GRTU calls for detachment of Office of Fair Competition

The Chamber of Small and Medium Enterprise (GRTU) is pressing Government to detach the Office of Fair Competition from the civil service and immediately replace its head.

At the end of last year, the GRTU sought the European Commission's intervention, claiming the office should be a semi-autonomous regulatory office responsible for competition, merger and anti-trust rules, and cease to fall within the Consumer and Competition Division.

The GRTU also complained that the director-general of the Consumer and Competition Division, Marcel Pizzuto, had been appointed permanent secretary of the Competitiveness Ministry in October 2005. Mr Pizzuto's position was deemed conflicting given the government's direct interest in entities that could be in breach of competition rules, and where investigation might be required. Till today, Mr Pizzuto still retains both posts.

Replying to the GRTU, EU Competition Commissioner Neelie Kroes said enforcing competition rules lies with the national authorities.

While the European Commission has to verify that EU competition, merger and anti-trust rules are properly applied, "it is up to the member states to decide which authority they entrust" with applying the rules, recognising the wide variation which exists in public enforcement systems of member states.

It went on to say that "if there is a real risk that EC competition law would be improperly or inadequately applied, the Commission has the right to relieve the national competition authority concerned of the competence to deal with the case".

Speaking to The Sunday Times, GRTU director-general Vince Farrugia said the Commission's reply was "not acceptable" and that the GRTU would be writing back.

"We want the government to fill up the post by a qualified competition economist. The office should focus on competition. Its orientation should be flexibility," Mr Farrugia said.

Small businesses deem the office to be very important, especially when it comes to protect them from firms who have a dominant position in the market, he said.

"As the office has functioned so far, hardly has it ever favoured small businesses. The office has to function and appear to be functioning. We have nothing personal against Mr Pizzuto, but something should be done about it," Mr Farrugia said, adding that the government should not restrict itself to appointing a civil servant to the post.

Commenting on the issue, Competitiveness Minister Censu Galea had said that a replacement was to be found.

Last Thurday, The Sunday Times asked whether a new director had been appointed or whether any appointment was imminent.

A spokesman for the Competitiveness Ministry replied that "the structure is under review taking into consideration the proposals submitted by the GRTU".