The Chamber of Small and Medium Enterprises has confirmed it has suspended its participation in the National Euro Consultative Committee because it disagreed with the way in which the committee is operating.

Speaking at a press conference, GRTU secretary-general Vince Farrugia said that the chamber met Parliamentary Secretary Tonio Fenech yesterday and informed him of the GRTU’s decision to withdraw from the NECC. Mr Fenech urged the chamber to reconsider, with the chamber replying by calling for a restructuring or re-direction of the NECC. Mr Farrugia said that the GRTU was ready to take part in NECC meetings again if the changes it proposed are implemented.

In reaction, NECC chairman Joseph F.X. Zahra expressed his surprise at the GRTU’s decision to suspend its participation in the committee on the very day that a meeting had been planned between the NECC and the private sector to address the issue of dual pricing.

Mr Zahra said that the NECC was due to inform the private sector about positive developments regarding dual pricing as well as measures to assist entrepreneurs. He said that the NECC would not be entering into any controversies as it was in everybody’s interest to have a smooth transition process to the single currency. He denied that the NECC had ignored the GRTU’s recommendations.

During the GRTU’s press conference in the morning, Mr Farrugia said that the government was departing from the European model of decision-making through consultation and was taking decisions on its own and arbitrarily. The NECC committees, he said, were being used as a front while the Executive Committee, composed of experts, took decisions behind the backs of the social partners.

“The NECC steering committees are nothing but a front, with the real decisions being taken by the experts. This is a symptom of this government’s malaise, as a similar situation is also evident in the MCESD, which has become a joke. I am making it crystal clear that the GRTU will not be used as a prodding stick and that shop-owners will not be the scapegoats for rises in prices,” he said.

Commenting on the recently published Euro Adoption Act, Mr Farrugia said that the GRTU strongly objects to empowering laws of this type in which ministers are given absolute authority. He said that the businessman cannot plan ahead with such situations, and the government is actually creating measures that will imperil the euro entry date.

He said that the Parlia-mentary Secretary seemed positive on the subject of a voluntary dual pricing scheme and had also promised to supply small business establishments with dual pricing taggers.

“The truth of the matter is that the government needs to empower the retailer and not act in a ‘nanny state’ manner, as if consumers are stupid,” he said.

Reacting to Mr Farrugia’s statements, Mr Zahra said that the Euro Adoption Act was drafted by the Finance Ministry and the Central bank at the end of January in conformity with the conditions of the Membership Treaty. He said that while the GRTU had not been represented on the committee at that time, the NECC had committed itself to a transparent consultation process on the said Act, involving all parties concerned.

Mr Zahra said that the NECC had passed a copy of the guidelines on dual pricing to the GRTU on 9 May and as yet had not received its reactions. The GRTU made sound proposals for an information campaign, he said, and these had been taken on board. The 5 April meeting, at which the communications strategy was discussed, had not been attended by the GRTU representative, said Mr Zahra.

He added that all the GRTU’s proposals had been included in the NECC’s Code of Practice for Business. This document had also been presented for consultation on 5 April, but the GRTU had not as yet expressed itself on the matter. He said that the NECC had also offered financial and technical assistance to the GRTU for the organising of information meetings for various sectors.

Commenting on the operations of the NECC, Mr Zahra said that the national interest has to be safeguarded in the process. He explained that the NECC is composed of seven sectional committees and five task forces, representing various sectors, and said that the role of the NECC is to bring together these sectors, all of which had different interests.

The GRTU’s part is important, but it must be understood that there are other sectors involved and these did not necessarily have the same interests as the GRTU, said Mr Zahra.

Denying that the NECC had ignored the GRTU’s recommendations, he said: “We always gave importance to what the GRTU said but this does not mean that all the GRTU’s proposals can be accepted.”

Commenting on the composition of the NECC Executive, he said that this was comprised of several experienced and qualified individuals from all sectors of the economy.

Appealing for a solution to be found, Mr Zahra said: “We must work together with goodwill, with the aim of facilitating a process of change which is in everyone’s interest.”