MBB Annual Report 2008

Annual Report 2008

Malta Business Bureau Annual Report 2008 Page 1

Contents 1.

Introduction

2.

Interest representation

9

2.1

The Valletta Office

9

2.2

The Brussels Office

10

3.

Informing: EU legislative and policy developments

12

4.

Communication

16

4.1

MBB Newsletter: MBB NEWS Ticker

19

5.

Project management

21

5.1

Success stories project

21

5.2

Mentoring project

23

5.3

Energy Europe project ’CHANGE’

24

6.

Events calendar 2008

25

7.

7

January

26

February

27

March

27

June

28

September

28

October

28

November

30

December

31

Outlook for 2009

32

Malta Business Bureau Annual Report 2008 Page 3

Foreword Malta Business Bureau Annual Report 2008 Page 4

It is with great pleasure that I present the 2008 annual report of the Malta Business Bureau (MBB). This is the first time that we are presenting a formal annual report setting out the various activities undertaken by the MBB. We felt this was important, not only to formally record the events and activities that have taken place during the year, but also to bring the Malta Business Bureau closer to its members.

The Malta Business Bureau was specifically set up to represent at a European level the business interests of the members of the Malta Chamber of Commerce and Enterprise, the Malta Federation of Industry and the Malta Hotels and Restaurants Association. This means taking an active participative role in the various pan-European business organisations as well as establishing a relationship with other similar organisations representing the various EU Member States. Of course putting forward the views of the Malta business community to the European Commission, the European Parliament and the European Council is and will always remain our top priority.

membership. Through a project titled ’Business Success Stories’ we have sought to bring to the fore the numerous businesses that are already participating successfully in the Single Market whilst at the same time establishing the critical success factors required. This project will be brought to an end in early 2009.

The tail end of 2008 has also brought with it the beginning of the financial crisis. This is a crisis of unprecedented magnitude which will fundamentally change the way we conduct our business. The biggest threat over the next 12 months will be the loss of otherwise valid assets and the accompanying loss of jobs. If the MBB is to be of relevance to its members it is clear that all its efforts over the coming months will need to be focused towards providing value added services that will assist the Maltese business community through the coming difficult months and to an eventual economic recovery.

Stefano Mallia President Malta Business Bureau

2008 has also seen the MBB and the EU Permanent Representation in Malta joining forces to encourage Maltese businesses to take advantage of the EU Single Market. The opportunity to fully participate in this huge market of over 400 million people is in our view the greatest advantage of EU

Malta Business Bureau Annual Report 2008 Page 5

Malta Business Bureau Annual Report 2008 Page 6

1. Introduction The Malta Business Bureau (MBB) is the joint EU affairs office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association (MHRA). It was founded in October 1996 as the European office of the Malta Chamber of Commerce and Enterprise (COCE) and the Malta Federation of Industry (FOI). These two organisations felt the need to cooperate at an international and European level, given Malta’s gradual integration process in the European Union.

In May 2004, the Malta Hotels and Restaurants Association joined the COCE and the FOI in this initiative and became one of MBB’s parent organisations. In 2008 an agreement was reached between COCE and FOI to merge and create the Malta Chamber of Commerce, Enterprise and Industry, which came into effect in January 2009.

The MBB is composed of two offices, the head office in Valletta, Malta, and a representation office in Brussels, Belgium. The human resource complement of the parent organisations’ secretariats is at times called upon for MBB-led initiatives. The Bureau provides information about EU regulations and helps organisations to take positions regarding various aspects of EU matters. Moreover, the MBB Brussels office, as a result of its proximity to the centre of influence, has proven to be crucial in this respect.

campaigns on issues of topical interest for the local business community.

The Brussels office is crucial as an early warning system when issues discussed at EU level have direct impact on the local commercial sectors. The staff of the Brussels’ office holds regular meetings with various stakeholders from EU institutions, European business representation organisations – including Eurochambres, BUSINESSEUROPE, and HOTREC, of which the Chamber, the FOI and the MHRA respectively are active members – as well as other Brussels’-based organisations. The Valletta office filters the information and its role is crucial in keeping close relations with the local business community, government entities and other local stakeholders, as well as in translating this information for the local entrepreneurs.

The MBB organises seminars, issues position papers, undertakes projects, publishes articles in the media and regularly issues the ’MBB NEWS Ticker’, a newsletter covering subjects discussed at EU level that are of vital importance to the local entrepreneurs.

Apart from the day-to-day management of both offices, the MBB staff keeps itself up-to-date with important EU-related information, regularly updating its database on various EU policies and topics.

The MBB is run by the Malta Business Foundation Board of Trustees (MBF) which is composed of senior officials of the parent organisations. The MBF meets on a regular basis, usually every three to four weeks, to monitor developments as well as to provide strategic direction to the MBB. Over the years, the synergies achieved between the parent organisations through this initiative have been remarkable. Of particular mention is the realisation that the Maltese business community requires a direct channel to the various EU institutions to be able to influence, adapt to and be aware of wide-ranging policies as well as new policy proposals being developed by the European Union.

Through the MBB, the parent organisations intensify their information service to members, as well as conduct interest representation activities with European organisations that represent business, industry and employers in Brussels, and with the European Commission, European Parliament and other (pan-) European institutions. By forming alliances at all EU levels, associations benefit as they can have an influence on the drafting of EU legislation. This would ultimately have an impact on the level of competitiveness in the Maltese economy.

The MBB also promotes the interaction of Maltese business and EU personnel. It acts as an intermediate body between the members or the associations and EU executives and officials, in order to channel the questions or demands of the local entrepreneurs to the responsible persons at EU level, and, if necessary, organise face-to-face meetings. Additionally MBB organises specific briefings, seminars and information

Participants of the MBB/BOV waste seminar, January 2008 This yearly report has been drafted to give an overview to the general public of MBB’s activities throughout 2008 and to highlight key issues related to the local business community.

The Bureau looks back on 2008 as a very hectic but rewarding year. It has assisted its parent organisations and the Maltese business community on key issues related to the European Union which have been of interest and/or have had a direct impact on the Maltese business sector. Additionally it has continued its organisational development and started with implementing its new strategy and action plan launched in 2007. 2008 was characterised by a more efficient track record of services and the MBB aims to continuously provide the business membership of the parent associations greater value-added and concrete tailor-made services.

