UPDATED: MLP urges government to re-start tariffs exercise from scratch
(Adds government reaction)
Labour leader Joseph Muscat said this afternoon that the government was giving a distorted picture of the impact of its proposed water and electricity tariffs because its calculations had included summer houses and garages with the number of households.
Speaking at a press conference, Dr Muscat said it was almost certain that the government would revise its proposed tariffs downwards, but the MLP felt the government should start from scratch in a proper consultation process with the social partners.
Dr Muscat said that the MLP had calculated the number of households on the basis of census figures.
While the government was saying that the impact of the new tariffs would be between €1.50 and €5 for most households, the MLP found that the impact would actually be between €5 and €9 per week. The proposed tariffs, he said, meant that if the surcharge was retained, it would have gone up to 245% from the current 95%. Most families, he said, would also see their water bills rise between 0.75c and €1.50 per week.
Dr Muscat pointed out that the rental for the electricity meter would also rise by 170 percent for one-phase supply and by an astronomical 700 percent for three-phase supply for domestic users.
The Labour leader said the threshold being set by the government for consumers to benefit from the new eco-refund was also way off the mark. In terms of the government proposal, the eco-refund would apply for those whose power consumption was up to 1,300 KwH per person per year . Yet the party's detailed study of electricity use by families showed that the threshold had to be at least 1,540 KwH for most people to have a chance to qualify.
This, Dr Muscat said, was the worst possible time for the government to be introducing such tariffs. It contrasted sharply with the situation in other countries, where governments were seeing how to put more money in the people's pockets so that they could get their economies moving. He urged the government to go back to the drawing board when it meets the social partners again on Wednesday.
The government in a reaction this evening said that Dr Muscat had not come out with any proposals on the new water and electricity tariffs,
The Infrastructure Ministry said that six weeks ago, Dr Muscat wrote in The Times that: “Labour is currently working on a set of proposals for new water and electricity tariffs…we aim at being positive and be pro-active even when it comes to utility bills.”
Yet no proposals were announced in this afternoon’s press conference.
The ministry said the government had been transparent throughout the process. The Resources Authority had made a detailed presentation, and studies made by KPMG had also been presented to the social partners.
The KPMG studies were accompanied by a presentation on oil purchases by Enemalta.
The Labour leader himself had been invited for a presentation. A delegation led by MLP deputy leader Anglu Farrugia attended instead.
The government stressed that it had declared from the outset that what it was making were proposals for discussion and these proposals were not binding. It had also said it was open for other ideas, but today’s press conference again confirmed that Labour’s one interest was partisan politics.
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V Fenech
Oct 21st 2008, 08:18
@ j farrugia
So if we're going to be excluding Cikku l-poplu from our consumption bills, why is the calculation resulting into higher bills???
As for as I know not even Gonzi denied the rise in the bills!! Don't tell me because of the removal of subsidies. The Nationalist Government introduced this system itself, led it to complete failure and now he wants to be with us again. That is the consistency mentioned by Paul Borg Olivier???
V Fenech
Oct 21st 2008, 08:13
Jason Borg is lost in political rhetoric of the old days. Joseh Muscat will be presenting the study to the MCESD and things will talk by themselves. You seems to leave out an important part from the news, that this is only a part of the MLP's reaction for the proposed tariffs.
Apparently Joseph Muscat believed that Gonzipn could sum up a serious impact assessment. But it seems that either the Government wanted to leave it out or else he's not capable to do it. And please be reminded that everything is started after a proper study is set up.
p.s. don't jump on the EU issue.
Keith Abela
Oct 20th 2008, 23:14
The solution is simple. If the government had not spent some unbudgeted 60 million euros in God knows where before and during the election campaign, and if the government had the competence of managing public projects efficiently and ontime without cost overuns, then today it would not have to face the need to burden people with additional taxes required for the said new alternative energy projects.
Who wants to pay additional taxes for proposed projects when the government has a track record of public project inefficiencies and cost overuns?! I'm convinced that people these times are well aware of having value for money and thus value the concerns put forward by Dr. Joseph Muscat.
Lawrence Gonzi's government is so insensitive, that even though major world economies are injecting money into banks and people's pockets to increase cash flow and mitigate the economic recession, it proposed exorbitant new energy tariffs that would dry cash flow and grid lock the country's economic competitiveness.
Yeah right! Well done Dr. Gonzi, keep boasting round and about!
Michael Grixti
Oct 20th 2008, 22:21
Jason Borg
Mela when you're with your backs to the wall you call for solutions.? After you've ignored everyone and you make a kawlata you call for proposals? Bla Bla Bla on Xarabank at least Dr Muscat answered all the questions unlike Gonzi who looked clueless and out of sorts.
m farrugia
Oct 20th 2008, 22:20
a press conference called to claim that there a difference of 5 euros per week between his calculation and the government's calculation. ahna ahna jew mahniex!
