The Labour Party was “in principle” opposed to giving foreign business a competitive advantage over local entrepreneurs, leader Joseph Muscat said yesterday.

Dr Muscat said local businesses deserved a “level playing field” when competing against overseas investors, arguing that firms within the same sector should play by the same rules.

“Of course, we encourage foreign investment and there are EU rules one must respect but, as a point of principle, a Maltese business owner should not be put at a disadvantage,” he said.

He was replying to a question about the significantly lower rates of tax rumoured to be paid by foreign supermarket chains. Sources indicate such chains’ rates are up to seven times lower than their local counterparts. The Finance Ministry was asked to confirm this but had not replied at the time of writing.

At the end of a visit to Qormi’s Pavi supermarket, Dr Muscat said he had heard rumours of such tax discrepancies but would reserve comment on policy specifics because he did not know the ins and outs of the matter.

About 30,000 customers walk up and down the supermarket’s aisles every week, group chairman Alfred Lupi said.

He explained the complex was developing the concept of a “shop-in-shop”, with retail sections staffed by employees specially trained in certain products.

Dr Muscat said the PL was committed to backing retailers of all shapes and sizes, from small, one-man operations to large-scale outfits such as Pavi.

“People who have the initiative and courage to invest their own money in a business should have the State’s full backing,” he said.

He suggested that Prime Minister Lawrence Gonzi had not been entirely forthright when saying that the contract of former Enemalta chairman Tancred Tabone was not renewed when it expired in 2005.

“A look at the official statement issued back then shows that it was Mr Tabone himself who had asked not to continue serving as Enemalta chairman,” he said.

Earlier, Dr Muscat toured Żurrieq market, meeting hawkers and well-wishers. He called on PL supporters to campaign positively and keep the emphasis on national unity.

As Dr Muscat chatted with a market seller, a middle-aged woman pulled a now outdated red Malta Labour Party flag out of her handbag and began to wave it. After a quiet word with a suited man, the flag was stuffed back into the bag, replaced by claps and cheers.