Bakers shun bread price liberalisation plans

Bakers are this week set to seek advice about the course of action to take to stop the government from liberalising the price of bread because they argue such liberalisation would create unfair competition between bakers.

The price of the Maltese large loaf will from today go up by 2c to 19c. This increase is regulated by a price order that is to be issued this morning after negotiations with the government following an increase in the price of wheat.

The bakers were demanding an increase of between 3c and 5c.

The Bakers' Cooperative is concerned because the price increase in kerosene announced in the last budget was negatively affecting a number of members. Large bakeries were set to have to pay close to Lm200 more a week in fuel costs. A small bakery was likely to see its fuel bill increase by about Lm4,000 a year, the cooperative says.

The president of the Bakers' Cooperative, Karmenu Micallef, told The Times that liberalising the market would create unfair competition because ovens that used timber did not incur the high fuel bills that those using kerosene now have.

"Bakers essentially have some choices to make and if the government perseveres in its track many will probably start using the relatively cheaper fuel oil, which produces very unpleasant emissions," one baker said.

Mr Micallef said the cooperative will this week seek their lawyer's advice to see how best to deal with these issues.

Government sources said it was expected that the policy regarding sale of bread would change within the next three weeks when the price would be liberalised.

Bakers fear that increases in price would continue to see a drop in their sales and, hence, in their income.