National reform programme 2008-2010 Malta - European Commission

Better regulation aims at supporting and encouraging the business community; reducing
customer detriment; and, further developing an efficient, effective and improving public sector.
Malta’s better regulation strategy is now focusing on business and customer “pain points” so
that the strategy is prioritised. The strategy will be aligned further with Government's Vision
2015 so that Malta's strategic sectors offer the necessary minimum required regulation to
facilitate as much as possible economic development.
The setting up of the Better Regulation Unit (BRU) within OPM in 2006 is considered to be a
step in the right direction to promote Better Regulation. The BRU is currently in the process
of implementing its first Action Plan for Simplification (APS). In drawing up the first APS, the
BRU has taken an intentionally inward-looking ‘top-down’ and ‘bottom-up’ approach.
Government believes that the next step is to take simplification to another level and consult
with the various business sectors to obtain ‘on the ground’ feedback. Furthermore, the BRU
intends to review the customer care systems within the public administration and the
enforcement regimes currently utilised with a view to further promote and protect the interests
of the businesses, citizens and consumers.
In achieving Government’s vision, that is, “fostering a culture of ‘red carpet treatment’ for
businesses”, the Government of Malta has committed itself to further strengthen the BRU.
The strengthening of the BRU will also permit the completion of the current APS and the
launch of an updated version through an intensive, sectoral based consultation to target the
key ‘pain points’ felt by businesses.
Furthermore, the BRU will embark on other Better Regulation initiatives including the review
of current customer care systems and enforcement regimes within the public administration
and the formalisation of consultation guidelines within the public administration in line with
Government’s established system of securing intensive dialogue between interested
stakeholders in the decision-making process amongst others.
Reduction of Administrative Burden
In January 2008, the Maltese Government kick-started a public consultation process with a
view to establish what is the perception of administrative burdens and how these can be
reduced.
The Maltese Government, in collaboration with the European Commission, organised a
conference in February 2008 with a view to raise awareness on the Administrative Burden
Reduction Programme. Furthermore, this conference also acted as a follow up to the
consultation process. On the basis of this consultation process, the Maltese Government has
identified the following four priority areas:
• Company law;
• Financial services;
• Food safety; and
• VAT.
Similar to several other European countries, Malta has chosen to adopt the Standard Cost
Model (SCM) as the tool that will be used to calculate the administrative cost of burdensome
information obligations.
To this end, the Government has concluded a mapping exercise on the legislation in the
mentioned priority areas. The exercise consisted in reviewing the legislation of each of the
four areas and identifying the information obligations that originate from national legislation.
In all, 49 such information obligations were identified. The Information Obligations (IOs)
consist of the following:
• 6 IOs concerning VAT;
• 26 IOs concerning Company Law;
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