Labour MP Joe Mizzi yesterday called on the government to draw up an oil exploration plan and to open up the waters around Malta for exploration companies.

He told Parliament during the Budget debate on the Ministry of Resources that Malta was surrounded by oil wells and he was confident that Malta too had oil, but the government was not doing anything to find it.

The Prime Minister had gone so far as to declare that Malta had no oil. This, he said, was not the way to encourage oil exploration companies to come to Malta. Not a single oil exploration well had been spudded, he said. In contrast, countries such as Cyprus had opened eleven areas for exploration.

He said that although the government had claimed it had reached agreement with Tunisia on joint exploration in areas which both countries view as their own, nothing had materialised. It was clear that no real progress could be made until agreement on disputed areas was also reached with the other neighbouring countries.

Mr Mizzi said the former Labour government had been close to discovering oil but exploration was stopped by the Nationalist government. A new Labour government would be encouraging and supporting oil companies which wished to search for oil on Maltese territory.

Replying, Resources Minister Ninu Zammit said one would have to be stupid to think that any government would stop exploration efforts when there was a chance of striking oil. When the Prime Minister had said Malta had no oil he was speaking about the present. It did not mean Malta might never have oil.

Contrary to what Mr Mizzi had implied, several oil companies were currently conducting studies in the areas around Malta, including seismic and geo- chemical analyses. This was an expensive and time consuming process but the government would continue to do what it could for Malta to strike oil.

Earlier in his speech Mr Mizzi said the Malta Resource Authority had failed in its duty to instill greater efficiency in the energy sector. It simply did not do anything in the first five years of its existence. It did not even comment when the government imposed the power surcharge.

Nor did it check the quality of drinking water.

Mr Mizzi said that it was shameful that countries such as Tunisia, Morocco and Egypt were showing the way for Malta in the energy field under the five-nation Solaten project.

He also complained that nothing was being done to conserve storm water and this was still ending into the sea.

Charles Buhagiar, opposition spokesman on infrastructural services, criticised the government for not giving enough importance to the updating of regulations covering the construction industry.

He said the industry needed updated regulations in view of the large number of incidents involving people working in this industry.

When the Malta Labour Party was in government, it had set up the Building Industry Consultative Council where all the stakeholders met to discuss problems and make recommendations to the government. It also set up the Building Industry Department which was meant to enforce the regulations. The department was also responsible for the implementation of the Construction Product Directive but it did not have the resources to enforce the regulations arising from Malta's EU membership.

Mr Buhagiar said the BICC should insist with contractors that high health and safety standards should be observed on building sites. There were still too many accidents on construction sites.

Earlier this year the government had said it was planning to introduce regulations to reduce the effect of the construction industry on the environment. However, these regulations covered only big projects and their enforcement was limited to certain areas. These regulations should not only cover a number of localities but also others such as Mosta and Attard.

Turning to the embellishment of tourism areas, the Labour MP said the government has been promising the embellishment of Xatt is-Sajjieda in Marsaxlokk since 1999, but it had not yet been carried out.

Long delays were also characteristic of other promised projects, including flood relief for the central areas including Birkirkara and Msida.

The valley between Burmarrad and Salina was meant to be cleaned in 2005. Nearly Lm300,000 were spent on precast concrete units which were meant to be used for the project but these are still stored in Pembroke.

Even the farmers in the area had criticised the government's plans to construct a new rainwater channel rather than use the original valley. The Malta Environment and Planning Authority had not yet issued the permit for this project, he said.

Work on the belvedere between Wied Babu and Hagar Qim, was still not complete. The Ghar id-Dud embellishment project in Sliema was completed last March but the Mepa permit was approved in April. The second phase of the Xaghjra project had not materialised.

He praised Minister Ninu Zammit for his interest in village cores but said the budget for rehabilitation projects had dwindled from Lm653,000 in 2001 to just Lm60,000 this year.

Referring to Valletta, Mr Buhagiar said the project for the paving of Merchants' Street went back to 2003, and it too was not ready yet. Under the Labour administration, the bigger project on the paving of Republic Street was completed in a matter of weeks.

Concluding, Mr Buhagiar accused the senior principal responsible for recruitment and human resources at the ministry, Jacob Zahra, of political discrimination in the way he sent doctors to check on selected sick employees. He said Mr Zahra was investigated in 2004 and found guilty of computer misuse but instead of action being taken against him, he was only given a warning and later promoted. Because of his position, he had access to his own personal file, and this had disappeared.