M. Pace
Oct 20th 2008, 21:47
Jason borg,
There exist issues which have been "under discussion" for years and years so don't expect Joseph to come running with his proposals just because you said so. I'm sure that if he said that he is coming up with proposals, then that's what he'll do. Heq "nistennew u naraw" bhal ma qal Gonzi f'Xarabank meta gie mistoqsi kem se jiehdu immigranti l-pajjizi l-ohra tal-EU.
U Gonzi "ma jahrabx mill-problemi imma jaffacjahom" billi jitfa' l-piz fuq il-poplu. Wara kollox, hu komdu, u anke inti minn kif qed titkellem.
john deguara
Oct 20th 2008, 21:41
sabiha din
nahseb li dall gvern jew bla ideat jew ma nafx
is soluzzjonijiet minghand joseph irrieduhom u kif qallek ta qabli , ga qallu x ghandu jaghmel , jieqaf b dawn il proposti kummiedja u jibda jikkonsulta ma min huwa fil qasam rispettiv tieghu .
u by the way nifrah lil partit nazzjonalista li rnexxielu jsieb segretarju generali li jaqliba lil jason micallef ghax jidher torta akbar .
Jason Borg
Oct 20th 2008, 21:08
@ Joseph Dalli -
Il-gvern mhux jibda mill-gdid imma jkompli. Diga thabbar li l-Prim Ministru ser jiltaqa mal-MCESD nhar l-erbgha biex ikun diskussjoni. Ghax habib tieghi, il-Prim Ministru ma jahrabx mill-problemi imma jaffachom.
Il-Prim Ministru qieghed fuq is-siggu tad-decizjonijiet u mhux gallarija, jitkellem minghajr sustanza.
Jien infakkar ghax wiehed malajr donnu jinsa x'kien kieteb Joseph Muscat , fit-8 ta' Settembru
fuq it-times kiteb
"Labour is currently working on a set of proposals for new water and electricity tariffs." x'gara minn dawn il-proposti, ilu aktar minn xahar jikkalkula l-ekonomista ? x'gara minnhom dawn it-tariffi fantazma.
Jien naf x'gara minnhom, mhu veru xejn li kien qed jahdem proposti, Muscat komdu joqghod gallarija, jitkellem bla sustanza. Illum kulhadd rega stenna li Muscat jaghmel il-proposti tieghu, imma sejjah Press Conference ghalxejn !!
Jospeh Muscat, il-politika mhux gugarell imma sustanza, u responsabiltajiet !!!
P.Schembri
Oct 20th 2008, 20:51
@Jason Borg. Who's in Government, Labour or the PN? What is the Labour forwarded it's proposals what then? Joseph Muscat already proposed to the Government not to continue with the implementation of the tariffs. Isn't that a proposal? Or it's proposal only when it favours the government? And when it doesn't favour the government? The Labour Party is politicisng the issue. Please make up your mind both you and your party before it's too late!
J Farrugia
Oct 20th 2008, 20:44
These people do not know what they're talking about. Government (or enemalta ) does not buy crude oil which is at the moment $75 per barrel and next week will rise again. I have to be short. We purchase petrol, diesel, aviation fuel, etc. We purchase these commodities from where prices are stable. The government heavily subsidises enemalta to the tune of 85 million. From whose pockets are these coming? From us the people. For what ? so that cikku l-poplu can waste as much as possible while enjoying the same tarriffs unlike us, who make economies with these products and have to pay for these cikku l-poplu the soprataxxa. Whose going out of pocket us the common people or cikku l-poplu? I believe it is us the common mortals. So it's about time that justice be done even in this sector. We're just fed up of paying for others' irresponsibilities and inefficiencies. About time everyone pays his dues, and no poverty lines should be included in this exercise. Everyone wastes so everyone has to pay according to consumption. And those politicians who incite that these tariffs should go down, must put their money where their mouths are. Including everyone.
Joseoh Dalli
Oct 20th 2008, 19:45
Il-Gvern, irid jibda l-konsultazzjonijiet mil-gdid, ma' l-imsiehba socjali, b'mod aqwa u li vera jaghmel gid.
Joseph Muscat, jemmen fil-Konsultazzjoni, kontra dak li apprentament qed jaghmel il-Gvern. Jghaddas rasu u jimxi wahdu.
Nies bhalhek, Jason Borg, ma tistghux tifhmu haga semplici bhal din.
Il-Partit Laburista, mmexxi minn Joseph Muscat, l-ewwel irid janalizza u jekk hemm bzonn jikkritika.
