Labour raises questions on gas prices affecting consumer sizes

Labour MP Michael Farrugia has criticised the report presented by Minister Jason Azzopardi on the work carried out by the ministry for fair competition, small business and consumers in the past legislature.

Farrugia said he expected more from the report, especially when it came to government's vision in terms of consumer affairs.

He said, that Azzopardi mentioned nothing of what cheaper drugs were available through parallel importation, and instead spoke about government's intervention in reducing prices of 239 medicines.

"Labour is in favour of parallel importation, but it seems that consumers are not benefiting from the cheaper prices that this competition should result in," Farrugia said during a press conference held at the PL's headquarters.

"In the same way that government intervened in the setting of prices of how much these medicines are sold, government must also intervene with parallel importers to see why these medicines are being sold for more."

On school uniforms, Farrugia said no guidelines had been issued by the education department on school uniforms and who would procure and retail such uniforms.

"Such guidelines should have been issued faster now that the school term is practically over," he said.

Farrugia mentioned an instance where a headmistress took it upon herself to ensure that pupils only purchased their uniforms from one particular contractor, ostensibly on the basis of some agreement forged between the headmistress and the contractor.

Speaking on gas cylinders, Farrugia asked why the increase in the price of gas cylinders has affected consumer sizes, and not the industrial 25kg size.

"The consumer must be given peace of mind on the way prices are being determined on gas," he said.

"Why is it that while the Malta Resources Authority issues its regulated price of gas, the operators can sell below this price but Enemalta always sells its utilities at the top rate set by the MRA? I think it somewhat proves the incompetence of the government on this matter."

Also present for the press conference was Labour MP Chris Cardona, who said that the utility rates, fuel prices, gas prices and industrial service charges were denting the competitive strength of SMEs and industry.

"These are not complaints we are making: these are complaints that have been made by major industrialists, and three major industrialists have made such complaints to the government," Cardona insisted.

He added that business operators should be asked how accessible such one-stop shops as Business First are for them.

"What has not been mentioned is how much FDI Malta Enterprise has brought over to Malta," he said, adding that during 2011, foreign direct investment decreased by over €300 million, while under Alan Camilleri's tenure some €4 million was spent refurbishing the Malta Enterprise Offices.

"These past four years have seen a government that did not provide much consultation for businesses," Cardona said.