The majority of the middlemen (pitkala) at the Ta’ Qali fruit and vegetable market are planning to step up the legal challenge against regulations forcing them to pay 10 per cent of their turnover to renew their licences.

The money will then be used as a form of bank guarantee, which the agriculture director can take if a defaulting pitkal fails to pay farmers. The regulations also direct the middlemen to collect the dues owed by buyers for agricultural produce purchased.

Although a court last month turned down an application filed by the Pitkala Association to stop the new provision, the pitkala continue to resist it, insisting it threatens to destroy their livelihood.

Tensions at the Ta’ Qali market ran high yesterday morning after security refused entry to a number of pitkala who had failed to make the guarantee.

Sources said that at about 5.30am police and security guards blocked the entrance and denied access to about 10 middlemen and their employees. Only the five pitkala who made the guarantee were allowed in, they added.

The stand-off soon escalated, to the point that several officers from the Rapid Intervention Unit had to be called in to increase security. The situation calmed down after the intervention of association lawyer Adrian Delia.

This law is also undermining the pitkala’s right of employment... and will drive them out of business

The situation between the association and the government has been simmering for months, sparked off by regulations issued last December through Legal Notice 472.

The pitkala are complaining it is unfair for them to make good for any losses farmers incur when third parties – fruit and vegetable hawkers – default on payments. They are arguing that, if they have to accept such a principle, they will never afford to pay the guarantee as it exceeds their annual eight per cent commission on sales.

“The new regulations mean that, on a turnover of €500,000, pitkala would have to make a €50,000 guarantee, when their commission on the sales would only amount to €40,000,” Dr Delia said.

Lawyer Adrian Delia in an exchange with a police officer, when it was initially decided the press conference could not be held inside the Pitkali. Photos: Chris Sant Fournier

He was addressing a news conference at the pitkali, even though both Dr Delia and the media were initially refused entry. Flanked by irate pitkala, Dr Delia said last November his clients were told they would be responsible for collecting any amounts due from hawkers after APS Bank decided to stop its business at the vegetable and fruit market.

Dr Delia complained that the pitkala were never consulted about such changes and were presented with a fait accompli.

On Tuesday, the pitkala received a letter from the Ta’ Qali market’s senior manager informing them they would no longer be allowed to operate if they did not make the guarantee by April 24. By Wednesday afternoon it was already clear that 10 of the 15 pitkala would not acquiesce, as they had failed to produce evidence of their intention to make such a guarantee by the 4pm deadline. Consequently, that same evening, the government instructed farmers to turn up at the Pitkali at 3am yesterday instead of 5am, as there would be fewer pitkala present to process their produce.

The quoted figures on who had made the guarantee do not tally with those of the government, which yesterday said business at the Pitkali had not been affected. It noted that eight pitkala had not made the bank guarantee but a “substantial” number had honoured the payment.

Dr Delia said the pitkala were in favour of reform but pointed out that their role was of auctioneers. “This means middlemen cannot be held liable for any debts hawkers had with farmers.”

Asked on what grounds would the association challenge the regulations, Dr Delia said the court would be asked to see whether the minister had the power at law to drive such changes through a legal notice.

“This law is also undermining the pitkala’s right of employment and imposing unilateral changes to their licence conditions which will drive them out of business,” he said.

In a statement, the Nationalist Party urged the government to consult with everyone involved and find the best possible solution in the interest of farmers, middlemen and consumers.