Prices rising abusively - UĦM

Businessmen were getting rich overnight by abusively raising prices of certain products, especially medicine, fruit and vegetables, the Union Ħaddiema Magħqudin said yesterday.

General secretary Gejtu Vella called for the Consumer Division to be turned into an authority so that it would have more enforcement power and public visibility.

"In the past, consumers were protected by the police because prices were regulated by the government. We should not go back to that. The free market should regulate itself but consumers still need to be protected."

On Sunday, Labour leader Joseph Muscat flagged the issue and called on the Prime Minister to investigate the vegetable market because, he said, prices were rising excessively and it was not farmers or hawkers who were making more money.

One fruit vegetable hawker said prices had gone up because expenses had skyrocketed and not because of any special reasons within the market.

One hawker said: "Diesel has gone up. The price of plastic bags has gone up and people are not prepared to pay for them. National insurance is higher and we just have more expenses across the board. What else can I do?"

Mr Vella was addressing a press conference outside the Consumer Division's headquarters in Sta Venera after a meeting with its top officials. He said the meeting was held after the union received many complaints from concerned citizens.

During the meeting, the UĦM was given an overview of the work being done. But Mr Vella said the division lacked the necessary power and resources, especially as Malta was starting to be hit by the recession. "With the current manpower there is room for growth and more training, especially to specialise in specific sectors," he said. He added that the division's work needed to be known to the public so this could serve as a deterrent.

During the euro-changeover there had been a concerted and collective effort to nip abuse in the bud and everyone was satisfied with the results, he said. While the government had taken certain decisions to help the situation, having the division turned into an authority would strengthen its position and efficiency. The government said it was already in the process of transforming the division into a "consumer agency" and empowering it with the legal status required. This was an electoral promise and part of the government's programme.

When contacted, Mr Vella said that whether the new entity would be called an authority or an agency was irrelevant. "The important thing is that it needs to be strong and effective. It also needs to be independent from the government so that it can take initiatives on its own with the support of union representatives. And it needs to have welcoming and centrally-located premises where people can feel at home," he said.