MINISTER JOSEF BONNICI ATTENDS INDUSTRY MEETING IN BRUSSELS

MINISTER JOSEF BONNICI ATTENDS INDUSTRY MEETING IN BRUSSELS

Minister Josef Bonnici is currently in Brussels to attend a meeting for ‘Ministers of Industry' of the EU member and candidate countries.

One of the principal items on the agenda is a discussion on the challenges and opportunities for enterprise policy in the emerging `Knowledge – Driven Economy`. In particular, electronic commerce is rapidly becoming a central consideration in the evolution of existing business activity and even more so in the development of new business opportunities. Electronic commerce is the prime engine for growth in the Information Technology sector but it is also a driver for change in most other sectors of the economy.

The Industry Ministers' meeting will also address a number of other topics. These include:

(a)    measures aimed at protecting small business from late payments by their creditors and
(b)    the question of extending subsidies to the European Ship Building Sector.

The European Union is in the process of intensifying its efforts and strengthening its programmes for assistance to small and medium sized enterprises (SME's). In this context, a directive will be finalized shortly that will establish remedies to protect small businesses from late payment of money owed to them by their creditors, in particular by larger companies. The new directive establishes an anticipated average payment period and provides mandatory penalty interest rates on creditors that do not settle their debts with small companies within the established timeframe. It is expected that such a system would greatly enhance the cash flow of small companies, both directly through the more timely payment by their creditors and indirectly by providing a mechanism that would facilitate the discounting of debts by small companies through their commercial banks.

It is very relevant to note that similar provisions are also presently being drafted in Malta and a ‘late payment' clause will be included within a forthcoming ‘Business Promotion Act' that should be tabled for debate by Parliament prior to the summer recess.

The ‘Ministers of Industry' meeting is also discussing the most recent developments in the ship building industry in view of serious concern that the operations of South Korean ship yards are being heavily subsidized, thereby, undercutting European Shipyards. In view of this situation, a number of EU countries are requesting the extension support initiatives and the granting of subsidies to the EU shipyards beyond the original deadlines established for phasing out such assistance.

18.05.2000