Gas proposed as alternative fuel for public transport

Labour MEP John Attard Montalto yesterday called for a study into the introduction of gas for certain modes of public transport, saying gas was much cheaper, cleaner and less dangerous than diesel.

Gas was a good alternative due to the short distances in Malta, he said.

Dr Attard Montalto was speaking during a meeting with the Chamber of Small and Medium Enterprises - GRTU, whose general secretary Vince Farrugia said that following the privatisation of Enemalta's gas division, the GRTU would look at how to increase gas consumption.

Discussions to this end with the private company that is taking over, he said, had already started.

Dr Attard Montalto yesterday joined the chamber in its call for a reduction in excise tax on diesel. The GRTU argues that this will reduce the burden on transporters and distributers, which, ultimately, is leading to inflation.

The Labour MEP said that due to its small size and the fact that it was not on mainland Europe, Malta was in a position to reduce tax on diesel, or keep it sustainable, and the government could not continue giving the impression that this was not possible.

It was one of the solutions to meet the challenges of inflation. It did not make sense to pass the increased costs onto the consumer, he maintained.

Mr Farrugia claimed the government is indeed in a position to reduce these taxes, or at least keep them stable, given that it will rake in an estimated €168 million or more from motorists this year. A total of €90 million would be coming from the excise duty on the fuel alone.

Mr Farrugia said the government was practically "staring" the inflation problem in the face and its laissez-faire attitude was causing harm.

"Something has to give," he appealed, urging the government to look at the big picture to tackle the serious issue of inflation.

"It is not true that taxation on diesel is at the European minimum. We are in the middle of the scale," Mr Farrugia continued.

Between 2006 and 2007, Maltese taxpayers paid €25 million more in excise tax on diesel and petrol at a time when prices were going up. It was a case of adding salt to the wound, he said.

It is clear from statistics that the retailer is not responsible for the inflation, he continued. On the contrary, the trader was absorbing the 22 per cent increase in the cost of transportation and distribution.