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."
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P.Cassar
Aug 3rd 2009, 13:32
These people have a real cheek to speak as they do. They all say that the market regulates itself and that competition brings down prices and the govt's place is only as a watchdog. BUT we consumers know otherwise because when the banking and manufacturing sectors faced a crisis (practically of their own making) they came begging to govts for our money. Where was the self regulatory mechanism in the banking sectors. Just yesterday what did the privatisation of the gas division (besides others) mean if not a 40% increase in consumer prices. And these are only two episodes!!!!
Roy Perry
Aug 3rd 2009, 11:22
Will someone tell me why the prices of UK sourced goods in Malta has not gone down since the fall of the Pound against the Euro? Someone is making a profit - not the consumer. Are we to give up Weetabix and Marmite to fill an importer's pockets?
Paul Caruana
Aug 3rd 2009, 11:07
I am delighted to see that the Chamber agrees that true competition can only be effective in a strong regulatory environment. So why has it come out so strongly against just such an agency?
In a small market as is Malta, where everyone knows everybody else, having a strong indipendent agency making sure that there are no illegal cartel agreements going on is essential.
To quote the chamber "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".
It is reassuring to see the chamber so confident that local price fixing does not occur. So why the fuss?
Galea. L
Aug 3rd 2009, 10:50
People, go on the internet and buy your requirements from there.
You will save a lot of money and stop these so-called enterprises from picking your pocket.
The only enterprise these enterprises believe in is emptying your pockets.