added Tax, with regard to the treatment of vouchers; MEP Langen’s report on a European

Banking authority, as well as a European securities and Markets authority; and MEP Mann’s report on an agenda for adequate, safe and sustainable Pensions; among others.

mr Tanti’s visit was sponsored by the European parliament Infor-mation office in malta. During this visit, mr Tanti also held meetings with mEp malcolm Harbour and mEp Andreas Schwab.

The MBB held a two-day spe-cialised training programme on accessing direct Eu funding pro-grammes for businesses. This pro-vided executives and entrepreneurs with the necessary knowledge, skills and practical understanding on how best to submit an Eu project proposal and subsequently manage the funded project.

MBB CEO Joe Tanti said that “the potential for Maltese businesses to tap into Eu funding programmes remains relatively unexplored. The MBB undertook this training initia-tive to inform on the developments related to direct funds managed by the European Commission.”

“The new financial framework 2014-2020, should provide new funding opportunities for sMEs in different areas including research

and innovation, tourism, education and training, among others,” he elaborated.

For this occasion the MBB invited an Eu project management expert, Francesco Vallebona, Director of the Brussels-based consultancy Medin Europe, who explained to the participants how to identify Eu grants and calls for proposals. Mr Vallebona also gave detailed infor-mation on the management and financial administration required for the successful implementa-tion of an Eu-funded project. The participants benefitted from an innovative mock session, whereby a simulation exercise on how to develop an idea into a concrete project proposal, including the full drafting of a project application, was organised under the direct mentoring of the expert trainer.

Mr Vallebona commented that “Eu direct funds can help Maltese sMEs participate in transnational networks and enhance their com-petitiveness. such programmes present a platform from which sMEs can innovate their produc-tion processes, increase their resilience and become more active on the global market.”

This training was organised with the support of ApS Bank and corinthia Hotels International.

MBB CEO Joe Tanti participated in a panel debate during a half-day seminar organised by the Euro-pean Economic and social Com-mittee at Europe House, Valletta. The theme of the discussion was mobilising European sMEs pol-icy for Malta: focusing on lessons learnt, current challenges and

future opportunities. The purpose of the event was the dissemina-tion of the conclusions and recom-mendations found in the recently adopted opinion by the EEsC on an ‘action plan to improve access to finance for sMEs’ among Maltese stakeholders.

Mr Tanti made particular reference to a recent study conducted by the MBB among local businesses on their experience of operating in the single Market and to the assessment study that is currently being conducted on gaps in access to finance on the Maltese credit market.

Other distinguished guests at the event included EEsC rapporteurs anna Maria Darmanin and ronny Lannoo. The event was chaired by Bryan Cassidy, President of the section for single Market, Produc-tion and Consumption.

25Th JANUARy –

MBB CEO INVITED TO ParTICIPaTE IN a DEBaTE OrGaNIsED BY THE EurOPEaN ECONOMIC aND sOCIaL COMMITTEE (EEsC)


Mbb updaTe

The MBB’s Eu LIFE+ Investing in Water Project started 2013 by offering enterprises training for technical personnel working on water management. The training workshops, lasting half a day, take place monthly from February to June and introduce a comprehen-sive list of water management and savings solutions. The workshops are complimentary and open to any interested party. They build on the water audits still on offer by the MBB, and form part of the drive to help enterprises sustain-ably reduce their water consump-tion and operating costs.

To reserve a place for your techni-cal staff, contact the mBB’s office or the EU lIfE+ Investing in Water project manager Geoffrey Saliba on [email protected].

an MBB delegation led by President George Vella discussed a number of proposals with Labour Party Deputy Leader Louis Grech, President ste-fan Zrinzo azzopardi and Executive secretary Lydia abela. During the meeting the MBB delegation dis-

cussed key issues, including the strengthening of sME tests prior to the adoption of legislation affect-ing business, the sustainability of Malta’s water resources and politi-cal reform.

he MBB recommendations, pre-sented in a policy paper entitled ‘Delivering the Europe 2020 strat-egy in Malta’, focus on facilitat-ing the attainment of the national targets set within the ambit of the Europe 2020 strategy for growth and jobs. The successful imple-mentation of the Europe 2020

strategy in Malta would contrib-ute to a significant improvement in the competitiveness of the local economy. To ensure the best possi-ble results, it is important that the incoming administration commits to stepping up its efforts towards the achievement of these targets.

as part of a study on flexible work and family-friendly measures in the private sector, currently being carried out by the MBB with the support of MIsCO, a survey was launched with the members of Malta Chamber and Malta Hotels and restaurants association. The online survey will provide the MBB with a better understanding

of the current use of flexible work arrangements within the Maltese private sector.

