NECC close to more price stability agreements
The NECC has been holding meetings with the country's 20 or so importers in an effort to persuade them to certify that they would not increase prices for the sole reason that the country was changing to the single European currency.Spokesman Melvyn...
The NECC has been holding meetings with the country's 20 or so importers in an effort to persuade them to certify that they would not increase prices for the sole reason that the country was changing to the single European currency.
Spokesman Melvyn Mangion said that over the past few weeks the NECC has held one-to-one meetings with almost all importers and the committee had so far received positive feedback.
Price stability agreements - which go beyond the commitments laid down in the Fair-pricing Agreements In Retailing (FAIR) scheme - have so far been signed with two organisations so far.
On July 24, the committee's Euro Observatory signed an agreement with the Island Hotels Group, whose owners agreed to freeze all food and beverage prices until April 2008, as a clear message to consumers in the run up to the adoption of the euro.
The second organisation that signed the agreement towards the end of July was V.J. Salomone (Marketing) Ltd, whose owners agreed to freeze the prices of their Procter & Gamble products between October this year and March next year.
NECC wants importers to understand their vital role in the changeover process and the fact that they greatly depend on consumer confidence.
"Importers play an extremely important part in the euro changeover process and the NECC is confident that it will not be long before terms of agreement are reached with many of them.
"Inflation is a reality and something that always happens," Mr Mangion said.
"Neither the NECC nor the government could oblige importers to freeze their prices in order to gain the trust of consumers but it is obviously in their interests to do so.
"While euro adoption is not in itself meant to cause price inflation, perceived inflation among consumers could be an easy enough trap into which importers and retailers could fall.
It is certainly in their best interests to ensure that their products and services are kept at reasonable prices but it is also very important for consumers to understand that inflation happens all the time for a variety of reasons and with wide-ranging effects.
"As an example, one needed only mention the fact that the country's production of water depended on electricity, the price of which is, in turn, affected by the volatile price of oil. This was just one factor that made people aware of the extent to which the rate of price inflation could be regulated."
The number of FAIR applications has reached 6,331 with 5,580 approved so far.
Spokesman Melvyn Mangion said that over the past few weeks the NECC has held one-to-one meetings with almost all importers and the committee had so far received positive feedback.
Price stability agreements - which go beyond the commitments laid down in the Fair-pricing Agreements In Retailing (FAIR) scheme - have so far been signed with two organisations so far.
On July 24, the committee's Euro Observatory signed an agreement with the Island Hotels Group, whose owners agreed to freeze all food and beverage prices until April 2008, as a clear message to consumers in the run up to the adoption of the euro.
The second organisation that signed the agreement towards the end of July was V.J. Salomone (Marketing) Ltd, whose owners agreed to freeze the prices of their Procter & Gamble products between October this year and March next year.
NECC wants importers to understand their vital role in the changeover process and the fact that they greatly depend on consumer confidence.
"Importers play an extremely important part in the euro changeover process and the NECC is confident that it will not be long before terms of agreement are reached with many of them.
"Inflation is a reality and something that always happens," Mr Mangion said.
"Neither the NECC nor the government could oblige importers to freeze their prices in order to gain the trust of consumers but it is obviously in their interests to do so.
"While euro adoption is not in itself meant to cause price inflation, perceived inflation among consumers could be an easy enough trap into which importers and retailers could fall.
It is certainly in their best interests to ensure that their products and services are kept at reasonable prices but it is also very important for consumers to understand that inflation happens all the time for a variety of reasons and with wide-ranging effects.
"As an example, one needed only mention the fact that the country's production of water depended on electricity, the price of which is, in turn, affected by the volatile price of oil. This was just one factor that made people aware of the extent to which the rate of price inflation could be regulated."
The number of FAIR applications has reached 6,331 with 5,580 approved so far.