Updated: Muscat slams 'irresponsible' government over the tariffs

(Adds PN reaction)

Opposition leader Joseph Muscat in a radio “message to the nation” this afternoon strongly condemned the government for its decision to raise the water and electricity rates and announced a national non-political protest manifestation.

Dr Muscat said the government’s decision would mean a very heavy burden on thousands of Maltese families and many companies.

The government, he said, could not have chosen a worst time to impose the new tariffs, given the international financial and economic crises. While overseas governments were intervening to help their peoples and their economies, the opposite was happening in Malta.

This was a time when the government should be helping families, not asking the families to help the government.

Dr Muscat said the new tariffs would cause a serious deterioration of living standards for many families.

The new measures were in stark contrast to the promises made just a few months ago before the general election.

The government, Dr Muscat said was irresponsibly ignoring the deteriorating situation in the employment sector, where workers had been sacked and others were working reduced hours..

That the government was introducing the new rates retroactively also went against all principles of economic stability and undermined the country’s credibility in the eyes of investors. Indeed, the Prime Minister during their recent televised debate had indicated that the new rates would not be backdated to October 1. Dr Gonzi therefore, either did not know what was happening, or was not telling the truth.

Dr Muscat said the government was proving that it did not believe in social dialogue and had turned consultation into a farce.

Indeed, the Prime Minister’s absence in the past, crucial, days was noticeable. He had not shoulder his duty to ensure that the new tariffs gave proper consideration to the interests of families and businesses. Instead, Infrastructure Minister Austin Gatt had taken over and “with typical arrogance” rolled over everything and imposed his decision on he social partners.

Now that the government was pushing the economy and the people into a crisis, it needed to ensure in its Budget on Monday repaired the damage. Rather than continuing to discourage the people, the government needed to instil confidence in the people and the economy.

Dr Muscat said that in deciding to hold the national manifestation, the MLP would be acting in the same way as all the people did in democratic countries, most recently in Italy last week. This would be a manifestation of the people for which all were invited, Dr Muscat said.

The Nationalist Party in an reaction to Dr Muscat’s address said the Labour leader was 11 years late, and what he said today should have been said when the Labour government raised the power tariffs even though the oil price was only $12 per barrel.

At the time, the PN said, Dr Muscat had written in the press and spoken on the broadcasting media to defend the Labour government’s actions.

The PN said the Labour government never had talks with anyone before then Finance Minister Leo Brincat presented his budget on November 5, 1997. Indeed, Mr Brincat in his speech had not had the decency to spell out the tariffs and asked the House to take them as read.

At the time, Dr Muscat had said that was a “courageous budget”. He had also said it was far-sighted, fair, and "a reflection of a serious government”.

In contrast, the PN said, oil prices were now high and the situation was very unstable. The new tariffs had been preceded by broad consultation and changes had been made, where possible,to safeguard jobs.

The new tariffs also included assistance to those who needed it most, the party said.