Certain conditions in public tenders for the procurement of medicines were said to be increasing the government's cost because importers and distributors were increasing tendered prices to cushion any penalties they might suffer.
Speaking during the debate on the Consumer Affairs Act (Amendment) Bill, opposition spokesman on social security Michael Farrugia said that sometimes such tenders ended up more than double or triple those put in by more honest bidders, and this showed the defects in the tender process.
The government itself was inflicting a burden on the recurrent expenditure, moneys that could be saved and used in other areas in the health sector.
Continuing his speech from Tuesday, Dr Farrugia said Maltese consumers were at a disadvantage when compared to their European counterparts: wages were just 60 per cent of the EU average and prices were much higher. This, together with other adverse administrative decisions, was affecting the economy and extending the network of people on the brink of poverty.
Government authorities like Mepa were following the central government's example and not treating the consumer decently. It was only after 21 years that the PN government was studying a reform in road maintenance. Local councils could not work because of lack of funds.
Dr Farrugia said the level of education was far below that of other countries. This was true not only in science subjects and mathematics but across the board. The government needed to identify the defective sectors and make the necessary investment.
Labour MP Evarist Bartolo said regulatory authorities other than the Consumer and Competition Division had a duty to protect consumers in an open market economy. A company giving computing teaching services had threatened the national commission for persons with disability because it complained that this centre was not accessible. The resources and the communications authorities were not protecting and helping consumers to make the right choices.
The financial institutions were not feeling the pinch of the global crisis, but there were individuals who had been hard-hit because they were given mistaken advice by certain banks whose employees were continually pressured to attract consumers for more investment.
The regulatory authorities were weak because they were not autonomous but still controlled by the government, he said.
The government was running the country as a one-party state, appointing people on the basis of their loyalty to it. This led to corruption and weak consumer protection.
Mr Bartolo said that poverty reports on Malta showed that there were 40,000 people living in risk of poverty. This was on the increase because of the global recession, as were the 21 per cent of children and 21 per cent of old people living in poverty. Many structures had to be changed. There were not enough beds for senior citizens seeking refuge in old people's homes. Many were suffering in silence.
The number of people who were finding it difficult to pay utility bills and bank loans was increasing. Contrary to other countries, the Maltese government had not embarked on schemes to help these families.
Leo Brincat (PL) said that while the manufacturing sector was steadily shrinking, employers were getting stronger and more professional. The institutional balance was not favourable to the consumer.
Maltese trade unions should set up a consumer infrastructure with professional people in the sector, and with proper EU funding. With the interest they were showing in the creation of green jobs, major trade unions could also consider filling this void in consumer affairs.
Mr Brincat claimed the consumer was being short-changed by local authorities. The Malta Resources Authority regularly showed lack of action in keeping the government and its corporations in check. Mepa lacked transparency and power seemed to be only in the hands of the financially strong.
The financial services sector was continually growing thanks to the Financial Services Authority and financially-sound banks. This did not mean that small and large savers had not had their own unhappy experiences. There were even those who had fallen victim to the greed of large institutions that had led investors to expect windfalls in capital gains.
Mr Brincat said every individual who worked in these institutions needed to show more prudence when dealing with the public. On the other hand would-be investors should differentiate between investment offers.
Unregulated gaming shops were being allowed to mushroom, sometimes next door to churches, schools and residential areas, and with no perceived control of patrons' ages. With its potentially-great social repercussions, this sector needed regulation.
For too long the government had lain in political paralysis to address this worrying situation, leading families to huge debts and even usury. One would have expected a more systematic campaign from the Church.
Mr Brincat said rumours had it that some of the gaming shops were owned by relatives of government members.
The Malta Gaming Authority was pushing to have such shops regulated. He had been advised that no amendment was needed to existing legislation to bring these shops under effective control.
Referring to the ongoing investigations into the VAT office, Mr Brincat said he was afraid that only people from senior principal down were being investigated, and the large fish were managing to get away scot-free. Again, there were rumours of involvement by people in government and senior officials who had retired only some years ago.
Turning to the environment, he said people had long lost faith in Mepa, but they should not lose faith in themselves. While it was hoped that Mepa would get a full reform from the bottom up, every regulatory body failing the consumer must be helped to win back the people's confidence, concluded Mr Brincat.
Joe Sammut (PL) said food prices were always on the rise. The excessive fuel price increase had raised a lot of talk, but when the price of oil had plummeted, local energy prices had remained unchanged.
Wages had remained static, and although some might say this was not the right time to raise the issue, this was important as the consumer needed money in hand. The economy prospered when people had disposable income.
Dr Sammut said farmers wanted to offer a competitive product, but they could not because overhead expenses were high. He suggested farmers should join forces to import in bulk, thus perhaps finding better prices. The two-year government delay in paying farmers was not helping either.
Pork, poultry and rabbit producers complained that imported products were being sold as local products, and although the department was aware of this abuse it did nothing. This also applied to fresh vegetables where products imported from Sicily were sold as local produce, entitling them to the same subsidies as that received by local farmers.
Turning to the swine influenza, Dr Sammut said all safeguards had to be introduced for the industry to guarantee the local product. He also called on consumers to cook pork thoroughly as a precaution.
The red weevil, which had hit Malta after the importation of palm trees, was threatening trees which were hundreds of years old.
Dr Sammut also appealed to the government not to close its Għammieri experimental farm.
As yet there was no concrete report on the possible detrimental effects of locally-used pesticides to humans. Some had been banned because they had been found to damage the ecological system in general.
Nothing was being done to save rainwater, which this year had been abundant. If rainwater was harvested, farmers would have abundant resources, and prices would go down.
Dr Sammut suggested that boreholes be minimised, as they reduced underground water. He complained that various parliamentary questions had remained without reply.
He could not understand why interest rates had remained the same despite the fact that the European Central Bank had issued a directive to lower them. Were Maltese second- or third-class EU citizens? This was unjust.
The government should intervene to help local businesses, concluded Dr Sammut.
Joe Mizzi (PL) said that this Bill, transposing EU directives into the Consumers Act, should have been discussed before.
It was irrelevant to speak on consumers' rights if consumers were not protected. On Consumers' Day the government's slogan emphasised consumers' obligations rather than their rights. At the same time, the government and the authorities forgot their obligations.
Mr Mizzi said utility tariffs were based on inefficient workings, and he was prepared to continue striving for consumer protection.