Reuben Sciberras, Communications Coordinator at the Ministry for Social Dialogue, Consumer Affairs and Civil Liberties, has kindly replied to my contribution concerning MCCAA’s remit (April 14).

According to Part I, Section 2, of the Malta Competition and Consumer Affairs Authority Act, Chapter 510, the minister responsible for the authority is “the minister responsible for competition, consumer affairs, standardisation, metrology and technical regulations”.

So, although the minister and the ministry might not interfere in the decisions of the Malta Competition and Consumer Affairs Authority (MCCAA), they are still responsible for the MCCAA’s action, or lack of it, as the case may be. So far, the MCCAA has still not taken action after more than 60 weeks since the case involving the Rabat filling station.

It is very convenient for the various ministries to set up authorities to serve asa smokescreen.

According to the same Act, Chapter 510, Part II, Section 4. (1 “The authority shall have as its purpose the attainmentand maintenance of well-functioningmarkets for the benefit of consumers and economic operators.”

The authority seems to be more interested in the benefits for economic operators, including the state-owned company Enemed, than the benefits of consumers.

Section 4. (2) states, among other things, that “the functions of the authority shall be the following: (a) to promote and enhance competition; (b) to safeguard consumers’ interests and enhance their welfare…”

In terms of Section 12. (1), “it shall be the minister’s function to ensure that the authority is fully informed of government policies relative to consumer and competition matters, standards, metrology and technical regulations and to monitor the proper execution of such policies”.

Both the authority and the ministry have failed to safeguard consumers’ interests

Is it the minister’s policy to procrastinate in taking a decision about an obvious case that a cartel was operating in the sale of fuel at the pumps?

Section 12. (2) of the same Act spells out that “save as otherwise provided in this Act, (and other Acts), … the authority shall be under the general direction and control of the minister and, subject to such direction and control, under the supervision of the permanent secretary responsible for the ministry”.

Both the authority and the ministry have failed to safeguard consumers’ interests, as well as to promote and enhance completion in the fuel market during the past three years.

Need I continue to quote other sections of the relevant Act? Section 14 contains a list of responsibilities of the Office for Competition. It does not say that it has to take 60 weeks to perform any of these responsibilities in a case involving a cartel operating in the sale of fuel at the pumps.

Both the minister and the authority have done nothing during the past three years when it comes to competition in the importation, storage and selling of petrol and diesel in Malta.

Let me refer to just two of these responsibilities. According to Section 14. (1)(a“To investigate, determine and suppress restrictive practices”; and 14.(1)(b “To examine and control concentrations between undertakings in terms of their effect on the structure of competition on the market.”

The authority has failed miserably the consumers in both responsibilities.

In Section 17, with reference to “the responsibilities of the Office for Consumer Affairs” we find the following, amongothers: “(b) to monitor trading practices relating to the provisions of goods and services to consumers, and to take measures for the suppression and prevention of any practices which may be detrimental to the interests of consumers.”

Consumers of diesel have been robbed of at least €2 million during the past 60 weeks. What measures has the Office of Consumer Affairs taken? The consumers of petrol are in a similar situation.

What has the authority said in its annual report about the Rabat case, in terms of Section 58 of the Act?

The minister appoints the boards and directorates, and among these we find long serving loyal civil ‘servants’. The minister or the ministry do not need to interfere in the decisions of such ‘servants’ because the latter know exactly what is expected of them.

On February 16, the Energy Minister is reported to have said that he was not pleased with the way the diesel market was operating in Malta, and that he wanted to see “healthier competition” in the fuel market as well as “competition in pricing”.

When is the MCCAA going to start safeguarding the interests of consumers instead of the state-owned company Enemed? Is it waiting for the discussion of the petition submitted to the European Parliament by the Malta Automobile Club concerning the absence of competition in the importation, storage and wholesale of petrol and diesel?

Alfred Farrugia is president of the Malta Automobile Club.

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