Government back-bencher Edwin Vassallo suggested that the Bill providing for the Malta Competition and Consumer Affairs Authority needed to tackle more elements which in the future would be a threat to the local market.
The market was besieged by competition particulary through e-commerce. He criticised the fact that on the new authority’s board there were not enough entrepreneurs. While there were professional people, these were not aware of the actual market dynamics. Businessmen had an important role to play on the board.
The legislation needed to be strong with provisions for future market needs, regulating the way Malta would compete and be efficient in a competitive market.
Mr Vassallo felt that no innovations were being put forward and it seemed the Bill was carrying over principles from old schools of thought.
He proposed a holistic coordination of all the institutions dealing with the economic market. The Vat Department and the Customs Department should be amalgamated. Lacking coordination between the two, market surveillance would be difficult.
Referring to the White Paper on SMEs, Mr Vassallo said one also needed to make reference to the Bill. Otherwise one would have created two single entities which could work contrary to each other. On the same lines, he called for more co-ordination between the legislation on MCSD and the Bill.
Turning to the Department for Consumer Protection, he said that nothing was being done for its personnel to perceive the consumer and the competitive market. It seemed that the government was putting forward a legal solution through new legislation and amendments to older ones for every problem without reaching any further to the people who really matter.
Mr Vassallo called for a change in the composition of the Department for Consumer’s Protection, saying it was useless amending the law when the people working in the department did not have the consumer’s interest at heart.
Charló Bonnici (PN) said the Bill was a step forward, offering consumers a fair deal and ensuring that their rights were protected.
The Bill would see the amalgamation of three entities which, to date, protected consumers independently. While the new authority would have more power, it would be able to make better use of its resources without increasing the government expenditure.
This authority would definitely be close to the people in order to be able to defend them.
He mentioned the current issue regarding two TV channels which used to be offered by GO and Melita. A large number of people had complained that it was unfair that these two channels were no longer being transmitted and blamed the service providers for this. Believing that the matter was more complex than it seemed, he said that the Malta Communications Authority was looking into the issue to ensure that consumers were being treated fairly.
Turning to medicines, Mr Bonnici said the government was intervening to reduce the price of 130 different medicines by 44 per cent. But was it right for the government to intervene in a free market? He believed that in certain situations, especially where the consumer was suffering, the government should intervene.
The number of consumer complaints had doubled during the last six years. In 2007 there were 963 complaints while in 2008 these shot to 1,587. In 2009 they hiked to 2,482 while last year, the number of complaints increased to 2,632. This could be a result of the educational campaigns to raise consumer awareness. There currently were 243 pending cases before the tribunal.
The Standards Authority’s role was to monitor the market and ensure products were not dangerous. This authority had held 500 inspections in different localities, analysed over 2,000 products to ensure that these met EU standards and tested 312 samples.
Last year the same authority received 52 complaints, mainly on lack of labelling information and dangerous products.
This new authority would have laboratories where tests could be carried out, thus reducing the lead time to get results. It would help importers who previously had to wait for weeks before they could sell their products which were being tested.
Nationalist MP Beppe Fenech Adami said the Bill was the result of a consultative process which included the main stakeholders. He said it would introduce an authority that worked in the interest of consumers and businesses. The Bill introduced the concept of general complaints and strengthened remedies for consumers. The authority for consumer protection department was being extended.
Dr Fenech Adami criticised the Leader of the Opposition for his proposals on fuel prices adding that he was deceiving the public because fuel prices increased as a result of international prices. The average price of gas on international markets had gone up by 24 per cent over the last few months. Cereal prices rose by 40 per cent while the price of sugar increased by 85 per cent since last May.
The opposition failed to inform its supporters that the government had been giving subsidies to encourage people to install solar water heaters and photovoltaic panels. A power station fired by gas would not lower utility costs because oil was cheaper and calculating utility bills by any different method would not lower prices which reflected the market price for fuel.
Dr Fenech Adami said the government had introduced and strengthened the consumer protection culture and had given the country the tools and structures to ensure fair completion and consumer protection.
Ċensu Galea (PN) said the Bill tried to strike a balance between consumers and service providers.
Consumers had their rights protected in case of faulty products even if these were bought overseas. The Malta Standards Authority was instrumental in removing unsafe products from the market and would continue to ensure that products were up to the established standards.
As an EU member, Malta had to address the problem of fake brands. A small market such as Malta’s meant there could be providers who sacrificed quality for lower prices.
There was not enough appreciation of officers within the Malta Standards Authority. They were experienced and dedicated and ensured the best standards. The MSA had also certified organic products grown in Malta.
The new authority would ascertain that metrology regulations were adhered to.
Mr Galea referred to the current situation in the communications sector as regards television transmission of sports programmes. He said that one could not look at consumer rights from a personal perspective only. Consumers had to realise that what was straightforward many years ago was no longer possible or simplistic. In this sector the country moved from a monopoly to a competitive market.
Another important development was in the mobile telephony sector which started through one organisation but now developed in a number of main and subsidiary providers.
Mr Galea stressed that one had to guarantee that the law was enforced and called for better informed consumers.