Monday, 30th June 2008 - 10:08CET
Update 3: Surcharge to be announced tomorrow
Actual rate should be 115% - minister
There is no going back from high energy prices, parliament was told this morning.
(Adds GWU statement)
The new surcharge on power and water will be announced tomorrow and will apply up to the end of September or October when a new system of power tariffs will be introduced, Infrastructure Minister Austin Gatt told Parliament today.
He said that at current oil prices (and taking hedging into consideration), the surcharge should be 115 percent (from the current 50 percent). Without hedging, the surcharge would have been 160 percent.
Dr Gatt said the government was seeing how it could shoulder more of this burden through its subsidy to the corporation. It would announce tomorrow if the surcharge would be of 115 percent, or whether it could shoulder part of it for the next three months.
He said that in the three years 2005-2007 the government paid €72 million in subsidies to keep the surcharge as low as it could. This year alone it would pay €37 million. This, he said, was the people’s money which had to be found from somewhere.
Dr Gatt said work started in April on a new tariffs system to replace the surcharge, which had been a temporary measure. Although it had been hoped that the new system would be in place by the end of this month, its introduction had been delayed while further studies were made on its impact and how particular sectors could be assisted.
Dr Gatt warned that having a new tariffs system would not mean that any sector would be better off than the surcharge. High oil prices were a reality which could not be escaped. While some clamoured for a reduction in duties on fuel, the fact was that that duty too had to be recovered. One had to balance all sectoral interests and it was the national interest as a whole which had to be considered.
The government priority in drawing up the tariffs was to ensure that those with a low income could be helped to cope, that Enemalta did not sell power at less than production costs and that the tariffs were progressive and fair and promoted energy conservation.
The Labour Party in a statement said the government should not see the power tariffs and the surcharge as an accounting exercise.
In a statement, it said the movements in international oil prices did not only affect government finances, and measures taken by the government should not be aimed solely at balancing the government books but the needs of society as a whole.
Changes to the surcharge and the tariffs should stem from social realities, especially the needs of those with a low income.
The government also needed to keep in mind economic considerations, especially the impact of higher costs on SMEs and the people’s purchasing power.
The GWU insisted this afternoon that before announcing any increase in the power surcharge, the government should consult the social partners in the Malta Council for Economic and Social Development.
The GWU noted that according to press reports, the surcharge, currently at 50 percent, could rise to 75 percent or more and the tariffs may be revised.
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Comments
We just have to wait and see if Tonio Fenech will give you and I more tax relief; likewise the Government's alternative energy plan. You see, the PN does not conjure up policy and action plans overnight - unlike some other parties we know. It takes time to produce sustainable and credible results and by and large the PN has been very successful at that - just look at your own quality of life and the choice each one of us makes to live here....
I don't know where your employment plan of having a few Public Work employees stick a couple of solar panels came up from (was it the next point in the manifesto after the light bulbs?) but any start on alternative and renewable energy schemes would be more welcome than the total lack of them that we have today (thanks to you-know-which parties)
I was thinking about the poorly costed tax proposals and giving the impression that we can get a few Public Works employees to walk around the island and plonk a few solar panels, some flex and there!"Our dependence on oil has suddenly disappeared and Bob's your uncle.
If only life were that simple....
As to being big and stupid - I am very proud of my quality of life within the EU thanks to a PN led Government these past two decades. Unlike you I cannot thank the PN for having the opportunity to be educated properly but I can thank the MLP for opening my horizons (by default).
Pity we had a big AND stupid government all these years - should have had Harry 'I forgot to fill in my VAT returns' Vassallo or Arnold 'where can I get more pay after ditching the constiuents that elected me' Cassola or Carmel 'watch this space for the scandal of the century - what scandal?' Caccopardo and the rest of the motley crew running the country - give me stupid over opportunism any day!!
You've successfully misunderstood my comment. When I said the ‘the Opposition is just the Opposition’, I wasn't meaning that it should be there to oppose. On the contrary, I'm very pleased with Muscat’s different style of agreeing with the government on certain issues. All I meant was that it doesn’t have the biggest say in decision-making. In your comment, you've merely tried to judge my ‘mentality’ and your judgements weren’t correct. I expect the Opposition to aid the government wherever possible but what I meant is, the biggest problem is naturally faced by the Government as is only natural (even if MLP were governing).
I have always held that a reduction in surcharge was practically impossible but 95% proved to be a bit surprising and I’m sure it’ll surprise you too, as it will surprise other families when we receive our next first bill.
With a comment like yours attacking me and the MLP(I’m just a common citizen, by the way not the MLP),I am not so sure on your claim that you are a floater but unlike what you did, I'm not going to judge you and I’ll take you for your word.
