Category: Archive – 2006

Fil-qosor dawn huma l-punti li dwarhom il-GRTU qed titkellem mal-Gvern fuq il-kwistjoni tas-Surcharge fil-kontijiet tal-elettriku u l-ilma u z-ziedet fil-prezzijiet tal-Fuels

Fil-qosor dawn huma l-punti li dwarhom il-GRTU qed titkellem mal-Gvern fuq il-kwistjoni tas-Surcharge fil-kontijiet tal-elettriku u l-ilma u z-ziedet fil-prezzijiet tal-Fuels

1. Il-GRTU ma taqbilx mal-mod kif iddahhlet is-Surcharge
2. Il-GRTU ma taqbilx kif gie impost il-Capping li jezenta lil intraprizi l-kbar minn setturi partikolari mill-hlas tas-Surcharge wara li jilhqu certu ammont ta’ konsum
3. Il-GRTU tqies it-tariffi kif inhuma u s-Surcharge bhala ksur tad-Direttiva Ewropea dwar l-Elettriku. Id-Direttiva tipprojbixxi l-cross subsidation u d-diskriminazzjoni fil-hlas skond l-uzu
4. Il-GRTU trid revizjoni tat-tariffi u tas-Surcharge ghax tqies is-Surcharge ingusta, distriminatorja u imposizzjoni li tahbi l-inefficjenza
5. Il-GRTU mhix sodisfatta bl-informazzjoni li nghatat u ma thosx li hemm trasparenza kif titlob id-Direttiva Ewropeja. Id-Direttivi Ewropej specifikament jobbligaw lil Enemalta tkun trasparenti fuq kif tixtri, tahdem u tistabilixxi l-prezzijiet tal-fuels u tal-elettriku
6. Il-GRTU formalment resqet talba lil Kummissjoni Ewropea biex tinvestiga u tordna revizjoni. L-Unjoni Ewropeja ghadha tistenna lil Gvern Malti jwiegeb. Il-GRTU issa qed titlob lil Parlament Ewropej jintervjeni
7. Il-GRTU tqies li hemm diskriminazzjoni kontra n-negozji u intraprizi zghar li huma electricity jew diesel intensive
8. Il-GRTU ma taqbilx mad-decizjoni li jinghalaq il-gap bejn il-prezz tal-petrol u tad-diesel
9. Il-GRTU ma taqbilx mas-sistema ta’ dazzji ezistenti u kif qed ikunu amendati. Il-Gvern qed jghabbi taxxi fuq min qed jitkisser
10. Il-GRTU ma taqbilx mal-mod kif il-Gvern addatta d-Direttiva Ewropea li taghti lil istati membri d-dritt li joffru diesel bi prezz orhos lil certi setturi
11. Il-GRTU ma taqbilx mal-lista ta’ intraprizi li qed jinghataw id-diesel alternattiv b’rata mnaqqsa ta’ dazji ghax thoss li din hi sistema diskriminatorja kontra hafna intraprizi zghar
12. Il-GRTU trid li l-Gvern b’effett immedjat idahhal mizuri li jagevolaw lil min ihaddem biex jkun jista’ jtaffi ghas-Surcharge
13. Il-GRTU ma taqbilx mal-politika imhaddma mill-Gvern u mill-Enemalta ghax-xiri ta’ fuels
14. Il-GRTU ma taqbel xejn ghal mod kif ir-Regulatur Pubbliku, (l-MRA) baqghet gallarija f’din Il-kwistjoni kollha
15. Dwar is-Surcharge fuq il-kontijiet ta’ l-ilma, il-GRTU tqis li din hi eccessiva ghax mil-Annual Accounts tal-Water Services Corporation ma johrogx li l-WSC ghandha ghalfejn thallas lill-Enemalta ghas-servizz ta’ l-elettriku l-ammont ta’ Surcharge li qed tkun imgeghla tigbor minghand il-households u n-negozji. Id-differenza zejda li qed tingabar hija ta’ Lm5 miljuni u l-GRTU qis li dan hu piz ghal-kollox zejjed fuq dawk li l-intraprizi li jiddependu mill-konsum ta ilma.
16. Il-GRTU ma taqbilx li l-Enemalta baqghet ma toffrix tariffi irhas ta’ l-elettriku lil min ihaddem apparat bil-lejl bhal ma jsir fl-Ewropa kollha.
17. Il-GRTU isostni li s-sistema kollha ta’ tariffi inhaddnu minn l-Enemalta hi zbaljata ghax tiddiskrimina kontra l-intraprizi li jhaddmu n-nies. Dwar dan Il-Gvern Malti ilu jkun imwiddeb mill-Kummisjoni Ewropeja. Il-GRTU ghalhekk titlob li s-sistema ta’ tariffi tirrifletti r-realtajiet tal-llum u jkunu enterprise-friendly

Il-Kunsill tal-GRTU iltaqgha fit-tul mal-Ministru Dr Austin Gatt fejn stabilixxa x’hini l-linja tal-Ministeru responsabbli mill-Enemalta. Ghadhom ma sarux diskussjonijiet mal-Ministru Ninu Zammit responsabbli mir-Regulatur tal-Energija, il-Malta Resources Authority.

Il-Kunsill tal-GRTU iltaqgha fit-tul mal-Ministru Dr Austin Gatt fejn stabilixxa x’hini l-linja tal-Ministeru responsabbli mill-Enemalta. Ghadhom ma sarux diskussjonijiet mal-Ministru Ninu Zammit responsabbli mir-Regulatur tal-Energija, il-Malta Resources Authority.

Fuq l-informazzjoni li ghandha f’idejha l-GRTU qed titlob lil Gvern idahhal malajr dawn il-mizuri biex jittaffa l-piz u titnaqqas il-hsara ekonomika li qed issir kawza tas-Surcharge u z-zidiet kontinwi fil-prezz tad-diesel u fuels ghall-intraprizi.

