            ENCOURAGEMENT OF NEW INDUSTRIES   g CAP. 53.   1
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 and XXIV of 1995.
Short title.
Industries Act.
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.
2. † In this Act - 
"the Corporation" means the Malta Development Corporation
established by section 3 of the Malta Development Corporation
Act;
"new industry" means any enterprise or process of producing,
manufacturing or improving any article, commodity or service,
initiated for the first time in Malta.
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.
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 subsection (1)
of this section, the Minister responsible for development, after
consultation with the Corporation, may require the applicant to
give good and sufficient security to his satisfaction in an amount in
every case to be fixed by the Minister responsible for development,
for the due and proper fulfilment by the applicant and by those
claiming through or under him of the conditions of the 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.
Power of Minister 
to determine 
whether an 
industry is a new 
industry.
(3) It shall rest solely with the Minister responsible for
development, after consultation with the Corporation, to determine
whether an industry is to be deemed a new industry for the
purposes of this Act, and in the exercise of his powers he may
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 right
* 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.
  2        CAP. 53. h         ENCOURAGEMENT OF NEW INDUSTRIES
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 section 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.
5. The application for the grant of an exclusive right under
section 3 shall be addressed to the Corporation and 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.
Publication for 
application. 
Amended by: 
XV.1958.2; 
XXV.1962.2, 4; 
L.N.4 of 1963; 
XXVII.1967.20; 
XI.1977.2 .
6. (1) Every such application shall be published in the
Government Gazette and any person interested may 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
opposition which may have been made to the application or
applications for an exclusive right, and to grant any of the
applications or to refuse them all.
            ENCOURAGEMENT OF NEW INDUSTRIES   g CAP. 53.   3
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.
8. The grant of an exclusive right in terms of section 3 or its
extension as provided hereunder shall be signed by the Minister
responsible for development and shall be published in the
Government Gazette and in another newspaper.
Duration of grant. 
Amended by: 
XV.1958.2; 
XXV.1962.2,4; L.N. 
4 of 1963; 
XI.1977.2.
9. The duration of each grant shall be fixed or extended by
the Minister responsible for development for a total period not
exceeding fifty years.
Revocation of 
grant. 
Amended by: 
XV.1958.2; 
XXV.1962.2,4; L.N. 
4 of 1963; 
XI.1977.2.
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.
Damages for 
infringement. 
Amended by: 
L.N. 148 of 1975; 
XIII.1983.5;
XXIV.1995.362.
11. Any person who shall fraudulently infringe any grant made
under section 3, shall be liable, at the suit of the grantee, to be
condemned by the Civil Court, First Hall, to the payment of
damages and interest, or to the payment of a fine of not less than
ten nor exceeding five hundred liri, or to the restitution of all the
profits derived by him from the infringement of the grant.
Forfeiture of 
machinery used in 
infringement.
12. In the case referred to in the last preceding section, 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
section.
Power of court to 
require security 
where warrant of 
description, etc., is 
applied for.
13. If, for the purpose of securing the claim for the forfeiture
referred to in the last preceding section, application is made for the
issue of a warrant of description, or of a garnishee order, or of a
warrant of seizure, or of prohibitory injunction, the court may,
before issuing such warrant or order, require the applicant to give
security.
Limitation of time 
for civil actions.
14. Civil actions arising under this Act shall be barred by the
lapse of five years.
  4        CAP. 53. h         ENCOURAGEMENT OF NEW INDUSTRIES
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.
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 exercise new industries, and may
prescribe that any person offending against such regulations shall,
on conviction, be liable to the punishments established in the
Criminal Code for contraventions.
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.
16. All questions of a technical nature arising under this Act
shall be submitted to the Corporation for examination.
