Comparing price with price

Lynne Jamieson (February 22) may have hit the nail on the head. I repeat her question: "How can they justify such an increase"? For those who did not read her letter, Ms Jamieson was referring to what she called a Maltese "franchise" which charges 40 - 80 per cent difference to what is charged in the UK. Now is not that interesting to local consumers, especially when both countries are members of the European Union?

I expect to see the reaction of the trader who published the catalogue mentioned by Ms Jamieson to explain to us this price (or franchise) "difference" and why it should be like that. I would also be very grateful to Ms Jamieson if she could send us the catalogue, indicate the UK catalogue online and any other details so we can publish more information about this subject. We are aware that this is taking place but we would urge all consumers to relate their experiences.

The reason why this is taking place is that the market is small and there is not much competition. It may also be more expensive for Maltese consumers when compared to their European counterparts to side step the local market, cross the border and buy certain items elsewhere.

We have been clamouring about the need for more competitive structures and the opening up of the market for a long time. Since 1987, consumers in Malta and Gozo opted for a liberalised market economy. That is why we keep hammering on the principle that we need more competition and standards.

Secondly, that is why we have taken the initiative in this area. We are still at the start of a long process but we have already gone some way. We started by pointing out that there is lack of price indications in our shops. We want enforcement in this area because we want consumers to be aware of the prices they are paying and the different choices they can make relevant to the principle of a liberalised market. We will continue to pressure the authorities in this area. Consumers can help us in this too with letters to the press!

Another ongoing initiative is that on our website - www.camalta.org; e-mail: consumer@nextgen.net.mt - where we are publishing the prices of hundreds of products one finds in our supermarkets and shops. We need to extend this so as to start the process of initiating more competition in this sector. This is on the local level but we intend to expand this in the future. We are already in contact with other consumer associations to start exchanging data to indicate the price difference in various countries. This is in line with one fundamental principle of the EU - a single market. It should also be a good exercise for when Malta changes to the euro.

However, we are worried as there are instances which indicate that instead of trying to further competition, since May last year, the authorities and other commercial entities are putting more effort into stifling and restricting competition, especially that from overseas.

That is why we are insisting that with regard to consumer credit we need the introduction of the average percentage rate (APR), which is comprehensive, so that local consumers would be able to compare the prices of credit agreements in Malta with those of other countries. Unfortunately, this has found stiff resistance from local banks. We can mention other instances but for space.

We want to encourage consumers who have come across situations as that of Ms Jamieson to contact us so that we would work together to further both competition and standards, in the interest of consumers.

Letters can be sent directly to the general secretary, Consumers' Association, PO Box 464, Valletta CMR 01 (tel. 2123 9091).