Aid for small businesses in Budget 2010

The government would be announcing aid for small enterprises over and above EU funds in Monday's Budget, Finance Minister Tonio Fenech announced yesterday.

Mr Fenech said this would revolve around specific aid for small and medium enterprises and there would also be a scheme for sole traders. He would not divulge any more details, saying these would be revealed on Monday.

Speaking during a visit to furniture manufacturer Grixti Mobili, Mr Fenech also announced that 143 companies would be benefitting from €8 million from the second instalment of the European Regional Development Fund for 2007 - 2013.

He said two-thirds of the 367 enterprises that applied for the funds were micro-enterprises that did not employ more than 10 people.

The funds were part of the €30 million allocated for projects relating to research and innovation, telecommunications, environment, energy and transport.

While e-business and international competition were the most popular schemes, applications for investment to reduce any adverse impact on the environment were still lacking, although they had more than doubled to 17 from the first ERDF call earlier this year.

"The industry needs to look closer at how it is going to utilise the environmental funds," Mr Fenech said.

Grixti Mobili, which employs 17 people, had benefitted from €73,000 from the first round of ERDF funds, which allowed it to invest in equipment which helped it specialise in tailor-made furniture and steer away from mass production. This, Mr Fenech said, helped it get a competitive edge over imported products.

Grixti Mobili auditor Brian Tonna said the company was now looking at exporting its products and would be extending its factory in Marsa.