Editorial
Monopolies should be dead and buried
How ironic that the government's determination to finally push ahead with the liberalisation of the public transport sector and bury once and for all monopolies should be challenged by the hearse owners. The people who make money from death want to keep an evidently inefficient system alive.
The Transport Ministry noted that monopolies decreased the incentive for investment; not to mention, of course, the fact that monopolies do not encourage real competition and, thus, a better service and lower prices to consumers/commuters.
The ministry had more to say: In 2006 the government had waived the registration tax on new hearses - a subsidy of €28,000 to each operator in order to replace older vehicles.
It recalled that taxpayers - the same people who, faced with an inefficient public transport service, have to shoulder hefty and unnecessary expenses to use private transport to move about - also paid out about €9 million so that bus owners could replace their buses.
Government after government, minister after minister have been trying to introduce some sense in public transport in this country but to no avail. And, in all honesty, the Malta Transport Authority (ADT) has been a miserable failure. Indeed, if, as has been publicly declared just a few days ago by the Transport Minister himself, its house is not in order how can anyone expect that it could organise public transport?
The Transport Ministry rightly says that the time has come for public transport to be reformed and monopolies removed - and the sooner this is done the better for all. Likewise, it is time for the ADT to be overhauled. The two exercises must run together. However, the government has a more urgent matter to deal with: the nation-wide strike that transport operators have threatened to hold as of this morning unless the permits issued to new hearses are withdrawn.
By the time of going to press last night the situation was unchanged with the government standing firm on its determination to liberalise and the transport operators threatening strike action. The leader of the Malta Labour Party, Joseph Muscat has called for talks. It would not be amiss for both parties involved in the dispute - the government and the Transport Federation - to do so. It is always advisable to sit around a table to find a solution but for that to happen common sense and an understanding of present-day needs must prevail.
To start with, this whole issue about new licences to hearse operators is rather a storm in a teacup. If the supply is already bigger than the demand then one should not be too worried that many new operators will show interest. No entrepreneur worth his/her salt is willing to invest in something that does not promise at least a decent return. If those that do join are willing to offer better prices than so be it. The customer deserves it. That philosophy is gaining ground in this country that for too long made the consumer suffer as a handful of businessmen saw their pockets becoming fatter and fatter.
The bottom line is that consumers want liberalisation as this can be greatly beneficial to them. Thus, in this issue with the transport operators, they know which side to take.
May common sense prevail.
4 Comments
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Joseph Calleja
Jul 14th 2008, 17:55
Monopolies has been the biggest scam in Malta for as long as I can remmeber. Everything is sole Agent of this and sole agent of that. No competition what so ever. If you need most things in Malta you have to go to the Agent and God forbid you need a part for this item because he is the only agent that carries this part so he can control the price. Thanks to free trade and mostly the internet this practice is slowly coming to an end. You can shop all over the world using the internet and if the government doesn't Tax these parts heavily on imports these monopolies will soon be driven out of Malta. Competition keeps the prices down but when one person controls a product he can name his own price. That's why in Malta there always was IS-SUR THIS AND IS-SINJUR THAT. If somebody wants to invest in a new business, let them be, it's their money, stop protecting the rich and let free enterprise take shape, let the consumer have the choice of where and what to buy. Monopolies should be a thing of the past, they only help the rich.
g.scerri
Jul 14th 2008, 13:36
I agree with the basic thrust of this article. But could the writer remind his readers where and when has liberalisation resulted in cheaper prices?
J B attard
Jul 14th 2008, 11:02
Indeed, monopolies should be dead and burried for the good of all.
However, one can't help reminding the devious promise by GonzipN to buss drivers. The Pn is most infamous for such devious pre election promises to 'gain' votes.
On the other hand, the new MLP Leader's call to both sides of the fence to bury all differences and sit around a table to discuss and settle this hot issue, gives lots of credit to Joseph. Well done Joseph in delivering a much different type of new politics.
And as the Times well said 'Let common sense prevail".
Nigel Lawrence
Jul 14th 2008, 10:56
Amen to that. Are you listening Mr Minister?