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Muscat accused of 'hypocrisy' over surcharge

The Infrastructure Ministry this evening accused Labour leader Joseph Muscat of political hypocrisy for having claimed that no consultation had taken place before the surcharge was raised.

The ministry said the surcharge was raised in terms of a formula agreed with the social partners in 2005 and nothing had changed.

Dr Muscat earlier today wrote to the social partners asking them for their suggestions and views on how Malta should tackle high energy costs. He also criticized the government for not consulting anyone before the surcharge was raised (see separate story).

The ministry also explained that were it not for forward buying, consumers would now be charged a surcharge of 140 percent. Thanks to forward buying, the surcharge should be 115 percent, but government subsidies had scaled that back to 95 percent.

The ministry said Enemalta had forward buying contracts running into next year at an oil price which is 40 percent lower than the current oil price. But these were definite contracts, and once they expired and new ones were negotiated, oil prices would still be rising.

The ministry said it was disgusted by the hypocrisy of the Labour Party which was acting like it did not know that oil prices were rising at an alarming rate.

While the MLP was arguing against raising the surcharge, the fact was that subsidies still had to be funded by the people’s taxes. And whereas everybody was required to pay taxes, the surcharge and the power tariffs were charged according to how much one consumed.

While Dr Muscat was pretending that consultation with him could make a difference to anybody, the government was reiterating its commitment to conduct the same extensive consultation before revising the tariffs as it had done before introducing the surcharge, the ministry said.

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Comments

J Micallef (on 6/7/08)
@Fiona S

You are so wrong about my age, dear Fiona. I am 36 yrs old. When I refer to JM as the kid, I am pointing out and referring to his immaturity. He is acting like an immature kid, and this should come as no surprise, considering that in his life, he did not work where it counts, i.e. the private sector or the effective parts of the public sector.

He only worked with Labour masters at SUper 1, and the only bits of jobs he got were from his labour bosses, who gave the kid something to do to fill his time (or fill up his cv considering that he calculated his moves along the way).

I am not that easily impressed, and I am sure that were he to attend at a real and serious professional job interview, where people are not easily impressed by any bluff, he would be shown the door as soon as he opens his mouth.
Edward Zammit (on 6/7/08)
Well Austin's comments come to no surprise at all....what anyone would expect...Don't forget that the man appeared to have no respect what so ever to the highest institution of this country, when he said that there's no need for the opposition to discuss the famous MALTACOM deal...may be he's still thinking about his AUSTIN POWERS!!!! Quite something to have all the social partners still querying when this consultation was held....If Dr Gatt thinks that we're believing him, probably he's day dreaming.
Mike Magri (on 6/7/08)
HEY GUYS...

How about some simple Arithmetical Facts VS `Hypocrisy`...

Surcharge up to end of June = 50%
Surcharge from July 1st, 2008 = 95%

RESULT = (50% X 190% = 95%).. AN INCREASE OF 190% OVER THAT OF JUNE, 2008.

By the way.... Didn`t i read of a Supposed (!!) increase figure of 115%....????!!!!????!!!!

HYPOCRISY......!!!!!!! ..... OH....... WELLLLLL......... To save space, take a look at what GonziPN used to assure US Maltese voters, prior to March 8th elections, and also at the GonziPN electoral manifesto, on this subject...!!!!!

CONCLUSION.. The longer someone CLEARLY and PUBLICLY explains the said famous `2005 FORMULA` agreed with the Social Partners of THAT TIME, the MORE SUSPICIOUS i keep on getting, about the genuineness of this ASTRONOMICAL TAX, and above all, to whom i should really point my `HYPOCRITICAL` finger to..........!!!!!!!!!!!!!!!!!!!!

