Nine major importers promise to freeze prices

Nine major importers have pledged to freeze prices of their products until April after reaching price stability agreements with the government.

The agreements come in the wake of another two signed in July, which cover 3,500 fast-moving consumer products of 250 different brands.

Pharmaceuticals, food products, detergents, cosmetics, books and magazines are among the items covered by the agreements.

Further agreements - even in the services sector - are expected to be signed in the coming weeks, Euro Observatory head Alan Camilleri said yesterday.

An endorsement with a new logo - with the slogan New Currency Same Price - will be given to companies that enter into price stability agreements. This may be used for promotional purposes.

The nine importers that signed the agreement yesterday are Charles De Giorgio Ltd, Emmanuel Delicata Winemaker, Alf. Mizzi and Sons, Novartis Pharma, Miller Distributors Ltd, Farsons, General Soft Drinks Ltd, Sweetsource Ltd and Nectar Ltd. V.J. Salamone and Island Hotels signed the agreement last July.

Research showed, Mr Camilleri said, that families consume 400 different products every month, so such agreements targeted the basic needs of families.

"This gives consumers the peace of mind that every effort is being made to ensure that the changeover will not lead to an increase in prices," Parliamentary Secretary Tonio Fenech said yesterday.

He said the recommended retail prices, on which an agreement was reached, would be published on a Website to be launched soon. This would enable consumers to find out if a product was being sold at a higher price.

Mr Fenech pointed out that because of parallel importation, some listed products might come through a different importer and were, therefore, not covered by the agreement.

"This will put pressure on parallel importers not to sell above the agreed price," he said during a press conference.

Although the authorities are not expecting any complaints, any that were submitted would be investigated, he said.

Mr Camilleri said that since June, the NECC had sent 39 letters of clarification to retailers following complaints by the public.

A major catering establishment in Valletta was asked to reverse its prices after the NECC found that it had substantially increased the cost of the items on its menu from July.

Mr Fenech said Malta was the first country to reach such agreements as part of its euro changeover preparations.

He reiterated that a price freeze - proposed by the Consumers Association last week - was not the way forward.

Yesterday was the final day businesses could apply to join the FAIR initiative, through which they bind themselves not to take advantage of the changeover by pushing up prices.

National Euro Changeover Committee chairman Joseph F.X. Zahra said over 6,500 businesses had joined the scheme. Another 300 businesses were waiting for their application to be processed.