Through this study the MBB will also identify the obstacles hinder-ing the implementation of these innovative measures. Hr profes-sionals and decision takers, mem-bers of the Malta Chamber of

Commerce, Enterprise and Indus-try, and the MHra were invited to complete a survey to gather the necessary data to substantiate research the MBB has been com-piling throughout past months.

for more information contact mBB Executive mariella Scicluna on [email protected]

1ST MARCh –

MBB DELEGaTION MEETs ParTIT NaZZJONaLIsTa

President George Vella led an MBB delegation to discuss a number of proposals with Nationalist Party Deputy Leader simon Busuttil, Minister Tonio Fenech and secre-tary-General Paul Borg Olivier.

During the meeting, the MBB dele-gation held an exchange of views on a number of issues; particularly on employment and entrepreneurship policy, the creation of a national clusters policy and increasing the usage of renewable energy.

The ‘Delivering the Europe 2020 Strategy in malta’ paper can be downloaded from the mBB web-site – www.mbb.org.mt

20Th FEBRUARy –

MBB DELEGaTION MEETs ParTIT LaBurIsTa

MBB CONDuCTING WOrKsHOPs ON WaTEr MaNaGEMENT aND saVINGs sOLuTIONs

22ND FEBRUARy –

MBB LauNCHEs surVEY FOr a sTuDY ON ‘FLEXIBLE WOrK aND FaMILY-FrIENDLY MEasurEs IN THE PrIVaTE sECTOr’

MBB PrEsENTs POLICY DOCuMENT TO POLITICaL ParTIEs IN VIEW OF 2013 GENEraL ELECTION


Mbb updaTe

BusINEss sEMINar ON aCCEss TO FINaNCEIn the coming weeks the MBB will be presenting the findings of an assessment study it commissioned to Ernst & Young on ‘Market gaps in access to finance and the feasi-bility of new financing instruments in the Eu, addressing the credit needs of Maltese business’.

a total of 100 businesses from a cross-section of sectors of the Maltese economy participated in a survey which highlighted the credit needs of enterprises at various stages of development; including pre-seed and seed stage, start-up phase, emerging growth and international expansion. The study also analyses a number of finan-cial instruments available in the credit market of the Eu27 member states and recommends which can be considered for the local market.

The date and venue of this busi-ness seminar will be communi-cated shortly.

discussions on the subject matter within the European Parliament, the MBB and the European Parlia-ment Information Office, in collab-oration with the Malta Institute of accountants, are organising a half-day business seminar to dissemi-nate more information on what this would mean for sMEs. a platform will also be provided to discuss further with local and European MEPs.

experience on the ground with sMEs. This will enable them to learn more about the challenges faced by sMEs in the day to day running of their businesses. ulti-mately, it will help them be more sensitive to business needs when drafting policy in Brussels.

antonella Correra, a policy offi-cer within the Tourism and Cul-

tural Instruments Department at DG Enterprise and Industry, will be visiting various stakeholders including the Malta Hotels and restaurants association, the Malta Tourism authority and the Insti-tute for Tourism studies. she will also have the opportunity to spend time with a number of hotels, res-taurants, agri-tourism enterprises and language schools.

upcOMing evenTs:

8-12Th APRIL –

ENTErPrIsE EXPErIENCE PrOGraMME VIsIT

31ST MAy –a BusINEss sEMINar ON THE ‘sIMPLIFICaTION OF aCCOuNTING OBLIGaTIONs – a PuBLIC DIaLOGuE WITH MEPs’In order to further simplify the requirements for sMEs, the Euro-pean Commission started a review process of the accounting Direc-tives with ‘think small first’ as the guiding principle. In view of the proposal of a Directive by the Euro-pean Commission and ongoing

