New power tariffs 'threaten thousands of jobs' - FOI
Helga Ellul, FOI vice president.
The Federation of Industry warned this afternoon that government proposals for an increase in power and water tariffs, if pursued, will threaten thousands of jobs.
“The tariff increases proposed by Government are clearly not affordable at this stage. It is unacceptable that Government should present such a one-sided approach to policy formulation, which caters only for the immediate financial sustainability of utility providers and completely rescinds its obligations to the rest of the economy and society,” FOI Vice President Helga Ellul told a press conference.
The government two days ago presented the social partners with five options for a new system of tariffs for water and electricity consumption.
Mrs Ellul said all of the options were based on a fundamentally flawed approach to policy formulation which, if pursued, was bound to have severe adverse effects on economic activity in Malta.
“The financial position of Enemalta and the Water Services Corporation is imperiled not only by the increase in international oil prices, but also and perhaps more importantly, by decades of short-term oriented policies. In the Federation’s view, it can only be restored when and if the entire economy, including households and business, will be in a position to afford it,” Mrs Ellul said.
She complained that the FOI was never consulted during the compilation of the tariff models.
Furthermore, the new tariffs were introduced retroactively as from October 1
“This will create a sudden economic shock, which will directly affect the current and planned investment expansions decisions as well as general business confidence level in the economy.
“Clearly, we feel that there will be an impact on employment, as these proposed tariffs will threaten thousands of jobs. There will be an increase in inflation rates and slow down of the growth of the economy. Of course, due to fall in competitiveness, Malta’s ability to enhance exports and its capability to attract new investment will decrease” said Mrs Ellul.
The FOI position was endorsed by the Malta Chamber of Commerce and Enterprise. The press conference was attened by Chamber President Tancred Tabone.
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l borg
Oct 4th 2008, 01:31
DO NOT WORRY FOI
MOST MALTESE ARE OVERWIEGHT AND CAN GO FOR MONTHS WUTHOUT FOOD
PLEASE PAY THE BILL OR CLOSE YOUR BUSINESS
DO NOT WORRY ABOUT THE WORKERS
WORRY ABOUT YOUR YACHTS AND LUXURY CARS AND 5 STAR HOLIDAYS
mario borg
Oct 3rd 2008, 21:00
sounds pretty great. So the FOI/CoC wants to continue with the subsidies!...who said that gov should not intervene in the economy, who said that gov should leave it to the private sector because they know better? who said that prices should reflect their true cost?
A Camilleri
Oct 3rd 2008, 19:35
Is this capitalist FOI moaning about losing subsidies on its surcharge? Is this the same organisation which along with others spoke so vehemently against the dock's subsidies in past years? If the proposals are pursued it will threaten thousands of jobs, we're told. Like past arguments that removing levies and protection will lead to factory closures. If needed, so be it. The economy will restructure. You win some and you lose some. In the end we need to attract sectors which are strong and drop the laggards. The latter slow down progress, and thrive on cheap labour. As regards the loss of competitiveness joke, what did the rest of the world do? If anything local industry has been getting an unfair advantage. Is it only Malta's oil price which has gone up? Or are the governments of every other country shifting the increasing costs on the other consumers and taxpayers like we're doing here?
M D Fenech
Oct 3rd 2008, 17:24
What happened to the Finanzi fis-Sod, Budget Surplus, etc?
The govt had to deduct taxes not increase them! After all that's what Dr Gonzi promised us before the election. Had he really taken us for a ride before the election, as AS said after all!
I.Scicluna
Oct 3rd 2008, 16:40
"Politika tal-calculator"!
Remember who said it?
First correct answer gets a free toaster............oops! Sorry, you wouldn't be able to afford to run it, at these rates!
Lou Cassar
Oct 3rd 2008, 16:16
Both Ministers Austin Gatt and Tonio Fenech have proved time and time again that all they care about is numbers. And not the social aspect in any solution they propose.
Jean Paul Galea
Oct 3rd 2008, 15:51
I believe that Mr Gatt should have used this kind approach with The bus driver but it doesn;t make sense for people who pay electricty bills every 3 months or less. The approach is completely wrong and shows lack of creativity on how to tackle social issues.
R Axisa
Oct 3rd 2008, 15:50
What's going on here in Malta??? Nothing seems to be going on according to the Gonzi electoral programme. The promises made before the general election seem to have vanished in thin air. We were promised a much better standard and cost of living. Come on Gonzi, keep up your promises (finanzi fis-sod). Our personal finances won't surely be strong under these circumstances.
I.Scicluna
Oct 3rd 2008, 15:40
Do you think it would make any difference!? Remember (especially those who voted this Govmnt in!) that we expect nothing different for the next 4 years or so..... Then it would be a repeat performance of what we are seeing now; promises, promises and more empty promises which are being promptly broken once back in power!
I. M. Dingli
Oct 3rd 2008, 14:56
Uppsss .... Dr. Gatt rifes kallu!!