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Encouragement of New Industries Act (Cap. 53) Consolidated

CHAPTER 53

ENCOURAGEMENT OF NEW INDUSTRIES ACT

To repeal and re-enact with amendments the law relating to the encouragement of new industries.

(17th July, 1925)*

Enacted by Act X of 1925, as amended by Acts: VI of 1947, VIII of 1950; Emergency Ordinances: XV of 1958, XXI of 1959; Ordinance XXV of 1962; Legal Notice 4 of 1963; Acts: X of 1963, XXVII of 1967; Legal Notice 148 of 1975; and Acts: XI of 1977, XIII of 1983, XXIV of 1995 and Legal Notice

408 of 2007.

l. This Act may be cited as the Encouragement of New

Industries Act.

2.† In this Act -

"the Corporation" means the Malta Development Corporation established by article 3 of the Malta Development Corporation Act;
"new industry" means any enterprise or process of producing, manufacturing or improving any article, com modity or service, initiated for the first time in Malta.

3. (1) It shall be lawful for the Minister responsible for development, after consultation with the Corporation, to grant an exclusive right to start and carry on any new industry in Malta for a specified period of years and under such conditions as he may deem it expedient to impose.

(2) Before making any such grant as provided in subarticle (1), the Minister responsible for development, after consultation with t h e Corporation , may requi re th e appli c ant to give goo d an d sufficient security to his satisfaction in an amount in every case to be fixed by the Minister responsible for development, for the due and pro p er fulf ilment by t h e ap plicant and by tho s e claimin g th rough or under him of th e conditions of th e grant. In case of default in or breach of any such condition, the amount of the security or such portion thereof as the Minister responsible for development may in his discretion decide, shall be forfeited to the Government.
(3) It shall rest solely with the Minister responsible for development, after consultation with the Corporation, to determine wheth e r an ind u stry is to be deemed a new indus t ry for the pu rp o ses of t h is Ac t, an d in t h e e xerci se of hi s po wers he m ay consider as new any industry, already existing, which is, or has been carried on, on a small scale, or at intervals, or has ceased to be carried on for more than six months:
Provided that in any such case the grantee of the exclusive

Short title.

Interpretation. Amended by: VII.1947.2; XV.1958.2; XXI. 1959.33; XXV.1962.2,4; L.N.4 of 1963. Substituted by:

XXVII. 1967.20.

Cap. 202.

Power of Minister to grant exclusive rights to carry on new industries. Amended by:

VIII. 1950.2; XV. 1958.2; XXI. 1959.33; XXV. 1962.2,4; L.N. 4 of 1963;

XXVII. 1967.20; XI. 1977.2.

Power of Minister to determine whether an industry is a new industry.

*See Government Notice No. 187 of the 17th of July. 1925.

†Transposed respectively from s.15(1) and from s.2(3) of the 1942 Revised Edition of

the Laws of Malta as subsequently amended.

right shall bind himself to carry on the industry with new or more profitable means of production.

To whom grant may be made. Amended by: VI.1947.2;

XV. 1958.2; XXV.1962.2,4;

L.N.4 of 1963. Substituted by: XXVII. 1967.20.

4. A grant under the last preceding article shall not be made to any person who is not a citizen of Malta or to any firm or partnership which is not wholly or mainly owned or controlled by citizens of Malta:

Provided that it shall be lawful to make any such grant to any other person, firm or partnership -
(a) if no identical application is made by a citizen of Malta or by a firm or partnership wholly or mainly owned or controlled by citizens of Malta, within such time and under such conditions as the Minister responsible for development may deem proper to fix; or
(b) if such other person, firm or partnership undertakes to employ a reasonable number of Maltese workers or shows that one-half, at least, of the capital necessary for the establishment of the new industry is owned by citizens of Malta.

Application for grant of exclusive right.

Amended by: VI.1947.2;

XV. 1958.2; XXI. 1959.33; XXVII. 1967.20.

Publication for application. Amended by: XV.1958.2; XXV.1962.2, 4; L.N.4 of 1963; XXVII.1967.20; XI.1977.2.

5. The application for the grant of an exclusive right under article 3 shall be addressed to the Corpor atio n an d shall be accompanied by a specification stating the nature and purpose of the proposed new industry, and such other particulars as may be necessary for describing the working thereof.