FoLLow US oN FACEBooK, TwITTER AND LINKEDIN

Following two successful visits by European Commission offi-cials from the Directorate Gen-eral Enterprise and Industry last year, the MBB was entrusted with hosting another visit focusing on the tourism sector. The aim of the Enterprise Experience Pro-gramme is for European Commis-sion officials to undergo a personal


TOurisM

MalTa Has becOMe “THe leasT seasOnal MediTerranean TOurisM desTinaTiOn”

The problem of shoulder months in tourism is by no means a new one; rather it is one which authorities and stakeholders in the sector have striven to tackle for years. cHiara bOnellO discusses whether enough is being done locally with some experts in the field.

– Josef Formosa Gauci

Malta has become the least sea-sonal Mediterranean tourism destination, outperforming other island states such as the Balearic Islands and Cyprus in terms of a healthy seasonal distribution of tourists, according to Malta Tour-ism authority CEO Josef Formosa Gauci. He explains that the strat-egy adopted to boost tourism in the shoulder months is certainly working, although he admits that one can never say enough is being

done and that potential for further growth does exist.

“It is important to bear in mind that the challenge of increas-ing winter business is strong, as potential travellers at this time of year are far less than during the peak and shoulder months.” Mr Formosa Gauci points out that in today’s highly competitive tour-ism industry, all months are tough as the market is increasingly wit-

nessing late bookings with every year that passes. admittedly some months are tougher than others, mainly due to the natural season-ality of international travel pat-terns. “Nevertheless it is fair to say that around one in every five tour-ists visiting Malta actually visits between November and February which means that although tour-ism volumes are much lower than during the peak, there remains a

attracts thousands, and the Val-letta International Baroque Festival which was held for the first time this year, are some of the activities that the MHra and MTa are organising to give visitors more reason to visit Malta during the low season.

according to Ta’ Marija restaurant Patron Ben Muscat, although Mal-ta’s extensive history and cultural sites are a year round attraction, more can be done to boost tour-ism in the shoulder months, by the creation of properly marketed cul-tural and sport events at attractive reduced airfares and hotel rates. More foreign media coverage would also help, he states.

“similarly Valletta’s serving as European Capital of Culture in 2018 and the Eu presidency in 2017 will be a massive boost to tourism,” Mr Zahra explains, adding that the MHra is confident that the excel-lent co-operation between MTa and MHra can have excellent results.

“Our objective is to even out arriv-als by increasing the number of tourists visiting during the shoul-der and low months to at least 80 per cent of the high season arriv-als. a tough objective, but one that can be achieved over the coming years,” he says.

Mr Zahra adds that this has to be a coordinated effort by all stakehold-ers, and gives the example of MHra teaming up with air Malta to offer the possibility of one child travelling and staying free during low season. “This worked well for air Malta and for hotels, and we are confident that this type of coordinated activity can achieve results.”

He goes on to say that there are always alternative niches to be

substantial tourism inflow at this time of year,” he states.

although initiatives are being put in place to boost tourism, more needs to be done, especially in the low season, according to Malta Hotels and restaurants associa-tion President Tony Zahra.

He explains that activities such as the marathon in February, which started some 20 years ago and today

“ valletta’s serving as european capital of culture in 2018 and the eu presidency in 2017 will be a

massive boost to tourism.”

– Tony Zahra

Josef Formosa Gauci, MTA CEo Tony Zahra, MhRA President


certainly more fun during low sea-son than in the 40˚ summer heat. Malta offers a cultural and histori-cal scene to discover, as well as an interesting arts scene, he adds. Mr Formosa Gauci agrees that Malta offers a mild weather package, enhanced by a rich and diverse cultural offer, a vibrant events cal-endar and the possibility of engag-ing in a range of activities. The activities and facilities offered, he says, make it an ideal destination all year round, and for both short and longer breaks.

TOurisMexplored, as one has to continually look for new trends, anticipate and promote them. One such example is the Palazzin concept introduced by MTa and MHra.