Malta Business Bureau Annual Report 2008 Page 7

Malta Business Bureau Annual Report 2008 Page 8

2. Interest representation The Malta Business Bureau represents EU-related interests of the Maltese commercial sector at all levels and within the most important fora, both in Malta and in Brussels, the centre of the European decisionmaking process. In this regard, the MBB manages two offices, the main office in Valletta and an office in Brussels.

2.1 The Valletta OďŹƒce The Valletta office is the Headquarters of MBB operations. Its location within the Exchange Buildings, which houses the Malta Chamber of Commerce, Enterprise and Industry, as well as its proximity to the governmental offices and political decision makers, and other national and international organisations that are located in the capital city of Malta, are regarded as valueadded in terms of its operations. The Valletta office houses the office of the MBB Chief Executive Officer, who implements the strategy established by the Malta Business Foundation, and gives direction to the staff of both offices.

The Valletta office has continued to be in constant contact with the constituted bodies, their sectoral groups, the various Ministries, governmental agencies, the European Parliament Information Office in Malta, the European Commission Representation, as well as other local organisations and stakeholders.

MBB held regular meetings with the Councils, Director Generals and staff of the three parent organisations, as well as with their sectoral groups and individual members, in order to represent their interests, address their issues and provide a tailor-made service, in the best way possible. MBB’s strategic direction is in the hands of the Malta Business Foundation, composed of senior officials of the parent organisations. MBB staff has attended these meetings to provide its input and discuss the way forward.

MBB has maintained close contact with the representatives of the European Commission and the European Parliament in Malta. Among other initiatives, a joint project with the European Commission Representation on Maltese business success stories has been the fruit of this cooperation. The excellent relationship with these offices has enhanced the opportunities and possibilities of obtaining information from the European institutions as well as the accessibility of a wide range of contacts at various EU levels.

Mr Pedro Fernandez Alvarez, from the MBB Valletta office, addressing an MHRA/MTA/BOV conference, November 2008 been organised, among others, in collaboration with the Malta Standards Authority, MEUSAC (previously known as Forum Malta fl-Ewropa), MEPA and Malta Enterprise, on a variety of topics related to the EU and business. Other events have been organised in collaboration with the local commercial sector, most notably the joint national seminar of the MBB and the Bank of Valletta, on waste management, in January 2008.

The excellent relationship with ministries has permitted that, apart from co-sponsoring some MBB initiatives, various government specialists have participated at MBB events, as speakers, panel members or participants, and have provided useful inside information on developments regarding local policies of importance to the member base of the parent organisations. An overview of MBB events organised in 2008, including the topics and the speakers involved, is provided from page 25 onwards.

MBB has also created an excellent cooperation base with governmental agencies. Various information seminars have

Malta Business Bureau Annual Report 2008 Page 9

2.2 The Brussels Office Raising the awareness of the specific realities of small business was also the objective underpinning the organisation of the first ’European Parliament for Enterprises’ which was organised by Eurochambres at the European Parliament premises in Brussels in October 2008. Business people from all EU member states and accession countries, including a representative from the Malta Chamber of Commerce and Enterprise attended a plenary mock session of the European Parliament where they voted on three different resolutions dealing with international trade, the impact of the financial crisis and the demographic shifts affecting productive employment in the European Union.

Mr Omar Cutajar, MBB Senior Executive, based at the Brussels Office.

In 2008 the MBB maintained and reinforced its close links at EU and national levels in order to represent the interests of the three parent organisations and the Maltese business community. At the EU level, close ties have been retained with the European institutions, the Maltese Permanent Representation to the EU, Maltese MEPs and Eurochambres, BUSINESSEUROPE and HOTREC, of which the Malta Chamber of Commerce and Enterprise, the Malta Federation of Industry and the Malta Hotels and Restaurants Association respectively have been active members in 2008. The MBB Brussels office acts as the permanent liaison on behalf of the parent organisations within these pan-European associations. MBB Brussels office staff attends the permanent delegates’ meetings held twice monthly at BUSINESSEUROPE and once a month at Eurochambres, during which an information exchange on new legislative initiatives and on the lobbying action that should be taken is undertaken between the different representatives of national business organisations accredited to BUSINESSEUROPE and Eurochambres.

EUROCHAMBRES Eurochambres’ work agenda throughout 2008 was mainly focused on championing the specific needs of small and medium-sized enterprises (SMEs) – as the core members of the national Chambers constituting the pan-European association in the context of DG Enterprise’s work on the formulation of the European Private Company Statute and the wide-ranging proposals dealing with the Small Business Act.

Malta Business Bureau Annual Report 2008 Page 10

Eurochambres has also won a number of project bids with the Commission services ranging from the CHANGE project dealing with energy audits for small firms to ERASMUS for Young Entrepreneurs – a new exchange programme for young entrepreneurs – and the ‘Understanding China’ project aimed to enhance European companies’ awareness and understanding of the export opportunities and the general market set-up in the fastgrowing Chinese economy.

Eurochambres held its annual General Assembly meeting thanks to the hosting Chamber (the Paris-Ile-deFrance Chamber of Commerce) in the French capital thus closely coinciding with the start of the French EU Presidency in July 2008.

BUSINESSEUROPE On the occasion of BUSINESSEUROPE’s 50th anniversary, the umbrella organisation of European employers’ federations, the organisation stepped up a gear on its policy lobbying work vis-à-vis EU institutions on the importance of safeguarding the competitiveness of European firms across different policy fields. This principle consideration infused the various position papers adopted over the past year by BUSINESSEUROPE which were actively communicated with the Commission services, the European Parliament and other institutional interlocutors in Brussels. The corporate changeover from UNICE to BUSINESSEUROPE was completed over the past year with the adoption of a series of policy mission statements based on a six-point priority agenda: t *NQMFNFOUBUJPO PG UIF DVSSFOU -JTCPO 4USBUFHZ GPS growth and jobs t 5IF GVMM BDIJFWFNFOU PG UIF &VSPQFBO 4JOHMF .BSLFU t " CFUUFS BOE NPSF FóDJFOU HPWFSOBODF PG UIF &6 t "O BDUJWF FYUFSOBM USBEF QPMJDZ BCMF UP DVSUBJM JOUFSOBtional protectionism in the light of the financial crisis t 1SPNPUJOH BO JOUFHSBUFE FOFSHZ BOE DMJNBUF DIBOHF policy backed by the financial means to achieve these ambitious targets

t 5IF CBMBODFE SFGPSN PG &VSPQFBO TPDJBM TFDVSJUZ systems in the light of increasing global economic shifts in industrial production and location of industry.

