A step or a quantum leap?

At the end of last year, a Bill to set up the Malta Competition and Consumer Affairs Authority (MCCAA) was issued. Unfortunately, there was very little public discussion about the new structure that is being proposed. The reason is that public attention was dominated by competition issues which, if anything, made consumers more conscious of the need that something quite urgent and radical needs to be done in this area.

Basically, the Bill is setting up a new authority through the amalgamation of two basic entities, the Consumer and Competition Division and the Malta Standards Authority. The new MCCA will have four main Directorates – Competition, Consumer Affairs, Standards and Metrology – four important strands for consumer protection. Thus MCCAA ought to act independently of the government of the day and provide a structure where the above-mentioned four strands interact to create a new synergy.

The Bill follows the traditional pattern where Ministerial powers, in our opinion, are excessive. On the other hand, the structure is innovative in that the powers of the four directors general to act independently of each other and of the Chairman are great. These are two points of concern to the Ghaqda as we want a structure which, though following the policy of the government of the day, should act proactively in all those areas where consumer interest is at stake and should provide holistic solutions. On the other hand, the Bill seems to address the issue of transparency quite well.

We believe that this occasion provides an opportunity which should not be missed. The time is ripe for radical changes in this area. The recent issues of petrol stations, distribution of gas and the abrupt changes in the tv channels offered all point out that consumers want and need change in this area. They are fed up with the usual half baked solutions worked out behind doors which all they succeed in doing is avert a conflict through maintaining the status quo to the advantage of the operators and at a higher cost to consumers either through higher prices or taxes.

In this spirit the Ghaqda is proposing that:

· the MCCAA should be continuously supervised through a House Committee where it will have to justify publicly its action or inaction both on achieving its yearly targets and on issues which arise;

· the Chairman together with the DGs will have to be approved by this Committee after satisfying it that they have the vision, ability and consumer interest at heart;

· reduced ministerial powers especially in the MCCAA internal operations;

· the MCCAA should be obliged to co-ordinate with other authorities especially those which deal with consumer services;

· its role should include the supervision of public services;

· more effective and equitable penalties and compensation which reflect today’s reality;

· a radical change in the personnel. Civil servants may occupy such posts initially but then they must decide either to revert back to the civil service or become employed by the MCCA to eliminate any conflict of interest that they might have to protect their career progression;

· the changes to the present Competition Act should focus on substantial and not procedural issues. If anything, the recent issues which cropped up recently indicate this need. The changes must take into cognizance the recent worldwide emphasis that competition law should be directed to ensure that competition must result in direct tangible benefits to consumers.

We believe that the Bill is a step in the right direction. But even the setting up of the Consumer Affairs Department in 1994 was such a step and it took 16 years to change it to an authority, a proposal of the Ghaqda back then. If we were bold then, we would be far ahead from where we are now. We believe that this occasion presents such a challenge – shall we follow the usual line and achieve a step in the right direction or shall we be bold and take radical action and achieve a quantum leap towards more tangible consumer welfare, something that local consumers are yearning for?

The article was published in the Times of Malta on the 13^th January 2011.