This morning 10 out of 15 middlemen were refused entry to the pitkali vegetable market at Ta’ Qali after they did not submit a bank guarantee in line with new regulations.
A new financial requirement, introduced through a legal notice last December, orders the middlemen to pay 10 per cent of the annual turnover of the previous year.
Only the five middleman who paid the bank guarantee are being allowed to operate, while those who didn't, arguing that the land they have paid rent for is now occupied by others, were not allowed in.
On 27 March, the Pitkala Association filed a judicial protest against the requirement but the court ruled against it.
Two days ago, the middlemen received a letter from the government notifying them that if they do not pay the bank guarantee by 24 April, their operations will be halted with immediate effect.
In Attard this morning, lawyer Adrian Delia insisted that the pitkal never buys or sells for himself, nor does he make profit. He simply takes care of the auction, finds the best price for the farmers' products and is paid through a fixed commission.
"Why is the government insisting that the pitkal should guarantee payment of third parties? This requirement is changing the conditions of their licence, and is placing unbearable weight on the pitkala, which might essentially cost them their living," Dr Delia said.
"If the government wants to guarantee that farmers are paid, as it should, then it should acknowledge that it is the hawker that is buying and paying, and therefore hawkers should be asked for a bank guarantee not pitkala. Otherwise, why not impose that hawkers need to pay in cash?" he continued.
In court, the government insisted that the bank guarantee is needed to make sure that farmers are paid on time for their produce.
Government says Pitkalija operations not affected
In a statement the government said operations at the Pitkalija had not been affected. “Eight middlemen were not allowed to operate this morning for not renewing their licences according to the rules established by law, which include the requirement to pay a bank guarantee.”
The government said the eight pitkala had failed to renew their licenses, which expired at the end of 2014. It reminded that a court this week turned down a request for prohibitory injunction filed by the pitkala, in which they had presented the same arguments they presented this morning. The courts’ had proven the government right.
The government said the middlemen’s title is bound to a valid license and is automatically revoked if the license is not renewed. “A substantial number of pitkala chose to observe the law and paid the bank guarantee. For this reason operations at the Pitkalija were not affected – farmers were served nonetheless and none of their produce was wasted.”
The government explained that the bank guarantee was established for cases where payments to farmers fall behind schedule. This has happened in the past and keeps happening. “The government is willing to discuss with all sides but cannot accept breaches of the law. It is also committed to continue with the Pitkalija reform in order to ensure transparency and accountability to farmers, consumers and the middlemen themselves.”
PN says consultation is the only way forward
In a statment, the PN said that it is evident that there is no agreement between the pitkala and the government, and lack of consultation has lead to the incidents reported this morning.
The best stolution would only be found following discussion involving all stakeholders. Any decisions however should not be made to the detriment of farmers, who should also be paid on time. Consultations will lead to agreements for the benefit of all – be it the farmer, middlmen, hawkers and consumers.
Video: Jonathan Borg