True to its mission statement, the Malta Chamber of Commerce and Enterprise acts as a driving force towards rendering the local business environment fairer and more efficient. In this light we utilise our reputation and representation with the country's decision-makers and national boards to channel the feedback received from our grassroots.
One of the issues of gravest concern to many members in our Chamber concerns the need for more market surveillance to counteract abuse. Immediately after EU membership, Malta started experiencing a new phenomenon in the local market. This phenomenon has continued to intensify up to the present day and the signs are that - unless we ensure that the necessary safeguards are in place - the situation will only become worse.
In fact, under the "free movement of goods" premise, we are experiencing a situation whereby traders travel to Sicily in their empty vans and return to Malta with their vans fully laden with goods.
The Malta Chamber of Commerce and Enterprise is insisting with the government that the relevant authorities and government departments be bolstered with the necessary resources and legislation to ensure that proper market surveillance and enforcement are performed in order to ensure that all laws and regulations are duly observed. Here I specifically refer to the Customs Department, the Office of Fair Trading and the VAT Department. These entities are responsible collectively for the filling of relevant intrastat forms, the collection of any applicable VAT, eco-contribution and excise duties and ensuring product safety and price indication conformity.
The country and the public service must adapt to the environment we are facing. Prior to EU membership, our framework of international trading necessitated border controls. For this purpose we had a fully-fledged Customs Department armed with an adequate number of trained personnel, the right infrastructure, IT systems and the necessary legislation to enable enforcement.
The new realities we are now facing necessitate a change in the resources allocated. In the situation I mentioned, Customs personnel are only authorised to intervene in the event of reasonable suspicion. Therefore, the resource allocation must be altered with a focus on market surveillance and tax revenue collection rather than border controls. The Chamber, therefore, urges the government to take the appropriate steps to bolster the units and departments concerned in order to ensure fair competition, full compliance, consumer safety and its fair share of tax revenue.
The Malta Chamber of Commerce and Enterprise is committed to ensure that European Union membership is not used as en excuse to tolerate a free-for-all situation in the local market. Even within the liberal intra-EU trade framework there are rules to be followed and we must ensure there is no abuse. The Chamber has always insisted that the benefits of EU membership for Malta must always outweigh the costs. This, however, requires more market surveillance in order to ensure full compliance with EU and Maltese laws. Otherwise, our market becomes prone to abusers and fair competition is compromised.
As I stated, our members are presently lamenting a lack of proper monitoring of goods entering our shores from other EU member states particularly from Sicily which are still liable to fiscal and administrative procedures before these can be allowed to be placed on our supermarket shelves. Without such market surveillance, we are suffering from the disadvantages of free movement of goods.
Indeed, the consumer is not benefiting from this practice. Instead, the government is losing significant amounts of revenue. Persons employed with certain Chamber members in the importation and distribution business risk losing their jobs. In the interest of fair competition, all importers must comply fully with their fiscal and administrative responsibilities. Law-abiding enterprises cannot and must not be forced to compete with other operators that operate in breach of national laws and regulations.
The Malta Chamber of Commerce and Enterprise has brought these concerns to light through recent statements released to the media. We also discussed this need for enhanced market surveillance with the President of Malta and the Prime Minister during meetings held in February. I expressed these preoccupations to Parliamentary Secretary Edwin Vassallo during a meeting we held at his office. I expressed these concerns again with the parliamentary secretary during a Forum for Entrepreneurship meeting held on March 1.
After this meeting, our Chamber publicly said it was pleased to note that the parliamentary secretary was fully aware of this problem and showed his willingness to assist the Chamber in finding a lasting solution to this predicament.
Mr Galea is president of the Malta Chamber of Commerce and Enterprise.