1. Is-Surcharge titnaqqas mill-1 ta’ Gunju 2006 ghall-40% u terga’ issir revizjoni l-isfel fl-1 ta’ Settembru. Il-Gvern isib mezzi bhalma diga sab biex isostni l-Enemalta tiffacja l-problema. Il-Gvern jizgura, b’esperti minn barra jekk hemm bzonn, li l-Enemalta thaddem politika ta’ xiri ta’ zjut li toffri stabilita’ fil-prezzijiet
2. Tidhol b’effett immedjat sistema ta’ Krediti Fiskali biex tagevola lil intraprizi. Dawn Il-krediti fiskali jaghtu 100% tax credit fuq l-ammont kollu tas-Surcharge mill-jum li ddahhlet is-Surcharge
3. Il-Gvern jaghti wkoll tax credits, bhal ma jsir fIl-kaz ta’ infieq fuq ICT, biex min idahhal sistemi godda li jnaqqsu l-uzu tal-energija jgawdu skont fiskali sa 200% fl-ewwel sena. Il-lista ta’ sistemi applikabbli tizdied biex tinkludi kull nefqa fuq kull forma ta’ energy-saving skond benchmarks stabbiliti
4. Il-Gvern jghin l-intraprizi minn kull settur li huma electricity u fuel intensive billi permezz tal-Malta Enterprise jinghataw soft loans u koperta b’garanziji bankarji biex dawn l-intraprizi jkunu jistghu jixtru apparat aktar energy-saving
5. Il-Malta Enterprise wkoll tohloq skemi godda ta’ assistenza biex l-intraprizi kollha jkunu jistghu jingaggjaw esperti li jfasslulhom pjan biex iwettqu energy-saving initiatives
6. Jinghataw wkoll krediti fiskali lil min inaqqas l-infieq tieghu fuq l-energija (less is-Surcharge) ta’ 70% anke jekk mhux b’infieq kapitali gdid
7. Il-Gvern jaghti ezenzjoni mit-taxxi bi krediti wkoll lil householders li jaghzlu li jibdlu l-apparat elettriku domestiku taghhom bhal fran, fridges u airconditioners etc u jdahlu prodotti li huma aktar energy-saving sa livelli approvati.
8. Il-Gvern jibdel is-sistema prezenti ta’ “capping” fuq il-kontijiet tal-elettriku li meta jintlahaq ma tibqax tghodd is-Surcharge ghax din tiddiskrimina kontra z-zghar. Minflokha idahhal sistema ta’ tariffi li jonqsu skond il-konsum jew jekk ser ihalli l-“capping”, il-“capping” japplika skond ir-ratio ta’ electricity jew diesel fil-prodott jew servizz u dan ir-ratio jkun maqbul mal-GRTU. B’din is-sistema l-intraprizi l-kbar xorta jgawdu wara l-bidla mis-sistema prezenti izda tinqata’ d-diskriminazzjoni bejn post tax-xoghol u iehor
9. L-Enemalta ma tibqax ghalissa tinsisti fuq Il-hlas ta’ 30 miljun lira li ghandha tibgor ghall-passat bil-metodi li qed tuza illum u taghti aktar nifs lil intraprizi z-zghar
10. Il-Gvern johloq incentivi biex l-industriji u dawk l-istabillimenti li ghandhom infieq kbir fl-elettriku jkunu jistghu joholqu huma skemi ta’ “hedging” biex ghall-ammont ta’ elettriku li jikkunsmaw huma jkollhom forma ta’ “insurance” policy ma istituzjonijiet finanzjarji bhal Barclay Capital li jhallashom meta l-prezz taz-zejt jaqbez dak “hedged” u allura huma ma jsoffrux miz-zidiet fis-Surcharge u meta jitbaxxa ghalkemm ikollhom ihallsu izda ipaci dan mat-tnaqqis li jgawdu fis-Surcharge
11. Il-Gvern ihaddem kampanja pubblicitarja u edukattiva serja, anke f’Fondi Ewropej, biex Il-poplu u l-intraprizi Maltin ikunu aktar konxji ta’ alternattivi ta’ energy-saving
12. Il-Gvern jahdem bis-serjeta fuq il-progett ta’ Thermal Incinerator kbir bizzejjed li jiehu l-bicca l-kbira tal-iskart bla htiega ta’ hafna forom ta’ riciklagg li ghal pajjizna ma jahdmux ghax il-volumi huma zghar wisq u l-uzu ta’ incinerator b’sahhtu joffru aktar skop u vantagg ghal Malta. B’incinerator b’sahhtu jinholoq sors ta’ energija gdida li ttaffi n-nefqa u d-dipendenza fuq iz-zjut
13. Il-GRTU trid illi s-Surcharge fuq l-ilma tigi riveduta qabel is-sajf 2006, ghax is-Surcharge fuq il-kont kollu mghandux ikun aktar minn 23% tas-Surcharge totali. Wara li l-Gvern inaqqas is-Surcharge ghall-40 %, is-Surcharge fuq l-ilma ghalhekk m’ghandhiex tkun aktar minn 10 %. Din hi is-Surcharge li ghandha tirrifletti l-hlas vera li taghmel il-WSC ghall-volum ta’ elettriku li tikkonsma biex tipproduci l-ilma.
14. Il-GRTU trid illi sas-sajf 2006 l-Enemalta tibda toffri rati ta’ hlas ghal elettriku immnaqsin ghal min juza l-elettriku fis-sieghat ta’ bIl-lejl. Dan ikun japplika kemm ghall-intraprizi kif ukoll ghad-djar.
15. Il-Gvern ghandu jestendi kull incentiva ghal sistema bhal ma huma:
Ø Energy saving bulbs and lights
Ø Movement sensor switches
Ø Timer Switches
Ø Roof Insulation
Ø Well Construction
Ø Photovoltaic – Already Incentived
Ø Fuel Catalysts
Ø Recovery Boilers
Ø Solar Thermal Collectors – Already Incentived
16. Il-Gvern ghandu jnaqqas ghall-livell nominali r-registration fees licences u taxxi fuq mopeds, motorcycles zghar u fuq vehicle bl-elettriku u hybrid cars u dawk li jahdmu bi fuels alternattivi
17. Il-Gvern ghandu johloq incentivi biex jithaddmu sistemi privati godda ta’ garr ta’ persuni b’uzu ta’ veikoli li huma hybrid jew electric powered.
18. Il-Gvern irid fl-iqsar zmien jaderixxi mad-direttivi Ewropej dwar l-Energija u jaccetta l-protest li ghamlet il-GRTU mal-European Commission bla aktar telf u hela ta’ zmien. Il-GRTU illum qed tressaq il-protest taghha lil Parlament Ewropew ghax temmen li l-Kummissjoni Ewropeja qed tiehu zmien wisq biex tiddefendi l-intraprizi u l-konsumaturi Maltin. Il-GRTU qed titlob li kull rimedju jkun b’lura sa minn meta ddahhlet is-Surcharge.

