AS POLITICIANS bickered yesterday over the existence or not of high prices and profiteering, consumer rights groups voiced concern over the lack of regulation in the market.
“There are no extreme phenomena of high prices, rather, there are extreme phenomena of populism,” declared AKEL deputy Stavros Evagorou after a session of the House Commerce Committee.
Citing data from the governmental department of statistics, Evagorou went on to say that Cyprus is ranked 18 in the EU terms of consumer goods prices – meaning 17 other countries are more expensive.
DISY’s Lefteris Christoforou could not disagree more: “This government never got wind of the economic crisis, so I don’t expect them to get wind of the high prices,” he quipped.
Attending the committee – which debated the issue of high prices, profiteering and collusion among suppliers — were the chairman of the Commission for the Protection of Competition (CPC), the Finance Minister, delegates of industrial unions KEVE and OEV, and consumer rights groups.
The government has put in a request to Brussels for permission to set temporary price caps on the three basic items, milk, bread and water. The move followed announcements by retailers of imminent hikes for these as well as poultry as a result of rising grain prices.
The competition watchdog meanwhile is wrapping up a major probe into a possible milk cartel operating between 2005 and 2007.
For obvious reasons CPC Chairman Costakis Christoforou declined to disclose any details about the investigation.
“I will be very glad if the probe’s conclusions are out by the end of the year,” he told newsmen.
The actual report, containing specific accusations of collusion among milk suppliers, is all but ready. But by law the interested parties are allowed one month to make remarks and answer the charges, after which the competition watchdog writes up its conclusions.
“I am neither the market police to issue on-the-spot fines, nor do I serve fast food,” Christoforou said in response to persistent questions on when the probe would conclude.
Due to the sheer volume of information, investigations by the CPC usually take months, if not years to complete. Now, deputies want to create a new body that is faster, more efficient and one that is dedicated to the protection of consumers.
A legislative proposal is being discussed at committee level for the establishment of a Consumer Protection Commissioner, envisioned as an independent body with broad powers.
Though not a new proposal, this time round its sponsors are hoping it will secure enough support to make it past the committee stage and on to the plenum.
Other than the power to issue fines on profiteers, the body might perhaps be able to order the temporary shutdown of businesses found guilty of overpricing, said EDEK MP Giorgos Varnava.
The body would comprise civil servants from four ministries (Agriculture, Health, Commerce and the Interior) who currently deal with matters pertaining to consumer rights and who would be “brought together under one roof,” said Varnava.
“Right now, consumers are unsure whom to contact when they want lodge a complaint, be it to report a spoiled product, high prices or what have you. With the new system, there will be one number to call.”
As it stands, the proposal has the backing of EDEK and DISY, while DIKO was “coming round”, Varnava said.
Loukas Aristodemou, head of the Consumers and Quality of Life Union, welcomed the creation of a dedicated consumer rights regulator, but stressed the need for it to be truly independent.
“If it turns out to be nothing more than a governmental department, then forget it, because it’s going to be susceptible to interest groups,” Aristodemou told the Mail. “A no-nonsense watchdog is what we need,” he added.
That the name-and-shame culture hasn’t taken root in Cyprus may be partly due to ‘artificial’ reasons, Aristodemou said.
“Several months ago, talking to the media, I was pointing the finger at the banks for the overdraft fees they’re charging. Since then, our union hasn’t been invited to a single television show to talk about consumer issues. Coincidence, or is it that the channels are worried about their advertising?”
In the meantime, the union is this month planning to rally consumers for a boycott of retail products and/or services to protest the “constantly rising cost of living,” Aristodemou said.
“We can’t give out any details yet, but this time it will be different,” he offered.