“This will make our heritage homes, found mostly in the cen-tre of towns or villages, available to visitors as they are turned into small boutique hotels, giving one the experience of staying in quality and heritage accommodation, and of experiencing Maltese hospitality and culture at close quarters,” Mr Zahra explains.

“air Malta, as well as other indus-try stakeholders, have increased efforts to attract incoming tour-ism during the shoulder months, and these have proven fruit-ful, although there will obviously always be room for improvement,” Philip saunders, Chief Commer-cial Officer at air Malta explains.

He goes on to say that there have been various initiatives to mitigate this effect in recent years, such as the 25 per cent discount promo-tion on its published fares to and from 23 scheduled destinations launched this winter.

air Malta has also recently launched mymaltastory.com, an exciting new marketing campaign that enables people to build their ideal video experience of the Maltese islands and share it with friends through social media. This site allows peo-ple to watch short video clips of a wide range of activities across the islands. Participants can choose their favourite experiences and combine them into a single travel video of their perfect day in Malta and Gozo. setting up a ‘MyMaltas-tory’ profile is easy and simple. It is a two-step process using the cli-ent’s existing Facebook, twitter or email accounts.

The airline has also announced that it will be re-launching its new website, which will embrace social media – yet another step in the air-line’s restructuring programme. all these initiatives are aimed at boost-ing tourism during the shoulder months, Mr saunders says.

Gozo-based Kempinski Hotel General Manager sven Fritzsche admits that Malta has in past years been marketed as a summer desti-nation, without any attention to the variety of other activities one can enjoy during the rest of the year.

In Gozo the toughest months are from mid-November until around Easter, although this depends when Easter falls, he explains, adding that accessibility and avail-ability are two factors which affect arrivals. He expresses his belief that Gozo needs alternatives to the ferry. Mr Fritzsche explains that they have special offers during the low season as a means of attract-ing more attention from tour-ists, however admits that this is not easy considering that Malta is regarded as a summer destination.

He points out that this is unfortu-nate, especially since the islands offer many outdoor activities, such as hiking and cycling, which are

Photos by www.viewingmalta.com


The MBB is halfway through the Eu LIFE+ Investing in Water Project, the benefits of which are already being reaped by several enter-prises. Following the water audits carried out last year, the Corin-thia Palace Hotel and spa, Corin-thia Hotel st George’s Bay and the Corinthia Marina Hotel adopted the water saving recommendations made by the project.

Paul Bugeja, Corinthia Hotels’ Chief Financial Officer, explains that all 600 rooms and back of house areas at the three Corin-thia Hotels International in Malta have since been fitted with water restrictors, devices which ensure an optimal water flow by eliminat-ing excessive delivery of water. The result is savings of over 2.5 mil-lion litres of water per annum, with a repayment period of less than 12 months. The hotels are also in the process of replacing most of the bathroom shower heads with more efficient ones, a measure which will help save an additional 8,000,000 litres of water a year.

Mr Bugeja explains that “this ini-tiative represents only a small part of the total investment that the Group has made in its Malta hotels over the last four years. Other ini-tiatives were taken to upgrade the product offered, improve guest services and simultaneously iden-tify opportunities for increased efficiency and cost savings. a typi-cal project saw a major upgrade at the Corinthia Palace Hotel and spa, including to the guest rooms,

case sTudy

In an event held last December, Paul Bugeja, Corinthia Group CFo, explaining to former Minister de Marco and MBB CEo Joe Tanti that the MBB’s EU LIFE+ Investing in water Project water saving solutions are helping the Corinthia hotels save an

estimated over 2.5 million litres of water per annum. photo: © DoI, clifton fenech

By Geoffrey Saliba, EU LIFE+ Investing in Water Project Manager

enTerprises nOW seeing savings

“ The company has to date invested c=700,000 in energy efficiency initiatives at its three Malta hotels alone. The ultimate aim is to ensure sus-tainability throughout our operations, espe-cially in these chal-lenging times.”