Mr Buhagiar said that Mr Zahra was now earmarked to take a more sensitive post at the Office of the Prime Minister.

Nationalist MP Joseph Falzon said he agreed that the regulations on the impact of the construction industry on the environment should apply to all localities or those localities which have a high historic value.

Focusing on energy efficiency, Mr Falzon said contractors should be urged to include measures with which energy was used effectively.

Mr Falzon mentioned the surcharge on water and electricity and expressed his surprise that the MLP speakers did not refer to Labour's promise that it will halve the surcharge when it returned to power. He said the Opposition has not yet stated how it would be financing this promise. This was part of its strategy to fish for votes.

Minister Ninu Zammit said the Malta Resources Authority was overlooking the liberalisation of fuel imports.

With regard to renewable energy sources, he said the government has handed out Lm400,000 in subsidies for those consumers who choose energy-efficient appliances. Around 17,000 applications had been received, of which 14,000 have been processed and payments issued.

Through the MRA, the government has prepared an Energy Efficiency Management Plan covering 2008 to 2010 so that by 2016 Malta would have decreased it energy consumption by nine per cent. The project was expected to cost €33 million with €25 million being European Union funds.

On wind energy, Mr Zammit said the installation of offshore wind-farms remained a possibility. Once the authorities established how much energy produced in this way would cost, the government would be in a position to take a final decision.

He said the government planned to reduce CO2 emissions by 20 per cent by the year 2020.

Mr Zammit said the Cleansing Department had collected about eight tons of rubbish, cleaned 136 kilometres of culverts and collected bulk refuse in cooperation with the local councils.

Valleys in Qormi, Rabat, Attard, Siggiewi and Zebbug were also rehabilitated. Embellishment of tourist area continued unabated.

Contrary to opposition claims, much was being done as regards storm water. The project at the Wied il-Kbir catchment area has been completed. It was true that an application had been filed for a new waterway leading to Salina. The valleys and the area around Salina had been cleared and once permits were issued the second phase of the catchment area would be taken in hand.

Referring to the Birkirkara and Msida Valley, Mr Zammit said that the government was planning a network of 12 kilometres of galleries to channel run-off water for agricultural use. The project, which would cost some €70 million, was expected to start next year when the necessary permits are issued.

Mr Zammit listed restoration projects undertaken by his ministry including the restoration of 25 chapels and churches as well as many monuments, bastions and public buildings, including the President's Palace and the Barrakka gardens. Of particular interest, he said, was the complete overhaul of Villa Francia and its gardens in Lija.

Other projects are earmarked for next year, included the restoration of the side of St John's Co-Cathedral overlooking Merchants' Street, and the restoration of 25 kilometres of bastions around Valletta and Cottonera.

Other restoration projects that were being planned included Mdina main gate as well as the restoration of the bastions behind police headquarters in Floriana.

Referring to Opposition Leader Alfred Sant's comments on joint ventures with local councils, Mr Zammit said his ministry had been working with no less than 47 local councils.

With regard to the Xatt is-Sajjieda project, Minister Zammit said at first there were problems with the design and then none of the companies which submitted their tenders reached the high specifications which were set so these had to be revised and the tender had to be issued again. This tender was now at adjudication stage.

Referring to the ongoing saga regarding 187 square metres of land owned by his family which the government expropriated in 1989, Mr Zammit said he had Lm70,000 in compensation. He said that other people were paid more for smaller areas, mentioning land owned by Labour Deputy Leader Charles Mangion's family for which the government paid Lm90,000.

With regard to the Merchants' Street paving project, Mr Zammit said work was on schedule until a number of problems were encountered, mainly with regard to the quality of the paving material originally ordered. He said material was then purchased by direct order and now a third of the paving has already been laid. The project will be completed by Christmas.

Mr Zammit said that embellishment works were also undertaken in Bugibba, Paceville, St Thomas Bay, Xemxija, Xaghjra, Wied Babu to Wied iz-Zurrieq and the Boy Scouts camping site at Ghajn Tuffieha. The two and a half kilometre promenade from Wied Babu to Hagar Qim should be complete in a few weeks' time. He said that works started without a Mepa permit because the retaining wall overlooking the sea was dangerous.

The minister paid tribute to the government workers who worked on the overhaul of the Mall in Floriana, which included 4,000 square metres of paving.

The estimates were later approved after a division.

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