Transport 2050: Improving infrastructure and reducing the environmental costs

The European Commission has launched an ambitious plan to increase mobility while reducing the environmental cost of transport via a White Paper heralding a comprehensive strategy informally known as Transport 2050. This strategy paper sets out a roadmap containing no less than 40 initiatives, which aim to achieve a Single European Transport Area.

The White Paper does not solely address the modernisation of European transport infrastructure but it also forms part of a wider reflection on how to reduce emissions within the 2050 timescale.

The Commission estimates there should be a reduction of at least 60 per cent of greenhouse gas emissions from the transport sector by 2050 when compared to 1990 levels.

It is vital that no unilateral EU initiative in creating an emissions trading scheme without the existence of equivalent schemes covering all international shipping. Such a unilateral initiative would be detrimental not just for the competitiveness of the shipping industry but also in terms of the inflationary impact on the increased costs for the transportation of goods to and from Malta.

The discussions on the emissions trading scheme for the maritime industry have been ongoing for a while at the International Maritime Organisation. Maltese business would like to see greater predictability with developments in this regard. Equally important, is the need for faster implementation of already agreed EU initiatives.

The efforts to step up the opening of port services to competition must continue from an EU legislative perspective whilst parallel action must also be taken to reduce administrative burdens in the maritime sector, for instance in relation to customs handling and clearance of goods.

Developments on the draft directive on ­intra-corporate transfers

The legislative discussions at the European Parliament and the Council of Ministers on the enactment of a directive regulating the conditions of entry and residence of third-country nationals for the purposes of seasonal employment are progressing with a working document released by the rapporteur, British MEP Claude Moraes.

Essentially, the Commission proposal facilitates the entry conditions for non-EU seasonal workers by granting them a visa or residence permit allowing them to work for a maximum period of six months. This strict time-limitation is meant to ensure that the concerned workers are effectively employed as a result of seasonal surges in employment and not for regular 12 calendar month employment. Conversely, the proposal reinforces the protection and safeguards afforded to non-EU seasonal workers by requiring employers to provide evidence that the seasonal worker will have appropriate accommodation guaranteeing an adequate standard of living.

From a legal perspective, the Commission proposal establishes a common procedure for entry and residence of third country seasonal workers within the internal market, by linking the issuing of seasonal worker permits to a number of conditions: the existence of a valid work contract or a binding job offer, proof of sufficient resources to cover their stay, the possession of a valid travel document amongst other requirements such as sickness insurance.

There are a number of issues being flagged by the rapporteur in his working document that require further clarification. In particular, there is need for greater clarity in defining what constitutes an “adequate standard of living” especially since no member state has a definition of “adequate compensation”.

The responsibility to provide for the accommodation and how it should be paid for are other important aspects still to be resolved. These issues will constitute the main lines on which the parliamentary discussions on the draft proposal are expected to take place when Mr Moraes will present his report in mid-June.

Maltese business broadly welcomes the draft directive’s text while acknowledging the need for greater clarification on the administrative costs related to the processing of the applications for temporary work permits as well as the accommodation of the non-EU temporary workers. Nonetheless, the draft directive establishes for the first time, clear rules for the ­admission of non-skilled third-country nationals while safeguarding against potential exploitation. The temporary entry of non-EU nationals to satisfy the growing demands for labour in specific segments of the Maltese hospitality industry, the healthcare sector and the construction industry should be actively facilitated to better equip local employers with the increasing labour shortages during market-peak demand periods.

For more information on EU affairs related to business, one may contact the MBB on 2125 1719 or email info@mbb.org.mt or visit www.mbb.org.mt