Alcohol ban on confectioneries undermines competition, Consumers Association

The Consumers Association said new laws regulating the sale of alcohol after 9pm from confectioneries would reduce competition in the sector.

Secretary-general Evelyn Chetcuti said the new laws were a step back for consumers and price competitiveness and was asking for a study into the effects of the law by the Malta Competition and Consumer Authority.

“Other shops which normally retail alcohol at a higher price will be able to operate without any competition from confectioneries,” the CA’s secretary-general Evelyn Chetcuti said.

The finance ministry yesterday published a new legal notice banning all confectioneries from selling alcohol after 9pm. The new law is a scaleback from a previous legal notice that forced confectioneries to choose if they wanted to keep their alcohol licence but close at 9pm.

“We understand that if there is something wrong about selling alcohol after 9pm, this principle must apply to everybody. It is obvious this new rule is protecting one sector of commerce, to the detriment of other shops and consumers,” Chetcuti said.

The law in fact stems from protests by the GRTU at confectioneries selling alcohol on the margins of Paceville, after club owners complained that punters were consuming cheaper alcohol before entering their establishments, leading to lower bar sales. The St Julian’s local council in 2008 also updated rules banning ‘loitering’ with a glass bottle, by banning the drinking of alcohol on some streets, Paceville included, against a €65 fine.

The Malta Hotels and Restaurants Authority welcomed the revised legal notice. “The MHRA has been advocating for proper enforcement and a change in the former regulations of the law in an effort to curb the rampant abuse taking place particularly in tourist and entertainment areas.

"Over the years the MHRA repeatedly objected to the lack of enforcement of the regulations which permitted a number of ‘bottle shops’ to practically trade as a bar, whilst the governing regulations provided penalties which were a mere pittance and far from a deterrent to anyone wanting to break the law."

The Consumers Association said that with alcohol prices could increase if confectioneries prevented from selling alcohol after 9pm. “The legal notice is forcing retailers from choosing one licence under which they will operate. This goes against the current of commerce today where each shop provides a variety of products and already exists in the sale of other products. Consumers prefer to buy more products from one shop… like a supermarket… that’s why smaller shops must be more competitive and increase their variety of products for sale.”

The new law was previously already in force, but several confectioneries were abusing the law. The legal notice was welcomed by the General Workers Union, after amending a previous law forcing confectioneries to choose whether to retain their alcohol licence but close at 9pm; or lose the licence and remain open after 9pm. Inspections will be carried out by the Trading Licences Department.

Penalties against breaches of the law have now been increased to €5,000, and €10,000 on a second offence which can also include a suspension of the trading licence.

The new law also allows for alcohol to be sold between 9pm-4am for consumption on premises could only take place in licensed clubs, wedding halls, and commercial premises licensed by MTA as “catering establishments where the primary purpose is the sale of food and alcoholic beverages to be consumed on the premises.”

The sale of alcohol by street hawkers – also targeted for setting up ‘shop’ on the margins of concert venues or mega-parties – was outlawed in the last trading law amendments.

GRTU president for tourism and hospitality Philip Fenech, who owns a Paceville establishment, had said confectioneries selling alcohol had turned into ‘glorified bars’ when they were meant to sell products to be consumed at home, and not out on the streets.

“This led to complaints of underage drinking, and uncivil gatherings of youths drinking on porches, roundabouts and playgrounds. This was unacceptable to residents, and was creating a seedy ambience in an area that caters for 5-star hotels.”

“If such confectioneries want to operate as bars, they are free to convert their premises according to the necessary compliance,” Fenech said.