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Some 'environment-friendly' budget measures are socially unjust (2)

About 11 years ago my wife and I decided that it was time to change my old petrol thirsty car and opt for a new one which can cater for our family's needs. We were looking for an economical mid-sized car, as a small car was not able to hold pushchairs or prams or both in the trunk.

It was a big step to take, and with all the financial burdens associated with early life in marriage, it was a big investment too. According to many studies that were commissioned around Europe at the time, and contrary to what many believed and unfortunately still believe, diesel engines pollute less than their petrol counterparts, especially when fitted with particulate filters and when run on low-sulphur fuel. Even better than that, they are less harmful to the human lungs. Moreover, the diesel engine is more efficient. So for us, diesel was the way to go. However, at the time it was very rare to have diesel engines smaller than 1900cc fitted on cars the size we were looking for. For those who might ask, it was definitely not the most luxurious car and absolutely not the biggest.

However, we still had to fork more than €7,000 in excess to what our European counterparts were paying for the same car, not to mention the annual vehicle licenses.

Now, 11 years on, our socially minded and eco-friendly minister decided that the Maltese citizens are holding tight to their valuable cars, and the government should encourage them to buy newer and less polluting cars. So after I forked out more than €7000 I still have to keep paying more money to keep my car, and whatever I have done to make sure that it does not pollute more than it should was all money down the drain, as our young minister believes that old cars all pollute in the same way.

For all those who cannot afford a new car, or even worse, are finding it difficult to keep the current car, the government is offering us tax reductions on bicycles. Well, dear minister, if you want to take the ride from Naxxar to Ħal Far on a daily basis, I would be happy to join you.

Then I thought, I must be wrong here. It cannot be this way. After all, it is not the first time that I misunderstood what the government was actually offering in his budget speech. We are told that this budget was planned with enough incentives to keep creating jobs while keeping our economy growing. So I went back to my mathematics lessons and here is what I came up with [see table 1].

Thus without considering any other expenses which I am sure I will have to face as the year goes by, and assuming the lower range of increase in the utility bills, I shall be forking out a total of €477.45. But, as I was saying, the government proposed incentives to keep the economy growing. So, let me take a look into the mathematics from that side too [see table 2].

Thus, if I happened to live on the bright side of the moon, and I am lucky enough to get the maximum out of this budget, while making sure I keep my water and electricity consumption to the minimum, next year I shall have a whopping €103.33 less to spend on my children's education and my family's lifestyle.

Well done to this government, my government, the one I voted for. Unfortunately, this is the first time I am ashamed of uttering that last statement in the past 18 years. After all, it might be that my brain is similar to a diesel engine, with a very slow acceleration. But like my car's engine, it always took me to where I asked it to go.

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Comments

joseph farrugia (on 7/11/08)
my dear friend the government wants to help the economy . not our economy but the foreign ones. We do not produce cars but other countries do. So he is helping the economy but not ours . Another thing dear friend Since the government threw the economy into hell by give aways before the election to be re-elected it created a financial hole to promote the PN during election time. So we are really paying for the cost of re-electing the PN. It increased deficit by as much as 160 million euros twcie the ammount the deficit of enemalta . You have seen nothing yet. wait for the tarrifs man
Ivan Balzan (on 7/11/08)
Well written Mr. Fenech. What i can't understand is how the Goverment could not see this and be so blind towards the real needs of the country and it's people. I agree that we need to scrap some of the old bangers running around, but what alternative is being offered. New cars are way too expensive for the normal worker, the public transport leaves mucch to be desired , our roads are probably the worst roads in Europe so who in his right frame of mind would even dare use a bike......
K Micallef (on 7/11/08)
Well Done for the article!! However sorry to say I don't really pity you. I only pity those persons who voted against last election and still have to bear these budget measures which are completely unjust!
RObert Abela (on 7/11/08)
@ Mario Micallef
Please note that Italy had another agenda behind the cash incentives for scraping cars, saving Fiat from bankrupcy! Apart that I agree with what is said above: those who, like me, invested in a eco-friendly car 3 years ago (before the goverment became aware of the envronment) had to pay full registration, vat on registration and now had their license increased!
MARIO MICALLEF (on 7/11/08)
I totally share your opinions cause we are in the same situation...my licence will rise from €175 to a staggering €306!! Its unbelievable to think that the government wants to recoup the money that will be lost through the removal of the registration tax...my question is..if i am to sell my car to buy a new small engine car..i dont think there is anybody interested in buying the car i have...as usual we try to be modern but not in all senses...correct me if im wrong..but in italy they give cash incentives for your old car to replace it..here its non existent.few people were the majority are medium earning individuals can afford to pay 2 loans for a car & for their property.to add insult to injury...buses which are the biggest chunk of polluters in the country were exempted...Mr minister...i guess this was not publicly consulted...please take note
John A. Azzopardi (on 7/11/08)
to Mr. Stanley Fenech: I am also from Naxxar and although I could have said what you said in a different manner, I doubt whether I could have said it any better.
I also own and drive an 11 year old diesel and your reasoning is exactly on the same level as mine.
May I propose that we meet up, (the invitation is offered to all the faithful), and join up to buy some bicycles. Perhaps we will be able to get a bulk discount, which we can in turn use to buy another bike and offer it to our young kind minister. Perhaps he will joint us to cycle to work every day. You mention the distance from Naxxar to Hal-Far. I would like to take you one step further. I cycle quite often, when my mind and body are so relaxed that I do not mind playing the "Avoid the pot-holes" game along the way, By the way, I am 62 years old and my bones are not so solid as they used to be :-(

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