Shame in the chosen name

It is most unfortunate that, since EU membership, Malta has been vulnerable to illegal trading with no one else to blame but ourselves. To our detriment, the authorities have not established a unique entity with executive powers to perform effective, structured and fair market surveillance. The consumer is, therefore, faced with goods that may not be in full conformity with the necessary health, safety, statistical, environmental and fiscal standards and regulations. Effective market surveillance is truly a means towards ensuring a fair business environment, fiscal justice and safeguard consumer rights.

The Malta Chamber of Commerce, Enterprise and Industry was heartened to read in the latest National Reform Programme (NRP) that a "strengthening process" will take place within the Competition Authority. It was especially encouraged by the promise that technical competences in the areas of legal and economic matters will be recruited as part of this plan.

The Malta Chamber was, however, dismayed by the news that part of this entity will be called Consumer Protect. This name is most objectionable. The term "protect" is, in itself, defamatory to the honest entrepreneur because it implies that the consumer needs protection from something that is harmful or detrimental to his/her interests.

It is strongly suggested that a new name on the lines of Fair-Trade Protect be found for this entity. It is not the consumer that needs protection but, rather, the honest entrepreneur - from illicit traders who abuse from no border controls after EU accession and a flawed system of market surveillance. Besides, it is the authorities' responsibility to guarantee the interest of the law-abiding citizen/entrepreneur.

It is unacceptable for bona fide companies to continue to be penalised for their compliance with selective inspections and procedures. Experience has clearly shown that legally compliant companies have borne the brunt of continuous scrutiny because this was the most convenient approach for enforcement officers.

The Malta Chamber has consistently supported the strengthening of the Competition Authority because this must, once and for all, be given the necessary resources to be in a position to proactively enforce taxes, laws and regulations on those that operate below the radar and beyond the knowledge of any authority, including fiscal.

Illicit traders must no longer be allowed to distort fair competition and cheat the consumer. The Competition Authority (Fair-Trade Protect) must not harass organised businesses with a proven track record of legal and fiscal compliance. It must also act as their supporter in the common fight against those who break the law. The proposal to name and shame offenders as suggested in an editorial of The Times (October 30) is of no concern to the Malta Chamber because it represents honest entrepreneurs. Nevertheless, the Malta Chamber is not convinced that this is the perfect methodology to encourage honesty within the business community.

The NRP further states that Fair-Trade Protect will perform "price monitoring/analysis" as part of its remit. The authorities must clarify their intentions in this regard and define exactly what is meant by "price monitoring/analysis". In the past, particularly during the euro changeover period, the Malta Chamber lent its support towards a fair price monitoring system, besides other initiatives. Once again, the authorities will find the Malta Chamber's cooperation in implementing a reasonable price monitoring system. At the same time, the Malta Chamber will strongly resist and object to any practice that goes beyond the parameters of price monitoring.

In terms of the "information and education" remit, it is unfortunate that the proposal seems to centre solely on the publishing of prices of goods and services offered in the market. The authorities must understand that this measure can be widely abused. Besides, the Malta Chamber believes that it is more important to raise awareness that, in making wise choices, it is in the consumer's interest to consider other important factors besides price. These include quality factors, transportation, handling and storage, shelf-life, after-sales service and where the product is bought from. Information about prices is already widely available from within the market itself. There must be no interference in how prices in the free market are established and communicated.

Bona fide firms that operate in total compliance with the law incur taxes (VAT, excise duties, import duties, eco-contribution, income tax) and additional expenses related to the observance of their obligations towards the environment and the consumer, including quality assurances, after-sales and labelling regulations.

The Malta Chamber is strongly concerned that the mere publicising of prices will be a disservice to the consumer and beneficial only to the illicit trader who will be rewarded for operating with an unfairly low-cost-base and in complete disregard of its responsibilities towards consumer interests.

Ms Ellul is president of the Malta Chamber of Commerce, Enterprise and Industry.