Minn Survey fost il-membri tal-GRTU li saret fil-bidu ta’ Mejju 2006 hareg li 72% tal-membri jhossu li fost ir-ragunijiet ewlenin ghaliex in-negozju taghhom bhalissa qed ibati hemm il-kwistjoni tas-Surcharge fuq l-Elettriku u l-Ilma u il-prezz tal-fuels.

Minn Survey fost il-membri tal-GRTU li saret fil-bidu ta’ Mejju 2006 hareg li 72% tal-membri jhossu li fost ir-ragunijiet ewlenin ghaliex in-negozju taghhom bhalissa qed ibati hemm il-kwistjoni tas-Surcharge fuq l-Elettriku u l-Ilma u il-prezz tal-fuels.

Ø 37 % tal-businesses li sofrew telf ta’ bejn 10% u 30% fl-ewwel erba’ xhur tas-sena 2006 iqiesu li s-Surcharge kienet il-kagun ewlieni.

Ø 22% tal-businesses li sofrew telf ta’ bejn 10% u 30% fuq it-turnover iqiesu li l-htija ewlenija hija l-prezz tal-fuels.

Ø 13% tal-businesses kollha li sofrew telf iqiesu li s-Surcharge u z-zieda fil-prezz tad-diesel huma konsegwenza principali li kompliet tefghathom ‘l isfel.

Meta l-membri kienu mitluba jghidu xi prospetti ghandhom ghall-kumplament tas-sena 2006, 32 % qalu li l-prospetti ser ikomplu jehzienu u r-raguni ewlenija li taw hi s-Surcharge. 17 % iqiesu l-prezz tal-fuels (diesel) bhala l-aktar li ser tgharraqhom.

Meta l-membri qalu xi jhossu li jista’ jghinhom biex il-prospetti taghhom ghall-kumplament tas-sena 2006 jitjiebu, 62 % semmew b’importanza t-tnaqqis fis-Surcharge, waqt li 41% qalu l-prezz tal-fuels.

76% tal-membri qalu li s-Surcharge u l-prezz tal-fuels mhux biss effetwaw b’mod drastiku l-ispejjez taghhom u l-profitibilita’ tal-azjenda taghhom, izda effetwa bil-kbir l-infieq tal-konsumaturi u dan kellu effett kbir fuq it-turnover taghhom

The position taken by the Cabinet cannot but be considered a misinformed one. Cabinet has totally ignored the various considerations made on various committees and task forces within NECC

The position taken by the Cabinet cannot but be considered a misinformed one. Cabinet has totally ignored the various considerations made on various committees and task forces within NECC.

Consumer Education
It has been proved by the first wave countries that too long periods of dual pricing has resulted in a reduced effect. This has been evident even more in Mediterranean countries and was one of the reasons identified for people arriving not prepared to € day. In spite of this, the Executive committee of the NECC is using this as an example in order to try and justify the uninformed decision taken by cabinet.

Bad Education
With this decision cabinet shall be educating the Maltese the equivalent in Euro at the wrong rate. This is because the central parity rate may be different from the irrevocable fixed rate of exchange. With this decision, the Government is heading to create perceived inflation itself.

Bank Charges and Commercial Rates
With the introduction of the Dual Pricing, more and more tourists will expect to pay in Euros within our retail outlets. In this respect, in order to provide a better service the retailer shall have to accept Euro payments. According to the Central Bank the retailer should quote a price in Euro and then charge another one over the counter or charge an administration fee! This is due to the fact that the banks will still accept Euro deposits at commercial rates and will still have bank charges on deposits! This will damage mainly the tourist and property industry. In the latter the difference between the price quoted and the “real” will results in hundreds of Euros if not thousands.

In a scenario where the tourism industry is in a bad state, creating this negative propaganda is definitely not called for.

Extra Costs
The decisions taken by cabinet will double the costs of the retailers in the Euro adoption processes. This is not in line with what the NECC has been trying to convince over the last months. The NECC has been informing something and then different decisions are being taken.

This is even more so with respect to the Dual Display where it was continuously being discussed how to find ways how to minimise costs and educate the consumer at the same time. In this despite, the NECC has been going the opposite direction.

GRTU would like to highlight the excessive administrative burden and other overheads that the wrong decisions being taken shall create.