@R Agius. -What impractical and idealistic AD proposals are you referring to? Offshore windfarms (suggested by Gonzi) and which will prove insanely expensive to maintain? Golf courses (suggested by Gonzi and retracted because crazily expensive in terms of water and energy use?). Mater Dei with no energy-saving measures of note?
AD has made many valid suggestions and proposals but the PN (and MLP) has chosen to ignore them. Sometimes size isn't relevant - you can be big AND stupid.
Funny how myopic you can be about interpreting what politicians say. What every man and his dog could understand you describe as cryptic. Very much a case of selective hearing for someone who has done well in the intelligence stakes.....
It is oh so easy to sit on the fence and bash the PN for not implementing AD's idealistic, impractical, uncosted and often ill thought out schemes. One of these days AD may decide to put together a credible, professional set of robust proposals and then maybe, just maybe, they will be taken a little more seriously than a whining chiuaua.
Weird voting patterns???........Ask AD councillor Micheal Briguglio how he voted in the last election!!!......now if people like Briguglio and Roussignaud don't trust you and their own party why should I?? I've already stated that your Party has many good ideas and nevertheless 90% of the people out there didn't vote for it.....while 20,000 preferred not voting than voting AD.............so instead of patronisng me why dont you see how your Party ,which like me you fervently support ( so you are none the more intelligent dear Claire) , has failed so badly after 16 years in politics??
Government has announced that on top of the five energy saving lamps per household, every Maltese citizen above the age of seven shall receive five fans. Not the electric ones of course. It would be five "imwiewah" for females and five "palijijiet" for males. This will help us cut on our energy bills for keeping cool.
Did anyone mention "kuxjenza socjali" here?
I suggest that the new roads which were built have light reduced by half....to much lights in the streets....nice to see but not so nice to pay
In hospital there is no need of full airconditioning all day...sometimes opening a window is enough....there is no need of so many light neither in the coridors
Even in the Ministries there is no need to switch on all the lights, to leave the aircondition switched on all day...even who use Goverment cars...no need to switch on the aircondition all the time....in evenings open the car window....its more than enough.
In this way and with other measures we will reduce the costs but if we want to stay cool and relax than we must pay!!! I blame those who have aircondition and than they say that surcharge is high but I understand those who altough with such comodities still are paying high....I think who use more must pay more.
WHAT ARE THE SOLUTIONS? Can people continue to pay higher bills for fuel, electricity, water and food? are there solutions or are we just lumped with this situation for eternity? I'm sorry, but my wage has not increased that much. Perhaps, me, living alone, I can deal with certain costs, but I'm sure not everyone can! It's already apparent how food prices have increased. Everyone has a budget they need to stick to, in order to make ends meet, save something for later and live decently. We need solutions, and long-term ones at that!
Also, one cannot just switch off a power station - it takes hours if not days for power stations to be switched on and be able to produce the necessary power.
As for those clamouring for wind and sun - these are environmentally friendly BUT -at most they can deliver around 20% of our energy needs (restricted area)and at a cost that range from same price (wind) to 100% more expensive (solar) than the price of electricity with 115% surcharge added! Alternative energy is clean energy but not free - a typical 5 person home would require a 4kwh system costing around Euro35000.
Unfortunately, around 8 years ago there was a large resistance by the so called environmentalists for the installation of a waste to energy plant -this would have reduced our waste problem and at the same time produced cheap energy! One other possibility is a small, modern, pebble-bed nuclear power station - safe and not oil fired!
Now is the time for Joseph Muscat to put his money where his mouth is and to co-operate with the Government to agree a national plan of action. We will now sit back and observe closely whether there is any substance behind his rhetoric. One thing I am sure of is that PM Gonzi will take whatever decisions are necessary within the circumstances that prevail.
All those whiners who think that this has anything to do with election promises I suggest you do three things:
1. show us where there was any PN pronouncement predicting the price of oil or lowering of surcharge; and
2. make a single constructive suggestion as to how to cope when faced with a situation you have no control over; and
3. explain to us where Alfred Sant would have obtained the money to fund his halving of the surcharge.
If the surcharge must go up, let it be,
but we are looking forward to next budget, when the COLA will not be €3 but at least €30 after practically everything is becoming more expensive. I think the when mlp said the only way is up, they were referring 'if you vote PN the prices will go up'
The PM's Idejn sodi now must show how good he is at the helm of our Island and make the surcharge felt the least by the taxpayers. The excuse is that enemalta should not pay the burden, but at the same time nearly half Malta voted for him and he should feel the responsability to show them a very big thank you.
