Proposals on price monitoring agencies 'unacceptable' - Chamber

Any proposal related to price monitoring agencies was unacceptable and competition was the best form of price control, the Malta Chamber of Commerce, Enterprise and Industry said today.

It said it was seriously concerned about recent declarations from Government and Opposition quarters with respect to competition safeguards and the role of the state in business matters.

On one hand, the Minister of Finance was reported to have stated that the government intended to create an agency to safeguard fair competition and ensure that there were no price abuses.

In turn, the Leader of the Opposition stated that a price monitoring agency needed to be established to report and proceed against anti-competitive practices like cartels and price fixing and a website should be created to publicise recommended retail prices of all food and medicine products sold in Malta. He had also been reported saying that the government should import products and services itself.

"To the Chamber, any proposal related to price monitoring agencies is unacceptable. The Chamber believes that competition is the best form of ‘price control' which no agency can ever seek to achieve," the Chamber said in a statement.

It acknowledged that competition required a regulatory framework which, in turn, necessitated a well resourced competition office. However, in today's market, where cut-throat competition emerged from every angle including the internet, it was inconceivable to suggest that local competing businesses could agree to fix prices.

Besides, the Chamber said, it had, for several months, been calling for effective market surveillance, to ensure that a truly competitive environment prevailed as several bona fide businesses were facing illicit competition from traders that did not comply with fiscal, environmental and other regulations.

"It is of concern to note that politicians seem to only be interested in protecting the consumer even at the expense of risking tax revenue and jobs."

As for the importation of products by the government, the Chamber said the Government's role was to legislate, regulate and re-distribute public funds - not to enter into direct competition with private enterprise. It also believed that public sector set-ups could not match private sector efficiency levels.