Cash Registers and Vending Machines
The NECC had promised that there shall not be change in cash registers. The retailers are now faced with a situation which it is more convenient for them to buy a new cash register than to adapt the old one. Need not say that this will add further costs for the businesses. The same thing applies to vending machines which need to be changed.

Dual Display and Pricing
The matter seems to have only been discussed by cabinet only on a generic basis and the different needs of the different sectors in spite of the recommendations by some committees such as .

“With respect to Dual Pricing one needs to seriously consider to give the option on whether to have dual pricing or not. When dual pricing is not applied it should be enough to mark the price in euros on the condition that the customers are provided with the conversion cards provided by the NECC. There are also other options such as the shelf edged labels and price conversion posters

The effects of Dual vs Voluntary approach to Dual Pricing should be considered and analysed.
There are significant effects on costs with respect to dual pricing.

Special Circumstances
One problem that may be caused is the slow down in sales and in service such as the public transport. One needs to consider that there might be circumstances where the customers offer part payment in Malta Liri and in part payment in Euro. In order to speed up service in certain particular circumstances it should be allowed that payment is accepted only in Euros.

With respect to Public Transport one could consider a scenario where during the first week only Malta Liri are accepted whilst from the second week only Euros are accepted.”

Price Behaviour Considerations
In taking such decision, Cabinet has failed to take into account price behaviour considerations which will impact on the perceived inflation, amongst others:

· Prices in the Euro area change rarely when compared to the US
· There is a marked degree of heterogeneity in the frequency of price changes across products. Specifically, price changes seem to be frequent for energy(oil products)and unprocessed food, while they are relatively infrequent for non energy industrial goods and services
· Price decreases are not uncommon except in services. On average 40 percent of the price changes are reductions.

· Various studies show that price changes usually occur at the beginning of the year and soon after the summer period. On the first instance it will occur with the Euro introduction and with the introduction of the Dual Pricing.
· Government dependent changes must be highlighted
· Factors affecting the probability of price or the frequency of price changes include seasonality, aggregate inflation, sectoral or product specific inflation, government induced cost/price changes, type of outlet, market and price strategy.
· Price also depends on product level, incidence of sales, temporary price offers for each product, the share of large retailers selling a particular product regulated/unregulated nature, attractive prices
· The movement of interest rates
· Fiscal Framework
· Speculation on Property
· Speculation on Interest related products
· Prices that have not changed for a long time may change in a hazard manner
· Strategic Issues
· Other market conditions.

In January 2002, Euro area retailers had to change price from the national currency to the euro. Some country studies, as opposed to others, provide ample evidence that price changes were more frequent in January 2002 or in the first quarter of 2002. This may be indication of the significant costs which induced bunching of prices during that month. Various studies show that the Euro Cash Changeover implied an increase of the frequency of price changes during a 6-month period before and/or after the conversion to the euro. It must be noted that price revisions associated with the cash changeover were not always upwards but to a significant extent also downwards.

In view of the above their should be no smoothing restrictions as the market will regulate itself. The most important thing is to manage to communicate to businesses the effects of smoothing and their strategic implications.

It must be emphasised that Government should lead by example in this scenario and should be fully prepared by € day.

Voluntary Code of Conduct
All the parties represented on the Pricing Task Force, including consumer organisations, had agreed on a voluntary code of conduct and that price orders are not the way forward. We now have seen the NECC going towards another route! The code agreed upon is hereby attached including the consumer protection considerations made.

Consultation Process
The NSO was conducting a survey agreed upon by the organisations sitting on the Pricing Task Force with the following objectives:

· The possible factors effecting pricing in the period before and after 1 January by sector
· The level of preparedness of businesses
· The perception of businesses on the changeover

In the current scenario and circumstance this process has become a futile process.

Consumer Protection during the Euro Changeover
Current Protection

§ Office of Fair Competition
§ Consumer Associations
§ Consumer Tribunal
§ National Media
§ Malta Financial Services Authority
§ Competition and other Market Forces
§ Authorities in certain markets such as MCA and MRA

Additional Protection
The Consumer organisations during the two meetings held by the pricing task force expressed their thoughts and concerns that additional protection is needed during the Euro Changeover period.

There seems however, to be consensus that no price controls and/or price orders are introduced. Malta has evolved since such systems were in place and there is a general agreement that we need to find alternative routes to ensure price stability particularly in the short term within the Euro changeover period. As determined in the first PTF meeting the major risks are during the short term namely six months pro to six months post Euro day.

A strongly interventionist approach to dealing with the risk of actual and perceived inflation would be to directly control all price increases or prices thought to be most at risk. It has been Government policy in recent years to move from direct regulation of prices towards an emphasis on action via the competition authorities to ensure that markets are working properly. There is general agreement that Government policy should remain as such.

In the euro changeover, the high degree of competition within most retail sectors, together with government publicity, price monitoring and price information provided by retailers under a euro consumers’ code (see hereunder) should be sufficient to protect consumers and direct control of prices should not even be considered.

Suggestions and recommendations received with respect to the requested additional consumer protection could be:

1. a national communication programme for the euro changeover;
2. voluntary codes of conduct specifically covering fair treatment of customers in a euro changeover;
3. provision of additional price information, particularly dual price display;
4. legislation on how dual price display must be implemented;
5. price monitoring; and
6. local coordination mechanisms.

NATIONAL COMMUNICATION
NECC shall undertake a national communication programme that would ensure that organisations and citizens are equipped with the information they needed to participate fully in a change of currency.

This would include detail of how the consumer protection framework would be established and promoted and details of how individual consumers could gain access to information and support, for example, through a national telephone helpline.

Information would be provided about the new notes and coins and the arrangements to withdraw Malta Liri from circulation. Details of the key messages that would be delivered should be published and communicated with the stakeholders at the earliest.

