Issue link: https://maltatoday.uberflip.com/i/442526
maltatoday, WEDNESDAY, 7 JANUARY 2015 4 THE Malta Hotels and Restau- rants Association has reiterated the importance of Air Malta's abilit y to adapt to a changing market. In a media statement, the MHRA said that it could not understand the logic behind a resistance to the changes the company is bring- ing in, something it considers es- sential to the airline's survival. "The business of running an airline has changed dramatically since 1974, when Air Malta was set up. EU rules allow any airline to f ly to and from any airport within the Union and pricing of air fares is set according to mar- ket demands. These realities have driven a number of legacy air- lines, who failed to restructure, into bankruptcy," the statement reads. "Air Malta has not been immune to these realities and it is only due to a massive effort as well as a one-time cash infusion from the government that it is still f lying today." The MHRA also questionned the decision by the Union of Cab- in Crew (UCC) to take industrial action, something it says will ulti- mately result in job losses, should the airline fail. The industrial action followed Air Malta's decision to replace the economy class meal and the meal offered to cabin crew on board its aircraft with a baguette and a small bottle of water, a move the UCC says breaches a condition of the collective agreement, which says that crew should be offered 'suitable meals'. Air Malta's management and UCC representatives met yester- day to discuss outstanding issues. Representatives from both sides agreed to continue talks to deter- mine the way forward. "Unless change happens then the airline will not survive and the consequences of this demise will have a major impact on Malta's tourism as well as the economy as a whole," the statement reads. "Those that are responsible for this industrial action have to as- sume responsibilit y for the very serious consequences of their ac- tions not only to the airline but to the wider economy, which will be hurt through the loss of the air- line. "Furthermore those that are taking action should show more respect to the shareholders of the airline, who are the Maltese peo- ple through their government, that has poured over €150 million to save their jobs. It is unaccept- able that such action is taken by people whose jobs the country has saved at enormous costs," the MHRA said. News Councils ignored warnings by local government auditors CONTINUES FROM PAGE 1 Despite continuous warnings by local gov- ernment auditors over the past years, substantial amounts of ex- penditure incurred for the coun- cils' operations were not support- ed by a valid fiscal receipt, a report by the auditor general reveals. Activities carried out by lo- cal councils, while exercising the functions assigned to them by law, fall outside the scope of the Value Added Tax (VAT) regulations. But supplies provided to the former by VAT registered suppliers are to be covered by a fiscal receipt. "At times, even the invoice sub- mitted by the supplier lacked nec- essary details, such as details of the latter, and identification of the cli- ent, not to mention that in certain cases such procurement was only supported by a piece of paper," the auditor general's report says. In view of this, according to the report, it could not be ascertained that the respective expenditure was actually incurred for the run- ning of the council. The report calls on local coun- cils to ensure that an invoice, as well as a fiscal receipt, is obtained for all the expenditure they incur. In cases where the supplier is not abiding with VAT regulations, the councils are being asked to discon- tinue any procurement from such companies or individuals until the situation is rectified. Some of the councils have dis- puted the figures mentioned in the report. The Msida council replied that only one of the seven payments highlighted by the local govern- ment auditor is not supported by a VAT receipt, because the con- cerned supplier is VAT exempt. The St Paul's Bay council argued that it was not in a position to in- sist on VAT fiscal receipts when the suppliers or service providers fall under Article 11 of the VAT Act, which exempts small under- takers from VAT registration. Other councils insisted on the difficulty of chasing such re- ceipts. The Mgarr council claimed that "a number of suppliers did not for- ward their fiscal receipts although these were chased by the council". Similarly, the Dingli council pointed out that a number of sup- pliers did not forward their fiscal receipts. And according to the Mtarfa council, although it asks for proper tax invoices and VAT fiscal receipts "these are not al- ways provided by the suppliers". The Luqa council insisted that computer invoices which show a date and the VAT number satisf y the requirements of the council. The Rabat, Malta council insist- ed that VAT receipts are beyond the council's control as it is a re- quirement of the supplier to pro- vide such documentation. The Victoria council insisted that it always informs the sup- pliers to issue fiscal receipts and stamps all payment vouchers with a statement saying 'Please issue Fiscal Receipt'. Foreign couple arrested after string of thefts in Gozo THE arrest of a foreign couple by the police in Gozo follow- ing an attempted theft has led to the solving of a total of seven robberies or attempted robber- ies, in the past days in Victoria and Għajnsielem. The couple, a Belgian man, 37, and an Italian woman, 21, were arrested shortly after they broke into a shop on Monday at about 3:30pm in Triq Taħt Putirjal, Victoria, and came face-to-face with its owner. The pair ran off, with the shop owner in hot pursuit. An on- duty traffic policeman was in- formed of the crime and called for back-up while giving chase. Although the woman managed to get away, the man was arrest- ed at a disused factory. The woman was eventually identified and arrested yester- day following further investiga- tion. The couple's arrest has also led to the solving of three thefts and two attempted thefts from shops on 4 and 5 January in Victoria, and two robberies last month in Għajnsielem. The couple are expected to be arraigned shortly. MATTHEW AGIUS A Somali man living in Zejtun has been handed a suspended sentence after he pleaded guilty to stealing a lunchbox from a parked car on Monday night. Inspector Robert Vella pre- sented the unemployed 20-year- old, Abdiqani Mahad Mohamed, under arrest before Magistrate Doreen Clarke yesterday, charged with breaking into a parked Sko- da in Marsa, damaging the ve- hicle, as well as the theft of the lunchbox. The man, assisted by law yer Noel Bartolo as legal aid, made no attempt to defend himself, imme- diately admitting to the charges. Magistrate Doreen Clarke sentenced him to 16 months in prison suspended for 18 months, making sure that the implications of the sentence were explained to him through an interpreter. Lunchbox thief gets suspended sentence Survival of Air Malta depends on restructuring – MHRA www.gourmettoday.recipes San Lawrenz council, one of the smallest in the country, was the worst offender