BUSINESSEUROPE took the lobbying lead on a number of business-related issues including various sensitive issues in the social and employment policy field, of direct relevance to Maltese business interests.

BUSINESSEUROPE closely followed the unfolding legislative process on the revision of the Temporary Agency Workers and the Working Time Directives, whilst it also took up other equally important matters, such as the proposed directive on sanctions to employers employing illegally-staying third country nationals, and the recent Commission proposal on a wide-ranging anti-discrimination directive. Beyond social affairs, BUSINESSEUROPE started an internal process of debate PO UIF QPTU -JTCPO TUSBUFHZ XJUI UIF BJN PG SPMMJOH PVU this policy discussion at member state level through the affiliated national federations. On a strategic level, BUSINESSEUROPE intends to link the need of a reinvigorated -JTCPO "HFOEB PG TUSVDUVSBM SFGPSNT XJUI UIF QPMJUJDBM changeover that will eventually be ushered in 2009 with the inception of a new College of Commissioners and a new European Parliament.

BUSINESSEUROPE held two Council of Presidents’ meetJOHT JO POF JO -KVCMKBOB JO +VOF BOE BOPUIFS JO Paris held in December.

HOTREC HOTREC’s European work agenda throughout 2008 was mainly an issue-driven one. Although tourism is not a fully-fledged community policy area, there are a number of different European legislative and regulatory aspects that affect the hospitality industry as a result of developments in other policy matters, particularly in employment policies, health and safety issues, food labelling and last but not least several standardisation processes (or initial attempts at standardisation) at both EU and ISO-levels. Most of these issues that were being followed

by HOTREC were already in an advanced stage of political development in 2008 as most initiatives concerning the European hospitality industry hailing from the Commission were started earlier in the 2004-2009 legislature.

On a positive note, HOTREC managed to influence the outcome of two important community legislative developments, successfully safeguarding the interests of the hoteliers and restaurateurs of its member organisations.

On the review of the Timeshare Directive (94/47/EC), HOTREC managed to clarify the potential misunderstanding that could have cropped up regarding the legal nature of a hotel reservation which became evident in all the prevailing debates within all three institutions (Commission, Council and European Parliament). In this regard, a new recital was successfully introduced as a result of HOTREC’s communication with the rapporteur on the revision of the Timeshare Directive and approved in the October 2008

plenary sitting of the EP, to the effect that the definition of timeshare does not include in its scope multiple reservations of accommodation as carried out by travel agents.

The proposal drawn up by the European Parliament regarding the exemption from the application of HACCP procedures is another positive development. This applied not only to micro-enterprises but to all business categories falling under the SME definition which includes food business operators – as long as the competent authorities decree no health hazards on the basis of the regular hazard analysis already addressed by the regulatory obligations emanating from specific food hygiene requirements. The amendment of Regulation 852/2004 with the intent of exempting micro businesses from the full application of procedures based on HACCP principles is an evolving legislative matter with the discussions at the Council probably re-starting later on in 2009. The Malta Business Bureau will be monitoring future developments and informing MHRA members accordingly.

An important initiative of HOTREC that commenced in the latter half of 2008 is the setting up of a working group, with the aim of drafting a self-regulatory charter on fire safety in hotels. This is a result of the Commission’s pressure on the European hospitality industry to take action to improve the level of fire safety in hotels, following several deadly accidents in the UK which were also flagged in the European Parliament. Work on the final draft of the Charter for fire-safe hotels in Europe is at an advanced stage.

HOTREC held two General Assembly meetings in 2008, one in Paris between the 10th and 11th April and the other session was held in Prague between the 6th and 8th November.

OTHER CONTACTS The MBB Brussels office also maintained close contact with the Maltese MEPs. Specifically, the Brussels office had the opportunity to collaborate with Dr. Simon Busuttil’s office on two business-related issues during 2008 – the proposed directive on sanctions to employers employing illegally-staying third-country nationals, and the Business Directory scams. On the latter issue, contacts were arranged between MEP Busuttil and Eurochambres in order to formulate a short questionnaire on the incidence of fraud in business directories’ subscription systems reported to the national Chambers of Commerce in the different member states.

The MBB Brussels office maintained a regular exchange of information through ad hoc meetings with the attachÊs at the Maltese Permanent Representation to the EU, covering business-related dossiers such as competitiveness, regional policy and social affairs. Courtesy visits were also organised to Maltese Commissioner Joe Borg’s office whenever a Maltese business group was on an official visit in Brussels, and requested a courtesy call with the Maltese Commissioner in charge of fisheries and maritime affairs.

Malta Business Bureau Annual Report 2008 Page 11

3. Informing: EU legislative and policy developments Malta Business Bureau Annual Report 2008 Page 12

Malta Business Bureau Annual Report 2008 Page 13

MBB closely monitored the respective priorities of the Slovenian and French EU Presidencies. These included several important issues for the Maltese business experience, such as the publication of the Small Business Act within the context of the review of the SME policy being undertaken by DG Enterprise, and the Council common agreements on the Working Time and Temporary Agency Work Directives. On access to finance, a regular update on the new EIB’s micro-finance initiatives has also been provided, dealing particularly with the JEREMIE and the newly-announced JASMINE programmes.

During 2008 the EU has continued to strongly emphasise the key role that SMEs play for growth BOE FNQMPZNFOU XJUIJO UIF SFWJTFE -JTCPO 4USBUFHZ The EU has strived to improve SMEs’ operating conditions and facilitate their access to relevant Community programmes such as the 7th Research Framework Programme (FP7) and the Competitiveness and Innovation Framework Programme (CIP). MBB has informed the business community on these and various other Community programmes accordingly.

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Protecting the environment and fighting the impact of climate change have been two other top priorities for the EU. Discussions at EU level have been held regarding the conservation of natural resources and using resources more efficiently by taking into account environmental aspects in all relevant policies, and not least enterprise, industry and tourism policies. The MBB has regularly updated the members on the implications of these initiatives, particularly in terms of the added costs that environmental-related legislation can procure,

and the inevitable impact due to carbon leakage on the general competitiveness of industry and commerce within the internal market.

