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Staff Reporter IT is claimed that as many as 40 percent of small shops in some parts of Palma are now owned by foreigners, mainly Asian. Pimeco, the organisation for small shops, has reported some of the shops, alleging that they fail to comply with regulations, do not have municipal opening and operating licences, nor follow the rules in contracting staff, opening hours or emergency plans. It is also claimed that some of the products stocked in some shops have not been accredited by the consumer affairs ministry.


Pimeco says that this type of shop started as “100 peseta” or “1 euro” shops and have spread throughout Palma, from Pere Garau, where Pimeco claims there are 92 of these shops out of a total of 200, to other areas such as Calles Blanquerna, Eusebio Estada, Pascual Ribot and Es Forti, as well as the municipalities of Inca and Manacor.

A spokesman for the organisation said that these shops have a direct repercussion in the loss of sales in “traditional” businesses in the same area.
It has filed complaints with the Balearic ministry of commerce, the government representative's office, the tax office, the labour department and the consumer boards of both the Balearic government and the Palma city council to draw attention to the matter and set up inspections to guarantee that the shops comply with regulations. The chairmen of Pimeco and the business association Afedeco, Demetrio J Peña and Bartolome Servera, respectively, said that the sector defended the free installation of businesses in the Balearics, but the law had to be followed in order to prevent unfair competititon.

In addition to the “1 euro” shops, other establishments include telephone centres, shops specialising in Chinese, African, Asian and South American food and products and restaurants.

A ministry of commerce spokesman has investigated 22 establishments in the Pere Garau area, and found some were operating without a municipal opening licence.

He added that it planned to bring its shops register up to date.