`BALLEC` GUYS.......... WHO`S TAKING WHOM FOR A RIDE....!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Ben Grech (on 6/7/08)
The government is not one to talk about hypocrisy. Austin Gatt is full of praise for the utilisation of hedging agreements for the purchasing of fuel supplies, when his own party was responsible for the scrapping of earlier agreements created and maintained by a labour govnerment. I clearly remember Dr Gonzi stating at the time that he didn t wish to gamble with the people s money when it came to sourcing fuel supplies.
F Spiteri (on 6/7/08)
E Gatt,
I cannot believe this!!!!
Why do you think Dr Muscat wants to meet the social partners???? To get to know them????? Huh? Any idea why? Oooooh! Maybe because he WANTS to "propose alternatives to what the government is doing so the public gets the benefit of political debate between different directions. " after "asking them for their suggestions and views on how Malta should tackle high energy costs. ". OOOOOOH!!! So that is WHY!!! WOW!!!!!!!!

Reading your comment, you know what I said: No wonder PN frantics keep on election after election keep voting PN!!!!!! Even things so simple semm too hard to understand. Well ....
E Gatt (on 6/7/08)
@ Fiona S

"3. To propose alternatives to what the government is doing so the public gets the benefit of political debate between different directions. "

Exactly dear Fiona. But as yet I have not heard that Dr Muscat has proposed even one small alternative to Government's decisions. So before he should start demanding consultation from governemnt for everything, maybe he should explain to us what he would have done if he was the Prime Minister. Would he have implemented Alfred Sant's propsals? Would he have halved the surcharge. And if yes, how would he have met the shortfall in revenue.

Why is the MLP always behind in having any ideas. When the White paper on rent reform was published last week, some TV station interviewed Dr Bountempo, the MLP spokesman on housing, and he said that the MLP has no position and they still have to study the situation.

Say what? Hey guys, 3 months ago there was an election and you said you were ready to govern.

Get credible and start offering alternatives.
carmen caruana (on 5/7/08)
Im just feeling proud day after day for not voting for this sort of government !!
J.Borg (on 5/7/08)
@ABC.....how is it that you always criticise labour....i am a floater and i think that JM is doing his job perfectly.......why do we always have to accept what the government says....give us a break......
@Joseph zammit....i agree with you to make our homes more energy efficient.......how about the government starting helping by eliminating any taxes and VAT on enerygy saving equipment, roof panels, etc......and maybe why not even help in aiding people change windows to double glazing thus saving more energy..
@ Mr. Gaffarena.....why are you asking JM to lay down the facts....so when you want you tell labour to give is real facts and when labour offers a helping hand they are turned away......remember the dockyard...i am still waiting for the government to meet with labour...

Yes this is of national interest and both government and opposition should meet with all concerned to see what can be done and not turn this problem into a political ball......
Noel Cutajar (on 5/7/08)
The 'kid' is what he is doing...acting as a responsible opposition. Nonetheless, we know how the Minister...forgot his name...ah yes!!! the Gatt...getting old...reacts to criticism...all out personal attacks. What do you expect from people like ABC and Co...to say one positive word on the new way of doing politics...the first time they admit that he is much better than anyone else...again!!! forgot his name...I am referring to the one with the mytical smile on posters redone with Photoshop...I will eat my shoes stuffed with old promises from...who is the party governing right now? I always forget...I think it is the kid who makes see how politics should be done. I remember now!!!
Fiona S (on 5/7/08)
To J Micallef:
If you are calling Dr Muscat "the kid", I am assuming you are old of age, if you allow me to guess that!! And so, maybe you are too old to understand how the government system should actually work, and ironically enough, all you need is Dr Muscat to show you in practice!!! Guess what ... he is exactly doing what you have said: sticking to his role!!!! To save you time looking it up, please read hereunder a few tips of what the role o the opposition leader should be:
1. To keep a close eye and ear on what the public needs and wants because problems are often caused by a Government not delivering.
2. To constantly question the Government so as to keep him answerable to the public at all times, and a good Opposition can put the spotlight on serious issues and have them resolved quickly.
3. To propose alternatives to what the government is doing so the public gets the benefit of political debate between different directions.