The integrated energy and climate change package remained a major focus of the MBB’s information-related work with regular monitoring and update reports on the conclusions of the various Energy Council meetings held throughout the year.

Malta Business Bureau Annual Report 2008 Page 15

4. Communication Malta Business Bureau Annual Report 2008 Page 16

Malta Business Bureau Annual Report 2008 Page 17

Malta Business Bureau Annual Report 2008 Page 18

In 2008 the MBB has kept the three parent organisations, their sectoral groupings and the general membership informed on different aspects of relevance to Maltese enterprise through several information briefs and policy papers. Briefing notes dealing with the renewed Social Agenda, the Better Regulation Simplification Programme and the European Ports Policy, among others, were drafted and circulated among members.

At a more specific level, regular updates were issued on the revision of the Toy Safety Directive, the Communication on Greening Public Procurement and the implementation of the REACH and Services Directive. A position paper on the latest attempt to review the Working Time Directive, following the Council common agreement reached in June 2008 and the start of the second reading on the revision of the Directive in the European Parliament was drafted.

The MBB issued its newsletter – the MBB News Ticker – on a regular basis, informing the business community

on how discussions and decisions taken in Brussels affect the business environment in Malta. For an overview of the 2008 editions of the Ticker refer to Chapter 4.1 below.

In addition, the MBB regularly published articles in various media, among others the magazines of the parent organisations. Moreover, MBB staff made several interventions relating to MBB’s efforts and to EU/business related issues, in conferences, seminars and the media.

In 2008, a number of well attended information seminars were organised. Topics discussed were various and these included an MBB national seminar on waste management, a training workshop on environmental compliance for SMEs, a national conference on the new EU maritime policy and various information meetings on new EU legislation on food labelling, cosmetics and eco-design. For more information on the MBB 2008 events refer to page 25 onwards.

4.1 MBB Newsletter: MBB NEWS Ticker The MBB issued four newsletters in 2008. The new format introduced in 2007 has been very much welcomed by readers and described as more readerfriendly and better tuned to the interests of the target audience.

In the first edition of 2008 the main theme was EU funding. Information on how to write proposals was given, along with various tips and tricks, several calls for proposals were highlighted, EU funding websites were discussed, and project partner searches were put forward. Available funding under the Competitiveness BOE *OOPWBUJPO 1SPHSBNNF $*1 BOE UIF -FPOBSEP -JGF -POH -FBSOJOH 1SPHSBNNF XFSF BMTP IJHIMJHIUFE Additionally, in this first newsletter MBB reported on the MBB/BOV seminar on waste management, which was held on the 30th January, as well as on developments with regard to the Small Business Act (SBA), the Single European Payments Area (SEPA), the Services Directive and on the discussion on food labelling in restaurants.

In the second edition of the Ticker, MBB strived to assess Malta’s economic performance in 2007 by looking at the figures and analyses in different international and European economic reports from that year. In order to avoid presenting a skewed view, MBB took as many reports as possible into account. Most reports indicate

Malta Business Bureau Annual Report 2008 Page 19

that Malta made constant progress, however slowly and with a starting point being far behind that of most other EU member states.

MBB analysed, among others, reports on Malta’s implementation of its National Reform Programme, the Global Competitiveness Report 2007-2008, the 2007 European Innovation Scoreboard, the European Economic Forecast 2007, the European Reform Barometer and the International Tourist Mobility 2007 report. Additionally MBB undertook a benchmarking exercise in this newsletter; comparing Malta vis-à-vis PUIFS TNBMM NFNCFS TUBUFT -VYFNCPVSH 4MPWFOJB Cyprus and Estonia).

In the third newsletter, MBB focused on what it considered to be three major EU developments which have been of direct concern to the business community: the then newly proposed Action Package Sustainable Consumption, Production and Industry; the projected Small Business Act; and the developments with regard to the Single Euro Payments Area.

Additionally MBB provided highlights about the French Council Presidency Programme, as well as on the Commission’s Communication on Green Public Procurement and the Commission Proposal on reduced 7"5 GPS -BCPVS *OUFOTJWF 4FSWJDFT XIJDI JODMVEFT

Malta Business Bureau Annual Report 2008 Page 20

restaurants and catering services. Finally MBB provided a ’Flexicurity’ Update, focusing on the agreement of Member States on working time and temporary agency workers.

In the last issue of the Ticker for 2008, MBB reported about the Czech Republic taking over the EU Presidency under the motto: ’Europe without barriers’ in 2009 and its priorities of enhancing the internal market and the liberalisation of trade policy. This issue also discussed the Commission proposal on the ’work life balance package’, which largely deals with maternity leave, and which will be tabled in the form of two legislative proposals, to be discussed by the European Parliament and the Council in 2009.

MBB also reported on the status of the discussion on fire safety in tourism accommodations, which is an issue of concern within the hospitality industry. Other articles focused on the Success Stories Project visit to Brussels; multilingualism for enhanced business opportunities; Euro-Mediterranean industrial cooperation; and the adoption of the Small Business Act. All (past) MBB NEWS Ticker editions are freely available from the MBB website: www.mbb.org.mt or by contacting the MBB at info@mbb.org.mt.

5. Project management MBB took up the project management and coordination role of a number of EU related projects. These projects are ongoing and include, among others, a project highlighting Maltese business success stories and another aimed at providing business mentoring for new entrepreneurs.

5.1 Success Stories Project The Malta Chamber of Commerce and Enterprise, the Malta Federation of Industry and the Malta Hotels and Restaurants Association – represented by the Malta Business Bureau – embarked on a project entitled ‘Success Stories Project’ in September 2007, together with the European Commission Representation in Malta.

The main components of the project ran throughout 2008 and were concluded in March 2009.

The objective of the project was to identify a number of Maltese businesses that have made a success of Malta’s membership in the European Union to the benefit of their organisation. The project gave visibility to these success stories and brought out a number of good practices that have worked in the Maltese scenario.

The ultimate aims were: t 5P TIPX UIBU CVTJOFTT TVDDFTT JO &VSPQF JT BDIJFWBCMF t 5P TIPX UIBU TNBMM .BMUFTF DPNQBOJFT IBWF BMSFBEZ been successful; t 5P FOUJDF PUIFS FOUSFQSFOFVST UP CF QSPBDUJWF BOE UP seek to emulate successes achieved by others with the help of Malta’s EU membership.

