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Matthew Vella
The GRTU are back on board the National Euro Changeover Committee (NECC) after storming off the committee over accusations that not enough consultation was taking place in the committee.
The reconciliatory agreement acknowledged that the government and the NECC always “engaged into a collaborative relationship all the business sector stakeholders” through the provision of technical and practical assistance to help them manage their changeover preparations “adequately and in due time”.
The agreement also states that while the replacement of cash registers is not necessary for euro-changeover purposes, government agreed to devise a tax-credit scheme for traders who decide to replace their cash registers by the end-2007.
On Monday the government and the GRTU signed a declaration of principles committing financial resources by all parties concerned to support the small business sector for a successful changeover. In a Memorandum of Understanding signed by the Parliamentary Secretary for Finance Tonio Fenech and the GRTU director-general Vince Farrugia, the two sides agreed that the euro changeover process required efforts by both government and the retail and service provision sector and that such efforts should be directed to ensure a non-inflationary impact and a smooth transition for the benefit of the general public.
The joint declaration, in which the GRTU and the government have stated that the introduction of the euro is in the country’s best interest and that all efforts should be employed to ensure that the euro is adopted as planned on January 1, 2008, will formally see the GRTU taking its place back in the NECC after a brief interruption.
The agreement acknowledges that changeover will require efforts by both government and the retail and service provision sector and that all such efforts should be directed to ensure a non-inflationary impact and a smooth transition for the benefit of the general public.
The two sides recognised that the critical issue in relation to pricing is one of transparency. While changes in prices might be necessary for commercial reasons, both parties agree that increasing prices for the sole reason that a currency changeover is taking place is not acceptable since it undermines consumer confidence in the changeover process.
As from July 1 2007, businesses will be required to display prices in both Lm and euro either directly, or where the circumstances so justify, through the provision of alternative forms of dual display including the provision of standard conversion charts.
The two sides also agreed on the setting up of euro-centres in the villages squares for the period December 2007 – January 2008. The VAT lottery will be amended to include the need for consumers to start converting the total amount of the receipt in euro (unless dual displayed correctly) prior to submission.
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