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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

A.Gauci Cunningham (on 2/7/08)
Rita spiteri----maybe its arrogant, intellectual wannabes like you who scare voters away......who exactly do you think you are calling us monkeys because we voted Pn or MLP??...................what a big, fat, "pastazuna" you are!!!!
Saviour Grech (on 2/7/08)
Additional solutions apart from Wind, Solar and Sea waves as sources of energy, our country can partly survive this burden by avoiding alternative solutions with what we can do right now at zero cost. For example, how many times I see schools and other governmental premisses allover lit at night, week-ends and summer holidays for nothing. I really pity this waste of energy which after all apart from burning fuel for nothing we are paying for it at astronomical charges! Watchmen should be informed about this....
R Agius (on 2/7/08)
@Claire Bonello

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....
Claire Bonello (on 2/7/08)
@ R agius - I'ma fraid you're wrong on a number of issues - again. AD's tax proposals were costed and not proved to be incorrect. On the other hand, Tonio Fenech did not reveal his workings (he said they might be copied). So we have no way of knowing if they were right or wrong.
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)
R Agius (on 2/7/08)
@Claire Bonello

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!!
Maria Pace (on 1/7/08)
Dear Jason Pace,
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.
Randolph Bugeja (on 1/7/08)
I'm curious to know how MLP would have financed its electoral promise to cut the surcharge by halve if it had won last elections... Maybe some MLP apologiser here can explain that ?
RITA SPITERI (on 1/7/08)
The reason why AD didn't get many votes is beacause Maltese people are like the three deaf dumb and blind monkies about their political party. Thats all and I can confirm this when I read some of these comments. MONKIES JUST PLAIN OLD MONKIES THE LOT OF YOU
Claire Bonello (on 1/7/08)
@A Gauci Cunningham - I see that you agree that the PN and the MLP have been too busy antagonising each other to do anything about energy-saving measures or alternative energy. This should have been a crucial issue for voters (and not just in this election). AD have persistently brought this (and other issues) to the fore. Are you pleased that voters prefer to vote out of hate and fear rather than for good ideas?

@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.
R Agius (on 1/7/08)
@Claire Bonello

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.
A.Gauci Cunningham (on 1/7/08)
@Claire Bonello-----Its not about being au coaurant its about being factual and yes the only one of the 2 leaders who was mentioning the oil crisis before the election was Gonzi.........and yes I concur with you that the PN did close to nothing on the alternative energy front and on the other hand authorites like MEPA gave permits which went against the concepts of energy saving policies...................but this does not change the fact that only the present PM was speaking about this crisis last March............which belies what some bloggers here are saying!!

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??
V. Cauchi (on 1/7/08)
BREAKING NEWS

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?
Sandro Agius (on 1/7/08)
Instead of crying and pointing on the goverment, switch of the computer, turn of any lamp, switch of the aircondition and use a simple ventilator or just open a window....it is not more the time to waste electricity....the surcharge is getting higher.

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.
Adrian azzopardi (on 1/7/08)
Fact: oil prices are up. Fact: malta is 100% dependent on oil Fact: costs generating power has increased. Fact: consumer has to pay for the increase in costs. Fact: Government waste too much electricity on illumination of roads and cities. The goverment should find immediate short term solutions to reduce his eletricity bills and transfer the savings to the consumer. Just as an example the in 500m of road to hal far there are 30 lamp posts, these can be definetly reduced to 15 and still have adequate light. Lets start reducing intelligently. Plan to have immediate solution in alternative energies, let us not create some other group that will take months to come up with a solution. We the consumer needs a solution NOW! A quick decision like PFP can be taken. Lets use the 300million given to us by the EU to help resolve this problem. From the financial market the situation can only get worse, prices might go upto $200. Let's not wait for this, be proactive Dr. Gonzi and Dr. Gatt. Give immediate solutions. How much more can i pay....how can i reduce furhter my electicity bills...not wash maybe, switch off fridge, fan etc
Claire Bonello (on 1/7/08)
@A Gauci Cunningham - We're not as au courant as you are with what Laurence Gonzi was wearing (a turquoise jumper you say...) whenever he chose to make cryptical remarks about stormy seas/clouds. Howver we all live on the same island and we do realise that the PN government you so fervently support (despite weird voting patterns by PN MEPs when it comes to voting against discrimination) has done close to zilch about the energy problem. Please dont go on about those 5 light bulbs - they're a drop in the ocean compared to the energy-saving measures which were NOT taken at MAter DEi
Lucy Pace gouder (on 1/7/08)
Ok, prices are rising and it is not determined by Government. We should agree on that. BUT...

