'Unexpected burdens' due to higher oil prices

The rising cost of oil is putting unexpected burdens on Malta and the government needs to take the necessary steps, Prime Minister Lawrence Gonzi said.

In less than a year the price of oil has doubled to $54 per barrel and the price hike has led to a Lm7 million increase in Enemalta's burden while that of Air Malta is expected to hit Lm5 million. Dr Gonzi said the government needed to study the situation since it did not want to allow the problem to overwhelm the country's economy and have a negative impact on the public.

Speaking during the Pensioners' Association of the Nationalist Party (APAN) annual general meeting, Dr Gonzi said former Prime Minister Alfred Sant had introduced a Lm48 tax on the electricity meter and increased rates even though the price of oil was on the decline. In fact, he said, in 1996 this stood at $21 per barrel, in 1997 it dropped to $19 and in 1998 it fell to $12. However, he said, Dr Sant had still introduced the new tax and raised the water and electricity bills in an "exaggerated" way.

Dr Gonzi said that since 1999 oil prices kept rising to the record level of today, which was posing a burden on the world economy, including that of Malta. He said this situation needed to be addressed before it became a crisis.

The Prime Minister said the government was preparing for the upcoming budget, which would be a serious one, giving priority to the economy, education and the environment.

Addressing the elderly, the Prime Minister said the Nationalist Party wanted to see active elderly people, who live a good-quality life, in every sector of society. He said the elderly still had contributions to make for there to be a link between different generations. Dr Gonzi said the government was investing heavily in various factors so that elderly people live a good life.

The Prime Minister said there were 8,900 elderly families who have the telecare service, 2,305 get homehelp, while 53,000 meals-on-wheels were delivered in the past year. A handyman service helps an average of 60 families per month, while more than 700 elderly people live in government homes and the government pays over Lm200 million in pensions and social benefits every year.