The implementation of the "household basket" is postponed to 2023, with all parties agreeing to its implementation, but stressing that it is a transparency measure and not an anti-inflation measure. The measure was discussed ex officio on Tuesday in the Energy, Trade, Industry and Tourism Committee.
The Chairman of the Committee, MP of DISY, Kyriakos Hatzigiannis in his statements after the meeting, said that after an ex-officio examination by the Commerce Committee of the House of Representatives, an update was made on the government's intentions as to what it intends to submit under the title "the household basket".
He noted that it is a method which contributes to enhancing transparency in the market "and will in no way be about direct or indirect interference in the way the market operates". "That is why we welcome this policy. With or without inflation, these tools should be built," he said."
"However, we identify the need for much more consultation to make mechanisms comprehensive. So, it is absolutely in the right direction, hence all the guests have given their support and expressed their support," he said.
He noted that the transparency mechanism is the one by which too many people check themselves "and we prevent such behaviours that result in some exploitative, obscene and unjustified charges to the detriment of consumers."
But he stressed that this measure "is not the be-all and end-all" that will lead to tackling inflation. "Because we also hear proposals which at the end of the day, with good intentions, lead to inflationary tendencies. When we say we are improving incomes through ATA, when ATA boosts demand, prices rise. Some people who don't get ATA pay increased prices because we boosted demand through correcting incomes. These issues are good for everyone to raise on the basis of economic science," he stressed.
Asked about when it is expected to be implemented, he replied "I estimate that with the opening of Parliament it should be before our Committee. We will, as always, summarily and with in-depth discussion if and when it needs strengthening. I think that in March it can be approved."
For his part, AKEL MP Kostas Kostas said that "we do not disagree that this effort should go ahead. But if it is to go ahead, it should go ahead immediately and properly. Give transparency and choice to people to choose their products, but do it properly. But what people want in these difficult times when they are struggling to provide for their families is substantial measures, not half-measures that come two days before the elections."
[/P]He also stressed that if what will be applied in Greece will be applied, "we must say that in Greece there are serious complaints, serious objections, from the Consumer Associations themselves."
Kostas recalled that in 2011, when the price of oil was rising internationally and in Cyprus, those who produce milk and bread came to Parliament and said that the price of their products should definitely be increased. It was increased.
"Then the price of oil went down from 140 dollars to 25 dollars. But the prices of bread and milk have not gone down at all. Where is the consumer service to make checks on obscenity, a phenomenon that has recently reached a peak after the crisis and the war in Ukraine," he noted.
He also wondered about fuel prices, calling on the Consumer Protection Service to check whether there is obscenity on the part of fuel companies. "How is it possible, when at the beginning of June the price of oil internationally was at 115 dollars a barrel and in Cyprus the price of diesel was €1.87, and 25 days ago, when the price of oil internationally was at 90 dollars a barrel, 25 dollars lower, the price of diesel in Cyprus was at €1.86," he wondered.
He criticised the government, saying that "they have not brought gas for electricity generation for ten years. Their fifth attempt is also being driven to abject failure. They failed to open the competitive electricity market, which should have been opened in 2014 and will not be opened in the next two years." "Where is the penetration of renewables in the electricity balance, so that we can manage to give people cheap electricity? This year people will pay 220 million in their electricity bills for pollutants and today the government told us that the government is considering the household basket."
In a statement after discussing the issue in committee, DIKO MP Chrysis Pantelidis said that as a "Democratic Party we support the household basket initiative." He noted that it is an initiative of transparency and better information for consumers and not any move of state intervention in the market. "Any consumer transparency and information initiative[/B] is moving in the right direction, as it facilitates price comparison and the ability of citizens to choose the cheapest products and at the same time enhances the building of healthy competition, which also benefits consumers," he said.
"We understand that the implementation of the measure is postponed to 2023 and we assure that as DIKO we will work for effective, successful implementation as soon as possible," he added.
In response to a question, he said that the ideal would be for the measure to be implemented immediately. "But we also want to be realistic. For this measure to be properly implemented, we also need a public dialogue between the parties involved, because we must not forget that the voluntary participation of supermarkets is necessary. Nothing can be imposed, as this would constitute state interference," he said. He added that technical preparation is also required at the same time because this is an online platform that every consumer can access.
"So it would be ideal to be implemented immediately, but we understand that it should take some time, because it is much more important to implement it correctly and effectively, rather than hastily, not succeeding and losing this opportunity," he concluded.
The MP of the EPP, Elias Mirianthous, said that "certainly the fact that the effort has started is in the right direction. But the fact that we are still stalling the process to complete this issue is something we are opposed to."
He added that there should be an organized collective effort, which should really reach out to those in need. "The fact that in Greece there is opposition to its implementation, which is shown through polls that 46% of people do not find that it is structured in a way that could facilitate the low income groups, this should give us a special attention on how it can be set up."
"Nevertheless, we believe that we could start this effort, including products that are produced in the Cypriot market. Essential products which could in the first instance be included in this basket, so that people are aware of it so that they can deal with the problems accurately," he added.
Myrianthous noted that at the same time several other synergies should be made "to really push inflation down, for example, we should look at targeting zero VAT on some essential goods."
"Beyond that, and contract farming, that is a farmer-consumer agreement, which would really cut out the middlemen and here too could give a breathing space to lower prices. There are solutions, simple ones, but the essence is to have the will on all sides to touch the issue as quickly and substantially as possible," he concluded.
For his part, DPA-Cooperation MP Michalis Yiakoumi said in a statement that "the wages of our fellow citizens are not enough even for the basic necessities." The regulation of the household basket, he said, should include the promotion of Cypriot products, support for small producers and the promotion of their products, as well as support for small neighbourhood groceries, "in order to avoid any possible exploitation of the dominant position of large supermarkets," he noted.
"We expect the state to step forward and support our vulnerable fellow citizens as soon as possible, as the holidays are approaching and the prices of products for the festive table remain extremely high," he concluded.
Charalambos Theopeptou, President of the Citizens' Ecological Co-operation Movement[/B], said that the basket "is a good idea. But it's not enough." He noted that we need to see what the rest of the world is doing to reduce household expenses.
"The lessons they're doing in schools to teach people how to cook, the way household finances work at home, installments, shopping, the difference between buying ready-made and cooking, the fact that there are farmers' markets everywhere where you can buy directly from producers and get low prices. This helps both the consumer and the farmers," he said, adding that we need to help farmers and produce producers to sell products directly to the consumer in the shortest route, so that the consumer gets good products, the consumer gets a good price and the producer makes a good profit.
Another policy that is being implemented abroad, he said, is many small shops going into neighborhoods. "The theory is to have many small shops near me, without needing a car to load bags and do big shopping."
Finally, Theopeptou stressed that poor families have poorly designed energy-efficient homes. "Let me also remind you of the government's obligation to help people on low incomes to have a roof and not just give them a subsidy. Overseas they have housing for low-income earners," he concluded."
Source: CNA
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