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!
C. Scerri (on 1/7/08)
Michael Ellul - Enemalta has plans to get connected to the European Grid- but we would still require companies to invest in a new network grid in Malta - can you imagine how many shall come?

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!
R Agius (on 1/7/08)
It is so sad that even an issue like this becomes the victim of partisan politics. This is an INTERNATIONAL crisis requiring NATIONAL consensus to ensure the country copes as best it can with a massive problem it has absolutely no control over.

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.
h briffa (on 1/7/08)
I think that a lot of people are missing some important points regarding what the PM should do

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
Joe Martinelli (on 1/7/08)
With characters like A Daley, how the heck can the MLP go wrong? He must be a recent convert otherwise Labour would not have stayed on Opposition for the last twenty years! Go on A Daley, you really impress us with your bilingual crap.

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.
Jason Pace (on 1/7/08)
@Maria Pace

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
c gatt (on 1/7/08)
@Lee Cutajar
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!
Charles Agius (on 30/6/08)
Dear Mr Daley & Ms Pace, rest assured that the MLP knew more than any one else that the promise of reducing the surcharge was 'absurd' and the people trusted Dr Gonzi for that and for many other things. God forbid if the 'million pieces' party won the election.(what happened after the election is just a little proof.) I like everybody else do not like to pay anything to the goverment but I have to, like it or not. I am not at all surprised that the rates have to go up. And about promises, was it not a labour ex-minister, who , if I am right, until this day, periodically repeats, that a week is a lot in politics.

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........
A.Gauci Cunningham (on 30/6/08)
It was only the present PM who in the last election was talking about the oil crisis and anyone who does not believe this should watch or listen to Gonzi talking in practically every Mass meeting and in every nook and cranny of this tiny island during the last election ...there was a particular ad. in which Gonzi was wearing a turqouise jumper with a couple of young ppl behind him and said that there are storms in the future and therefore Malta needs a strong Party with sound policies................and if you're still unconvinced I suggest you go on YouTube and watch the filming of GonzivsSant from last September 21 (Independence Festivities vs. B'Buga)......Dr. Gonzi was speaking about the economic challenges ahead while someone else was shouting "lesti...lesti...gooooonzi".........which belies this crap talk of the PN dancing to a different tune!!!.....

..............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!!!
Maria Pace (on 30/6/08)
Dear Charles Agius,

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.
lee cutajar (on 30/6/08)
@ mr c gatt..

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.
V. Cauchi (on 30/6/08)
@ Kenneth Zammit Tabona

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"
A Daley (on 30/6/08)
Excuse one charles agius, but don't be so patronising.

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!
C. Camilleri (on 30/6/08)
Vote Gonzi Get Surcharge. The people wanted it, now let them have it.
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
Stefan Azzopardi (on 30/6/08)
OKKKK...!! So the surcharge has to be revised immediately.....but the flight and work taxes can wait to be revised..!! THIS IS WHAT I CALL STEALING!! STOP THESE ILLEGAL TAXES! Till now all i voted for in the last general election didnt happen..!!!
eric saliba (on 30/6/08)
@ abc. you might find the situation funny. believe me many people are not amused. what would you have said had these steps were taken by another party in govt? and no smart alec replies please.
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?
Charles Agius (on 30/6/08)
Once again the surcharge is going up! Who is to blame? Surely its not in the government's interest to have the whole population grumbling.But perhaps here is a test for the newly elected 'economist' Leader of the Malta Labour Party to prove his worth. Come on Dr Joe Muscat , can you solve this problem (one of many) for us? Will you make us happy enough to vote for your party next time? Am I praying for a miracle?
I Abela (on 30/6/08)
Dear Mr. Gatt, Instead of trying to lecture other people you should get your facts right so you avoid embarrassing yourself here. Who gave us the standard of living we are enjoying now? If i'm not mistaken it was Dom Mintoff and a Labour government who gave us our standard of living. Before Mintoff there was nothing. After Mintoff there were childrens allowances, pensions, social benefits, disabled peoples benefits (NB before Mintoff people used to hide their disabled relatives in the basement), housing for everyone, schooling for everyone not just for the rich, a right to VOTE for everyone (NB before Mintoff the rich had more than 1 Vote while some so called injoranti didn't have a vote and ALL WOMEN didn't have a vote). And please don't be pathetic and tell me that in Mintoff days you couldn't buy a Mars. Get your facts right sir before we start pitying you.
Kenneth Zammit Tabona (on 30/6/08)
....and when George Debono CYCLED all the way from St Julians to Valletta to keep an appointment with the Prime Minister and present him with a copy of his latest Energy Conservation Report, the septuagenarian doctor was practically arrested for attempting to leave his bicycle outside the door to Castile.

