Enterprise objects to price monitoring agency proposal

Any proposal for the setting up of a monitoring agency to curb inflation is unacceptable and unviable, according to the Malta Chamber of Commerce, Enterprise and Industry.

It said it was seriously concerned about recent declarations from both the government and the opposition on competition safeguards and the role of the state in business matters.

The comments follow an announcement by the Minister of Finance about plans to set up an agency to safeguard fair competition and ensure there were no price abuses.

The Opposition Leader has been pressing for such a move and called for the setting up of a price monitoring agency that would report and proceed against anti-competitive practices like cartels and price fixing.

"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," it said.

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 was the order of the day, it was inconceivable to suggest that 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."