To frantic Borg Cardona: Dr Muscat is inexperienced only at sitting back and criticizing ... he is doing & delivering as he always did!!

gaffarena joseph (on 5/7/08)
So, this means that with a new leader labour are still the same.I, wonder what Joseph will do if he was in this situation.
Come on, let us be a real new labour, and what is whilte we cannot say it is black.This is a situation of national interest, so lets be united on this issue and try to find a solution
J Micallef (on 5/7/08)
Somebody should tell the kid actor that his amateur political stunts are quite transparent. The kid should try to stick to his role, i.e. opposition and forming an alternative government and coming out with alternative policies, that is only if he is able to do anything beyond posing in front of cameras and performing in stage managed conferences.

The kid is becoming a real nuisance with all his theoretical acts of big headedness. His political immaturity is quite evident. Apparently he is surrounded by yes people, and nobody has the guts to explain to him what his role is.
M Vella (on 5/7/08)
To my mind, the real issue is not the price hike of oil but the way this hike sees Malta so vulnerable, unprepared, inefficient in use of black gold, and quasi 100% oil dependant after so many years of Nationalist rule that tries to convince us of its sensibility and sensibleness.

Let Government at least try to decrease reliance on oil by giving as a truely effective transport system.
Randolph De Battista (on 5/7/08)
Give us a break ABC! You're always trying to teach us the abc!! So you didn't expect any consultation. I'm shocked since you vote for the party which introduced the word "dialogue" in the maltese dictionary. How is this for dialogue?!!!
Joseph Zammit (on 5/7/08)
Why this is being turned into a political debate is beyond me. Oil Prices are going up and they will keep going upwards. Just to give you an idea June2007 oil was at $70 a barrel, June 2008 closed at $140. This is not political issue it’s a national issue, there is no MLP, AD or PN
I really don’t understand the moaning too, yeah I get it we have to pay more, so find a solution and turn your house / business to more energy efficient. The Government is not our Parent he is there to run a Country, It’s an Enterprise and we the citizens are its shareholders. When will we get that? We have options to go abroad and find energy solutions to fit our homes and business but you can even find these here locally. Bloody act on it don’t let the government spoon feed you to do it.

People grow up and face reality, this is no surcharge this is a utility bill and we have to pay it. Don’t moan about it find a solution, but maybe I m too of a liberal thinking kind of guy or!!!!
John Cassar (on 5/7/08)
TO THE HON. MINISTER DR. AUSTIN GATT

DEAR MINISTER...... WOULD IT BE TOO MUCH OF A `HASSLE`, IF YOU PLEASE, PUBLISH FOR ALL OF US `IMSIEKEN, GA MIKULIN BIT-TAXXI SA RUH OMMNA`, THESE FAMOUS..."..TERMS OF A F..O..R..M..U..L..A.. AGREED WITH THE SOCIAL PARTNERS IN 2005..".....????????????????????????????

UNFORTUNATELY, I THINK THAT WE ARE BEING CONSIDERED AND TREATED TOO MUCH AS IGNORANT AND STUPID CITIZENS WHEN IT COMES TO CERTAIN POLITICIANS, IN THE LIKES OF DR. AUSTIN GATT.........