Soon we will all be wobbling merrily on bicycles if we are lucky
K
john gafa (on 30/6/08)
We are becoming a nation of PELICANS........ All I can see are BILLS!!!!!
Mike Magri (on 30/6/08)
Oh Boy Mr. Minister.

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
RITA SPITERI (on 30/6/08)
If enemalta gets those people who fiddle about with their electricity miter there would be no need for the surcharge
mary Pace (on 30/6/08)
to-day I read in Uk paper,THE MIRROR,that on the 4th of july ,a feast in America,some of the people,are not going for the celebrations,because of the HIGH PRICES OF FUEL!!! so why is be different here in Malta!! I mean people here blamed the PN for the high surcharge!! are we different from the rest of the world!!!! Do we get cheap oil??? don't get me wrong I do grumble, a lot!! for the high surcharge, but IT"S THE HIGH PRICE OF OIL & no one from politic is at fault,so MALTESE grow up!!!!! it's true what they say MALTESE GEMGEM!!!
J Oatmon (on 30/6/08)
OIl/fuel is a world commodity, no one country controls its cost. neither Malta or any political party can change the reality of higher fuel prices, it is a fact of life in today's world.

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.
Valerie Pulis (on 30/6/08)
Where is this Government's social justice!!!!!!
c gatt (on 30/6/08)
@Lee Cutajar
'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?
J. Stivala (on 30/6/08)
I think Govt should cut down on his own expenditure in order to absorb some of the costs. Govt should start by delving seriously into travelling expenses of its own Ministers, MPs and certain civil servants. (Is it true that MPs apart from the usual fringe benefits are also given a couple of air fares annually by Air Malta for their own private use?) Is there a need for civil servants in certain grades to travel club class or lodge in 5* hotels? What about car fuel allowances (while still using govt-owned transport to carry out their work), free land and mobile phones services? The surcharge hike will surely not be felt by these people
Sctacey Schembri (on 30/6/08)
Zimbabwe has a better democracy then Malta - and I mean it!!

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;
Joe Cassar (on 30/6/08)
"We were betrayed by the Pn for another time" We cant stand with this drastic increase in the Surcharge. Was it in the Pn electoral manifest?
James Sultana (on 30/6/08)
The problem is not paying a surcharge if the only option is to pay it .... the issue is about paying a FAIR SURCHARGE.

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.
Ivan Camilleri (on 30/6/08)
No one is happy with this situation, no one likes to increase bills, tariffs etc etc....But regrettably the present situation calls for such measures. I can't understand why for some commentators malta is on a planet of its own & nothin can happen here to us.......
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)
C Calleja (on 30/6/08)
Pn accused Labour that if elected it will remove surcharge but increase the tariffs.

That's whats the Pn government will do in November.
Manuel Micallef (on 30/6/08)
For years now we have been talking about wind farm.... but this never materialise. Only talk.

