Cynthia Busuttil
Conflict now is inevitable - GRTU
Water and electricity bills will be going up by an average of between €72 and €155 per person a year under finalised tariffs that will see some of industry's highest users bag savings.
The new regime, which will be retroactive from October 1, was criticised by social partners worried about the financial burden that both workers and businesses will have to carry.
Infrastructure Minister Austin Gatt, however, made it clear yesterday that the decision was final.
The finalised electricity tariffs do not vary much from what was announced by the government last week and which attracted heavy criticism from both trade unions and employers.
In effect, the only change was a decision to limit the increase on electricity bills for companies that previously benefited from the €50,000 capping on their surcharge. Dr Gatt said the measure, which will cost about €5.2 million, would affect 26 companies, whose bills will not rise by more than 40 per cent, adding that the decision was taken to protect jobs.
Electricity bills for households will remain as announced last week (increasing by a yearly average of between €28.60 and €93.60 per person) while the water tariffs, announced yesterday, will see most households' annual bills grow by between €43 and €62 per person.
But while many businesses will also have to pay more, some will see their water bills go down. A table released by the government yesterday indicated that some commercial entities will be saving more than €84,000 on their water bill.
Dr Gatt said the tariffs were flexible and could fluctuate with oil prices, adding that the new regime was part of the decisions the country needed to make to reach its target of a balanced budget by 2010.
Referring to the request by the Malta Council for Economic and Social Development to postpone the new regime until April, Finance Minister Tonio Fenech said this was not realistic, especially at a time when there was too much uncertainty because of existing challenges.
"We cannot go into an important year without this decision having been made," he said.
Dr Gatt said the large majority of households - about 60 per cent of more than 196,000 - will be eligible for an eco reduction.
The social partners, however, slammed the government's decision to forge ahead despite their reservations. The Chamber for Small and Medium Enterprises - GRTU, whose members will have to share the burden of staggering the removal of the capping for industry over three years, was vociferous in its comments.
Its director general, Vince Farrugia, said the rates were "unreasonable", given the prevailing market and economic situation both in Malta and elsewhere.
"The way the government is treating the MCESD is unacceptable. It's as if we never joined the EU and the government still believes it can just disregard the social partners," he said, adding that conflict was inevitable. The last comment was a thinly-veiled reference to a call the GRTU made to its members to only pay for the electricity they consume and not for anyone else's subsidy.
The criticism was echoed by both major trade unions, the General Workers' Union and the Union Ħaddiema Magħqudin.
The GWU's national council condemned the government's attitude to disregard people's hardships and the problems industry was facing.
Similarly, UĦM secretary general Gejtu Vella said the government was undermining dialogue, especially because it did not give them time to comment on the water tariffs announced yesterday before making them public.
"This reaffirms what Dr Gatt said that there was no more time for discussion," he said, referring to the statement made by GWU secretary general Tony Zarb on Thursday that when the social partners asked to meet again to give their feedback, Dr Gatt said there was nothing to comment about and that the government would implement what was presented.
A number of other constituted bodies also confirmed this although Dr Gatt has refuted it.
Joe Farrugia, director general of the Malta Employers' Association, said the way consultations were carried out was not normal and the social partners had made it clear they were not happy with it.
The president of the Malta Federation of Industry, Martin Galea, said the tariff increases came at a very difficult time for industry. The fact that they were backdated meant more trouble, especially in view of some companies already registering a downturn.
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Joseph Vassallo
Oct 30th 2008, 09:38
Has everyone taken into consideration how much overtime Enemalta/Water_Services have to pay employees? I am intigued by the number of repair jobs that seem to be carried out after normal working hours even if reported early or even day(s) before. Are they still overstaffed with political appointments? You know... like Air Malta. So how much overtime and who earns it, the blue collars or the white?
How many Enemalta employees does it take to check a sealed fuse at the meter? 2? 4? 6?
In UK, there is self-regulation (Ombudsman etc - more jobs for the boys-) but energy and water tariffs are rampant. They were never subsidised so the transition is not quite as drastic as here.
