Acknowledging the concerns of citizens and businesses alike, as a government we have undertaken a series of proactive measures to curb inflation and create an environment conducive to sustained economic growth. The most recent initiative the government announced, in conjunction with stakeholders, revolves around food pricing stability.

Inflation shocks coming from abroad have always been the bane of small open economies like ours. Previous administrations used this as an excuse to do nothing and, in some cases, even used such foreign shocks to cover up their own mistaken decisions. We have always done the opposite. For us, a crisis is a chance to do more and better.

We did it during the pandemic, with schemes such as the wage supplement and vouchers. We did it after the spike in international commodity prices with subsidies on electricity bills and fuel, while also protecting consumers and food producers from the effects of inflation by assisting on wheat, grain and cereals.

Now we have emerged with an exciting new initiative to keep the prices of important and essential food items low and stable. An initiative that would not have come to fruition if it were not for the joint efforts of the Maltese government, represented by the ministry for the economy, food importers and retailers.

The food items that form part of this Stabbiltà campaign are ones that have in recent months been among the more susceptible to a rise in price.

The initiative, which starts today, February 1, is going to run until Budget Day, by which time it is expected that the foreign pressure on prices will have reduced heavily.

It took a lot of effort to get this initiative implemented. I can recall at least some 50 meetings with major importers and retailers in a short period of time to discuss the best way forward in a bid to persuade businesses to join in this corporate social responsibility exercise.

When the pandemic hit, we supported businesses during this wave of economic turmoil by means of the wage supplement and other support measures. Now it was time for these businesses to give something back to society and, without hesitation, I can say they gladly agreed to reciprocate.

This acceptance reflects the fact that the government is sustaining demand for these businesses in several ways, even today.

Consider, for instance, that, without the government’s intervention, the price of diesel would be €1.91 a litre like in Italy, instead of €1.21 a litre.  So, a person who currently spends €20 per week to fill their car with diesel would have to spend €32 per week. This means that, in a year, you would need to spend around €624 more from your salary on diesel.

Instead, this money is available to be spent on other goods and services.

The same applies for petrol, which in Malta is €1.34 a litre while in Italy it costs €1.94 a litre. If a person fills their car with €20 petrol per week, then, in a year, without any subsidies, they would have to spend about €468 more on petrol, instead of on other goods and services.

For us, a crisis is a chance to do more and better- Silvio Schembri

And what about electricity? Thanks to the subsidies, the average electricity bill for two people, not including the water bill, service charges and meter rental charges, is around €2,000 less per year.

The new food products’ stability measure will have a similar effect. The savings people will make on these products will generate more economic activity and, ultimately, will benefit the businesses that are participating.

By means of this new measure, consumers in Malta will be able to purchase certain food items for at least 15% less than what is referred to as the recommended retail price (RRP) as at October 31, 2023.

As the name implies, RRP is the suggested price retailers should sell the item for. The shelf price can also be found to be less than the RRP.

There will be 15 categories of food in this initiative and the list of products which will be included will be around 400 while, at the time of writing, there are well over 400 outlets participating.

We are urging smaller shop owners to participate. The more outlets participate, the more consumers are reached. Our interest is that the public, and we also mean businesses, don’t have to bear the effects of inflationary pressures.

Therefore, in the face of inflationary challenges, the government’s proactive and multifaceted approach reflects a continued commitment to ensuring economic stability and fostering an environment conducive to sustained growth.

By addressing the root causes of inflation, implementing policies and fostering collaboration with stakeholders, the government is working diligently to navigate the complexities of the economic landscape and build a more resilient and prosperous future for all.

One thing is certain. We take and will continue to take the necessary decisions, even if they are the toughest of decisions, as we have previously done.

For more information about this initiative or for businesses that would like to participate, visit www.ekonomija.gov.mt.

Participating outlets will display a Stabbiltà logo, which is the theme of the campaign.

Silvio Schembri is Minister for the Economy, Enterprise and Strategic Projects.