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.
D.Zahra (on 30/6/08)
I think the problem is that we are stuck with this oil problem. the thing is that i don't care from where i get the energy. first we sleep on a problem then we cry on polt milk. when are we going to have an alternitave supply? why is it still one company offering bothe electricity and fuel to our cars? i think that as the big ones afford all the luxury, they really don't care about us. now maybe in 50 years time we will start the wind farm project! maybe.... i think we are all fed up of this bull. give us some alternatives, subside photovoltaic systems, maybe even produce them here.... all gem gem for nothing! now when the bills arrive:- pay them!
M Jones (on 30/6/08)
Any one with common sense and have followed the cost of oil in the news would of known the cost electricity and petrol would start to rise. This has nothing to do with who is in power. Prices are rising around the world.
C Gatt (on 30/6/08)
Am i the only one not surprised? i don't seem to remember the PN saying that surcharges would not go up. in fact they criticised the MLP declaration that it would REMOVE surcharges.
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.
lee cutajar (on 30/6/08)
"FINANZI FIS SOD"....."GONZI IGIB IX XOGHOL"...."PAR IDEJN SODI"......were the billboards prior to last election...i don't know if i should laugh or cry nowadays. By the way, thanks to dr gonzi for advising us before that " maltemp kbir qed joqrob lejna" but "flimkien kollox possibli", so together, we will solve this one out....my foot!!!! Thanks to the pn government for killing our standard of living.
M. Gauci (on 30/6/08)
'FLIMKIEN KOLLOX POSSIBLI' LOL. Pajjiz u poplu veru tal Mikey Mouse.
Edward Busuttil (on 30/6/08)
Hemm..i think i just woke up in the wrong country...back in march we were told all is well,nothing will change and u know who should not make you worry too much!!!! Your back in gov and all the loads of promises you made have all gone up in air...this time we will remember for sure...pajjiz patetiku
R. Gerada (on 30/6/08)
Although I understand the economic mathematics on the international price of oil, the most amazing fact on this issue is that the oil price was already getting higher by the day before the 8th March election and we didn't hear anything from the Government.

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.
J. Mifsud (on 30/6/08)
My Predictions??-

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'........

E. Azzopardi (on 30/6/08)
We know that the oil prices are going up. We are not morons. However, what is the reason we are paying so high a surcharge? Is it really to subsidise energy or what? I am sure the majority keep on asking this question and in a so called democracy we should be told why we are paying so much. Personally, I do not believe this is all because of the high price of oil.
Will somebody prove me wrong, please?
Andrew Borg-Cardona (on 30/6/08)
I have the solution. Joe Mizzi used to say he knew where the oil was. Make him Minister Plenipotentiary.

And before anyone has apoplexy, I'm kidding.
A Daley (on 30/6/08)
PN PROMISE A LOT, THEY DELIVER VERY LITTLE, AND WHEN THINGS GO WRONG, THERE IS ALWAYS A PLAUSIBLE EXCUSE FOR THEIR FAILURES - reason being il-kaxxa sfrundata bid-djun!

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.
D. Abdilla (on 30/6/08)
When is the Government going to invest in Solar/Wind energy? Cause It's already Late now and this is time & money wasting.
Stefan Engelbert (on 30/6/08)
@suzanne

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!
Alex Mangion (on 30/6/08)
I am really fed up with all this lack of basic logic that some of you lack with your comments. How can anyone argue to know for sure where the price of oil will be in a couple of months from now? Mr A Misfud seems so informed with some form of inside information that he is suggesting to increase Malta's hedging agreements. Fine. So the current oil futures for December delivery is trading at USD148. Mr Mifsud, shall we buy or not? The price may be USD 200 by then or below USD100. What shall we do Mr Mifsud, as you seems so much informed? Why don't you trade the options market with your ideas, so you will earn enough the offset any increase in the surchage?
N Micallef (on 30/6/08)
'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.'

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??


D. Axisa (on 30/6/08)
How come we are always the ones who are bombarded with charges and taxes? How come the government doesn't take adequate measures to counteract the increases in fuel prices? Why are they so against solar energy when we are a country with over 200 days of sun a year? It's time that the government starts acting on the hundreds of promises it made before the election!!
Daniel Cassar (on 30/6/08)
Yesterday evening, PBS revealed the new surcharge tariff ....95% as from tomorrow!!!! I'm sure it will be in those lines considering the actual rate should be 115%!
G. Zahra (on 30/6/08)
What I hate about this, is those people who earn lots of money, then declare pittance, then claim all the givings. Tipo the bajjada, labourers etc that do a lot of work which is undeclared and now will benefit from no increase in power bills. We all know one or two of these. They get a free flat to live in, everything subsidised etc.. Then there are the middle income bracket people who get nothing except having to pay for everything through their nose. Effectivly nullifying their higher returns. On paper I earn much more than there people, but because I have higher tax rates and get no subsidies on anything the net return of my pay divided by my family members is equivalent to those declaring much less. I have no problem in helping people who are in REAL need, but there are many who play around with tax law. This is what hurts the most. I can understand the surcharge having to go up to reflect (partially) the market value of black gold, but I demand fairness. What is the Tax Compliance Unit doing, sleeping over it ?
A.J.Muscat (on 30/6/08)