My other curiosity concerns whether the "meter rental" really is going to explode? In UK, much is made of the fact that some providers do not make a daily charge. That relates to direct charges of course, because in effect, consumption is charged at a tiered tariff which covers the "rental" by means of additional charges on the first few hundred kWh consumed.
Heaven help us if the weather weren't so mild and we needed more electricity for heating our living space.
Joseph Attard
Oct 29th 2008, 18:52
I agree with the ministers that Enemalta should not be subsidized with our income tax, but then why the aren't we getting the promised tax cuts? With the increases in tariffs, and the other effects of this recession we definitely need that money!
Vincent Zerafa
Oct 29th 2008, 17:59
During the past couple of weeks, financial experts were all giving their views on the global financial crisis. Stock markets were hit really hard and thousands lost their jobs. The experts all agree that we are all entering into a long recession.
Governments in America, EU and China are voting huge ammounts of money to try to control the domino effect of the economical breakdown. Interest rates were reduced and soon other cuts are to take place. Locally, people have already lost their job!
So how on earth can the local government expect the maltese people to pay for higher tariffs in the present situation? Or is Malta so special that we are immune to the recession ahead?
P Debono
Oct 29th 2008, 14:45
Disgraceful behaviour by the government I voted for seven months ago. The same government that promised us heaven on earth, reduced taxes and cleaner air. The same government that lowered the electricity rates before the election when oil hit a record price of $147, and now that it's AT $60 per barrel is going to increase them by almost 96 euro p.a!!
But obviously the election has now passed...
C.McElhatton
Oct 29th 2008, 14:23
The overall impression I get when I hear these things is that we (as citizens) are going to end up being the victims of what I call bulldozer tactics. I also think that this entire matter is being tackled rather heavy-handedly especially when one considers the rather dire global economic situation at the moment. As we have also seen from recent news the manufacturing industry is the one that is suffering most with companies (some believed to be rather resilient) reducing their employees working days to 4 days a week. This will mean less money in the pockets of those who would aid economic growth by increasing their spending rather than having to restrict spending to essentials...and the price of essentials (water and electricity) is going up. As I see it, unless someone drops a much needed lifeline to salvage this situation, I can only but predict a downward trend that will only worsen matters.
P.Schembri
Oct 29th 2008, 13:58
@all. One thing is for certain. Thank God MLP is not in Government. I can just see the PN, organising boycotts, protest marches, elves coming out to have their say and appealing the MLP government to resign, or maybe have some government officials planning to overthrow the government. But as the Maltese saying goes:"Min xarrbu kielu l-bakkaljaw". Now the chickens have come home to roost. Everybody with his hands in his pocket to pay the tariffs.
michael fenech
Oct 29th 2008, 13:03
Not too long ago right here there were comments saying that THE UNIONS SHOULD STEP ASIDE BECAUSE THE DAYS OF THE UNIONS ARE OVER.
I SAY NO MORE.
Ryan Bugeja
Oct 29th 2008, 13:00
What is worrying is that all this came amidst the global financial crisis... looking on the bright side of things... the less we consume, the less we pay and the better it is for our environment, and we go back to the age when good old granny lit a room with a tiny gasoline lamp.
It's useless creating havoc and fuss when its politics and politicians deciding for us... I always look forward for the 1 year prior to the election... there things feel like the Garden of Eden... we always pay less tax, less bills...
For those of you still waiting for the sacred five promised bulbs... make sure you keep them safe when they arrive until the tariffs are revised in favour of us consumers...
S. Agius
Oct 29th 2008, 12:31
@ Paul Debattista yes they are....
Can someone let me know if the annual rent for the electricity meter has indeed moved from around EUR 50 to EUR 650 as was being proposed initially by government?
H.Calleja
Oct 29th 2008, 11:49
Nobody likes to pay more for commodities. But this is a recurring process that has been going throughout many years. Even when a barrel of oil was not more than $ 12 a barrel we were ordered to pay exhorbitant bills for water and electricity. Plus 33 other taxes which dried up most of our earnings . Let's hope for better times
AFabri
Oct 29th 2008, 11:29
I really feel disgusted by today's politics and hopeless case for all the political system.
