PRICE ceilings on bread, milk, water, and other basics could be on the cards after the EU gave “tacit approval” for such a move, Commerce Minister Antonis Pascahalides said yesterday.
“There are many shops and a lot of room for competition [in Cyprus] but it appears that in comparison to other EU states we are one of the most expensive [countries] and that is totally unacceptable,” said Paschalides. ‘It is therefore necessary that we enforce stronger measures.”
Consumers have been hit with a wave of price increases as a result of global hikes and the imposition on Monday this week of 5.0 per cent VAT on foodstuffs and medicines. Animal farmers also announced that pork would be going up 35 cents a kilo, which reports said had already prompted a €1 increase on the price of a pitta of souvlaki.
Paschalides said moves such as this were incomprehensible. He questioned how an increase of a few cents on the price of a kilo of meat would warrant such a rise.
“There are many souvlaki restaurants and consumers who can make their own decisions,” he said, urging consumers for the umpteenth time to “vote with their feet”.
A ceiling on basic foodstuff was however now a necessity, Paschalides said.
“The European Union has given us the silent approval to set maximum prices for basic goods. The legal proposal has also been approved and I am due to present it to the ministers in the next cabinet meeting.”
Explaining the meaning of silent approval Paschalides said: “The European Union decides after receiving all the information to either instantly approve a proposal or approve it as long as there are no objections from other member states within a given timeframe. There have been no objections to the proposal in the timeframe by other member states so therefore we have been given silent approval.”
The minister went on to express his wish that the other political parties would fully support his proposal.
‘The issue is on track for a positive outcome that will be to the benefit of the consumer,” said Paschalides.
He said the first items to have a maximum price set would be milk, bread and water. “But there is a provision in the bill, which will offer the opportunity if and when, to add to this list,” he said.
Paschalides was also quizzed about reported abuses by vendors during the implementation of the new VAT charge on Monday.
He suggested consumers who felt they had legitimate complaints to contact his ministry’s consumer protection service.
