GRTU lashes out at new government procurement regulations

The chamber for small and medium enterprises (GRTU) said it was alarmed by the government's decision to ignore the warnings expressed by the chamber and accused it of arbitrarily changing the rules of the games in government procurement.

The chamber said that government "limited the participation of small enterprises and consultancies with the introduction of a clause in the declaration companies need to sign in order to apply for a Government tender that 'no part of the service to be provided under this contract shall be sub-contracted."

The absolute majority of small firms do not have the full capacity to implement tenders, GRTU said.

"These however used to team up with other small firms or a subcontractor and carry out the full requirements of the tender without abusing of the system in any way and fully abiding with employment regulations. This is the normal business practice internationally and this was the norm up to recently. In the €420,000 small businesses apply sub-contract in public tenders as is their right across member states and here the Maltese Government is prohibiting sub contractors from working in their own country."

It added that the new rules have "closed off the government procurement market for self-employed and many small businesses, many of which depended on these tenders and will in time have to shut down."

GRTU stressed that the government imposed the clause without having measured the negative economic impact this will have on these businesses.

The chamber's executive council discussed the issue directly with the Prime Minister in a meeting last week and the Principal Permanent Secretary the week before in which GRTU was assured this was just a misunderstanding and subcontracting is still allowed.

"The papers black on white say otherwise. This is the most negative anti self-employed action on record. GRTU will take all available legal methods in Malta and the EU to fight against this imposition," it said.