MaltaToday | 6 July 2008 | Keeping the market dead

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NEWS | Sunday, 6 July 2008

Keeping the market dead

Too few people die in Malta to justify hearse liberalisation, association claims. By James Debono

The 12 motor hearse operators in Malta want to keep their restricted monopoly on the market, claiming that since only seven people die every day in Malta, there is no point in opening up their restricted market to new entrants without risking the financial ruin of those already operating.
But while motor hearses enjoy full protection from any new competition, no monopoly exists for the actual grave diggers who currently number around 50: even if both categories are subject to the same laws of demand and supply dictated by the market.
The Motor Hearses Association claims that the government has had a change of heart following the election, after minister Austin Gatt replaced his more complacent predecessor Jesmond Mugliett.
The association says it was were informed in a meeting that transport minister Austin Gatt is going to propose, at Cabinet level, the liberalisation of the motor hearses sector.
When contacted by MaltaToday the ministry denied that any decision has been taken in this regard.
Speaking to MaltaToday, Adrian Camilleri the legal counsel for the Motor Hearses Association, criticised the way the government is handling the issue. “As licensed operators working in this field for the last 50 to 60 years, the members of the association feel that it would be more appropriate if government consults the key players in this sector prior to taking any such important decision affecting their future.”
They also claim that a few months ago when Jesmond Mugliett was still transport minister “a written agreement was being discussed whereby, amongst many other things, the Malta Transport Authority would not issue further licences in this sector.”
They even refer to a previous Cabinet decision not to issue licences to operate hearses should the market not be able to support more operators. “The Association was, therefore, taken aback when they recently got to know about the proposal to liberalise the market and cannot understand this sudden change in policy.”
The association justifies restricting the market to just 12 individuals. “Currently six to seven people die daily in Malta and Gozo together, and there are currently 12 licences and consequently the liberalisation of the market would have disastrous consequences on the work of the members of the association.”
Camilleri said the operators have entered into a number of financial commitments so as to reach the standards set by the European Union regulations. “The government is not being obliged to liberalise this sector by European Union rules. This action is simply a change in policy which in the opinion of the members of the Association is a rash and wrong decision.”

jdebono@mediatoday.com.mt


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