– Paul Bugeja


case sTudy

INVITATIoN To BUSINESSES AND hoTELSWATER AUDITS – on offer for the next few months only, do not miss the chance for a complimentary review of your water systems, with a view to identifying financially attractive water saving solutions. Water audits typically last a couple of hours, following which a report is presented to the enterprises, detailing and analysing consumption and recommending water saving solutions.

WoRkSHopS foR TEcHnIcAl STAff – through the project your engineers, maintenance personnel or others involved with your water system could receive training on water management and savings. Personnel will need to attend two training workshops, each lasting half a day, to cover all the relevant material. at the end of it they should be in a better position to sustainably reduce your consumption.

WoRkSHopS foR GEnERAl STAff– non-technical staff can also contribute to consumption and cost-cutting exercises. These workshops last one-and-a-half hours and can be reserved solely for your enterprise’s staff.

The above are all offered free of charge and are only on offer for the next few months. To book contact Eu LIFE+ Investing in Water Project Manager Geoffrey saliba on [email protected] or tel: 2125 1719.

for more information visit www.investinginwater.org

business centre and public rest rooms over a four-year period. Moreover, the company has to date invested €700,000 in energy effi-ciency initiatives at its three Malta hotels alone. The ultimate aim is to ensure sustainability throughout our operations, especially in these challenging times.”

Through the project, the MBB and its partners, MHra and the Malta Chamber, aim to help enterprises reduce their water consumption. 85 per cent of businesses and hotels could save 10 to 15 per cent on their water consumption if they

adopted a few simple water sav-ing solutions. To help enterprises reach their ideal sustainable con-sumption, the Eu LIFE+ Investing in Water Project is offering several tools – water audits, staff training programmes and importantly – the project website.

The website has been transformed into a resource for enterprises wishing to save water. Water sav-ing solutions are described, suc-cessful case studies are featured to share best practice, and a unique online self-assessment tool has been made freely accessible to all

Through the project, the Mbb and its partners, MHra and the Malta chamber, aim to help enter-prises reduce their water consumption.

85 per cent of businesses and hotels could save 10 to 15 per cent on their water consumption if they adopted a few simple water saving solutions.

interested parties. The tool allows enterprises to carry out an online audit, presenting analyses of con-sumption, recommending specific solutions and quantifying the sav-ings each solution would offer.

The EU lIfE+ Investing in Water project receives 50 per cent co-financing under the European community’s lIfE funding pro-gramme, with the ministry for Tourism, culture and the Envi-ronment as the main co-finan-cier. further co-financing and sponsorship are received from Easydry malta, ApS Bank, Island Hotels Group and mSv lIfE.


le MÉridien gOes greener THan ever

QualiTy sHOeMaking and Original designs

leading in TranspOrTaTiOn and lOgisTics OperaTiOn

Le Méridien st Julians Hotel & spa is the first hotel in Malta and the ICM region within starwood Hotels and resorts Worldwide® to receive the Green Key award. The Green Key is an international eco-label tourism facility: it aims at contributing to the prevention of climate change and encourages sustainability in tourism with rec-ognised awards and the promotion of eco-friendly initiatives. awarded to over 2,000 establishments in 38 countries worldwide, the Green key is recognised and supported by the World Tourism Organisation and uNEP. It is at present the larg-est global eco-label for accommo-dation and hospitality services.

starwood Hotels & resorts World-wide Inc. believes that economic growth and the well-being of our society are inextricably tied to the state of the environment. accord-ingly, responsibilities for environ-mental stewardship are embraced by the entire company: starwood is committed to integrating lead-ing environmental practices and sustainability principles into its core business strategy and hotel operations. To further embed com-mitment to the environment and to stakeholders, in 2009 starwood announced an ambitious public goal to reduce energy usage by 30 per cent and water usage by 20 per cent by 2020 over a 2008 baseline across all of our owned, managed and franchised properties.

“after being praised with other environmental awards such as The us ambassador’s award for Envi-ronmental Excellence last year, the Travelife Gold sustainability award from 2009 onwards and the Clifton audit Gold award very recently, we are indeed extremely proud to be the first hotel in Malta to receive the Green Key award,” – Joseph Zammit, Environmental Champion at Le Méridien st Julians.

