Issue link: https://maltatoday.uberflip.com/i/392875
maltatoday, SUNDAY, 5 OCTOBER 2014 5 down in the law (i.e. between 5 and 10 individuals), thereby ren- dering it invalid as a result; That all the petition's signatories » did not personally fill in the field detailing from which electoral district they hailed, and that this was filled in by CASH members; That the Electoral Commission » "arbitrarily decided to verify the signatures using one sample" as opposed to the accepted "10% of remaining signatures, following an initial exercise of elimina- tion"; and that it "certainly could not declare without doubt" the number of valid signatures, nor did it specify the methodology for verifying the signatures, or appoint an expert in forensic cal- ligraphy; That the Referenda Act does not » apply to subsidiary legislation – which the spring hunting dero- gation forms part of. The FKNK also said Malta's deroga- tion from the Birds Directive, which bans hunting in spring, was "derived from treaty obligations", and that the Referenda Act specifically does not apply to "any legislation giving effect to any treaty obligation undertaken by Malta". The FKNK claims that the Birds Directive explicitly requires that the protection of species be balanced against other interests, and that therefore this balance will be dis- rupted "the moment the law imple- menting the spring hunting deroga- tion is revoked". Making reference to the 2009 deci- sion of the European Court of Jus- tice, which green-lit a limited spring hunting season based on the autumn hunting catch, the FKNK said re- placing the spring season with one in autumn would not be a satisfactory solution because, among other rea- sons, the non-protected species of migratory birds would only be found in a small part of the island and that, historically, the quantities caught were negligible. It further quoted the Bern Conven- tion, which requires that measures taken to conserve wild fauna "cor- respond, in particular to ecological, scientific and cultural requirements, while taking account of economic and recreational requirements and the needs of sub-species… at risk lo- cally." The FKNK also referred to the In- ternational Covenant on Economic, Social and Cultural Rights – another international agreement to which Malta is a signatory – which lists hunting as a "cultural activity"; and the UNESCO Universal Declaration on Cultural Diversity also makes an appearance, further hammering home the 'minority rights' argu- ment. Arguing in favour of "proportion- ality between conservation of bird species and cultural and recreational requirements", the FKNK warned that "there is a chance that this bal- ance [of interests] may be seriously and irremediably prejudiced if… a referendum to abolish Spring hunt- ing takes place." The application was signed by law- yer Kathleen Grima – from the firm Emanuel Mallia and Associates, the firm of home affairs minister Manuel Mallia – who is representing Lino Farrugia in a libel suit against Malta- Today over a newspaper cartoon. magius@mediatoday.com.mt JURGEN BALZAN FINANCE Minister Edward Sciclu- na has been inundated with requests to remove or modify the eco-tax im- posed on goods imported from Sic- ily. Social partners, including the GRTU, the small business chamber, and the Chamber of Commerce, have submitted a plethora of Budget 2015 recommendations over what they perceive as an "unfair" tax which cre- ates an uneven playing field for retail- ers. A number of foreign and Maltese traders evade VAT, excise duties and eco-tax by importing goods using the catamaran link between Malta and Sicily. Unlike goods which reach Malta through the Freeport, goods trans- ported on the catamaran are not con- trolled. Speaking to MaltaToday, GRTU CEO Abigail Mamo explained that Maltese and foreign trad- ers are flooding the market with products, ranging from alcoholic and non-alcoholic beverages to IT equipment, brought in on the catamaran. She said that 75% of the GRTU's 2015 Budget recom- mendations centre around the removal or revision of the eco- tax and how government con- trols could be strengthened. "At this summer's trade fair there was a great number of Sicilian traders selling their goods and most probably most of them imported their prod- ucts using the catamaran. This allows them to circumvent the eco-tax and VAT, which are paid on products imported through the normal chan- nels," she said. However, Sicilian traders are not the only ones benefitting from the loopholes and lax controls. A grow- ing number of Maltese traders are resorting to importing goods via the ferry service as they attempt to drive their costs down and become more competitive. "The situation is alarming and if no action is taken by the government, the exception will become the rule," Mamo warned. Admitting that the tax "is not liked by the business community," the fi- nance minister's spokesperson said "we are still evaluating a number of proposals." Asked whether the government is considering increasing surveillance on the importation of goods from Sicily via the catamaran, the spokes- person told MaltaToday that "rather than increasing surveillance it is im- proving on inter-ministerial coopera- tion." The eco-tax is paid on goods im- ported from abroad, however goods brought in on the catamaran do not go through the same controls as goods passing through the Freeport. Using tablet computers as an exam- ple, Mamo explained that such prod- ucts carry a €35 eco-tax plus VAT, however if a trader brings in tablets on the catamaran these are sold €41 cheaper on the market. Moreover, the lax controls on goods brought in on the catamaran mean that there are no reassurances on whether the goods are in line with environmental and safety standards set by EU directives. Mamo added that one of the main problems lies in the fact that the govern- ment's control mecha- nisms are splintered. Despite setting up a task force, involving social partners, the government has so far failed in deliv- ering upon its promise of creating a single entity merging the Customs De- partment with the VAT and inland revenue departments. Asked whether the government intended to implement its promise, the minister's spokesperson said "the merger is ongoing. At present the departments are merging common functions as per plan. In July, Prime Minister Joseph Mus- cat said that the situation would no longer be tolerated and that a level playing field must be ensured, add- ing that Sicily is part of Europe and imports coming from Sicily cannot be treated any differently. "In this re- gard, and in full respect of EU rules, the government is currently compil- ing a new and updated package of market surveillance rules in order to ensure a level playing field." However, the GRTU CEO noted that so far the government has not tightened controls, adding "the onus is on the government to ensure that rules are observed and the single market is respected." To the surprise of the stakeholders present, Scicluna this week said "Sic- ily and Malta are both in the EU and [traders] coming from Sicily are just as if they were coming from Gozo. Addressing a pre-Budget consulta- tion for social partners and employer organisations, Scicluna was quizzed by the GRTU about illegal cross-bor- der retail trade, making the point that some €41 million less in customs and excise duties were collected in the first six months of the year. Scicluna acknowledged the reality of business sectors that were against further liberalization of the market, since they were benefiting from cur- rent inefficiencies. "One obstacle, for example, is the Hal Far groupage centre (pictured). I can assure you that we have gone into this matter. We have found a lot of sectors that are gaining from this present situation. It needs investment and thought as to how to liberalise this [sector], in the sense that trade coming from the Freeport should not have any extra burdens that we could do without," he said. minority backed by over 100,000 Traders 'alarmed' by illegal imports from Sicily Lino Farrugia (left) and Joseph Perici Calascione (centre) Sicilian traders are not the only ones benefitting from trade loopholes and lax controls: a growing number of Maltese traders are resorting to importing goods via ferry as they attempt to drive their costs down and become more competitive Abigail Mamo