11th hour appeals over oil options

The General Workers' Union has called on the government to absorb a huge chunk of the oil price hikes as the Cabinet convenes today to decide how to plug Enemalta's Lm50 million hole.

The Chamber of Small and Medium Enterprise, GRTU, contended yesterday that the planned hike does not fully respect EU directives on electricity, energy and transport, warning it would cause serious economic and commercial harm.

The government is expected to decide today on various options: raising the water and electricity bill surcharge by up to 102 per cent, increasing fuel prices or introducing new taxes as international oil prices spiral out of control. It has committed itself to sharing the burden fairly but the Prime Minister has said sacrifices are inevitable.

Most of the constituted bodies have reacted to the planned increase in the price of fuel with a chorus of disapproval.

The GWU said yesterday that it was not giving its consent to the proposed increases, warning they would hit workers and pensioners very badly.

It urged the government to inform the social partners about its plans before it introduces any measures.

"If the government goes ahead with its decision to increase the prices astronomically it will create economic problems and put a huge burden on people - the GWU cannot accept this situation."

The GWU called on the government to stop trying to use the social partners as an excuse to introduce burdens on workers and pensioners. The government will have to assume responsibility and shoulder the consequences if it continues ignoring the warnings, the union warned.

The GRTU, in the meantime, has taken the matter to the EU, saying it was not satisfied that the rights of SMEs were protected under the Electricity Directive.

It requested a Cease and Desist Order against the imposition of new electricity tariffs and any other energy charges until the authorities abide fully by their "responsibilities" under EU directives.

In a letter to EU Energy Commissioner, the GRTU expressed its concern that the government was supporting a cross-subsidisation tariff policy on electricity and fuels to the detriment of small and medium enterprises while failing to implement EU directives to the advantage of SMEs. It expressed concern at the lack of transparency exercised by Enemalta in the formulation of the proposed new electrical tariffs and its fuel purchasing policies.

Furthermore, the GRTU said it deeply regretted that the Malta Resources Authority appears to have "abdicated" its responsibilities.

The Union Haddiema Maghqudin also made an 11th hour appeal to the government to treat such a sensitive issue cautiously.

It is also insisting the workers and pensioners should be compensated for any planned price increases, especially since these were not going to be reflected in the price index.

The UHM wrote to the Prime Minister yesterday demanding "adequate compensation" should the government take a decision on the matter today. When contacted, Government Investments Minister Austin Gatt said that during his presentation at the Malta Council for Economic and Social Development last Monday, he explained the need for all social partners to share the oil burden in a fair way.

"I also wished that everyone could have come up with a solution on how best to share the burden. I said that the government was committed to carrying its share. However the GWU maintained its negative stance and did not come up with any suggestions," Dr Gatt said.

On Sunday, Prime Minister Lawrence Gonzi said sacrifices would be inevitable in order to tackle the impact that soaring international oil prices were having on the country.