In the quickly developing war of words over the rising prices of commodities that is breaking out between the country’s political forces, the everyday consumer would not be blamed for feeling somewhat awash in the tide of conflicting information, misinformation and disinformation.
But at the end of the day, whatever the reason behind the upward spiralling of consumer prices as witnessed recently, the end result – a reduction in spending power and in the value of workers’ hard-earned euros - remains unchanged.
Momentarily putting aside arguments over whether the price hikes in gas, fuels, and milk are cases of imported or domestically-induced inflation, the political powers-that-be have a duty to the electorate to present a clear picture of the situation, and to strive for solutions, if any are indeed possible, around a common table and with one common denominator – the impact on consumers and businesses.
The opposition also has a fundamental duty to rally against any government policy that unnecessarily burdens the population, to call a spade a spade, which it is seeking to do. Yesterday it cried foul that the price hikes in question were implemented without consultation within the Malta Council for Economic and Social Development. Now whether there was indeed cause for such consultation, since the price levels of gas and fuel at least are set through established mechanisms, is beside the point.
The point is that the government should have been proactive enough to have forewarned consumers that price hikes were looming on the horizon, perhaps even before many consumers put considerable dents in their personal coffers over the Christmas season.
Our sister Sunday newspaper had reported almost three weeks ago that there were strong indications that major price hikes were envisaged in 2011 as a result of this winter’s low temperatures in much of Europe and the US that were seen pushing oil and gas prices up, while droughts and floods in Australia, Russia and Pakistan decimated grain yields and in the process threatened to push food prices ever higher.
Such events are raising commodity prices the world over but Malta, which is 100% reliant on the importation of such commodities, is hit even more so – being entirely at the mercy of international markets as it is.
That much is indisputable and there is not much this government or any other government in a similar position could do about it. But, on the other hand, if there is any government-induced element in the price hikes – such as in the case of the premature removal of the government subsidy on gas - that would have to be addressed immediately so as to cushion the blow to consumers and business.
These are the two central points on the MCESD’s table tomorrow, and these are the two central points that will need to be explained to the public in straightforward, easily-digestible language. The public’s right to the correct information on the reasons behind the price hikes as well as the forecast for at least the near future, minus the spin, is paramount - more confusion will lead to further uncertainty, which is serves no public nor economic good whatsoever.
Public sentiment when it comes to where their hard-earned salaries are going must not be used as vehicle for political mileage – the public must be levelled with and treated as the thinking individuals that they are, anything short of that constitutes a disservice to the public at large – a charge both parties have been guilty of in the past.
These are edgy times and it is in such times that a government’s approach to the matters grating on the collective consciousness will determine in many respects that behaviour of consumers and the market itself – it must not be seen, as the opposition charges, as refraining from dialogue and to do so it must make all the facts known when it has them in hand.
At the end of the day, consumers have a right to know what they will be paying and why they are paying as much as they are for essential commodities. And no spate of tit-for-tat will serve that purpose, it will only serve to further obfuscate the entire issue.
It is hoped that tomorrow’s MCESD meeting will clear up a lot of the ambiguity, and not leave matters even murkier than they were in the first place.