I do not know why, some PN fanatics are excusing the government???
IF you have extra money send them to me by post please or else I think you are the ones with a hacked meter since you are defending the PM
C. Camilleri, please educate me regarding 'hedging'. I am somewhat confused about these matters since I get so many different versions of the meaning of hedging. I would like, for example, to know how hedging works, when it works best and whether there is an oil supplier who will sell you a contract for delivery two or three years down the road. I would also like to know in what quantity is oil bought and whether any of the surcharge remains in the government's coffers. If you are unable to help me, please shut up because I suspect that you don't even know what hedging means without the help of a dictionary.
No offence, but because of people with your mentality MLP keeps losing elections. Opposition party is not there to OPPOSE the government in every single step - in which MLP now is an expert by trade. Opposition party is there for the country, and for the worker in case of MLP, thus in the case of Oil Prices, MLP and PN should work together and not oppose each other as per your mentality.
So according to you, rather than MLP give a helping hand to the government and thus the workers, MLP should stay relax do nothing because is not the government. Well done!! Floaters like me are always on the lookout of what MLP is doing so as next time we can trust our vote! So in case MLP happens to come up with an idea he will definitely will manage to win some votes.
Furthermore, sarcastically, MLP promised surcharge reduction or whatever they were promising about the surcharge. I guess then that they had an idea of how to tackle the oil prices or simply were just bluffing. So now in case they really had a plan, then is about time to push it forward
Ah yes, the labour party's idea of standard of living and quality of life. Hmm,let me see, Water twice a week , electricity every other day, no constitutional court, a hospital were all the doctors can speak your language, as long as its Czech, Korean or some other Communist state, the wonderful world of black & white Xandir Malta.
Yes, I'm afraid you're right Mr Cutajar,we do live in different worlds. now please leave me alone and let me get back to my pastizzi.
PS i also notice that there is a common thesis in what you say: standard of living = number of handouts given by the government. hence your request for the government or me for that matter to do something about the price of oil. Perhaps you should ask Doktorrrr Alfred Sant to give us some idea, seeing that like VAT, he was going to make the surcharge disappear.pfff.. just like that!
Yes, I believe that Dr. Joe Muscat, the new 'star' to shine in our midst, should come out with any suggestions or ideas he might have to save our country from doom. He will prove himself for the benefit, not of the PN but of the country, as he liked to say ' in the National Interest'. And by the way, doesn't he love us all........
..............If on your part you need to convince me that I'm wrong direct me to the page, point, place, time and activity when and where Gonzi promised to reduce the surcharge...........until then happy bashing!!!
I'm sorry to say but your comment couldn't be more absurd. Do you seriously expect Joseph Muscat to come up with a solution?
While I respect your opinion, I have to point out that I would only expect Dr.Muscat to come up with a solution if and only if he was Prime Minister. It is Lawrence Gonzi who is filling this role so it is he that should be coming up with alternatives. The country is in his hands and the Opposition is just the Opposition. Rest assured that I am fully aware of the worldwide oil crisis but the people voted for Gonzi's 'par idejn sodi' and I'm sure that like me, most are expecting him to honour the commitment with the people. Believe it or not, unfortunately, there'll be those families who'll suffer with this rise in surcharge.
dear mr gatt, may i remind you, that it was labour government who gave us standard of living.Before than, we had nothing, no pensions, no social benefits etc etc. Seems you're not living in the same country as we all do, as seems you're happy that this government keep biting your pockets...or maybe you eat pastizzi all week long? (that will be a good standard of living !!!)..Why don't you be the one who find the solution for all of us?? Thanks.
This is the state of affairs you voted for last March. I'm sorry but I have to tell it to you in Italian:
"Hai voluto la bicicletta.....adesso pedala"
You know what PN promised. You are also aware that PN knew what was coming. Read what Gonzi said in August 2007, before the budget.
PN were spending as if the money was coming from a bottomless pit. Issa gie kollox ma wicchom, as they were 101% sure that Labour would win. Thank God Gonzi inherited his own financial disasters. They everywhere, National Debt, biblical sum to pay it's interests, Debt with Mater Dejn, Enemalta is up to it's hilt in debt. In short DJUN KULL FEJN THARES.
Now ask the question to Gonzi and not the opposition, cause Gonzi's par idejn sodi are in government.
What hypocrisy, have you got no shame to ask the leader of the opposition to enlighten you as what PN should be doing.
charles agius, so far PN have done everything the opposite to what it promised.
charles agius, have you got any idea of what the next budget is going to be like. Always bear in mind what Gonzi was saying before the election!
Jekk dahku, dahku bik! Now lump it and take it on your chin, ghax hekk haqqek!
