Bakers demand subsidy or higher bread prices

Bakers are demanding a government subsidy or an increase in bread prices after the cost of a sack of flour went up by over Lm1.50.

The Bakers' Cooperative's vice-president, Raymond Briffa, said yesterday the price of a 50-kilogramme sack of flour rose sooner than expected from Lm7.08 to Lm8.68 this week.

"The cooperative is waiting for a reply from the government to see whether it will be absorbing the increase or allow a rise in the price (of bread)," Mr Briffa said.

The cooperative is insisting that, in the absence of a government subsidy, the price of a Maltese loaf, which now sells at 19c, would go up by at least 2c in order to cover the increased cost of flour and other expenses.

Mr Briffa said that, according to a standing agreement, the government is bound to issue a subsidy to cover increased costs when the financial situation of the country permitted it.

"We cannot wait long and an early reply by the government is expected, possibly by today. We need a reply to know who is going to absorb the additional cost," Mr Briffa said.

When contacted, Competitiveness Minister Censu Galea said the government was doing its best to be able to provide bakers with an early reply.

The government was assessing the situation to establish whether the cooperative's claims were justified, although he acknowledged that the bakers would be incurring additional costs following the increase in the price of flour. He also acknowledged the existence of an agreement between the government and the Bakers' Cooperative.

The price of the traditional Maltese loaf increased from 16c to 17c in August 2004 to make up for a 56c rise in the cost of a sack of flour and a cost of living increase.

And on December 29 of that same year the price went up again to 19c following a paraffin price hike.

However, the price of a Maltese loaf remained unchanged in August last year after the government decided to subsidise flour used in the production of Maltese bread.

The cooperative represents 140 of about 170 bakeries on the island. The price of the traditional Maltese loaf is regulated by the government.

Last year, a spokesman for the cooperative said that since 2000 bakers had experienced a decline of 25 per cent in their business.