Social partners unite

Unions and employers yesterday called on the government to postpone the introduction of new water and electricity bills to April.

The call followed an urgent meeting of the Malta Council for Economic and Social Development during which the social partners drafted a common position against the government's proposed utility tariffs.

Parliamentary Secretary Chris Said informed them he had taken note of their position and would relay it to the government.

In contrast with the position Infrastructure Minister Austin Gatt was reported to have taken on Thursday, Dr Said said nothing was cast in stone and the government's revised proposals were "not final".

The general secretary of the General Workers' Union, Tony Zarb said on Thursday that when the social partners asked to meet again to discuss their reactions to the government's latest proposals, Dr Gatt "said clearly that there is nothing to comment about and that the government would implement what was presented..."

Asked about his apparent change of tack over Dr Gatt's statement, Dr Said was evasive.

"Strictly-speaking, the discussion on the utility tariffs came to a close yesterday (Thursday) but nothing is final and the government is prepared to continue listening until it takes its decision. Until then, everyone can voice their opinion," he said.

Asked for his initial reaction to the recommendations of the social partners, Dr Said noted that the approach - to decide later rather than now - was "totally different" to the government's approach on the matter.

Earlier, MCESD chairman Sonny Portelli said, on behalf of the social partners, there was consensus the country's economy could not afford the blow the new tariff regime would cause given the present global scenario.

Enemalta's finances should not come before the national interest, he said.

Besides postponing the new tariffs to April, the social partners also suggested monthly MCESD meetings to discuss international developments, including the price of oil and the global economy.

Should the price of oil stabilise at a low level by April, Mr Portelli said, the savings should be retained by the government to counter the impact of the global crisis on the country's finances.

He said that the price of oil had dropped from $150 to $64 a barrel and he questioned whether the urgency to revise the tariffs was still there, while insisting that the government's proposals would do more harm than good to the economy.

The social partners also criticised the way the government "is treating the MCESD".

"The principle of social dialogue can only be respected if the social partners are given adequate time to discuss developments and to be part of the solution through adequate consultation. We are disappointed that this had not been the case to date with regard to the water and electricity tariffs," they said.

The MCESD members, in fact, had already complained that the new tariffs were only presented to them after they were asked for their budget proposals, despite the fact that the report on which the plans are based was commissioned in April.

Unlike the meetings earlier this week, ministers were not invited to yesterday's meeting but Godwin Grima, the principal permanent secretary, and other permanent secretaries were representing the government.

The MCESD will reconvene today - for the fourth time this week - to discuss the budget but Dr Said is almost certain that the tariff issue will be brought up again.