I only pity people who like me didn't vote PN. PN you rediculed hedging.... now see were you got us?? But, they don't care, they have money to pay.... Anyway - for all those who vote PN - a big ENJOY IT
i remember when hedging was ridiculed by the PN govt and now it is being hailed as saving us from an even worse scenario. hypocrisy at its best.
why not have revised rates so those who waste most pay most....and still help all those who cannot afford the increases?
btw......finanzi fis-sod and then we're told 30,000 households can't cope and need state help?? will someone please enlighten me?
Soon we will all be wobbling merrily on bicycles if we are lucky
K
I JUST CAN`T WAIT TO KNOW HOW MUCH MORE AND MORE AND MORE AND MORE AND MUCH MUCH MUCH MORE EVERY MONTH, MY PENSION IS GOING TO DISAPPEAR INTO THE GOVERNMENT`S COFFERS AGAIN.......!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I`M SOOOOOOOOOOOOOOOOOO HAPPY..............!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
ITS DISGUSTED TO SAY THE LEAST
Oil producers can always sell their product because there are always buyers for their oil, wind power, wave power, nuclear, coal power, etc will help, but the world (including Malta) travels by car (another fact of life). Cars need diesel/petrol fuel which comes from Oil, along with most of the world's plastics - this situation will take decades to change. A gradual change to more efficient less polluting new car models will take time to happen.
'Thanks to the pn government for killing our standard of living.'
Sometimes i really do pity a politican's lot. Oh dear Lee, who do you think gave you the standard of living you now enjoy in the first place????? And how is the tripling of the price of oil the government's doing???? All the world's governments are affected (unless they are oil-producing countries), so where's the connection with your statement.?
This is where democracy and i part, just because people have the right to an opinion, must we really have to hear it? Standard of living.? I am seriously worried about standards of logic!
PS the price of oil has gone up...again. perhaps Lee can offer a solution?
Because at least in Zimbabwe you know for sure you will be screwed up - here they tell you you will be in heaven and realise afterwards that it is hell which they meant....
Democracy should be build on saying the truth and then people can decide on the truth;
We have always been told that the surcharge is less than we should actually be paying, we have been told by the MRA that the workings are good and correct .. BUT WE WERE NEVER SHOWN ANY TRUE FIGURES AND EXAMPLES TO CONFIRM THAT THE SURCHARGE RATE IS FAIR.
As for the rate adjustments, as soon as these are raised, unless consideration is taken for the industry, it will start sending factories packing to other sides of the world. Today the surcharge is capped to a certain amount to prevent too much load on the industry. Once the rates are increased ( after we were told that only Alfred Sant would raise them if we were to fall for his 50% surcharge cut), the capping for the industry will disappear, their energy bill will increase (plus they would have to fork a cost-of-living increase) and off they will go.
Just watched the italian news : the govt is increasing power, water & all kind of fuel supplies once again.....CNN reports countries who can't even afford to but flour for their people.....UK will revise all power & water tariffs.....
Its not a question of alternative power......it can be too costly in the long run, & it can only be achieved through the private sector (difficult)......
But lets realise that this oil issue is rocking the whole world not just us!!! (I Camilleri, sliema)
That's whats the Pn government will do in November.
For years now we have been talking of clsoign the Marsa station because it is inefficient.
And now the people have to carry hefty surcharges, after the same goverment stopped hedging and other schemes.
I really don't understand how Maltese continue to vote PN in goverment. This perplex me not a little.
where i have a big bone to pick is with that bull in a china shop Austin Gatt. The way he woudlnot listen to the reasoned arguments of Edward Mallia and co is now coming back to him with interest. Now wouldn't it have been wiser to spend the €72 million in research and installing solar energy panels which could have fed into the national grid? and how about enforcing proper energy saving methods on new buildings, intead of letting contractors get away with with substandard buildings which are anything but energy-efficient.
that's the problem with getting lawyers for managers. And before any of you AD voters out there start gloating : no you wouldn't know where to begin either. judging by the way you run your party, i wouldn't trust you with organising an orgy in a brothel, let alone a proper national energy plan.
Now, given that the Parliamentary 'hot' seats (including cushions) are all filled up, we are getting the 'news', which in an election campaign should never been heard. By the way, I'm still awaiting for my 5 energy-saving bulbs.
Surcharge 90% ----
You and Me who pay our taxes to the very last cent and through our nose will be the worst off ----
Them.... those who can and are able to cheat with regards to taxes, unemployment benefits, social security, VAT payments etc ... will be the better off-----------
Yes, my friends, this is true democracy. Fottini la tista'........
