GRTU to challenge tariffs in court

I Abela

Nov 14th 2008, 19:31

@ Jeff Inguanez - I agree with you that subsidies have to go. I am more than happy to pay for what I consume. If the price of oil is high, I am still happy to pay a high tariff for what I consume. Likewise I expect to pay a lower tariff when the price of oil drops. When you work out what we should be paying now, it works out that we have to pay a surcharge of 61% above the old rates. I am happy with that, but I can't possibly be happy to pay a surcharge of 194% (when I am supposed to pay 61%) just to balance Enamalta's books, and to cover up for the HUGE GOVERNMENT INCOMPETENCE in managing the company. So you are right in saying that subsidies have to go, but the rest of your comments are pure PN apologies.

J. Tonna

Nov 14th 2008, 19:09

Mr Savona - I have just clicked on wsc.com.mt and this is what I got : Notices -
The updated Bill Calculator will be available shortly. So my onformation was correct.

Jeff Inguanez

Nov 14th 2008, 18:10

Mr Carbonaro:

This is precisely the right time to remove these old-fashioned subsidies.

Why?

Because subsidies increase the consumption of the product (or service) that is subsidised.
That is, subsidies on water and electricity
increase the consumption of imported oil products.

That means, millions of euros vanish from our economy
into the pockets of oil producing and oil refining companies.

Do we need to import even more oil products from abroad
when we need all our cash being invested HERE in Malta
improving OUR infrastructure and being paid to MALTESE
workers and companies that will be involved in the investment projects
announced by the government?

In face of the economic difficulties in foreign markets
what we need is to reduce subsidies on imported oil products and
spend that money HERE investing it in OUR infrastructure,
OUR environment, OUR students and OUR companies.

This is precisely what the government is doing in shifting its expenditure
from wasteful and oil-import-inducing subsidies
to investment in the environment, infrastructure, education and enterprise.

Joe Vella

Nov 14th 2008, 17:48

@ Joseph Vella

Where do you get your information from?

The following is what was reported by the Times of Malta;

"One to one business meetings were held in Porto between Maltese and Portuguese companies. Sectors that were discussed include renewable energy, transport management, education and training, tourism services, logistics and financial services."

Certanily the industry sectors mentioned are more than a Bank would be expected to be involved in.

In addition Pinto Basto a Maritime transport management company has announced that it is in the process of setting up a branch in Malta.

This gives me the impression that there were more than Banif Bank Management personnel.

Marcello Savona

Nov 14th 2008, 15:41

@J.Tonna
go to www.wsc.com.mt and download the new taariffs from there.

@Peter montebello
when you are the sole supplier of a need, and you are government protected not regulated it is called a monopoly.When you are a monopoly it is very difficult to regulate the true cost of electricity, with the excuse of research & development.... we have all seen with our eyes how streamlined this company is, (I would love a job paying me to watch someone work). We have also seen the research and development done throughout the years ... 0.... that is why the tariffs are so high now, so that with the excuse of the very high price of oil they shall develop what had to be developed throughout the years...
Yes the GRTU is right to take them to court because if monopolies, subsidies, and cross subsidisation are illegal, development aid is not.
And also spare the bull.... that the prices of crude have to filter down the market, this happens in days a week at max... we are not living in the stoneage here.

J. Tonna

Nov 14th 2008, 15:40

@ Jeff Inguanez, thanks for the information but, if not mistaken, we were told that these were not the final tariffs.

@ Peter Montebello, when the Law Courts finally decide, we will have been paying these hefty prices for years.

effie carbonaro

Nov 14th 2008, 15:39

@Peter Montebello
Yes you are right.there is no way a company can be forced to sell its product (electricity and water in this case) at a loss. But neither can a prime minister order the minister responsible for enemalta between 1998 til 2003 not to raise the electricity and water tariffs when he knew that oil prices were rising and enemalta was taking loans from banks to balance its account.
Do you think this is the right time for enemalta to balance its account?

Joe Farrugia

Nov 14th 2008, 14:33

GRTU is very rash with this. It will get nothing out of it but losing several court cases "bl-ispejjez b'kollox" as we say in Maltese, with government being shown to be in the right.
What GRTU should insist on is that small businesses pay only the cost price of what they consume in electricity and water (as consumers are going to do) and not subsidize big businesses. In Malta we have become so used to subsidies that we are now in the very sorry state of subsidizing the big hotels, for example, that jacked up their rates when they saw a good summer coming (and that are now grumbling because they shot themselves in the foot for winter). Why should we subsidize big business when they keep increasing prices at every fleeting excuse? If at all, the government should make the lavish hotels we are now subsidizing control their prices.

PETER GRIMA

Nov 14th 2008, 14:23

I believe all unions should unite with the GRTU to challenge the unfair tarriffs

lgalea

Nov 14th 2008, 14:21

Jeff Inguanez
What we need is to have strong politicians who tell the eu to shove their regulations and seek OUR interests, not that of foreign companies. What they don't tell anyone is that their companies have been established for much longer than ours and they have enjoyed unlimited aid through cheap labour and cheap raw materials from their colonies which we have never enjoyed. So how can anyone say that we will cause unfair competition when they've had it so good for so long?


"mostly Baniff Bank management who forked the expenses from the banks pockets"
So using clients and shareholders money just to accompany the President. That's a good show to tell us how much care they take of the shareholders and clients money.

michael fenech

Nov 14th 2008, 14:17

MR. J. Farrugia,

The country I want is a country I can afford to raise my family in. The way you talk SIR you sound like you're well-off,because I noticed that no matter how high the cost of living and taxes go up you don't seem to mind,if that's the case SIR ,all the best to you.