In addition to the central programme of information overseen by a NECC, it would be the responsibility of each organisation to communicate with their customers or other stakeholders to ensure that they were fully informed about the approach to a changeover.

The Communication strategy should provide for information on the communication plans of key sectors and organisations and helps to ensure that communication would be coordinated across the economy.
VOLUNTARY CODES OF CONDUCT
During the changeover, businesses and other organisations would be invited to sign up to set of core principles that would ensure that consumers were treated fairly during a changeover.

Principles
1. for amounts displayed in euro and Malta Liri the two figures should be equivalent in value, and it should be clear which denominations and which methods of payment are accepted;
2. the official conversion rate must be applied and rounding rules adhered to in all dealings with customers;
3. consumers paying in euro or Malta Liri should be treated equally, although a clearly displayed rate of exchange might be applied where euro notes and coins were accepted before their formal introduction in Malta;
4. accurate, clear and targeted information should be provided to assist consumers with a changeover;
5. dual currency information for consumers should be provided, in an appropriate and agreed upon form, for at least the period from euro cash day minus six months until the dual circulation period;
6. in the operation of this code, the needs of vulnerable groups, such as older people, the visually impaired and those with learning difficulties, should be taken into account;
7. staff dealing with customers should be well trained and able to provide consumers with straightforward, accurate and relevant information about how the changeover affected the consumer’s dealings with the organisation;

Sectoral codes
In accepting the core principles, certain sectors of the economy will draw up detailed sectoral codes, which set out in detail how the core principles would be implemented

The public sector would show a strong lead to the rest of the economy by preparing and adhering to a Public Sector Consumer Code of Conduct

To be effective, the euro codes would need:

1. Wide support across each sector and across the economy;
2. Proactive promotion;
3. Wide recognition by consumers;
4. Arrangements to check that those signing up to the euro codes are facilitated to meet their requirements;
5. Incentives to adhere to the codes;
6. Consumer confidence in the euro codes; and
7. Procedures for addressing complaints about breaches of the code.

The aim of the euro codes would be to promote fairness to the consumer, and the provision of relevant and easily understood information, alongside clear and accurate display of Malta Liri and euro values. The euro consumer codes of conduct would ensure a required standard of information provision, including dual display for at least six months before and two months after E day.

An organisation subscribing to a euro code would commit itself to provide accurate information to consumers about how the changeover would be handled.

The euro codes would require that all staff dealing directly with customers are able to give straightforward and relevant information about how their organisation was dealing with the euro. However, some customers would need additional help and support from staff, particularly those from vulnerable groups, such as the visually impaired or those with learning difficulties.

There must be a commitment to business friendly monitoring. The emphasis should be on working proactively with business organisations to help them to comply with the code of conduct.

Price Information
Consumers may be concerned that organisations would use the opportunity of a currency change to disguise price rises. In the first wave euro area countries many consumers linked the euro changeover to significant increases in prices. However, the actual impact of the changeover on inflation in the euro area was estimated to have been only between 0.12 and 0.29 percentage points within an inflation rate of 2.3% (Euro stat May 2003 No 69/2003). This disparity is mainly explained by a number of significant price increases of certain frequently bought goods and services, for example prices in restaurants and cafes, recreational/sporting services. These are held to be more significant in informing consumers’ perceptions of inflation than less commonly purchased items where price rises have been more subdued or prices have fallen.

The risks of actual or misperceived price inflation could be most effectively mitigated through a combination of dual display and price information, alongside consumer education and communication about the changeover. Provision of clear price information enables consumers to make comparisons and provides an effective way of driving competition and controlling prices.
Retailers Consumers Code of Conduct
Aim and Objective
To ensure that consumers can be confident they are treated fairly, and provided with adequate, targeted and easily understood information to help them throughout a changeover from Malta Liri to euro, and that the needs of vulnerable groups, such as older people, the visually impaired and those with learning difficulties would be taken into account.
BEFORE THE INTRODUCTION OF EURO NOTES AND COINS
1. In accordance with the Consumers’ Code core principles, retailers should begin to provide dual currency information, in an appropriate form, from six months prior to E day. The extent of dual display would be at the discretion of individual retailers and this Code does not imply a commitment to dual price all merchandise. But, as a minimum, an approved conversion chart supplied by NECC showing the official conversion rate should be displayed in store, preferably at the point of sale.

2. From at least six months before E day, where possible and feasible, till receipts should show the total value of the transaction in euro as well as Malta Liri. The euro value may be limited to the final total (including VAT) paid by the customer. If the PoS system is unable to manage this dual price, alternative means shall be provided by NECC. This could be in the means of an approved conversion table displaying the official conversion rate or calculators.

3. Once the Malta Liri/euro exchange rate was fixed, the official conversion rate should be applied and rounding rules adhered to in all dealings with consumers.
AFTER THE INTRODUCTION OF EURO NOTES AND COINS
1. From E day retailers would continue to provide dual currency information in an appropriate form, until at least the end of the dual circulation period.

2. Appropriate reference guides to Malta Liri equivalent values (e.g. approved conversion tables) should be maintained until at least the end of the dual circulation period .

3. The timing of the move to euro only pricing should be implemented once Malta Liri cease to be legal tender. Reference to Malta Liri prices after the dual circulation period would be at the retailers’ discretion.

4. From E day, retailers would accept payments in Malta Liri and euro, and give change in euro only.

5. Retailers would continue to accept payment in Malta Liri cash during the dual currency period, as Malta Liri would still be legal tender for two months after E day.

6. Staff dealing with customers would be well trained and able to give consumers straightforward and relevant information about the retailer’s approach to the euro.

7. 7 A national telephone helpline number would be shown on the tills.

