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Matthew Vella
The Ministry for Competitiveness has confirmed to this newspaper that Church Schools remain subject to competition laws with regards to the provision of school uniforms and the book lists, two areas in which ‘rackets’ of exclusive arrangements with select retailers were reported to this newspaper.
The Ministry confirmed that all schools, including Church schools, are obliged to issue a tender for the provision of school uniforms, of which adequate publicity and adequate time should be allowed for all possible suppliers to submit their quotes. On the award of tenders, exclusive agreements are then normally allowed for five years.
The Commission of Fair Trading had investigated complaints against an undertaking considered to be a leading supplier of school uniforms, after investigations had revealed that heads of school were directly approaching this supplier to order new uniforms for their schools, without giving the opportunity to other suppliers to submit a quotation.
Given that the company supplying school uniforms was reacting after being directly approached by the schools themselves, with the choice of school uniforms based on colour and design rather than price, the Commission, although not finding any infringement of the Competition Act, recommended that “a transparent system be established throughout the whole process involved in awarding similar contracts” and that adequate time had to be ensured “in the analysis of these contracts to avoid a situation whereby one competes alone – which would render the concept of fair competition a farce”.
A transparent process in tenders for uniforms, the recommendation read, was in the interest of parents of the students to ensure they benefit from the most competitive prices possible since they will be allowing all suppliers to compete on an equal footing.
In respect of school books, following investigations carried out in 2002, the Commission informed the Private Schools Association that schools had to pass on their book lists to all suppliers who request them. Arrangements between individual schools and a particular bookshop, or instances where book lists are given by schools only to a particular bookshop or where recommendation is made to parents that the books are available in a particular bookshop, would not be permitted. In turn, the book list cannot indicate or recommend directly or indirectly an exclusive outlet from where the books may be purchased.
Schools can also accept a request by bookshops to put up an advert on the school notice board, so long as the schools give all those making such a request an equal opportunity. Although book lists may contain adverts of bookshops, the advert must not give the impression that the books are only available from the bookshop’s placing their advert on that list. Schools must give all those wishing to insert an advert on the booklist an equal and fair opportunity.
The Competition Act provides that restrictive agreements entered into by undertakings which distort competition constitute an infringement of legislation, and schools remain subject to the provisions of the law.
“Exclusive agreements in principle distort competition since they oblige the purchaser to buy a product only from a particular supplier… for as long as the exclusive agreement remains in force,” a ministry spokesperson said.
“The Vertical Agreements and Concerted Practices Block Exemption Regulations exempt amongst other agreements or practices and all exclusive purchasing or distribution agreements which are drawn up in line with these regulations. This means that not all exclusive agreements infringe the law.”
The Office for Fair Competition said it would take the necessary action provided for under the Competition Act if it results that infringements in this sector are taking place.
matthew@newsworksltd.com
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