The Chamber of Small and Medium Enterprises (GRTU) and the Unjoni Haddiema Maghqudin (UHM), in the presence of Parliamentary Secretary Tonio Fenech, signed an anti-abuse protocol agreement yesterday that will help increase consumers’ confidence, once Malta converts to the euro.

Mr Fenech explained that the protocol was a consumer confidence mechanism, especially in the light of the forthcoming euro changeover on 1 January, and added that he was very satisfied that organisations, apart from the government, were pushing for the change.

The UHM initiated a price monitoring exercise last January – a project the union was awarded after placing a bid in a public tender, he said.

Mr Fenech said that inflation possibly went up from one month to another but not to such an extent that it caused unusual price changes.

“The role of the UHM is not to determine inflation but to see if there is an unnatural rise in the price of products and services. They will have to see if someone is trying to take advantage of the euro changeover,” he said.

Through a system of mystery shoppers, the UHM will monitor the prices of the 200 or so products and services that are most commonly used in the country.

If the UHM finds an unusual increase in price that cannot be explained, then a complaint will be registered before a committee.

Mr Fenech explained that the committee would be comprised of a representative from the GRTU and the UHM and would be chaired by a government representative.

“Reporting possible abuses is not enough – we need to be proactive and help the consumer feel confident and understand that the euro changeover is a change for the better,” said Mr Fenech.

The parliamentary secretary said that consumers must not hold back from buying out of fear because there were several mechanisms in place, including this one, which would help the system.

So far, he added, 33 complaints have been registered through the help line 154. Ten of these were subject to a detailed investigation – of which three had already cooperated and seven were being followed up.

UHM secretary-general Gejtu Vella said the euro was an

excellent opportunity for Malta and the UHM had always wanted to participate in this change.

The UHM would continue monitoring the prices until the euro changeover took place, he said, and the system would help

create more transparency.

He explained that the mystery shoppers were already at work, against receipt, to ensure that abuse did not take place.

Every two months, said Mr Vella, the UHM will publish the information it has gathered.

However, he added, even though the changeover will take place close to the general election, it was important to separate the two and not politicise the changeover.

GRTU director-general Vince Farrugia said that, this year, the GRTU had taken the opportunity to counter the impression that shop owners would automatically raise prices because the euro would soon be introduced.

In his concluding remarks, Mr Fenech pointed out that dual pricing would be obligatory as from 10 July and said that he was very satisfied with the retailers’ response to the Fair-pricing Agreements In Retailing (FAIR) scheme.

He reminded those who were still interested in joining the scheme that they could do so until the end of September.

“However, as from 10 July, the terms and conditions of the legal notice on dual pricing will come into effect,” he said.

The National Euro Changeover Committee (NECC) is working on a pricing model that would give a new price structure to

minimise the impact of the changeover for consumers, said NECC official Alan Camilleri.

For example, said Mr Camilleri, the NECC was working with major cigarette companies so that dual pricing stickers would be placed on cigarette vending machines explaining the changeover.

“Obviously, as can be seen in this case, cigarette machines will not accept one euro cent. The stickers will clearly explain that while the price of cigarettes in euros is ‘rounded up’ there will be certain items that will cost a bit less and others a bit more. However, don’t forget that we are talking about euro cents here, ie about three Maltese mils,” said Mr Camilleri.