Retailers invited to make pledge not to raise prices

The National Euro Changeover Committee will tomorrow launch a programme that aims to ensure retailers do not increase prices in the run-up to the introduction of the single currency.

NECC chief executive Alan Camilleri told The Times that retailers will be invited to sign a public undertaking not to increase prices under the Fair Agreements in Retail programme (Fair).

Those that sign up will be able to display a Fair sticker on their shop windows as well as benefit from assistance from the NECC, which will train their staff, provide price guns, euro converters and conversion charts.

Mr Camilleri said that up to 80 retailers have already enquired about the programme and later this month the Fair endorsement will be awarded to eight big names.

The government aims to introduce the euro on January 1, 2008.

Irrespective of whether retailers sign up to Fair, a legal notice will be published by the end of the year that will regulate dual display - which must be at the central parity rate - as well as establishing the parameters for payment in euro.

A penalty system will also be in place to punish retailers that increase prices unjustifiably. Charges of up to Lm200 can be levied against offenders.

It will also be illegal to display dual pricing outside the framework of Fair. The government will lead the way by imposing dual pricing on all its services - such as water and electricity bills - by the first quarter of the year. All retailers will have to follow suit in July next year.

The Chamber for Small and Medium Enterprises - GRTU on Tuesday publicly expressed its support for the dual pricing programme after months of opposition to the scheme.

Mr Camilleri also said that from this week about 70 government employees will be visiting retailers to monitor prices. However, he urged consumers to act as policemen themselves and play an effective part in the naming and shaming process.

"As we saw with Tal-Lira outlets, consumers seem to feel empowered already. That's what we want. This is the kind of pressure that needs to be exercised to ensure that prices don't go up - not scaremongering campaigns."

But Mr Camilleri said it was sad to note that only one NGO had responded to a request for proposals on how to empower consumers. And this NGO was not the Consumer Association.

However, he said that at the NECC consumers as a sectoral committee had as much representation as other groups. The NECC, has also embarked on a twinning agreement with Austria through which officials will assist with issues of dual pricing as well as the inflationary effect of the euro.