@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
John Borg (on 30/6/08)
Isn't it amazing how we are always the ones who have to incur the ever increasing surcharge yet our almighty ministers do not do anything to minimize these charges. How come they do not utilize electric cars to travel from one place to another instead of those fancy cars which guzzle gallons of fuel? Isn't it time they start leading by example!!!
D.MANGION (on 30/6/08)
Somehow I think I'll survive this too, and life will still go on.
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 !
David Gatt (on 30/6/08)
Where are those PN fanatics from before the election now? Is this the 'par idejn sodi' you promised. Nice going.
Bernard Vella (on 30/6/08)
Dear Mr. Mario Bonnici...i would just like to refresh your memory a little. Prior to the election the then so called 'caretaker' prime minister lawrence gonzi was already speaking about a storm in the distance regarding prices of fuel and cereals...now quoting you," I'm missing all those promises before the election, where everything was nice and the country was almost a carbon copy of heaven. What happened suddenly??!! "

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...
Michael Ellul (on 30/6/08)
I just learnt that in European countries a network of electricity grid is available. In simple the consumer with a switch on his home pc chooses from where to buy his electricity. Most power stations want to have their power production at 100% 24/7 so at night mostly they lower the prices so consumers swith to their electricity grids and thus creating demand. Can Malta enter in this electricity grid. It is true that if we make part of it every household chooses from where to buy electricity and we will save hundreads. true enemalta will just become an emergency station for Malta nothing more perhaps is this worrying the government that Enemalta will be closed. Well shipyards are not worrying him so why should the closure of enemalta worry him? Perhaps he's making profits from it at our expense?
B. Borg (on 30/6/08)
Till next election, the Maltese will lose their top spot of the happiest in the world
R Agius (on 30/6/08)
This is a national problem which was foreseen even during the election campaign. PM Gonzi mentioned the issues of oil prices and cereals/grains several times as being major hurdles "Gej maltemp kbir lejna......".

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........

i. falzon (on 30/6/08)
@suzanne

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.
Michael Debono (on 30/6/08)
It is wrong for Minister Austin Gatt to say that the government paid €72 million to keep the surcharge low. But has this money fall en into the hands of the government from heaven like tha "manna" in the desert, or is it money collected from us citizens. Once it could be done it ought to continue to be done.
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?
J.Borg (on 30/6/08)
@Frank Grech.....first we whave to pay a hefty amount of surcharge so that the government will have money to invest in WIND!! energy and energy from the sun....but that after other countries have already changed.....as always that's how malta works.

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
Frank Vella (on 30/6/08)
Why they always make us think a one percent increas in oil prices translates into 1 % in increase of electricity cost? If it really would be like that I would try to get a job at enemalta.....
Mario Bonnici (on 30/6/08)
I'm missing all those promises before the election, where everything was nice and the country was almost a carbon copy of heaven.
What happened suddenly??!!
Did this international crises start on the 9th of March??
Or somebody tried to take us for a ride??
FRANK GRECH (on 30/6/08)
Malta is blessed with bountiful wind and sun. Endless and clean energy all around us.
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!!!!
K. Fenech (on 30/6/08)
I wonder wether I am living in the same island where I was living before 8th March 2008. Before than, I never heard any minister saying that the government was going to increase the surcharge to these astronomical figures, not even that they were going to change the tariffs.
Claude Camilleri (on 30/6/08)
If Austin Gatt says it should be 115% then we should expect 100 or 105% and the announcement will harp on the fact that the government is doing us all a huge favour by shouldering a great part of the burden. Blah, blah....weep weep..... Dr Gatt what happens when the price of oil, as expected, reaches $200 a barrel at the end of this year?.

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.
laurence schembri (on 30/6/08)
Oh well, as from tomorrow we will be that much poorer, so what!
`YES...TOGETHER WE WILL SURVIVE...OR MORE APPROPRIATE...EXIST.
Suzanne Buttigieg (on 30/6/08)
The international community should immediately impose hefty levies and taxes on all exports (including parts, raw materials and food) going to oil producing countries. The taxes collected can then be used to subsidise the oil we are getting from them.
Anthony A.Mifsud (on 30/6/08)
Dr. Gatt, You and the rest of the PN should shoulder this burden as it's all your fault for this hike in surcharge.
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

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