5.1.1 PROJECT METHODOLOGY A sample of 30 business success stories were selected through consultation with the partner constituted bodies. An interview-based survey was undertaken with these firms by the project leader. The survey involved two aspects: 1. A questionnaire-based approach – developed by MBB – covering, among other subjects, business demographics; statistics on sales, marketing and R&D, customers, employees and products; description of markets and products; competitiveness analysis and key success factors; opportunities and threats of EU membership and strategies adopted in relation to them; and

PROJECT TIMELINE Preparatory work: September 2007 – January 2008 Visits to participants: February – June 2008 NETWORKING: 5 business breakfasts:

27 March 2008 4 September 2008 27 October 2008 9 December 2008 16 February 2009

Visit Brussels:

19-21 November 2008

VISIBILITY CAMPAIGN: Production:

July – September 2008

Publication/broadcasting:

October – December 2008

Closing conference:

27 March 2009

2. An unstructured discussion regarding the topics of interest to the project, undertaken by the project manager and a delegate of the European Commission Representation in Malta while visiting the business premises of the participants.

Malta Business Bureau Annual Report 2008 Page 21

Participants of the Success Stories Project, at one of the Business Breakfast meetings

Following the extensive research carried out by the MBB and the European Commission, it transpired that a number of key concepts were recurrent in those cases where the business in question had progressed and achieved further success following EU membership (not necessarily due to EU assistance and/or funding). The key elements that emerged were, among others: competitiveness, networking, learning, investing, Research and Development, communication, innovation, quality, leadership and planning. On the basis of this research, three audiovisual spots were created and aired, various features on national TV programmes were produced, presentations at various seminars and conferences were made, and various articles in the local printed media, including a 16 page supplement in the principal Maltese newspaper were featured. The 3-month campaign ran from October 2008 till December 2008.

The project consisted of the following activities: Networking – a series of breakfast meetings was organised for the participating firms in order to promote networking and to elicit further information, as well as a familiarisation visit to the European Commission. The project culminated in a national conference in March 2009.

Visibility – the results of the project were collated to enable an effective dissemination of information and knowledge. This activity included a three-month marketing campaign – articles, features, adverts and audiovisual slots – and the publication, in various media, of a study identifying best practices for the benefit of various strata of business and public decision-makers.

The participants during their visit to Brussels

Photo of the Success Stories Project participants, used in the media campaign

5.1.2 MEDIA CAMPAIGN As a core part of the visibility component of the project the main aim of the media campaign was to identify a number of business success stories whose success is a direct or indirect result of Malta’s accession to the EU, and to raise awareness on how Maltese businesses have made and can make a success of their respective business ventures by making the most of the opportunities that are presented, despite the many challenges and hurdles that may have to be overcome along the way.

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5.1.3 FAMILIARISATION VISIT TO THE EUROPEAN COMMISSION Part of the networking element of the project was a familiarisation visit to the European Commission in Brussels. The aim of the visit was to provide a platform whereby the participants were able to meet and network with Commission officials. This gave participants the opportunity to discuss their day-to-day issues with the Commission, and to put forward the challenges that are being faced by Maltese businesses.

Prior to the familiarisation visit to the European Commission a consultation meeting with the participants was held to discuss the EU related matters that affect them directly in their business affairs.

This consultation and the feedback received in the interviews with the participants in the first stage of the project culminated in a document that was drafted by the project manager, and handed to the Commissioners and Commission staff whom the group met during their visit. Among other officials, the group met with Commissioner McCreevy, Commissioner Borg and the Head of Cabinet of Commissioner Verheugen, to exchange views.

t 1PUFOUJBM 0QQPSUVOJUJFT BOE $IBMMFOHFT PG &6 membership for Maltese Business – brief review of the Maltese business situation prior and post EU membership, identifying the potential key challenges and opportunities engendered by EU membership

The participants took the opportunity to address the European Commission directly and to put forward their sectoral, regional and national concerns in terms of doing business in Europe.

t *NQMJDBUJPOT GPS #VTJOFTT BOE 1VCMJD %FDJTJPO .BLFST – the basic hypothesis of this section is the fact that EU membership opened a plethora of opportunities but also potential threats. Sound decision-making at various levels is key to the creation of success, with clear examples derived from the interviews conducted in this project. Implications are presented separately for business, Government and EU-level decision-makers.

5.1.4 BEST PRACTICES GUIDE To contribute to the visibility component of the project, a report was drafted to present the success stories in a coherent and structured manner, and to detail the implications for business and public decisionmakers. This report has been presented at the closing conference held in March 2009. Issues covered in the main report are:

t #VTJOFTT 4VDDFTT 4UPSJFT BT B SFTVMU PG .BMUB T &6 membership – presenting the results of the interview approach

5.2 Mentoring project of European Chambers of Commerce and Industry of which the Malta Chamber is an active member. This project involved 18 countries, 36 European Chambers of Commerce and Industry, and the University of Savoie, France. Through this project about 1000 entrepreneurs have been coached EU-wide, by the time of its conclusion in March 2009.

Launch of the mentoring project

Business transfer is the third crucial phase in a business life cycle after its creation and growth. However, it is a long process that needs sound preparation and unfortunately many business transfers fail due to a lack of business know-how of their successors. ‘A Helping Hand for SMEs – Mentoring Business Transfer’ is an EU-funded project which started in 2007 and ran throughout 2008, with the objective of assisting in kind entrepreneurs that (partly) take over a micro, small or medium-sized enterprise. This project was developed and is coordinated by Eurochambres, the Association

The Malta Chamber of Commerce and Enterprise is one of the partners in this project, and entrusted the MBB with the project management on its behalf. The Chamber commissioned a professional mentor to assist five local entrepreneurs who have taken over (part of ) an established company of less than 50 employees.

These entrepreneurs received 10 days of mentoring, free of charge.

The Malta Business Bureau identified and selected the mentor, promoted the project and its availability for the business community, identified and recruited the entrepreneurs, coordinated the mentoring service and was responsible for the reporting and ongoing quality control.

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5.3 Energy Europe project ’CHANGE’ The MBB has coordinated the Malta Chamber of Commerce and Enterprise’s participation in a Eurochambres-coordinated bid for an Intelligent Energy Europe project entitled ’CHANGE’. This project has been successfully approved for co-financing by the Executive Agency for Competitiveness and Innovation (EACI) which manages the IEE programme on behalf of the European Commission.