More information on Green Key at www.green-key.org

King shoe shop introduces its spring/summer 2013 collection of DEsIGuaL shoes and accessories! This season Desigual dived head first into the origins of the brand, into its DNa, to give all its slogans and classic logos more mean-ing than ever. The brand has also focused on this season’s key fash-ion trends, to create a collection that is its trendiest yet.

Footwear needs a burst of fresh-ness and vitality, which is exactly what Desigual has given its shoe collection. There are endless pos-sibilities for combining the acces-sories collections with shoe styles, especially when it comes to bags and scarves with matching prints.

The beach range features flip-flops with print soles and even some wedge styles. There are also shower sandals which are perfect for the beach or pool, thanks to their waterproof design and espa-drilles with a reinforced sole.

The collection boasts the most seductive colours, also featuring a sexy red and black combina-tion, although shades of turquoise, black and gold also make an appearance. Fabrics are sophisti-cated, heels thin and the fit sexy. The heels in this range are wooden, in evening-wear styles and high – heels have a 10 cm heel height and a 1cm platform height. The pump is less extreme, with an 8 cm heel height and a 1 cm platform height.

Visit www.kingshoeshop.net for more information or simply find us on Facebook!

With over 50 years’ experience, Express Group is indisputably the leading local transporter and logistics operator, servicing Mal-tese and foreign companies in their day to day logistics requirements. Express Group can deal with any type of cargo, from cars to food-stuffs, from heavy machinery and furniture to delicate pharmaceu-ticals thanks to its temperature-controlled trailers.

all temperature-controlled trailers are totally supervised in Malta by Express Group’s operational staff through a dedicated fleet track-ing management system, which includes a live temperature-read-ing facility available to the client whilst the cargo is in transit to its final destination.

Express Group also owns and operates two climate-controlled pharma warehouses, located next to its premises which can poten-

tially store up to a total of 1,600 pallets. These two warehouses, finished to the highest standards in medical regulatory compliance and specifications, also carry a seal of approval by the Malta Medi-cines authority and are a great asset for all those who operate in the pharma industry.

Thanks to this infrastructure, Express Group has now positioned itself to start offering even more value to its clients through Third Party Logistics, a service which will include handling and adminis-tration of cargo, warehousing and transportation services that can be scaled and customised to a cus-tomer’s particular needs.

Express Group, Velbro house, Qormi Road, Luqa. Tel: 2124 2311; fax: 2124 2316; email: [email protected]; www.expressgroup.com.mt

business updaTe


since its inception 30 years ago, shireburn software has grown into a local leading software products company holding a unique posi-tion in the market, and backed by a team of over 34 professionals and a client base in over 40 countries.

“We at shireburn software go to extraordinary lengths in support-ing our clients and are rewarded by an unusually high level of cli-ent loyalty and retention,” explains John de Giorgio, Managing Direc-tor. “Our success is largely attrib-uted to a dedicated staff, quality service and products, and loyalty of our clients for which we are grateful. 30 years is quite some-thing to celebrate, even more so when we’ve just taken our latest software development, Conces-sionaire analyzer+ for airports, to an international level.” The com-

pany continues to expand its cli-ent base, product line as well as its resources in order to continue to cater for the local market, from small one-man businesses to larger corporations as well as the international market.

shireburn software is a software products company that specialises in assisting clients in identifying improvements to their business processes and addressing these through the application of informa-tion technology. The core business continues to remain the devel-opment and support of software applications for business. The shireburn Business suite provides an integrated modular approach for point-of-sale, financial, inven-tory and payroll/Hr management, and can be fully integrated with the shireburn estore software solution

for businesses that wish to take their operations online. shireburn offers a complete integrated multi-channel solution with support for retail, distribution, salesman’s tab-lets and an e-Commerce offering.

The shireburn Freight system and Document Management systems are also leading products that inte-grate with the Business suite.

additionally shireburn software also distributes 3rd party soft-ware solutions and provides IT and technical support services to all its clients. shireburn software is the official advanced partner for IBM in Malta and distributes lead-ing e-security solutions, such as sophos, Trustwave and Double-Take, among others.