WE AE PAYING FOR PAST MISTAKES .........nobody is responsable and yet again all the maltese whom are paying. Culprits may be are enjoying some hefty pension.
Months before election , we were OK, ....now we need money to balance debts.
Same people are proud to be Christians!!!!!
It is very unfare for all those who care about wastage of electricity consumption & tap water, as they are also will be paying the price afterall.
I would like to know now Govt. immediate actions for
+ Control of his expenditure & subsidising MEP & Ministerial Directors utility tariffs, travelling costs, fuel, etc,...God know how wastage there is in his Departments!! BMW are not be touched .
+ National policy on rainwater.
+ Fiscal contribution of Doctors & Lawyers...it's open secret that most of them are still having it good.
+ sale of tarzna
........to mention a few.
God Help us.......this is only the tip, mark my words..
George Attard
Oct 29th 2008, 10:47
if none of the social partners/opposition are willing to take any solid action against these tariffs, why not AD or Josie take the initiative?
Joseph Antignolo
Oct 29th 2008, 10:36
Why all this fuss! Afterall we shall all be benefiting from revised tax rates which have been promised before the last election and which will be announced in next week's budget . With the highest tax rate going down from 35% to 25%, this will surely leave us with more money in our pockets and such revision will surely reduce the impact of the astronomical revised rates for water and electricity consumption.
Marie & Anthony Roberts
Oct 29th 2008, 10:34
I don't think anyone can as they don't seem to know themselves. All I can say is God help us as we face a crisis which only this Government could have come up with.
H Dempster
Oct 29th 2008, 10:34
Congratulations to all who believed and clapped the PN prior the elections.
Another promise not kept.
It is very clear that this hiking of the tariff is not because of the high cost of the fuel, but only because of the inefficient management at Ene Malta who caused a havoc with the funds and now have a deficit and who does not have the money to start some other project.
paul debattista
Oct 29th 2008, 10:24
will someone please tell me if the anticipated increase with the new rates is over and above the present rates plus 95% surcharge or the costings with the present rates without the surcharge?
Robert Cassar
Oct 29th 2008, 10:13
What about the people affected by the reduction of working hours. These people have mortgages to pay and have kids to feed. How on earth they should survive? Dr Gatt and Dr Fenech you should think well what you guys are doing because your braking families apart here. Its no joke!
Simon Joseph Aquilina
Oct 29th 2008, 09:56
(continued) What I really cannot understand is why the government keeps blaming everything on the current international situation. The current economic crises affect mostly the banks. I could understand such raises if the government had to save some local bank, however so far our government didn’t have to intervene in any way (is he preparing for such eventuality?). Additionally the Minister tells us that the tariffs will be set depending on the Market price for oil; this contradicts a previous statement made by the same Minister a few weeks ago that the tariffs would only be changed when Enemalta purchased more oil which was not due to happen before next February if I’m not wrong. Therefore if the tariffs HAVE to be increased because there is no other option then for the good sake of our country increase them –however I do not believe that all is to be blamed on the current economic crises; mistakes must have been made at home as well and about these mistakes I did not hear a word!
Simon Joseph Aquilina
Oct 29th 2008, 09:56
I believe that it is now clear that the government does not care what the unions have to say; there is the (ever growing) deficit to pay and the easiest way to pay it is to squeeze the Maltese as much as possible! Given the current attitude taken by the government it feels that the latter also has no other alternative then to do this; or that now it is too late to do anything else. Therefore it is my humble opinion that the new tariffs are here to stay. (continued)
George Attard
Oct 29th 2008, 09:37
have the unions got any teeth left? if as all the social partners are against it they should organise a common national demonstration.
c galea
Oct 29th 2008, 09:37
Quote "Dr Gatt said the tariffs were flexible and could fluctuate with oil prices"
Pull my other leg !