8. Voluntary Sub sectoral Codes such as that for grocers, restaurants and entertainment places and services (e.g. hairdressing) would be adhered to

The Croatian Chamber of Crafts and Trades, HOK, and The Maltese Chamber of Small and Medium Sized Enterprise, GRTU, on Wednesday 3rd May 2006, have signed a memorandum of understanding at Auberge de Castille, Valletta, at the office and in the presence of the Hon Dr Lawrence Gonzi, Prime Minister of Malta. The memorandum was signed by Mr Paul Abela, President of GRTU and Mr Stjepan Safran, President of HOK.

The signing of this agreement was the climax of the short but very compact and rewarding visit that the Croatian delegation held in Malta. The Croatian delegation was headed by the President of HOK, Mr Stjepan Safran, who was accompanied by Mr Natko Vlahovic, Advisor for International and EU Affairs at HOK, Mr Tonci Bozanic, President of Fisheries and Aquaculture Association at HOK, and Mr Romeo Mikicic, Vice President of Fisheries and Aquaculture Association of HOK.

The Croatian Chamber of Crafts and Trades and The Maltese Chamber of SME’s formally met each other in January 2006 in London at a conference of UEAPME, The European Association of Craft and small and medium sized enterprise, of which both chambers are active members.

Henceforth the relationship and possibility of co-operation between the two organizations developed. GRTU was invited to Croatia to actively participate in various workshops which HOK organized for its members in preparation of Croatia’s accession into the European Union, EU. Following this successful participation, GRTU was earmarked by its counterpart in Croatia to act as the body to assist HOK and its members in its pre and post accession process into the EU.

This resulted in the present visit to Malta by the Croatian delegation. The signing of the memorandum sets foot to a long term co-operation agreement between the said two bodies:

· To assist each other to develop in the best possible mode within the Union to the most advantageous manner for their individual members;
· To decipher the best opportunities that exist and that can be availed of from the European Union to the maximum benefit of the members of both organizations in Malta and Croatia.
· It was mutually agreed that GRTU would assist HOK in its negotiation process with the EU, through its contacts, know-how and practical experience that it gained in Malta’s pre and post accession process into the EU.

Furthermore, the agreement entered into by both parties goes long term, further to the Croatian accession to membership of the EU, in that GRTU and HOK have agreed that members of each chamber visiting the other country, will be hosted and treated same as if it were its own members, this to enable and further trading, economic and business opportunities between the SME’s of both Malta and Croatia.

This co-operation agreement strengthens and falls within the parameters of the initiative of the trade delegation visit held lately to Croatia which was headed by the Minister of Foreign Affairs, the Hon Michael Frendo, and the support at political level that Malta is giving Croatia in its accession process into EU.

During their visit to Malta, the said delegation also met among others, the Hon Michael Frendo, Dr Anthony Gruppetta from the Science Centre for Fisheries and Aquaculture, members of the Fish Co-Operative and Dr Simon Busuttil, Member of the European Parliament.

The delegation left Malta highly impressed with the local co-operation and hospitality of the Maltese shown by different strata of society, but also with much valuable and indispensable advice to enable them to take the plunge wisely in their negotiation deals with the 25 member states of the European Union.

Il-GRTU bhala Kamra Maltija tan-Negozji Zghar u Medji hi l-organizazzjoni nazzjonali li tirraprezenta n-negozji fl-irhula u fl-ibliet Maltin u Ghawdxin u tqies li filwaqt li l-gvern u l-awtoritajiet permezz tal-ligijiet u l-iskemi taghhom jaghtu importanza kbira lil intraprizi kbar li jhaddmu hafna nies u lil impjegati fis-settur pubbliku, aktar iva, milli le, jinjoraw l-eluf ta’ haddiema li l-post tax-xoghol taghhom hu fl-irhula jew fil-bliet taghna u fejn l-impjieg hu offrut minn intraprizi u negozji zghar.

Fejn il-postijiet tax-xoghol fl-oqsma industrijali u kummercjali fil-lokalitajiet qed ikunu meghjuna r-rizultat qed jidher u ta’ dan il-GRTU hi rikonoxxenti ghall-hidma kontinwa, b’koperazzjoni mal-GRTU, tas-Segretarju Parlamentari ghan-Negozji z-Zghar l-Onor Edwin Vassallo. Izda l-bicca l-kbira tal-lokalitajiet ghadhom ma jgawdu xejn minn dawn l-inizjattivi u hu ghalhekk li din is-sena l-GRTU qed tenfasizza b’mod partikolari x-xoghol fil-lokalitajiet.

Is-sidien tan-negozji fl-ibliet u l-irhula jridu jkunu meghjuna b’mod effettiv ghax hafna qed jaghlqu jew inaqqsu l-impjieg ghax ihossuhom abbandunati mill-awtoritajiet pubblici.

Il-GRTU fl-okkazjoni ta’ Jum il-Haddiem tappella lil Gvern u lil Kunsilli Lokali u ghaqdiet ohra biex flimkien ifasslu pjan ta’ azzjoni bil-ghan li l-intraprizi u n-negozji fil-komunita insahhuhom ghax dawn mhux biss huma fond ta’ impjieg ghall-eluf ta’ haddiema, izda huma wkoll sisien ta’ komunita’ lokali b’sahhitha u agevolata. Dan jista’ jsehh jekk il-Gvern bis-serjeta’ jaccetta li n-negozji fil-komunita’ huma importanti wkoll.