Malta Business Bureau Annual Report 2008 Page 24

The CHANGE project will provide members of the Chamber with energy audit training opportunities aimed to instruct business owners and managers on how to better harness energy efficient practices at their work places, consequently obtaining reductions on their monthly utility bills. This project will be complementing and supporting Government initiatives on ERDFfinanced energy grant schemes.

6. Events calendar 2008 JANUARY 16.01:

New Year Reception Brussels

30.01:

MBB/BOV Waste Seminar

FEBRUARY 22.02:

MBB NEWS Ticker issue 1/2008

28.02:

MBB/ME ECAP seminar

MARCH

04.03:

Cosmetics information meeting

26.03:

Food labelling information meeting

4VDDFTT 4UPSJFT 1SPKFDU #VTJOFTT #SFBLGBTU -BVODI QSPKFDU

JUNE 10.06:

MBB NEWS Ticker issue 2/2008

23.06:

Hosting visit from the Nottingham and Derby Chamber of Commerce

AUGUST 20.08:

MBB NEWS Ticker issue 3/2008

SEPTEMBER 04.09:

Success Stories Project Business Breakfast ‘Sustainable Development’

OCTOBER

07.10:

‘Regions making the MOST of our Seas: Maritime Opportunities within Safety and Transport’

14.10:

‘European Parliament for Enterprises’

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27.10:

Success Stories Project Business Breakfast ‘Better Regulation’

30.10:

Maritime conference

NOVEMBER 05.11: 19.11-21.11: 25.11:

MBB/MEUSAC/MSA Eco-design information meeting Success Stories Project visit to Brussels MBB/MEUSAC/MSA Construction products information meeting

DECEMBER 09.12:

Success Stories Project Business Breakfast ‘Best Practices Evaluation’

19.12:

MBB NEWS Ticker issue 4/2008

Malta Business Bureau Annual Report 2008 Page 25

January

Mr Phillip de Buck, Ing Ray Muscat and guest at the reception

The Hon. Minister Pullicino, addressing the audience at the MBB/BOV waste seminar

16.01: Malta Business Bureau Reception in Brussels

30.01: MBB/BOV seminar on waste management: ‘Tackling Waste Together’

5IF -B 7BMMFUUF #VTJOFTT $FOUSF JO #SVTTFMT TFU UIF backdrop for a New Year’s reception last 16 January, organised by the Malta Business Bureau. The MBB invited its Brussels-based contacts to exchange New Year’s best wishes and to discuss business and EU related matters in a friendly and informal atmosphere.

Numerous Maltese people who work in Brussels and are in close contact with the MBB attended the event.

Events like this are aimed at creating greater cohesion between the local business community and the Brussels-based institutions and organisations.

MBB, together with Bank of Valletta organised the well attended annual seminar on 30 January, 2008.

The main argument was that waste is not a burden, but a resource that needs to be managed. When well managed, waste can be turned into business opportunities. Also, environmental awareness can be used as a PR measure, and from a purely economic point of view, there is large business potential in waste management and renewables.

Among the prominent guests from the business sector, public entities and interest representation groups was the Hon. Mr. Richard Cachia Caruana, Permanent Representative of Malta to the European Union, Mr. Phillip de Buck, Secretary General of BUSINESSEUROPE, and Mr. Arnaldo Abruzzini, Secretary General of Eurochambres. The event was also attended by highranking European institution officials, senior staff members from various European and international interest representations groups and Maltese entrepreneurs from various commercial sectors.

Mr Martin Seychell, Director of Environment, Malta Environment and Planning Authority, discussed the four priorities within the Malta Waste Framework regulation of 2002; Dr Chris Ciantar, Director of Environment Initiatives at the Ministry for Rural Affairs and the Environment spoke about the development of the harmonisation of waste collection measures.

Assistant Engineer and We Care Co-ordinator Mr Mario Morana, from Hilton Malta, spoke about the hotel’s endeavours to train its staff members continuously in order to ensure a high level of environmental awareness among the staff and to encourage eco-friendly behaviour.

In order for the waste management system to be successful, cooperation between industry, retailer and local authorities is vital. This was emphasised by Mr Walter Hauer, Managing Director, Technisches Büro Umweltwirtschaft GmbH during his presentation on Austria’s experience.

In a panel discussion chaired by Godwin C. Micallef, Chairman of the FOI Environment Committee, the key role of the local councils was discussed. Mr Michael

Malta Business Bureau Annual Report 2008 Page 26

$PIFO 1SFTJEFOU PG UIF -PDBM $PVODJMT "TTPDJBUJPO emphasised the importance of presenting a good waste collection plan to the inhabitants of different localities, and then complying with it.

The conference was concluded by Hon. George Pullicino, Minister for Rural Affairs and the Environment, who announced details on the way in which separated recyclable waste will be collected door-to-door.

February

Enterprise and The Malta Business Bureau, in order to facilitate the training material available from RSO to the participants. Another aim was to create a network for SMEs to discuss their needs with regard to environmental compliance. A further issue discussed during the seminar focused on the best way to communicate with SMEs. Mark Azzopardi, Manager, Department of Technology, Development and Innovation of Malta Enterprise set the scene and provided all the necessary background information. The background information on environmental legislation with regard to the local scenario was presented by Martin Seychell, Director for Environmental Protection, Malta Environment and Planning Authority, while the Malta Standards Authority was represented

by Ing. Francis Farrugia who gave an insight into EMAS in Malta and the way in which the MSA can assist companies wishing to achieve certification.

March Mr Mark Azzopardi, Malta Enterprise, addressing the ECAP seminar

28.02: MBB/ME ECAP seminar With the ECAP Programme for SMEs ‘Small, clean and competitive – A programme to help small and mediumsized enterprises comply with environmental legislation’, the European Commission aims at providing a policy framework and ad hoc funding to assist SMEs in addressing all causes of low compliance.

One of the main goals of the programme is to create a network of national and international experts operating within the environmental scenario. The seminar was targeted at those who play a major role in the country and who can steer and influence national and European policies. The seminar organised locally was an excellent opportunity for the main environmental stakeholders and experts belonging to several organisations in Malta to meet, and to form part of a national and international network of experts.