But us workers who can't who can't keep up with these taxes and can't make ends meet YES we well be behined our UNIONS at the manifestation to-night

Peter Montebello

Nov 14th 2008, 14:06

GRTU's course is sheer folly. It will surely lose the case in the courts, even if it goes to the European Court of Justice. There is no way a company can be forced to sell its product (electricity and water in this case) at a loss. Neither can a government be forced to subsidise any product. At the end of it all, the government wil be able to claim that it was right all along as the courts have approved its actions. GRTU, one of the first principles of business is: think before you leap! Going to the courts is actually very bad business in this case.

Jeff Inguanez

Nov 14th 2008, 13:49

J Tonna:
The water tariffs have already been publicised in the papers when Minister Gatt announced them. They will be €1.40 per meter cubed (which is, if I am not mistaken, 1000 litres) for the first 33 meters cubed per person per year, and €5.15 per meter cubed after that. The water meter will be charged at €58 per year.

Jeff Inguanez

Nov 14th 2008, 13:42

GRTU wants to be seen to be doing something,
but it is actually embarking on a counterproductive course.

No regulator, no local Court, no European Commission and no European Court
can in any way impinge on EneMalta's right to charge the cost price for electricity.

If at all, the European bodies have already stated that
it is irregular to subsidize companies in one country of the European Union
as this is tantamount to state aid which the EU never allows as
it would unfairly attract business from other EU countries.

So, after the GRTU goes to all these courts and gets a resounding dismissal of its pleas,
the government will be in an even better position to introduce the new tariffs
with the approval of the EU and the courts to boot.

Very counterproductive indeed!

J. Tonna

Nov 14th 2008, 13:07

I have checked with the WSC for the new tariffs and they told me that the Legal Notice has not as yet been issued. Does anybody know what the final tariffs are for us poor householders?

Joseph Vella

Nov 14th 2008, 12:40

@Karl Abela

How can it be that most of the delegation was from the Baniff bank management when the bank only employs twenty management people in Malta (ETC information)? Must be they closed the bank branches to accompany our President!

Lou Caruana

Nov 14th 2008, 12:34

Go for it Vince. All Malta is with you on this (well, except for the usual PN bloggers and apologists, that is).

Karl Abela

Nov 14th 2008, 12:26

@ Joe Vella

The President traveled with a delegation of mostly Baniff Bank management who forked the expenses from the banks pockets.

J Farrugia

Nov 14th 2008, 11:58

If these 'organisations ' dont pay their rightful dues we, the people, will not pay our bills. And then what? Enemalta will stop bringing in oil since it cannot pay for it and who will be the most hurt. We the people. Is this anarchy that you want, aided and abetted by Tony Zarb? and the MLP? Is this the country you want which is trying hard to overcome the world's financial troubles? I surely wont play such games.

Emanuel Farrugia

Nov 14th 2008, 11:52

If it gets as far as the Regulator, the local courts, the European Commission and the European Courts, I will take my hat off to GRTU.

But after reading in the article that " the circular was issued before the Prime Minister told the chamber that he had accepted its request for a meeting " I have my doubts that this issue will get that far. I wonder how much it will cost, if the GRTU goes that far ?

" Action is better than manifestations ". I quite agree, but you have to start somewhere and at the same time use ONLY democratic means accepted by the European Union. First we had the discussions at MCESD. Then we had a public manifestation and we are going to have another one. If the Government still will not listen, then .......

But let us not forget that when the General Workers Union organised the protest meeting at Pawla for Drydocks workers, both the GWU and Joseph Muscat the leader of the MLP were criticised for taking to the streets.

David Zarb

Nov 14th 2008, 11:28

@ Victor Caruana

Do you have a television? Do you watch international news my friend? Is it possible, haven't you seen foreign unions manifesting and protesting, often in a much more aggressive way abroad? What's wrong with the unions in joining forces and manifesting together? And why did you pick up the GwU's slogan in particular? My friend, if something good comes out of all this, you'll also benefit.

Michael Ellul

Nov 14th 2008, 11:24

Yeah right good move prosit. The outcome? Years in courts and if turns out tarrifs are illegal we get no money back just the same as happened to VAT tax on Duty pain for vehicle registration.

So end result we are right but no refunds. The action required is we all unite and pay no bills unless approved by all the MCESD members.

G Falzon

Nov 14th 2008, 11:21

All the workers out there get ready to fork out for 'small business' if, God forbid. they win the case. The money has to come from our taxes or tariffs - there is no other place! If the GRTU win this one (doubt it) we will have to fork out more money for them.

Joseph Vella

Nov 14th 2008, 10:50

At last someone who is putting action in his words.
So far all I have seen is lot of nagging but no action. Long last we have an entity that is showing it's teeth.
My only wish now is that other entities, including unions take action.
People must realise that we are being taken for a ride. Everybody accepts that we need to make sacrifices in the outcome of the recession that is hitting the world. On the other hand why should we have to make good for the shortfall in the local government deficit whilst you have a minister who buys a brand new Jaguar, the government auditor 'barking' that it is impossibile to control fopreign travelling expenses by government departments, a President who goes to Portugal with a delegation of 23 persons and so on.
It seems we Maltese are a bunch of nagging old persons.
By the way, before anyone starts jumping to conclusions. I voted PN for the last three elections and was proud of it but this time six monthsafter the last election I feel more than upset at the consequences we have to suffer.

victor caruana

Nov 14th 2008, 10:49

Action is better than manifestations. And what would workers' Unions do following today's manifestation. For example the GWU issued the slogan 'Revizjoni jew Kumpens'. And if nothing materialise? Let see if Unions have the guts to follow the GRTU by some tangible action - but not more manifestations and slogans!!!!!