Il-Ministru assigura lil GRTU li l-proposti ser ikunu studjati sewwa mill-gvern ghax l-intenzjoni tal-gvern hi li din il-problema tkun iffacjata b’mod prattiku bl-inqas impatt fuq l-operaturi ekonomici. Il-Ministru spjega li l-implimentazzjoni tal-proposti tal-GRTU iridu certu zmien ghaliex l-istrutturi fl-Enemalta iridu jinbidlu u jridu jsiru l-emendi necessarji ghall-ligijiet fiskali. Il-Ministru Austin Gatt izda assigura lil GRTU li l-gvern hu deciz illi jaghmel dak kollu li hu possibli biex l-intrapriza zghira ta’ pajjizna tinghata kull possibilita li tiffaccja l-problemi ikkawzati mill-gholi fil-kontijiet tal-elettriku u ta’ l-ilma.

Il-GRTU enfasizzat illi f’nuqqas ta’ mizuri immedjati li jsahhu b’mod decisiv ghall-pizijiet kbar li qed ikollhom igorru eluf ta’ imprendituri zghar Maltin l-indikazzjonijiet jidhru cari li dawn l-intraprizi u negozji biex jibqghu jfendu jkollhom bilfors inaqqsu l-impjiegi. Din hi xi haga li l-GRTU ma tridhiex u ghalhekk li qed tinsisti b’kull mezz mal-gvern biex fl-iqsar zmien jghin in-negozji u imprendituri zghar Maltin.

Il-proposti tal-GRTU jinkludu agevolazzjonijiet fiskali, bidla fl-istruttura tal-mod kif ikunu pprezzati l-prodotti tal-Enemalta, facilita’ biex in-negozji li jikkunsmaw hafna elettriku jutillizaw il-hinijiet ta’ bil-lejl b’rati ta’ hlas ta’ elettriku baxxi, bidla fl-istruttura ta’ dazji biex min ghandu negozju li jiddependi hafna fuq il-konsum tad-diesel ikun agevolat u kampanja nazzjonali akkumpanjata minn incentivi prattici biex in-negozji u l-familji jinvestu f’facilitajiet li jikkunsmaw inqas energija.

Il-GRTU enfassizat b’mod partikolari l-htieg urgenti li s-sistema ta’ ‘caping’ tinbidel ghaliex din hi sistema ngusta u diskriminatorja man-negozji u ntraprizi zghar ghaliex tiffavorixxi l-intraprizi l-kbar u ghal dan jaghmlu tajjeb ghaliha l-intraprizi z-zghar. Il-GRTU qed tissuggerixxi illi jekk ghandhom jinghataw xi vantaggi, dawn ghandhom jinghataw lin-negozji kollha li huma dipendenti hafna fuq l-uzu ta’ l-elettriku irrispettivament humiex kbar jew zghar, dan ghaliex kull post tax-xoghol hu importanti. Il-GRTU qed tahdem fuq pjan, li filwaqt li jkun ta’ vantagg ghall-Enemalta ghax jizgura inqas konsum ta’ energija, jkun ta’ vantagg ghall-konsumatur u n-negozji z-zghar li jservuhom.

Suggetti ohra diskussi fil-laqgha kienu l-Low Cost Airlines u l-progett ta’ parking ghal Belt Valletta.

The section feels that the general public is being constantly misinformed on this issue. The blame for the high price of pharmaceuticals in Malta rests fairly and squarely on those who misguided and made a mess of negotiations with the EU in the run up to accession to the EU.

Government’s position at that time was heavily influenced by those who were only interested in maintaining the status quo where lack of competition in the market was the norm. Furthermore, the negotiators who did the negotiations on behalf of government were more interested in setting up structures for attracting manufacturers to come to Malta than in the realities of the Maltese market. These so called negotiators did not advise the Maltese Government to join the CADREAC organisation that was set up specifically to ensure that registration of medicines and related issues would be settled before accession.

We now have a situation where many importers are being saddled with paying registration costs for their principals out of their own pocket. This is the reality that we are facing today. Furthermore, to add insult to injury, it is financially impossible to register generic versions of medicines already on the market. A healthy market would be a mix of both branded and generic pharmaceuticals competing with each other and offering consumers a choice of prices.

If government expects importers and pharmacies to voluntarily reduce or abide by unrealistic price orders that would eat further into already eroded profit margins it should think again and be warned. This is not acceptable and smacks of totalitarianism. Price increases on medicines are the result of misguided Government policy. That is a fact that no one disputes, except maybe Government itself.

It is however not only registration costs that push up the operating costs of the pharmaceutical sector. By joining the EU, Malta is also introducing new standards that are of benefit to patients. Pharmaceuticals are by their very nature temperature sensitive. The public should know that medicines are kept in premises which are constantly air-conditioned and temperature controlled whether in a warehouse or in a pharmacy. This requires vast amounts of electricity that needs to be paid for, surcharge or not.

Government should realise that this is a very heavy burden and someone has to pay for it. Pharmaceutical importers and pharmacies recognise their role in giving this service, but at the end of the day, they are not charities. It has become too much of a norm that Government is expecting commercial organisations to give their services for free. Government itself should set the example and pay for purchased medicines within the normal 30 day period as do other organisations. It is very easy for politicians to speak on issues to massage and capitalise on public perceptions without taking into account the realities being faced by the sector. The fact is that Malta’s inflation rate is mainly due to the price of fuels and water as well as the surcharge. That is the root of all inflation in Malta.

Government should also substantiate what it is stating regarding cartels. If high prices are due to identification of cartels and price fixing by importers/retailers., the tools are investigations. GRTU believes collusion should be investigated. Again here the Government has put the cart before the horse. There is a law that gives government powers of investigations against cartels. Dawn/Dusk raids, leniency programmes, and other investigative remedies are available, as is done in every serious country in the world. All this has to be done with full respect to the letter of the law and the rights of individuals and firms to due process and investigation before a remedy is adopted and implemented. Without substantial and documented proof, government cannot possibly conclude that there is a cartel and thus threaten to issue price orders. It is the wrong attitude altogether and smacks of a kind of totalianarism that we thought was a thing of the dark past.