Ms Imola Bedo, Project Officer and representative of the European Commission – DG Environment, welcomed all the participants and was at their disposal to answer their questions as well as to discuss the European scenario.

The event was organised with the support of the European Commission DG Environment and with the organisational support of RSO (www.rso.it), Malta

Mr Stefano Mallia and Dr Joanna Drake addressing the participants and press at the project launch

04.03: Cosmetics information meeting In order to raise awareness among the Chamber Health Care Section on the European Commission’s proposal (COM (2008) 49) for a regulation on cosmetic products MBB organised an information seminar on 4 March.

During this information meeting Ms Audrey Anne Anastasi Scientist Foodstuffs, Chemicals, Pesticides and Cosmetics Unit, from the Malta Standards Authority gave a presentation in which she provided an overview of what the proposal entails; explained the changes the proposal puts forward; gave her views on how it will possibly impact the local scenario; and took questions from the floor.

Malta Business Bureau Annual Report 2008 Page 27

26.03: Information meeting on EU proposal on labelling legislation The Malta Business Bureau brought to the attention of the Manufacturers of food products that the European Commission had issued a proposal for a regulation on the provision of food information to consumers (COM(2008)40). The draft proposal consolidates and updates two areas of labelling legislation, the general food and nutrition labelling, previously covered by Directives 2000/13/EC and 90/496/EEC respectively.

As this proposal could have an impact on manufacturers of food products, the Malta Business Bureau organised an information meeting, in which Ms Audrey Anne Anastasi Scientist Foodstuffs, Chemicals, Pesticides and Cosmetics Unit, from the Malta Standards Authority gave an overview of what this proposal entails; explained the changes the proposal puts forward; how this could possibly impact the local importers and producers; and took questions from the floor.

27.03: Success Stories Project Breakfast Meeting: Official Project Launch On 27 March 2008, Dr Joanna Drake, Head of the European Commission Representation in Malta, and Mr Stefano Mallia, President of the Malta Business Foundation, officially launched the project at the Malta Chamber of Commerce and Enterprise in Valletta. Dr Drake and Mr Mallia clearly outlined the main aims of the project and paved the way for future initiatives.

number of essential issues to the table, highlighting the important contribution businesses have made to the sustainable development of our economic, social and environmental surroundings; and that businesses across all industries have the responsibility to ensure the sustainable development of the business itself. Dr Grech explained that many businesses benefited greatly from allowing the younger generation to take the initiative and actively contribute to the development of the business itself.

October 07.10: Regions making the MOST of our Seas: Maritime Opportunities within Safety and Transport The Malta Business Bureau participated in the 2008 edition of the Open Days organised by the Committee of the Regions. The MBB was a partner in the conglomerate ‘Regions making the MOST of our Seas: Maritime Opportunities within Safety and Transport’ which held a well-attended workshop precisely on the twin themes of maritime safety and transport within the context of the EU’s future maritime policy, on 7 October. A presentation outlining examples of best practices in maritime safety within Malta’s Grand Harbour was delivered by the MBB guest speaker Captain Richard Gabriele, Harbour Master at the Malta Maritime Authority.

June 23.06: Hosting visit from the Nottingham and Derby Chamber of Commerce The MBB Brussels office also hosted a visit from the Nottingham and Derby Chamber of Commerce on 23 June 2008. During the meetings with the senior executives from the UK Chamber, discussions focused on how to disseminate trade and business opportunities between Malta and the East Midlands region. On 26 June, the Brussels office hosted an NSTF educational visit of the student-participants of the annual NSTF Mini European Assembly.

September 04.09: Success Stories Project Breakfast Meeting: Sustainable Development The second breakfast meeting of the Success Stories project dealt specifically with the sustainable development of businesses. Dr John C. Grech, Chairman of Economic and Management Consultancy Services Ltd delivered the keynote speech and brought a

Malta Business Bureau Annual Report 2008 Page 28

The participants of the EP for Enterprises

14.10: European Parliament for Enterprises The Brussels office coordinated the Chamber’s participation in the first ever ‘European Parliament for Enterprises’ organised by Eurochambres on 14 October.

The European Parliament for Enterprises was a unique profiling event for the national Chambers of Commerce of the EU member states and candidate/accession countries. For the high-level delegation that attended

on behalf of the Malta Chamber of Commerce and Enterprise, it was an opportunity to be Members of the European Parliament for one day, debating and voting on some of the most crucial topics currently at the heart of the political debate, and meeting face to face with key management members of the EU institutions, including Mr José Manuel Barroso, President of the European Commission, and Mr Hervé Novelli, French Secretary of State in charge of commerce. The European Parliament for Enterprises brought together over 750 entrepreneurs and was organised by Eurochambres under the high patronage of Mr. Hans-Gert Pottering, President of the European Parliament, with the support of the European Commission, the French Presidency and the Employers’ Group of the European Economic and Social Committee.

The Hon. Minister Gatt, addressing the audience at the Maritime conference

30.10: Maritime conference The Malta Business Bureau organised a half-day seminar on the EU’s future maritime policy entitled ‘An integrated maritime policy prescription for Malta: Tapping opportunities for economic growth’ aimed at generating an in-depth policy discussion on the implications for business, public authorities and other civil society stakeholders on the formulation of an integrated maritime policy for Malta.

This national conference was organised within the framework of the annual ’Open Days’ of the Committee of the Regions of the European Union on 30 October.

Mr Andre Fenech addressing the participants

27.10: Success Stories Project Breakfast Meeting: Better Regulation The third breakfast meeting was held in the last week of October and dealt with the issue of better regulation for industry and enterprise. The event included a presentation by Maarit Nyman, from DG Enterprise and Industry, who spoke about the development of EU policies that address the needs of small and medium-sized enterprises.

Speakers included the Hon. Minister Austin Gatt; Ms. Joanna Darmanin, head of Cabinet of Maltese Commissioner Joe Borg; and Dr Joanna Drake, the Head of the Commission Representation in Malta.

Additionally, various panellists from leading businesses operating in the various sectors of the maritime industry as well as the regulatory authorities interacted in two panel discussions on the development of Malta as a regional and European maritime transport hub and on chartering the way forward for the further development of the maritime leisure tourism industry on the islands.

The second speaker, Mr Andre Fenech, Senior Executive, Malta Chamber of Commerce and Enterprise, also addressed the audience and focused on the effect that regulation has on local industries and businesses.