6. (1) Every such application shall be published in the Go vernment Gazette and an y person in terested m a y make opposition thereto.

(2) Where the application is made by a person who is not a citizen of Malta or by a firm or partnership which is not wholly or mainly owned or controlled by citizens of Malta, such fact shall likewise be published.
(3) No decision shall be taken by the Minister responsible for development in regard to such application until the lapse of six weeks, at least, from the day of the said publication.

Power of Minister to grant or refuse applications. Amended by: XV.1958.2; XXI.1959.33; XXV.1962.2,4; L.N. 4 of 1963; XXVII. 1967.20; XI. 1977.2.

7. It shall be competent to the Minister responsible for development, after having heard the Corporation, to consider any o p p o si t i o n wh ic h m a y ha ve be en m a d e t o th e ap pl ica t i o n o r app licati ons for an exclusive rig h t, and t o grant any of th e applications or to refuse them all.

8. The grant of an exclusive right in terms of article 3 or its extension as provided hereunder shall be signed by the Minister responsible for developm ent and shall be published in the Government Gazette and in another newspaper.

9. The duration of each grant shall be fixed or extended by the Mini ster responsible for developm en t fo r a tot al perio d not exceeding fifty years.

10. (1) During the period for which an exclusive right to carry on a new industry is granted or extended, it shall be lawful for the Minister responsible for development to order the revocation of the grant on the ground that the reasonable requirements of the public for which the exclusive right was granted are not being met, or on proof of any breach of the conditions attaching to the grant, or on any other reasonable ground.

(2) Any person may demand the revocation of the grant on any of the aforesaid grounds provided he shows a good reason for his demand and produces the necessary evidence.
(3) The revocation shall, in every case, be published in the
Government Gazette and in another newspaper.

Grant to be published in Government Gazette. Amended by: VI. 1947.2; XV.1958.2; XXV.1962.2; L.N. 4 of 1963; X.1963.2;

XI. 1977.2.

Duration of grant. Amended by: XV.1958.2; XXV.1962.2,4; L.N. 4 of 1963; XI.1977.2.

Revocation of grant. Amended by: XV.1958.2; XXV.1962.2,4;

L.N. 4 of 1963; XI.1977.2.

11. Any person who shall fraudulently infringe any grant made un de r article 3, shall be liable, at th e suit of th e grantee, to be con d emn e d by the Civil Co urt, Fi rst Hall , to the payment of damages and interest, or to the payment of a fine of not less than twenty-three euro and twenty-nine cents (23.29) nor exceeding one thousand and one hundred and sixty-four euro and sixty-nine cents (1,164.69), or to the restitution of all the profits derived by him from the infringement of the grant.

12. In the case referred to in the last preceding article, the court may, on the demand of the plaintiff, order that the machinery or other industrial means used in the infringement of the grant be forfeited, wholly or in part, or delivered up to the grantee, without prejudice to the payment of any other sum as provided in the said article.

13. If, for the purpose of securing the claim for the forfeiture referred to in the last preceding article, application is made for the issue of a warrant of description, or of a garnishee order, or of a warr ant o f seizu re, or of pr ohib ito ry inju nctio n, the cour t m ay, before issuing such warrant or order, require the applicant to give security.

14. Civil actions arising under this Act shall be barred by the lapse of five years.

Damages for infringement. Amended by:

L.N. 148 of 1975; XIII.1983.5; XXIV.1995.362;

L.N. 408 of 2007.

Forfeiture of machinery used in infringement.

Power of court to require security where warrant of description, etc., is applied for.

Limitation of time for civil actions.

Power of Minister to make, alter or revoke regulations. Amended by: XV.1958.2; XXV.1962.2,4;

L.N. 4 of 1963; XI.1977.2.

Cap. 9.

Other functions of the Corporation. Amended by: VI.1947.2; XV.1958.2; XXI.1958.33; XXV.1962.2,4; L.N. 4 of 1963. Substituted by: XXVII. 1967.20.

15. The Minister responsible for development may make, and when made, vary or revoke regulations on matters relating to the grant of exclusive rights to ex ercise new industries, and may prescribe that any person offending against such regulations shall, on conv iction, be liable to the punishments established in t h e Criminal Code for contraventions.

16. All questions of a technical nature arising under this Act shall be submitted to the Corporation for examination.