Telethons raise 50 per cent more money

The fund-raising activities that collectively raised €3.5 million last month might have led to some head-scratching among shopkeepers but the impact was "marginal", according to a representative of the business community.

While coming to terms with the dampening effect the higher water and electricity rates had on consumer spending, businesses had to compete for people's money with political parties, charity institutions and a charismatic President.

The four major fund-raising events in December, the Community Chest Fund's L-Istrina, the RTK telethon in aid of Dar tal-Providenza and the activities held by the two major political parties collected 50 per cent more money than the same events did last year.

From €2.4 million raised in 2008, the amount grew to €3.5 million in 2009. In 2007 the four fund-raising activities had collectively raised €2.9 million.

The director general of the Chamber of Small and Medium Enterprises - GRTU, Vince Farrugia said that although the money was drawn out from the economy it was a "planned expenditure".

The donations, he added, had to be broken down for a more accurate analysis because business donations and contributions deducted from employees' salaries over a matter of months would have had no impact on the overall consumer spend.

"Just like when the Super Five jackpot is very high, everything has an impact on consumer spending, especially since the total consumption figure was down this festive season. But I would say the impact of charity donations on retail was marginal," Mr Farrugia said, pointing out that shopkeepers were more concerned with the impact of online shopping and illicit trading.