Malta Business Bureau Annual Report 2008 Page 29

November

Ing Joseph Micallef (MSA), Mr Julian Micallef, Dr Gabriella Pace (MEUSAC) and Mr Pedro Fernandez Alvarez (MBB) at the briefing

Ing Joseph Micallef (MSA) addressing the participants at the construction products briefing

05.11: MBB/MEUSAC/MSA – Eco-design briefing session for stakeholders

25.11: MBB/MEUSAC/MSA Construction products briefing session for stakeholders

The European Commission, in response to many calls for better energy efficiency, has been working on eco requirements in the design of a wide range of products – ranging from common household goods to office equipment and even street lighting. The aim is to ensure that products are designed to be efficient in terms of energy consumption.

Directive 89/106/EC, covering the legislation on construction products (such as doors, cement, aggregates, roof products, piping, gypsum products, composition toilets, fire alarms, glass, waste water treatment units, boilers, thermal insulation and any other product which is placed on the market to be permanently inserted in construction work) has been up for revision. Using its ’new approach’ to standards, the European Commission has proposed a new Regulation to ensure a harmonised implementation of the regulation and, with the help of product contact points established in each Member State, to promote intracommunity trade of construction products.

In this context MBB, in cooperation with MEUSAC and the Malta Standards Authority organised a briefing session for stakeholders on the issues involved, the current discussions taking place and developments to be expected in the near future.

The discussion was of particular interest to importers, manufacturers and retailers of white goods (particularly domestic electrical appliances, televisions and other sound/vision equipment, and personal computers); contractors and engineers involved in designing and erecting commercial and electrical installations; importers, manufacturers and retailers of sound/visual equipment; importers, manufacturers and retailers of electronic equipment that requires an external charger or power supply (eg laptops/notebooks, mobile phones, etc); and importers and retailers of electrical goods.

The main speaker was Ing. Joseph Micallef, from the Regulatory Affairs Directorate (MSA). He tackled the issues including the development of implementing measures, current and expected developments, the implementing measures on the products in question, and the relationship with the energy labelling directive.

There was also ample time for discussion and questions from participants.

Malta Business Bureau Annual Report 2008 Page 30

In this context, MBB in cooperation with MEUSAC and the Malta Standards Authority, organised a briefing session for stakeholders on the issues involved, the current discussions taking place and developments to be expected in the near future.

Given that a parallel development was taking place with regard to energy efficiency, participants were also briefed on a Commission proposal on energy-related products. This legislative proposal could affect products which have an indirect impact on energy consumption, such as windows, thermal insulation, and doors by making them subject to eco-design requirements.

The discussion was of particular interest to operators that deal with construction products, including importers, distributors, retailers, architects, civil engineers and other professionals and traders in the sector.

The main speaker was Ing. Joseph Micallef, from the Regulatory Affairs Directorate (MSA). He tackled the proposed legislative changes and other expected developments.

December 09.12: Success Stories Project Breakfast Meeting: Best Practices At the fourth breakfast Dr Gordon Cordina presented the main findings of his research study. He delivered a detailed analysis of the best practices, put forward the main scope of the report and discussed preliminary conclusions that were drawn from the research conducted earlier on in the year.

Malta Business Bureau Annual Report 2008 Page 31

7. Outlook for 2009 Malta Business Bureau Annual Report 2008 Page 32

Malta Business Bureau Annual Report 2008 Page 33

In 2009 the focus of MBB operations will continue to be the evaluation of the needs and interests of Maltese CVTJOFTTFT WJT Ë WJT &6 EFWFMPQNFOUT BOE UIF -JTCPO Strategy, as well as actively communicating these positions in Brussels and vice-versa to the grassroots in Malta. MBB is aware of the special needs of the local business community, due to Malta’s micro-island state reality. MBB supports the creation of a level playing field for business, and its ultimate goal is to enhance the local firms’ possibilities in the Single European Market. The MBB firmly believes in conducting ongoing consultation with the parent organisations’ membership at sectoral level, in order to be able to channel and defend the interests of the members within the appropriate institutional fora at both national and EU levels.

Member States to act efficiently but in a timely manner, towards improving Europe’s current economic climate.

MBB has taken close notice of the EU’s recovery plan and will report accordingly on the different measures and initiatives to be launched in the early months of 2009.

In this light, MBB will continue to assist its parent organisations in contributing to the formulation of the Maltese business perspective on EU policies. The MBB is an active player in the economic debate informing the EU and Maltese national institutional and regulatory bodies. The MBB will continue to act as an early warning system for pipeline acquis and forthcoming regulations.

Some of the projects come to an end in the first quarter of 2009. Once these are concluded MBB will create and participate in new projects which create high value added for the member base of the parent organisations.

The MBB will uphold its objective of seeking both commercial and EU-funding opportunities for the member firms of the parent organisations to address the challenges to the operational success of local business, irrespective of size and location, within the European Single Market.

The main issue of concern in the last months of 2008 was the economic turmoil which has created unrest in all EU member states. The Commission presented the European Economic Recovery Plan as part of a solution to the financial crisis by means of agreement between

Malta Business Bureau Annual Report 2008 Page 34

MBB will underpin its communication strategy in 2009 by issuing, apart from the regular newsletter, a weekly e-publication, the EU4Business Weekly Newsflash, distributed by email and which highlights EU-related news items of specific interest for the local business community in a concise and easy-to-read format.

Additionally, MBB issues updates, briefs and reports on key issues that develop in the EU and that are of particular interest to the local business community.

MBB has envisaged several events for 2009 and will keep the commercial sector informed, cordially inviting all to participate. This, in the hope that all MBB events will once again be of assistance to local entrepreneurs, bringing to the table new knowledge on EU-Maltese related issues, which is valuable for the day-to-day, as well as long-term, running of commercial activities in Malta.

The MBB would like to take this opportunity to thank its parent organisations, sectoral groups, local and European collaborating organisations, and the local business community for a fruitful 2008. The MBB looks forward to continuing to be of service and assistance to Maltese entrepreneurs and collaborating partners, in 2009.

Malta Office c/o The Exchange Buildings, Republic Street 7BMMFUUB 7-5 .BMUB Tel:- 00356 21 224415 Fax:- 00356 21 245223 Email: info@mbb.org.mt