Alfred Sant said yesterday that the economic expansion which the country needed, of between four and six per cent each year in real terms, was being hindered by the problems besetting the internal market. People’s spending power was being weakened because of price increases.

This problem was not being dealt with properly by the government and the result was that people had less money to spend, the Labour leader said. This in turn affected retail sales. He was speaking during a visit to Zejtun market.

Dr Sant said there was imported inflation but this did not explain the rate at which prices were going up in sectors such as food, clothes, educational products and services, and medicines. The country badly needed a consumer protection system which would also serve traders and which would ensure that price movements would be explained and, where they were not justified, action would be taken.

Such a measure was even more necessary because the country was on the eve of a currency change, with the introduction of the euro. Dr Sant again urged the government to consider calling an urgent meeting of the Malta Council for Economic and Social Development to discuss the cost of living and the weakening of people’s purchasing power. He said he had made the proposal last Sunday and though various sectors had agreed with it, there had been no official reaction.