Speaking during a press conference at Malta Labour Party headquarters yesterday, Dr Sant said government should inform people of what prices should be and why their prices have fluctuated.
Dr Sant said people were very worried indeed about increases in inflation. “There should not be a problem in doing this. The MIC has a budget of Lm350,000 this year and part of that should be used for the price-monitoring exercise which should be carried out in conjunction with the Consumer Department,” said Dr Sant.
He said that many prices had not yet been established post 1 May. “It is correct that some prices will go down due to the removal of levies on certain products. Items such as pasta and wine will go down in price. But others, such as butter, newspapers, sugar and meat, will go up,” he said.
Dr Sant said that apart from struggling economically, the country now has the added burden of inflated prices. “We have paid visits to many families and their main worry is inflation, the cost of living and the threat of unemployment,” he said. He said government needed to take stock of the situation and take action before it is too late. “We do not know the full picture yet. Things can either be left to run their natural course, and we will end up in an even worse situation, or government can do something about it.”
He said inflation needed to be brought to a halt, but at the same time the country needed an injection of direct foreign investment. He appealed for government to implement the measure the MLP was suggesting by monitoring prices.
The Malta Independent suggested to Dr Sant that government’s theory was that the removal of VAT at source (within the EU) would facilitate cheaper transport costs, in turn leading to cheaper prices. “In theory all is well and good, practice is another matter entirely,” he replied. “There is, no doubt, a lot of rounding up of figures going on. But government needs to ensure that prices are monitored at distributor and shop floor level.”
TMI suggested that there could be abuse of the system. “Yes there can be, as there always is, but I think it is more down to the fact that no one has a clear picture and no one knows what prices should be,” said Dr Sant. He concluded by saying that the Malta Labour Party was completely against the introduction of VAT on medicines and books.
Opposition spokesman for the elderly Silvio Parnis said that from 1 May, about 400 items had risen in price due to VAT. He said the elderly in particular were suffering because items such as bandages and medicines had gone up. “There are also other issues such as dentistry and reading glasses which have become more expensive,” he said.
He added that there were several medicines which were out of stock, which was causing more hardship.
Opposition spokesman for Social Security Marie Louise Colerio said that inflation was on the increase at very bad time. “11 per cent of the population are part of an unemployed family. 40 per cent of unemployed live below the poverty line. 80 per cent of those on benefits and 25 per cent of pensioners also live below the poverty line,” she said.
Comparing figures for last year with those at present, Ms Coleiro said that food prices had risen by one per cent, alcohol and tobacco by 10 per cent, housing and rental by four per cent, water and electricity by 0.4 per cent, home appliances by one per cent, transport and communications by 1.5 per cent, medicinals by seven per cent and education by two per cent.
Ms Coleiro said these price increases did not include an increase in the price of fuel, the increase in Gozo Channel tariffs or the new telephone charges.