The Trading Licence Unit “rarely refuses an application” because operators are guided on requirements before actually applying, according to the Economy Ministry.
The ministry, however, disputed claims by the president of the GRTU that licences were just a formality, insisting that the authority had the right to reject applications for a licence or approve them subject to conditions.
Malta Chamber for Small and Medium Enterprises (GRTU) president Paul Abela said earlier this week that most retail outlets only applied for licences after opening, and that the regulatory authority did not have the power to refuse an application.
The issue arose after it emerged that no trading licence had ever been issued for Pama Shopping Village on the outskirts of Mosta, which opened in November and is still awaiting a planning authority compliance certificate.
An Economy Ministry spokeswoman told the Times of Malta that some categories of retail outlets were exempt from an application process and simply had to notify the authority up to 30 days after opening. However, in the case of businesses involved in handling food and drinks, as well as a number of other categories, an application has to be made prior to opening.
The application can be rejected by the authority or made subject to certain conditions.
Under the Trade Licences Act, the penalty for operating without a licence is a fine of between €116 and €1,164, as well as an additional daily fine of €23 for continuing offences.
Pama Shopping Village, which includes a supermarket, restaurants and numerous retail outlets, has been given a window to regularise its position before the police, who are responsible for enforcement, are asked to intervene.
The ministry spokeswoman said it was the norm for operators to be allowed to regularise their position before insisting on legal action.
Moreover, the authority does not have the right to insist on closure in the case of a continued infringement, although action can also be taken directly by other authorities.
Pama Shopping Village said this week it would be applying for a licence “in the coming days” once it received a compliance certificate in relation to a planning authority decision last November.
When contacted, Mepa said only that a full compliance certificate would be issued once all the conditions imposed in the planning permits were complied with.
Last November, the planning authority imposed a €1 million bank guarantee on the owners to ensure the relocation of unsightly services installed along the back wall of the supermarket.