HATS OFF FOR YOUR STYLE OF GETTING THINGS DONE, BUT PLEASE SOME RESPECT IN YOUR VOCABULARY, AND TO THE MALTESE CITIZEN AT LARGE, WOULD NOT HURT A BIT........ RIGHT MR. MINISTER.....????
ALBERT FENECH (on 5/7/08)
Shades of Zimbabwe-style Democracy all over again here. So because the mechanism was agreed three years ago (the price of oil has tripled since then!), everybody should shut up, or put up, Maltese Democracy 2008 style. Therefore it follows that all industrialists, manufacturers, trade unionists, caterers, food retailers, Dr. Joseph Muscat, consumers, housewives, breadwinners et al should all shut up and put up. After all, it seems to have become the norm that to criticise the current administration is to risk being given a death sentence! Yep, Zimbabwe all over again.
Paul Schembri (on 5/7/08)
How come that the dollar is low compared to the euro and we get more expensive oil? If the hedging agreement is going to last for next six months or thereabouts, how come we have an increase in surcharge? Aren't we suppose to have stable prices till then? Or is is it something that has got to do with robbing Peter to pay Paul? Or finally, the government is saving for the day when the elections arrive and then the floodgates are opened for that elusive feel good factor?
Alex Ellul (on 5/7/08)
Calling others arrogant is arrogant, old hat and won't win you the next elections.
Pete Abela (on 5/7/08)
@ABC
As an unofficial (?) spokesperson for the Nationalist Party, it is you who, at every opportunity, are always instigating the demonisation of anything emanating from the Labour Party. Irrespective of any mechanism established by the social partners in the past for calculating the surcharge, it is amply clear to all (except you and some other PN apologists ) that the hefty increase this time is so extraordinary that its ripple effect on Malta's economic well-being, the standard of living and the operating costs of any commercial enterprise will be devastating. Surely it would have been so much wiser to consult and discuss these effects with all the social partners rather than an arrogant imposition in the the minister's typical bulldozer approach. If you cannot see this you must have both eyes closed behind your blue blinkers.
Andrew Borg-Cardona (on 5/7/08)
Just a minute, people, before you fall over yourselves in your rush to maintain the movement to sanctify Muscat. Once the social partners had established the mechanism for calculating the surcharge, it would have been ridiculous to go through the same exercise again, given that the parameters remained constant. Muscat's comment about this aspect of the issue, then, was uncalled for and demonstrates - at best - inexperience.
Miriam Galea (on 5/7/08)
...and the story goes on and on....
Mario Bonnici (on 4/7/08)
Austin Gatt strikes again!
By calling Joseph Muscat hypocrate he is indirectly accusing the social partners too because they all criticised the government for not consulting them.
Vince Brown (on 4/7/08)
Minister Austin Gatt is not arrogant . No fancy talk and beating about the bush for him ,he never takes ages to decide and Labour wish they have someone like him
Jon Cardona (on 4/7/08)
Well, I must say that the fuel and electricity issue is of national interest, and a near tripple digit surcharge is definitey going to effect our economy. If we had a mechanism which was created for certain situations, which situations have defintely changed, I really dont see anytying wrong with Dr. Muscat's comments. This is a national burden, which needs to be tackled in a national manner.
JOHN SCERRI (on 4/7/08)
Minister Gatt's manner of speech may sound arrogant and bossy to some .
Minister Gatt ..yes ..could sound like an i know all person but in my opinion when it come to making things happen he gets full marks ....
Think about how much money we at home saved when we download papers - past exam papers from the internet, when we had to buy them at exagerated prices
If it were not for minister gatt Malta would not be in the forefront in IT - this is one reason why smart city chose Malta to invest .
Minister Gatt made it happen when he pushed for all Government department data to be on line. - he deserves credit for this .
As for MLP leader ....I wonder how Labour would have tackled the promised half surcharge if mlp won the elections.
Which social services would be sacrificed to make up for this. MLP like to demand explanations .
I also Demand Dr.Muscat to stop staying Gallarija and explain what measures would have been taken to make up for rising fuel costs - naqilbu ghal Faham forsi? or invest in a nuclear power station?
Maria Pace (on 4/7/08)
Pretty typical of Austin Gatt and his haughtiness....
Charles J Buttigieg (on 4/7/08)
Joseph Muscat has a different view on the way this matter should be handled and he expressed them like an opposing politician should. To Austin Gatt that is hypocritical. To us Gatt as usual is being arrogant.
Eugenio Taliana (on 4/7/08)
Does forward buying mean hedging agreement? If my memory serves me well, some time ago, when someone told the Nationalist government that it should consider hedging agreement, Nationalists MPs tried to ridicule this person - and now in this article we have someone calling someone else hypocrite!
Ron Spiteri (on 4/7/08)
Austin Gatt once again is not impressing anybody with his arrogance and bull-dozing style. I won't take Dr Muscat's word on the claim of lack of consultation but when ALL the social partners say exactly the same thing I tend to believe them. It is we - all level-headed Maltese - who feel disgusted but with the minister's haughtiness and superiority complex. With his attitude he's not doing his party or his Government any favours.
Charles Busuttil (on 4/7/08)
And they used to criticize the MLP for using the forward buying system. This is hypocracy at its highest level.

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