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Speech delivered to a seminar organised by Cittadinanza Attiva

Rome - 12 November 2000


Mr Chairperson, ladies and gentlemen,

I am the President of the Consumers’ Union of Malta in Maltese Ghaqda tal-Konsumaturi. My association was set up in April 1982. It is the only organisation in Malta. I believe that in order to put everything into perspective, one must know something about Malta. First of all Malta is a small island, about 4002 Km. It is located just below Italy around 100km away.  Since we had been a British colony up till 1964, our administrative system is very similar to that one finds there. Maltese and English are the two official languages.

These facts immediately set certain limitations and advantages. One limitation is that our market is very small and thus competition is very tough and difficult to maintain. On the other hand, one of our advantages is that distances are small and thus with one office at the capital we can still provide a service to our community at a national level. 

To understand the role we play in our society, one must understand the original role and examine the factors which moulded the present association.  Culture and the economic structure are fundamental. 

In the seventies, the consumers were not even aware of the concept of consumer and thus of their rights. This was shown by the fact that the Maltese word for consumer was "parruccan". The connotations were derived from the word “parish” - parrocca. The consumers within the area surrounding the village grocer were considered as the parishioners within the parish. The role adopted by the grocery was that of the parish priest. It was obliged to provide a good service but the parishioners had very little choice but to do as the parish priest says. Thus the concept of rights was not present.

This fitted well with one of the social characteristics of the Maltese – powerlessness. Because we had been a colony since time immemorial we had no power to change things, and thus could only vent our frustration through grumbling.

On the other hand, in Malta, as elsewhere, the economic philosophy dominant at that time dictated a strong government. The government was seen as the prime motor for economic development. Among other things, its role incorporated control of inflation or cost of living. The explosion in prices, which followed the rise in the price of crude oil in the early 1970's, brought about two-digit inflation throughout the western world. Malta was no exception.

Government intervention brought a resultant kickback from the private sector that saw the market as the perfect solution to all economic ills. Thus a polarity developed. On the one hand, the consumers believed that the government was duty bound to protect the consumers, especially with regard to pricing.  On the other hand, the private sector believed that the consumer had the upper hand whatever the market and thus there was no need for either government intervention or the existence of consumers' associations.

Such was the general environment. It certainly did not encourage the consumers to take the necessary action to defend their rights either individually or collectively.

However, as I had already pointed out, we set up shop in 1982 in the midst of this scenario. We were lucky that our predecessor, another consumer oganisation which only survived for two years, put up enough pressure to change two important things. First, it introduced the word consumer and second it convinced the government of that day to enact the first legislation.  This legislation also introduced the concept of consumer in our legislation but it also gave recognised consumer organisations the right to publish information including naming publicly commercial entities without being prosecuted for libel. The only condition was that the organisation must act in bona fide.

This meant that our organisation could take up an active role.  In fact our role can be classified as follows:

Representing the Consumers
Client Services
Education and
Acting as a pressure group


Representing the Consumers

It acts as a representative for the local consumers. We represent the local consumers on several national Boards amongst them the Consumers’ Affairs Council which is a national board whose function primarily is to advise the Minister responsible for consumer affairs on policy and legislation. We also represent consumers on other boards mainly Users’ Boards of Public Utilities.

Representation is not something easy to get. All bodies will agree that consumers are to be represented. But there is a big gap between lip service and action. Many would want to select the representative themselves. We have always insisted that the choice of the representative should be in the hands of the consumer association.

However, representation is one thing and effective representation is another. Effective representation entails dedication and effort especially from a voluntary organisation. Moreover, it requires the courage to bite the hand that feeds you. In fact this is the litmus test of effective representation.


Client Services

This service was introduced immediately after the association was set up.  Most of the association's resources and efforts go towards achieving this aim.

The association targets all the consumers but special attention has been directed towards those socially excluded. As more consumers are educated in this life skill, the association will focus its complaint handling resources towards two objectives:

Extending this service at the community level and;

Specialising in dealing holistically with the socially excluded.

This activity is directed towards achieving three objectives:

Awareness
Educating the consumer in dispute settlement;
Help the consumer attain his rights, and;
Promoting amicable settlements between the consumer and the trader.


Education

We believe that it is better to train consumers have their rights than providing a help line service which solves the consumers' complaints. That is why we publish consumer complaints and the settlements achieved. Through this method we achieve the settlement of disputes, educate the consumers about their rights, and promote the idea that consumers should be aware of the possible pitfalls and seek advice.

The use of the mass media has been the main vehicle to promote consumer education. The Consumers' Union has been the first organisation to use the media available to promote consumer education.  We were the first to use radio, television and newspapers. At first, we had problems through the economic pressure that some of the local businesses were applying.  However, up to a certain level we succeeded in overcoming this difficulty.

Through the mass media we have the opportunity to forward information about consumers' rights, information about what goes on in the local markets.  Apart from this we educate the consumers to use the available means to seek redress. But the greatest achievement is to place consumer issues and positions on the national agenda

In this respect, the media plays an important role. Members of the Consumers' Union council take an active part to bring forward the consumers' interest. The introduction of the Consumers Day, which at first was commemorated in June and later in March, helped greatly in bringing forward the consumers' agenda. Apart from this, it helped to educate the Maltese consumers about their rights.

We have a quarterly newsletter in Maltese but we try to use the other media especially since with the right contacts they can give you wide coverage.


Pressure Group

There is one function that no other organisation except an NGO can do. This is acting as a pressure group. Acting as a pressure group means promoting the interests of the consumer at every level. It means seeing that the consumers' special interest are taken into consideration when legislation is being enacted or repealed. But apart from this, being a pressure group means assessing the impact on the consumer of what is going on. Being proactive requires that an organisation be represented where decisions are taken.


Special Problems

One of the main problems is our culture.  At present, we are at the crossroads of a radical change. Our culture has adapted well to the old economic structure where the state really controlled the economy. Today we are facing a new environment – one where the market rules.

Thus, we can identify certain trends which are conflicting. We want choice but then we require the government to act as our Big Brother. We do not like to participate but we want our views to prevail. We expect things and services for free but then we are in a consumerist spree. We want new regulations but then we have a basic disregard for all regulations.

What are the future challenges for the local consumer organisation?

Our main challenges include making consumers participate in matters and organizations that should interest them. We need to instill a spirit of self-dependence and risk taking. Otherwise we will not survive in the market. As an organisation we need to develop new policies which are adequate for a market economy. Similar to being one of the first organisations promoting consumer education, the present 'Ghaqda tal-Konsumaturi' is trying to develop this topic as a life skill and not leave it as a compartmentalised subject within the curriculum. But most of all, our social commitment must direct us to inquire about the new socially excluded class and direct our efforts to give these people the opportunity to participate in the markets available.

Our main challenge is attracting the younger generation in participating in our organisation and assume leadership. Theirs is the future. They are the target group on which the new products and services are being developed. Unless they participate they will end up being passive receivers and unable to influence their future.

As an NGO, our greatest opportunity is our belief that only through collective action we can obtain new rights. Legislation is there to give us a safety net especially when markets do not operate well. Consumers must understand markets and learn to operate within them. Otherwise, they will end up as losers.

However, the main objective remains what it has been throughout time. That is, developing positions and working continuously towards ensuring that the consumers and their interests occupy a high position the country's agenda.

Three words can encapsulate Consumers' Associations' future role – INSPIRE, EMPOWER AND ACT!
 


 

 

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