Fuel Stations to strike for another 4 days

| Mon, 02/12/2007 - 05:37

Fuel station operators said on Friday they would step up their battle against government plans to deregulate their sector with a potentially crippling four-day strike.

The operators, who have just finished a two-day strike, said they would close up shop from February 27 through to March 2.

Industry Minister Pierluigi Bersani is to open talks with union representatives next Wednesday in a bid to ease the protests.

The operators are furious at plans to allow shopping centres and supermarkets to sell petrol, the abolition of rules establishing minimum distances between petrol stations and the extension of opening hours.

They say the changes could force them out of business and have called a total of 14 days of strikes.

According to union chiefs, some 90% of operators took part in the first strike on Wednesday and Thursday of this week.

But consumer groups disputed the figures.

They said the stoppage was a failure with only 38.5% of motorway petrol stations taking part.

Bersani, the architect of the decree, has said protests are inevitable but that the government will stick to its guns.

Representatives of the operators said on Friday that they remained dubious over the possibility of an accord with Bersani.

"The government says the bill cannot be modified but how can it expect us to quietly accept a reform which will place us at the mercy of the petrol industry and organised retail chains against whom we don't stand a chance," they said.

"The government says it wants to liberalise the sector without penalising the operators but we don't see how that's possible," they said.

PRODI AND CONSUMER GROUPS HAIL DECREE.

The wide-ranging decree was approved by the government towards the end of January with immediate effect.

The reforms include streamlining business start-up rules, liberalising the opening hours of small businesses, abolishing certain mobile phone and bank charges and allowing supermarket chains to sell petrol and newspapers.

The measures follow a first deregulation package approved in July aimed at ending anti-competitive practices in several protected fields. These measures affected lawyers, notaries, pharmacists, taxi drivers, banks and car insurers.

Centre-left Premier Romano Prodi said the new decree would further the government's goal of boosting competition and bringing down prices to the benefit of the consumer.

"Italy has been freed," enthused the premier, who unseated his rival Silvio Berlusconi in last April's general election.

Consumer groups also hailed the decree, saying it would save families an average 550 euros per year and some households as much as 1,330 euros.

Consumer association Adusbef said families would save some 100 euros alone in car petrol bills.

But protests were immediate, from fuel station operators to newspaper kiosk owners, who said plans to allow supermarkets and other big retailers to sell papers and magazines as well as the abolition of minimum distances between newspaper stands would destroy their business.

There has been little comment as yet from mobile phone operators, who must now stop charging customers for recharging their phones.

Some operators charge a standard five euros for a recharge of up to 150 euros. Mobile phone companies raked in an extra 1.7 billion euros in 2005 from recharge fees.

The Antitrust Authority condemned the practice in November, noting that Italy was the only country in Europe where such charges were applied.

Mobile phone operators will also be required to stop selling prepaid cards which expire.

Other measures in the decree include the abolition of extra bank charges on overdrafts; more advantageous terms for mortgage holders; the elimination of some of the red tape for people opening up small businesses particularly hairdressers, barbers, beauticians and driving instructors; greater transparency in airfare advertising; a requirement for public services to accept payment using credit and banking cards; and clearer expiry dates on food products.

The decree will make it easier for motorists to take out car insurance or sell their vehicles, and allows them to use personalised number plates.

It also provides tax breaks for individuals, businesses and non-profit organisations who give money to job-training institutes, and forces the Post Office to compensate customers if post is late or goes missing.

Although the decree has already come into effect, it must now be approved by parliament to prevent it lapsing.

Consumer groups say they hope it will not be watered down in parliament as protests gather pace.

The government was forced to ease some of the terms of its previous deregulation package after violent protests from taxi drivers among others.

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