Issue link: https://maltatoday.uberflip.com/i/1510560
8 maltatoday | SUNDAY • 29 OCTOBER 2023 NEWS MATTHEW VELLA THE CEO of Farsons, one of Malta's largest beverage and beer producers and importers, has called out "concern- ing generalisations" made by finance minister Clyde Caruana over Malta's market being dominated by 'cartels'. Norman Aquilina said that Caruana's assertions that a lack of competition in Maltese markets were the result of car- tel behaviour between major players, appeared to tie in with other political references towards big business be- ing automatically associated with an- ti-competitive practices. He was referring to recent statements by Labour MEP Alex Agius Saliba, who asked the European Commission to probe local food importers, who he suspects are colluding to bump up food prices, with accusations of market col- lusion. "Such claims are clouding-up the dis- tinction between being dominant as op- posed to being loosely tagged as a cartel, and likewise, between making a legiti- mate profit as opposed to profiteering," said Norman Aquilina. "But why this vilification, skepticism and distrust towards big business? May- be, considering the prevailing cost of living pressures it is not too surprising to hear such populist conspiracy theo- ries." Aquilina said sweeping assertions had to be placed in a proper perspec- tive. "There is a dire need to rectify this growing obscure view of diabolical- ly depicting big business as a ruthless profiteering breed." While he said not all big business might be right or pure, it was incorrect to automatically associate big business with cartels or any form of abuse of power, he said. "Just as competition law experts will tell you, being dominant does not ren- der a business anti-competitive, it is any resultant abuse of its dominant position that would," Aquilina said. "Many big businesses remain exem- plary in their ways of working and val- ues they uphold and practice. Even if realistically size remains a considera- tion of influence, it certainly does not determine the legitimacy or otherwise of a business. It is how it operates, sets and attains its corporate goals that dis- tinguishes on which side of the fence a business stands." Finance minister Clyde Caruana, who on Monday presents his Budget to the House of Representatives, told a Times of Malta business breakfast that compe- tition in Malta was based on oligopolies which he dubbed 'cartels'. "If you had to look at each and every sector, the providers and suppliers are at best three or four. Whether it's bank- ing, telephony, whatever – it's made up of cartels, there aren't too many suppli- ers," the minister said. Cartels are illegal, anti-competitive ar- rangements between two or more inde- pendent operators that seek to control supply or prices, by fixing prices, or cap the supply of goods to the market. Caruana implied that cartels thrive in smaller markets, where it is easier to seize a commanding share of a market. "When you have markets which are small, intrinsically there's going to be a problem with respect to competition. We see it in all markets and it's very dif- ficult to address that," he said. Caruana said that Malta's problems with price inflation was also down to "an element of greed inflation. Even ECB president Lagarde said there are signs of that across member states, so we don't stand out," the minister said. "Given that competition is what it is in our market, one would expect a higher degree of such elements." MATTHEW VELLA MALTA is hosting the Ukraine Peace Forum on request of Ukrainian president Volodymyr Zelenskyy, a two-day forum that takes place over the course of Sat- urday and Sunday. Malta is represented by foreign minister Ian Borg as well as the prime minister's head of secretari- at, Glenn Micallef. Borg pledged Malta's support to- wards Ukraine's sovereign rights and its territorial integrity after an invasion in February 2022 by Russian military forces along its border and the long-occupied Donbass regions. "Malta believes in multilateral- ism within international law and the United Nations' Charter. Even as a neutral state, we can never not condemn injustice, atrocities or the abuse of power… we are at the frontline of those who condemn this aggression," Borg said of the Russian aggression in Ukraine. Over 60 delegations are partic- ipating in the peace forum, Borg said, describing it as a sign of trust in Malta's role as a bridge for peace. "This is a unique oppor- tunity to analyse the work done over the 10-point peace plan from President Zelenskyy and the work needed to follow up on it." National Security Advisers from around 65 countries gathered in Malta for the weekend meeting to discuss Zelenskyy's peace formula for ending the war with Russia. It is the third such meeting this year after smaller ones in Jeddah and Copenhagen but Russia is not in- volved. The 10-point peace plan in- cludes calls for the restoration of Ukraine's territorial integrity, withdrawal of Russian troops, protection of food and energy supplies, nuclear safety and the release of all prisoners. The meeting is being held be- hind closed doors, but officials said it was hoped it would lead to agreement to hold a global peace summit later this year. The talks will help gauge Ukraine and the West's ability to drum up continued and broader support, particularly in the Global South, as the conflict in Israel dominates headlines, moving the focus from Kyiv. Moscow last week criticised Malta for hosting it, describing it as an anti-Russia event that would be counter-productive. Farsons CEO takes issue with finance minister's 'cartel' stab at big business Over 60 delegations hosted in Malta for Ukraine peace forum meeting Ian Borg greets security advisors at the Ukraine Peace Forum National Security Advisers from around 65 countries gathered in Malta for the weekend meeting to discuss Volodymyr Zelenskyy's peace formula for ending the war with Russia