Issue link: https://maltatoday.uberflip.com/i/1510993
2 maltatoday | SUNDAY • 5 NOVEMBER 2023 NEWS CLAIRVOYANT Mr TOURE a Marabout clairvoyant medium healer and Exorcist with an exceptional gift. Specialising in disenchantment, voodoo protection against dangers, couple problems return of a loved one, impotence and sexual issues whatever the nature. Court cases. Tel: +35677484511 CONTINUED FROM PAGE 1 His is a pointed observation, meant to irk those who enjoy control over sectors in which goods are imported, but also to keep them on their toes as price inflation keeps worrying households. In a comment to MaltaToday, he says he cannot understand the big deal over his comment: "This country has been under scrutiny for so much of its progress on rule of law reforms, why should we shy away from the European Com- mission's scrutiny over pricing behaviour?" The reference is to Labour MEP Alex Agius Saliba's re- quest for an EC investigation into pricing in Malta, which he illustrated with news of a mas- sive price increase on a tomato sauce product. "People seem to be mispresenting this word," Caruana says, glossing over the notion of collusive practices in the word 'cartel'. "This country has a market of 500,000 with room for only a few players – the less there are, the greater the chance of certain monopo- lies or oligopolies." Caruana says it is a typical characteristic for a small island which hosts certain industry players whose dominance al- so stretches generations back, having obtained their importing power early last century. "Yes, I do believe that prices in Malta are also what they are because of the size of our market," the finance minister says. "Certain- ly, I have no monopoly on the truth... but I say things as I see them." The CEO of Farsons, one of Malta's largest beverage and beer producers and importers, found no favour with Carua- na's observation, calling out the "concerning generalisation" of talking about Maltese markets being dominated by cartels. Norman Aquilina says Caru- ana's cartel assertions, by sug- gesting anti-competitive prac- tices, misrepresented the actions of dominant producers and im- porters in Malta. "Such claims are clouding up the distinction between being dominant as op- posed to being loosely tagged as a cartel, and likewise, between making a legitimate profit as op- posed to profiteering... But why this vilification, skepticism and distrust towards big business? Maybe, considering the prevail- ing cost of living pressures it is not too surprising to hear such populist conspiracy theories." Aquilina says being domi- nant does not render a busi- ness anti-competitive, singling out those big businesses who were exemplary in their ways of working despite their domi- nant status. "Even if realistically size remains a consideration of influence, it certainly does not determine the legitimacy or oth- erwise of a business. It is how it operates, sets and attains its corporate goals that distinguish- es on which side of the fence a business stands," Aquilina says. Pierre Pellegrini Petit, director at Attard & Co Food – another major importer of foodstuffs – thinks the government should be looking elsewhere for culprits. "In my view, the unfair com- petition may be stemming from foreign supermarkets that bene- fit from lower income tax rates due to foreign shareholding. This is an issue that the gov- ernment should investigate and address accordingly," Pellegrini Petit says of the low-cost 'hy- permarket' branches in Malta whose low tax exposure gives them a competitive edge over other imported products. Even traditional street vendors, it is said, tend to eschew local pro- ducer in favour of cheaper, im- ported fruit and veg from Sicily and Italy. But back to Caruana's com- ments, Pellegrini Petit says such blanket statements – and then by a minister – can be potential- ly detrimental. "I don't believe it to be an accurate portrayal of the current situation. The com- petition in our industry is in- tense and fierce. We constant- ly negotiate with our suppliers to lower their costs to remain competitive," he says. Even attributing the rise in food prices to profit-driven in- flation, read "greed", ignores what Pellegrini Petit says is a multitude of factors. "It is vital to distinguish between factors that market players can control and those they cannot." Attard & Co Food current- ly employs over 140 workers, a fact that has cost the com- pany an additional €50,000 in cost-of-living-adjustments in 2023 alone. Additional wage in- creases this year cost a further €50,000. And finding suitable store personnel, Pellegrini Petit adds, has been challenging. "We had no alternative to increase their wages to retain them." Now in 2024, he foresees another €100,000 in govern- ment-mandated COLA increas- es. "This doesn't even include previously agreed-upon wage increases for various person- nel. Additionally, we are facing a substantial increase in ware- house facility rent, which will double in 2024, amounting to an increase of over €200,000." Pellegrini Petit's point now dovetails with Caruana's pre- diction that COLA rises will be absorbed by company profits, rather than passed on in higher consumer prices. "We are projecting an in- crease in sales but also a sig- nificant decrease in profits for 2024. Therefore, the assertion of 'greed inflation' does not ac- curately reflect our situation," Pellegrini Petit says. Another reputable food im- porter of long standing – who insisted on anonymity – says the 'cartel' insinuations are "to- tally unfounded… we operate in an intensely competitive market environment in foods distribu- tion." He says that after commodi- ty prices peaked and eased off gently earlier in 2023, he now foresees yet more rises in early 2024. The government can re- spond – he adds – by removing any artificial hurdles and un- necessary costs that hurt con- sumers and business. One of these hurdles is the so-called Brexit duty. Not on- ly have importers had to deal with the lasting effects of the pandemic on supply chains, the effects of war on prices, or wage inflation. The "gross anomaly" from Brexit duties is passing on new costs to consumers. "The latter is saddling us with costs on consumers and busi- nesses on traditional UK food brands which, while produced in the EU are delivered from the United Kingdom," meaning, Maltese consumers and busi- ness are actually paying duty on goods of EU origin. "It is frankly shameful... it's causing artificial yet compound- ed food price inflation, imping- ing on businesses and causing pain to consumer. Clearly, the government now needs to find the political resolve in climbing over EU-imposed bureaucrat- ic requirements that followed Brexit, essentially exempting food products from import duty at a time of unprecedent surge in food prices." 'Why this vilification, skepticism and distrust towards big business?' From left: Norman Aquilina, Clyde Caruana and Pierre Pellegrini Petit