Joseph Muscat ghamilha cara, li fejn hemm tajjeb, mhux se jibza jaqbel mal-Gvern, pero, f' fi kwistjoni bhal din, meta jidher fic-car, li l-Gvern, lanqas konsultazzjoni sura ta' nies ma ghamel, lanqas tistenna ruzultat tajjeb.
Prosit Joseph Muscat.
simon borg
Oct 20th 2008, 19:36
"It contrasted sharply with the situation in other countries, where governments were seeing how to put more money in the people's pockets so that they could get their economies moving."....Well said Dr Muscat. How very well said. Rather than being partisan, Dr Muscat stated facts everybody can verify with a simple push on a TV remote.
In Dr Gonzi's words, the economy could not carry a burden of 85% surcharge when the country was "finanzi fis-sod" (2007) but now that the 'mewg' are on their way it can afford a surcharge of 245% (2008/2009)....was once bitten, the next time i''ll shy...who are we trying to fool here?
J Martinelli
Oct 20th 2008, 19:02
This government seems to get itself in a bind for no reason at all.
Thresholds, surcharges and subsidies were meant to cushion energy costs. Whatever choice it goes for, the government should know very well that the Opposition will automatically oppose without offering alternatives.
Take the controversy about the threshold. Some say that 1300 units is too low. Maybe so. What the government should do is offer a basic number of units at a certain rate and then, over the agreed baseline, the rate will be higher.
This will accomplish two things. The ones whose consumption is within the baseline, pay a slightly lower rate. Those who can afford to exceed the base unit allowance will then pay the higher rate. Secondly, it will eliminate the complication and bureaucracy of calculating and paying back credits.
About time it learns the KISS method !
Tony Borg
Oct 20th 2008, 18:58
The Government in its reaction did not comment on the calculations made by the Labour Party.
Does this mean that these calculations are correct?
Paul Barrett
Oct 20th 2008, 18:12
Yet the party's detailed study of electricity use by families showed that the threshold had to be at least 1,540 KwH for most people to have a chance to qualify.
Wow, we might just make that threshold if we stopped living for 31 days (in the winter) or went on an holiday or had a summer residence - but then again, if we could do that, we would not care about the threshold anyway.
Jason Borg
Oct 20th 2008, 18:06
Muscat called a press conference to repeat the same bla bla he said on Friday on Xarabank, without giving any solution or proposals .
Everyone was expecting labour's proposals , not a reaction. but this is not a surprise !!!
C Attard
Oct 20th 2008, 17:54
Labour is giving its helping hand here. Well done Dr.Muscat! At least we are given an idea about how much unfair are the proposed tariffs. Eventually the Opposition is doing the Governments' job. In my opinion the Labour party should continue to be closer to the social partners and stakeholders. Only in that way could politicians discover and analyse what are the challenges of the economy and what are its fears and trusts.
The Government knows that he's being mistaken. He has left the social partners, households and the industry to make their own assessments. The power issue can't be used as a tool to solve the deficit problem, moreover when our ministers themselves were not careful and responsible enough to control their expenditure!
anthony muscat inglott
Oct 20th 2008, 17:53
This is the reality and it looks to be making sense .
The government needs to start from scratch cause it is killing the whole country .
Dr Muscat is being realistic and the man in the street looks that is already feeling the effect of these tariffs . Business is dead and this is a whole circle . At some point the country is coming to a stand still and if the government is going to put the burden on the tax payers , no cash in hand would be available and the economic situation would come to a stand still .
Dr Gonzi wake up and react and no excuses are permitted
Manuel Micallef
Oct 20th 2008, 17:40
Very well said Joseph!!
One comment though; Don't you think that the government figures are mistaken by chance. These are wrong/incorrect on purpose - to deceive the people.
as they have deceived in the case of JPO. Now it is becoming a routine;
Paula Chetcuti
Oct 20th 2008, 17:26
It is evident and unmistakeable that the Labour party is on track more than the government. It goes around positive thinking and relevant planning. Joseph Muscat has shown that such issues could not be tackled in purpose of raising the government's revenue but to face the real situation while getting the people conscious of what is being consumed.
As time goes by, one could detect more and more of what was planned in the Nationalists' government. Nowadays we are fully aware that the surcharge was first introduced to compensate for the total failure in the administration of Enemalta. Up to this week the oil prices went down. Minister Gatt promised that he would revise the tariffs if the price of oil goes down below 85 dollars.
There was a reduction in the price of oil which sent it back below 85 dollars. The governments' revision simply meant paying more than we actually pay. Taxpayers will end up singing:
Kemm konna ahjar meta konna aghar!!!
P. Chetcuti
(Disgusted floater/ student)