Costs of restructuring the local beverage manufacturing units to comply with EU requirements

Abstract

This dissertation explored the restructuring required by the local beverage manufacturers in bringing their operations in line with EU requirements. The relevant directives were analysed. These fell under three main headings, namely: • Occupational Health and Safety • Consumer and Health Protection • Environment Policy Interviews with ten beverage manufacturing companies were conducted in order to assess the amount of restructuring required. The larger companies interviewed were aware of the detailed requirements set by the EU and already adhere to most of them. However, the smaller companies interviewed were less compliant and a relatively substantial level of investment was deemed necessary by these companies in order to bring their operations in line with EU directives. The costs of complying with the requirements set out in the directives were collected by obtaining quotations, interviewing specialists and consultants and during the interviews with the beverage manufacturers. Most of the costs are relative to a number of variables and were therefore described under two size classifications based on employee number and factory area. The area of major concern for the beverage manufacturers was found to be that of the Environment Policy. State aid could alleviate the difficult process of restructuring. However there are parameters set by the EU with regards to what state aid is allowable since certain aid can he seen as a distortion to fair competition. The beverage companies can benefit from a number of programs by The Institute for the Promotion of Small Enterprises and through the Business Promotion Act. Whether or not Malta joins the EU local manufacturers must up-grade their operations. Many of the larger companies have been undergoing restructuring for a number of years. From the smaller companies interviewed the attitude seems to be that the restructuring process should not be delayed any further.