For further information about Shireburn Software and its business solutions, visit www.shireburn.com or call 2131 9977 to discuss your requirements and view a demonstration.

sHireburn sOfTWare – 30 years On

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Powerful applications such as Cash Flow Forecast, Cost accounting, assembly Management, Timeline Visualization and other powerful capabilities and analysis foster deeper insight into the operations and processes that drive your company, helping you to gain greater control.

Exciting new features and enhancements like Microsoft Dynamics NaV 2013 web client, sharePoint client, refined

roleTailored capabilities and increased general ledger flexibility extend the power of Microsoft Dynamics NaV 2013 throughout your organisation, whether you deploy it on-premise or in the Cloud.

The certified Dynamics NaV experts at Crimsonwing help you identify your particular business needs, together with functional set-up, implementation and training for your employees who would be running the solution. The ability to make smart business decisions can have a direct impact on your bottom line. simple to learn and use, Microsoft Dynamics NaV 2013 works with your existing technology, scales as you grow and delivers long-term value.

Contact Crimsonwing on tel: 2124 2121 or send an email to: [email protected] to learn more about the easy start limited offer on Dynamics NAV starter pack for only €2,250.

pOWer a cOnnecTed WOrkfOrce and grOW yOur business WiTH cOnfidence

business updaTe


ness support services and effec-tive solutions to entrepreneurs and companies, among others by providing fast access to infor-mation on funding opportunities. representatives of the EEN can also help businesses understand Eu law, how this applies to their business and how to make the most of the internal market and Eu programmes. additionally they channel the business community’s views, experiences and observa-tions to the European Commission, feedback which is then utilised in the development of holistic Euro-pean policy proposals which can best meet the needs of small Euro-pean businesses.

The network also helps companies find foreign partners and interna-tionalise their business through a variety of instruments, such as business partner searches within expansive technology and business cooperation databases, as well as helps in the organisation of bro-kerage events which bring entre-preneurs from different countries together to discuss prospective col-laborations. Events organised by the local EEN office for the coming months and events in which busi-nesses are being assisted include:

UnlockInG THE poTEnTIAl – mAlTA B2BFollowing the successful event held two years ago, in which more than 200 companies partici-pated, the EEN Office within Malta Enterprise is once again organ-ising a B2B matchmaking event; ‘unlocking the Potential’. To be held between 17th and 18th april 2013, it will enable participants to broaden their contacts and meet up with companies they can dis-cuss business opportunities with.

compAnY mISSIon To SIcIlYOrganised in collaboration with the Confederazione Nazionale dell’artigianato and COEXPOrT, a business delegation to syracuse in sicily is being organised between 7th and 8th May, 2013. The busi-ness event will be particularly aimed at sectors such as sustain-able construction, interior design, renewable energy, water manage-ment, engineering and industrial maintenance, automotive, plas-tic products and rubber injection moulding.

BRokERAGE EvEnTSa series of brokerage events are planned for a variety of sectors, namely the World IT show 2013 to be held in seoul, Korea, between 22nd and 23rd May; the asia-Eu Match-making Event being held in Beijing, China, between 22nd and 26th May; the International Exhibition for Transport, Logis-tics, Mobility, IT and supply Chain Management being held in Munich, Germany, between 4th and 7th June; and Futurallia which will be held between 5th and 7th June in Istanbul, Turkey.

enTerprise

The enterprise europe network (een) office, hosted by Malta enterprise, will be organising a number of high profile events in the coming months with the aim of helping local enterprises, particularly sMes, find business opportunities and prospective partners in other parts of europe. business agenda provides event details.

MalTa enTerprise sTeps up inTernaTiOnalisaTiOn drive

With more than 600 partner organ-isations spread in over 40 coun-tries, the EEN is the largest net-work in the European union which exists with the aim of supporting businesses develop their innova-tive potential and succeed in their operations. Launched by the Euro-pean Commission in 2008, the EEN provides easily accessible busi-

BUSINESS AGENDA ISSUE 14

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Transcript of BUSINESS AGENDA ISSUE 14