The Malta Employers' Association (MEA) yesterday criticised the way a few individuals were holding the country to ransom, leading to millions of euros being lost in production every day.

"Public transport is an essential service and there should be provisions to safeguard society against the abuse which it is being subjected to by irresponsible individuals," the association said.

The way the strike by transport operators has escalated was a "shameful and flagrant abuse of the right to industrial action", the MEA added. By blocking traffic and disrupting emergency transport, using illegal methods and violence, the operators were depriving many employees from their fundamental right to go to work.

The MEA called on the government to take the necessary action to ensure the rule of law prevailed and to prove that no one is above the law.

It was a miscarriage of justice for a van parked irregularly to deliver goods to a corner shop to be slapped with a hefty fine when transport operators have blatantly blocked traffic for hours and days with no action taken by wardens or the police.

The association called for severe and uncompromising law enforcement and for the revision of existing legislation to ensure such "tragedies" do not recur ever again.

The mayhem caused by the operators is over the liberalisation of the hearse sector, which is resisting change because the hearse owners fear for their livelihood.

Economist Edward Scicluna said monopolies "definitely" had a detrimental effect on the prices consumers pay.

"It's useless asking why Malta is so expensive. True, inflation is inflation, however, there must be something in the price levels being higher than in other countries and this is due to the lack of liberalisation," he said, referring to the favourable results achieved by opening the market to low-cost airlines.

"It's the way the government decides to go about handling this stalemate. I know it seems strange but one could sweeten the pill by helping them (the operators) compete," he said.

He agreed this would sound contentious to new businesses waiting to penetrate the market. However, since those holding a monopoly were going to lose out, a move that would benefit the economy, then those who gain, will, in a way, compensate the losers.

"The economy will gain through liberalisation while those waiting to enter the previously closed market will gain as well.

"Are there going to be losers? Yes. People who have a monopoly will lose out but the more efficient will eventually benefit. We cannot tell who will sink or swim but, at least, they should be helped to swim," Prof. Scicluna said.

"I don't think liberalisation is negotiable. However, there are going to be losers and gainers and, from an economic point of view, we can afford to compensate the losers to help them compete and up their standards."

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