Will somebody prove me wrong, please?
And before anyone has apoplexy, I'm kidding.
As for those asking to levy stuff that is exported to the oil producing countries. We cannot think that way any more darlings, because we are in the EU. Remember? NO SUBSIDIES!
17 years of lies, deceit, arrogance, financial incompetence, distraction of the environment, debts, taxes, low salaries and wages, corruption, and the list goes on and on!
Zidu l-pagi ghax ser toqtlu n-nies bil-guh.
Well, at least Germany will be against it. One reason why the economy is doing so well in germany are the high oil prices! The countries which earn most out of that spend all their money in germany to buy machinery, factories or they just invest in the german stock market.
In all an excellent situation for germany!
Before the election I remember the PN telling us not to give the MLP a chance because he will touch the tariffs... So is the PN now telling us we did wrong giving him our vote since in September the tarrifs are to be arranged??
@Suzanne Buttigieg
The huge amount of TAXES collected on fuel and energy by governments of the European Union countries double oil revenue of all exporting countries. What are you talking about? we are feeling the pinch because of own high taxes
I pity most of those writing down here below who are complaining about PN's broken promises. I pity even more, those who are not writing down here and who have believed PN's promises, endorsing them with their vote. I pity those who long for Alfred Sant's promise to cut the surcharge by half. Poor gullible citizens !!
I kept myself updated on the oil-price hikes by reading RAI's teletext during our electoral campaign. That's why I didn't believe one single sillable of MLPN's promises regarding utility bills.
Only AD had somewhat more credible proposals, which will be probably applied by next November.
But you little people, are to big minded to trust a little party..are you? The only difference for us 3810 who have voted AD is the consolation that we have NOT BEEN FOOLED by anyone. Otherwise there's no difference between all of us.
In 5 year's time, I know that most of you will suffer amnesia and become gullible yet again !---Pity !
i would like to remind you that the only irresponsible party promising to half the surchage (while knowing that price of oil was increasing all the time) just for a desperate final attempt of grabbing the power was solely the MLP... The MLP would better explain the high rates on water & electricity when the price of one barrel of oil was JUST 12 dollars per barrell. I wonder what those irresponsible rates (tlift il-boxxla socjali - quote dom mintoff parliament 1997) would be today had there been no change in government in sept 1998...
We need to reduce our national consumption somehow and it is useless blaming the Govt for this and that. If anyone out there can forecast the price of oil in 2 months time then they should bet their house on it and bring in a fortune making them millionaries in the process.
What I would really like to see is the Govt take some real action to streamline the flow of traffic. I am sick and tired of wasting expensive petrol and precious time sitting behind polluting buses that refuse to pull into their parking bays, delivery trucks double parked, conveniently parked cars narrowing major thoroughfares down to single lanes and bottlenecks that can easily be removed with a little expense and traffic re-direction.
PS God help us if AS was voted in and had halved the surcharge irrespective of the price of oil........
well said. this proposal is being studied by the US congress, but our EU refused to discuss such measures because it will effect the needy in such countries. continuing to pay such prices we are only subsidizing the governments of places such as Iran and Saudi to continue increasing their military budget, growing into a potential headache for future generations.
If the surcharge is increased will other taxes be reduced, once the Government will save at least €72 million from the money collected from other sources .Is this not a balancing exercise?
Also, why all this playing with words....why hasn't the minister announced it today....i bet you he knows what the surcharge is going to be....or tomorrow we will have another powerpoint presentation to stress the need of having a 95% surcharge inflicted on us.
And as usual....maltese grumble for the first few days and all is forgotten....if i remember well we had a hike in fiuel prices recently....anyone still mentioning them....
Ahh i forgot we don't have a labour government but a pn government so not a single organisiation complains.......Pajjiz tal- Mickey Mouse
What happened suddenly??!!
Did this international crises start on the 9th of March??
Or somebody tried to take us for a ride??
What are we waiting for? How long is the government going to drag its feet? Lets start doing
something or is the government afraid of losing tax revenue on imported oil??!!!!
The time to act is NOW!!!!
What the people really want to hear is an action plan to start implementing measures to save energy and to introduce alternative sources for energy generation. In the meantime I'm still waiting for my 5 energy-saving lamps.
`YES...TOGETHER WE WILL SURVIVE...OR MORE APPROPRIATE...EXIST.
Any financial advisor will tell you Should you and your predecessor , have hedged these Oil Prices. For God sake bye Futures, just look at BE Lufthansa, Virgin Air, and so on.
Why was the Prime Minister promised all that during the election, now your throwing 115% Surcharge.
Just resign thank you, admit that you screwed up.
Toni