Opposition hits out over lack of planning

Opposition spokesman on energy policy, Joe Mizzi, said the problems Malta was currently facing in this sector did not stem solely from international oil prices.

The government needed to shoulder its responsibilities for not having been able to source cheaper fuel imports, for not ensuring that Enemalta was more efficient in power generation, and for not having introduced viable alternative energy sources. It was ironic that Malta had, for years, had a solar energy research centre in Marsaxlokk. While Austrian experts there had managed to translate their research into concrete results, Malta had done nothing.

Speaking during the debate in Parliament on a Bill raising excise duties on petroleum imports Mr Mizzi observed that Parliamentary Secretary Tonio Fenech had implied that imports liberalisation would yield lower consumer prices. Should that be the case, it would only reflect inefficiency by Enemalta.

Indeed, he did not think prices would go down. As oil prices increased, a higher excise duty would be charged.

Mr Mizzi criticised the government for not having achieved its target of liberalising fuel imports by January 1, saying this too reflected the lack of planning in this sector.

Over the years this inefficiency was also reflected in the way plant for the power stations was purchased and Malta would soon have problems over emissions - and related financial penalties.

As fuel prices started creeping upwards, the government had not taken any precautions by hedging.

It was shameful that the government was still drawing up an energy policy. It also had a long way to go in educating the people on power efficiency, such as through new building standards which would maximise the use of solar energy.

The government should also consider building a windfarm at sea. A decision also needed to be taken on the viability of linking to the European power grid.

Mr Mizzi criticised the regulator - the Malta Resources Authority - for not speaking out on behalf of the people over the burdens imposed by the power surcharge.

He said the people should also be informed over what was happening in the oil exploration sector. The government knew what was happening and was allowing things to go in the wrong direction. When Labour returned to government, it would not lose any chances in oil exploration, he said.