GRTU feels that it would be very difficult to imagine Government establishing price levels when a market is competitive and is given all the help to be competitive. This is certainly not the case as regards pharmaceuticals. Government can only possibly adopt ceilings (maxima) and even then it will run the risk that there will be levelling at that maximum which is likely to be the average. In competitive markets we aim at the first best; i.e. marginal pricing… and not average pricing…. (which is the second best price). From what we have seen in Malta, our regulators know very little of price regulation and therefore Malta should not go down that route. This will hurt small businesses and at the end of the day do more harm than good.

One can argue that medicinals and maybe even foodstuffs in Malta are highly priced, but blanketing the problem with price orders will not end it there. Malta is a small market, with almost everything being imported and with not enough sales volumes in many areas to spread costs better and ensure low prices. It is high time that we accept that competition does not yield the same results in small market economies like the bigger ones. Fostering competition will help, and in the case of pharmaceuticals, opening the market wide will. Informing consumers better will also help, for consumers that are fully informed are the most effective regulators. Competition policy in small jurisdictions is different!

GRTU does understand consumer concern regarding the price of certain pharmaceuticals, but it will never accept the introduction of price orders to regulate prices. That is not the way forward.

Instead, GRTU has always consistently offered its personnel and expertise to Government in order to try and reopen negotiations with the EU so as to make it easier and less costly to register products in Malta. GRTU feels that a strong multi-sectoral representation with the EU in Brussels will bring results. Malta needs to speak with one voice on this issue. There is already a broad consensus amongst stakeholders on the issue. However GRTU will not anymore accept negotiations done on its behalf by Government with the EU. From now on, GRTU demands to be an integral part of such negotiations.

GRTU is calling on Government to call a spade a spade and not a hand powered mechanical earth moving device. On the issue of pharmaceutical registration and the costs associated with it, enough time has been lost in tail chasing; Many representations have been made by GRTU. A commission was even formed to consult with stakeholders on the issue. GRTU did a lot of work with its members and actually presented two reports to the commission, but has heard nothing since on this commission’s conclusions.

GRTU expects that Government, and all stakeholders join hands and take up this issue with the EU urgently as Malta is facing a shortage of medicines in a Sea of Plenty, and that is not what the EU is all about. We are missing the boat in a big way. The EU is awash with good quality medicines at affordable prices. We need to grab this opportunity.

Further information please contact Mario Debono on 99494405

Bid-decizjoni li l-Kabinet tal-Ministri ha li jgieghel lil tal-hwienet kollha jtellghu prezzijiet fuq il-prodotti kemm bil-Euro kif ukoll bil-Lira Maltija sa minn sena qabel il-qlib ghall-EURO, l-Kabinett tal-Ministri qed jaqbad it-triq lejn inkwiet zejjed ghall hafna operaturi minghajr hadd ma jkun ha xejn pozittiv. Din mhux kwistjoni ta semplici bdil ta ftit prezzijiet izda tinvolvi hafna u hafna aktar minn hekk.

Il-GRTU tifhem li dan qieghed isir b’intenzjoni li d-dual pricing hekk kmieni minn Jannar 2007 tkun ta vantagg ghall- konsumatur izda ma haseb xejn dwar min ser jaghmel tajjeb ghall-hafna spejjez zejda li tal-hwienet ser isoffru u li bilfors iridu jaghdduh lil xi hadd. Tal-hwienet u negozji m’ghandhomx ibaghtuhom minn buthom u lanqas hu gust li l-Gvern jgieghel lil tal-hwienet jaghbbu lil konsumatur bihom. Il-GRTU tibza li wara din l-mossa hemm hsieb li tal-hwienet jehlu ghaz-zidiet fil-prezzijiet li jkunu kkawzati minn hafna ragunijiet ohra. Il-GRTU mhux ser toqghod ghal dan. Il-GRTU qalet dan mal-ewwel li twaqqaf il-Kumitat tal-Euro Change Over. Il-GRTU qed tippartecipa bis-shih f’dan il-Kumitat biex tizgura li l-affarjiet isiru sewwa. Issa imma jidher car li l-Kumitat hu biss paraventu biex il-Gvern jaghmel li jrid.

Is-sistema li jrid jimponi il-Gvern ma taghmilx sens. Suppost twaqqaf Kumitat ta’ esperti biex l-affarjiet isiru sewwa, izda sewwa ma jfissirx li l-Gvern jinjora l-pariri ta’ min irid ihaddem is-sistema. Is-sidien tal-hwienet ma jistghux ihaddnu sistema b’rata li tista tinbidel, b’sistema li tohloqilhom hafna argumenti mal-konsumaturi, l-aktar mat-turisti, u b’sistema li bil-fors titlob tibdil mhux ta’ darba izda ta’ aktar minn darba. Il-GRTU trid li qabel il-Gvern jaqbad u jimponi jiftiehem l-ewwel kif ser isiru l-affarjiet u jiftiehem mal-GRTU min ser jaghmel tajjeb ghall-ispejjez, kemm tal-hwienet stess kif ukoll dawk imposti mil-banek u mill- kumpaniji li jfornu il-cash registers u apparat iehor.

Il-GRTU trid fuq kollox li jieqaf il-paroli zejjed u l-insinwazzjonijiet kontra n-nies tal-hwienet ghax min irid minn ghand tal-hwienet, ma jibdiex billi jajjarhom u juri li ma jafdahomx. Il-GRTU lesta li tikkopera bis-shieh biex il-bidla ssir u ssir sewwa izda mhux bl-impozizzjoni u ghas-skopita tas-settur kummercjali.