Watch: Stabbiltà Food Cost Reduction Scheme Will Soon End, Robert Abela Confirms
A national food price-cutting scheme has served its purpose and will not be renewed, Robert Abela confirmed last night.
Launched last February for a nine-month period, the Stabbiltà initiative saw food importers and retailers agree to reduce the recommended retail price (RRP) of 15 basic food items by 15% and to shoulder the difference between them.
It impacted products such as minced beef, cream crackers, frozen chicken, frozen vegetables, long-life milk, chips, coffee, and pasta.
However, Abela said that Stabbiltà won’t be renewed in the upcoming Budget as the national inflation rate has now dropped to an acceptable percentage (it stood at 2.4% in August).
“Food importers and supermarket owners were very reasonable during negotiations,” Abela said. “We explained to them that the government had helped them out during the pandemic and through energy subsidies and that the time had come for them to give a bit back too. Ultimately, it was in their best interests too because it would keep consumer confluence high.”
“They understood our position and cooperated with us now, but the scheme reached its target before we anticipated it would. It doesn’t mean that if, God forbid, the inflation phenomenon, raises its head so cruelly again, we won’t act again, because we don’t believe in austerity as a point of principle.”
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