Competition is best form of effective 'price monitoring'

To the Malta Chamber of Commerce, Enterprise and Industry, any proposals and recommendations related to price monitoring agencies are of concern - editorial titled Market Imperfections And Price Abuse (October 8). Competition is the best form of "price monitoring" which no agency can ever seek to achieve. Besides, agencies will not solve any market imperfections that may exist. In this regard, the concept of "naming and shaming" suppliers is objectionable and open to abuse. Consumers, both locally and abroad have developed and become intelligent enough to shop around for the best price and quality. This fact is acknowledged by the editorial itself.

Within the realities of today's market, where cut-throat competition emerges from every angle including the internet, it is inconceivable to suggest that local competing businesses will indulge in price abuse. The Malta Chamber therefore reiterates its firm belief that it is only market forces and healthy competition which can regulate any imperfections.

The Malta Chamber has been repeating forcefully that the Office for Fair Competition be adequately supported with resources that would permit effective market surveillance in order to ensure that a truly competitive environment prevails, as several bona fide businesses continue to face illicit competition from traders that did not comply with fiscal, environmental and other regulations.

In view of this rampant illicit trade, coupled with widespread (legal) parallel trade, it is inconceivable to suggest that a single firm or entity can enjoy monopolistic powers.

The Malta Chamber therefore expects the government to ensure that there is fair competition among all economic operators and that taxes, laws and standards are equally enforced on all. This will ascertain that there would be no unfair advantages at the level of the cost base, which are then reflected in the final price.

The Malta Chamber reiterates that the government is, duty bound to protect the interest of the consumer as much as it is duty bound to protect the law abiding entrepreneur. Any proposal related to price monitoring agencies is unacceptable.