Mandatory dual pricing as of July 1, 2007

A final decision on dual pricing has been made: retailers and the service industry must start displaying prices in both euro and lira as of July 1, 2007 - six months before the official changeover date.

Though the EU requires dual pricing to start once the final and irrevocable exchange rate between the lira and the euro has been established, the Cabinet decided earlier this year to introduce dual display six months before that, so that the public could get used to the value of the new currency.

The decision had been heavily criticised by the Chamber of Small and Medium Enterprise - GRTU, claiming the Cabinet had disregarded advice by experts. The government then said early dual pricing was "preferable", adding its decision was not written in stone and that it would give some leeway.

The condition underpinning dual display will be that prices shown in euros have to be the exact equivalent of what the product/service would cost in liri according to the central parity rate set out by the Central Bank, which assumes that €1 equals Lm0.4293.

NECC chief executive officer Alan Camilleri told journalists there would be a great deal of flexibility in how businesses would have to display prices in both currencies so that retailers would not incur unnecessary costs.

Mr Camilleri said point of sale systems and fiscal cash registers that are euro-compliant may be used for dual pricing. In the case of points of sale which need software modification, shop owners may choose to modify their machines or simply provide conversion tables. In a shopping list, only the final total amount to be paid must be displayed in dual currency.

Conversions must be made and clearly displayed in restaurant price lists and products sold per unit weight or volume as in the case of meat and vegetables.

Dual pricing also affects taxis and bus fares, where the price equivalent in euros must be conspicuously displayed, ATM monitor displays on withdrawal of liri in cash as well as bank statements and credit card statements.

NECC chairman Joseph F.X. Zahra said banks have agreed to waive charges for businesses depositing euros into lira or euro accounts during the mandatory dual display period.

To ensure that retailers operate the voluntary dual display - as from January 1, 2007 - fairly and transparently, the NECC is obliging organisations and retailers to subscribe to its Fair-Pricing Agreements in Retailing (Fair) scheme. In turn, participants will be guaranteed nationwide publicity in the NECC's publicity campaign, Mr Zahra said, adding that the committee would start receiving applications from October 2006.

The Malta Chamber of Commerce and Enterprise yesterday expressed satisfaction at the NECC's decision.

Chamber president Victor A. Galea said that mandatory dual pricing in January 2007 would have created problems to the business community.

He said that notwithstanding the fact that the obligatory period starts in July, businesses are encouraged to embark on timely preparations so as to benefit from the advantages of introducing dual display during the voluntary period.