Issue link: https://maltatoday.uberflip.com/i/745623
maltatoday, WEDNESDAY, 2 NOVEMBER 2016 News MTA, not insolvency fund, to cover Fantasy Tours losses MATTHEW VELLA THE tourism ministry yesterday denied that the customers who suffered losses from the bank- ruptcy of Fantasy Tours would be compensated through the re- cently launched insolvency fund. In a statement, the ministry said it would be honouring through the Malta Tourism Authority its commitment to the people af- fected and that this would hap- pen "independently of the setting up of the insolvency fund". FATTA (Federation of Travel Agents) had earlier called on the government and the Malta Tourism Authority to deny press reports implying that custom- ers who suffered losses from the bankruptcy of Fantasy Tours would be compensated by the re- cently launched insolvency fund. It argued that the Legal Notice setting up the fund stated that the fund would only cover book- ings made from the date of publi- cation of the Legal Notice. "The fund, which will be guar- anteed by travel agencies li- censed to sell package tours, is not intended to compensate for the shortcomings of the regula- tor and the government in im- plementing the European Com- mission directive protecting consumers from insolvency of package operators," the federa- tion said. "The burden of any compensa- tion that might be due for past failures must solely be borne by the government and regulator themselves and should not be passed on to legitimate operators and ultimately and indirectly to the consumer." FATTA said that the new insol- vency fund should only carry the true costs of administration of the fund and that funds cannot be siphoned out by the regulator to recoup any compensation pay- ments made for insolvencies pre- dating the fund. "FATTA reiterates that the cost of contributing to and maintain- ing the insolvency fund will ulti- mately be carried by the consum- er and is committed to ensure such costs are kept to the bare minimum for the benefit of the consumer. FATTA will therefore strongly resist any attempt by the MTA to load any unjustified or illegitimate cost burden on the fund," the federation said. FATTA also called on the MTA to "get its act together" and up- date its database and regularly publish an updated list of opera- tors licensed to sell travel pack- ages. Employer organisations call for caution over raising the minimum wage YANNICK PACE THE Malta Employers Associa- tion, the Chamber of Commerce and the GRTU chamber of small enterprises – the private sector's representatives on the Malta Council for Economic and Social Development (MCESD) – have jointly expressed concern over the direction taken with regard to discussions on poverty and the minimum wage. Last Sunday, Prime Minister Joseph Muscat welcomed a re- cent call by a coalition of NGOs for the minimum wage to rise by 3.5% for three consecutive years – to between €11,000 and €12,000 annually, but warned that such a decision cannot be taken rashly. However, while Muscat has committed himself to hold a na- tional debate on increasing the minimum wage, employers be- lieve that the country's efforts should be targeted specifically at eradicating poverty whilst safe- guarding competitiveness and long-term economic growth. They said that in the current economic scenario, it is unaccep- table to find certain cohorts of the population that are still beset by poverty and deprivation, add- ing that it is the joint responsibiliy of government, politicians, social partners, employers, employees and civil society to ensure dignity for the entire population. The organisations said that a 'professional report' commis- sioned by the MCESD was re- cently presented to social part- ners and that this report sheds some doubt as to whether raising the minimum wage is the ideal measure to combat poverty, add- ing that it would be more mean- ingful to use more direct and tar- geted action. "Malta has an extremely posi- tive track record of wage-bar- gaining at enterprise level which is a rarity in the context of the EU. Through this system, wages are determined fairly on the ba- sis of social considerations but also on the basis of productive and competitive constraints. This established and recognised structure explains why only a small percentage of the work- force in Malta earns a minimum wage," read their joint statement. They go on to say that the issue of employers is not in fact with raising the minimum wage, but rather, the spiral effect on wages across the board that this would trigger. Because of this they say, raising the minimum wage has serious consequences on nation- al competitiveness. "It is the duty of all social part- ners to act responsibly on this matter. All stakeholders must understand that these conse- quences are well understood by all. Private business is the mo- tor of our economy and it is the private sector which finances the country's social security system. Endangering the private's sec- tor's competitiveness and Malta's export potential may indeed harm the very basis of our econ- omy and with it the potential to sustain the country's safety net," they warned. The employers said that "lip service" by both political parties on raising the minimum wage without consultation with em- ployer representatives, and pre- empting the discussion process seriously prejudices the situa- tion and does not bode well for discussions in which the social partners have now been invited to participate. They claim that these tactics are short sighted, irresponsible and unacceptable. Employer bod- ies appeal to all stakeholders to refrain from political games that risk the livelihood of employees and the country's long-term eco- nomic and social development. Employers said that "lip service" by both political parties on raising the minimum wage without consultation with employer representatives, and pre-empting the discussion process seriously prejudices the situation and does not bode well for discussions