The Prime Minister yesterday again referred to the soaring prices of oil and their effect on economies world wide, warning that electricity prices needed to be revised.

Speaking during a public discussion in Nadur, Lawrence Gonzi said that if the situation remained the same, Enemalta would next year make a loss of Lm19 million.

With oil prices at record highs of $55 per barrel, Dr Gonzi said the indications were of further increases in the next few months, possibly reaching the $60 mark.

The Prime Minister explained that because China was doing so well economically, it was soaking up a large amount of the world's oil production, which was causing lack of availability for other countries. The situation in Iraq was not helping either, while other problems contributing to the oil crisis were the Russian government's dispute with oil production company Yukos, and instability in Venezuela and Nigeria.

While the price of oil was fluctuating, the government had decided to carry the burden of the increase, but with prices of over $50 per barrel and the prospect of further rises, this was no longer an option, he said.

The Prime Minister reminded his audience that during the last Labour legislature, then Prime Minister Alfred Sant had introduced a Lm48 tax on every electricity meter, and also increased the electricity rates. Ironically, he said, at that time the price of oil was $12 per barrel, less than a quarter of the current price.

Dr Gonzi said the country was doing well and moving ahead, and decisions with regard to the effects of the price of oil had to be taken so that Malta could continue to do so.

On another positive note, he expressed the pride he said he felt last week at seeing St John's Co-Cathedral and Ta' Pinu church in Gozo packed with clergy from all over the world, here for the five-day International Congress for Priests. He said a priest from Poland expressed his pleasure that Malta had managed to maintain its values, while a priest from Alaska mentioned what a beautiful island Gozo was.

"Our country is already doing well, but we cannot fail to address our problems," he said, adding that the government was already addressing the challenges.

With regard to the next budget, Dr Gonzi said this would mainly revolve around the economy, education and the environment.

Gozo Minister Giovanna Debono spoke about developments in Gozo. In recent years the ministry had started to do a lot of work to modernise various schools. Some schools, she said, needed numerous and essential modifications, such as the Qala school where there had been no circuit breaker.

Another achievement was the opening of two centres of the Malta College for Arts, Science and Technology, while on Wednesday video conferencing facilities would come on line, allowing Gozitan university students to listen to lectures being given in Malta.

With regard to health, the minister said the government had invested in improving the Gozo General Hospital. As for the environment, the Qortin landfill had been closed down and other issues addressed.

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