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Gonzi, Muscat comment on tariffs, Fenech to meet GRTU

Prime Minister Lawrence Gonzi said today that the talks with the social partners on the utility tariffs were continuing, and Finance Minister Tonio Fenech would tomorrow have another meeting with the GRTU.

Dr Gonzi, who was speaking in Gozo, described his meetings with the trade unions yesterday as “a mature discussion” aimed at finding the best way forward for the country. The ultimate aim, he said, was to bring about a culture change. The government, he said, did not want to see living standards decline, but it wanted to see everybody appreciating that every minute of energy used had a cost.

The government also wanted to encourage more people to invest in alternative sources of energy.

Dr Gonzi said he hoped that in the coming days this reform would be concluded.

Meanwhile, Opposition leader Joseph Muscat said the MLP would welcome an understanding between the government and the trade unions, adding that the MLP would not comment further so as not to hinder the talks.

He however criticised the government for insisting on backdating the new tariffs to October 1 and said such decisions were harmful to the economy and unfair since meters had not been read.

This was a time for the government to put money in the people’s pockets and not the other way around, he said, pointing out that the UK government was expected to reduce VAT to 15% (from 18%) precisely for this purpose.

The Labour leader also criticised the government on the vehicle registration tax and circulation tax, particularly the way how even taxes on hybrid cars were rising.

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Comments

Mike Magri (on 25/11/08)

Quote GonziPN... BEFORE Elections - Copied Vote Catching Gimick "..Together Everything Is Possible..".....!!!!!

My Understanding.. AFTER Elections.. Facts... ".ALONE WE DO MUCH MORE ".. i.e. Tax Them..., Tax Them..., and keep on Taxing Them... as we have a BIG.. BIG.. Hole in the bucket.....!!!!!!
G. Mangion (on 24/11/08)
@ Joe Galea, in this case JM just said he won't comment on the talks and not on the tariffs. your Quote :
Agree he j.m Simply has no other option, he blanked OUT, I Guess this Gonzi is more than enough for him j.m to Handle with.
I guess he is waiting for the final outcome on this matter ( of tarrifs ) so maybe he can find Xi Xara F' l - Ghagina!! Halluna !

David Muscat (on 24/11/08)
just a quick comment from somebody who is not an economist! Putting money into peoples pockets may seem a nice idea, well done to all those who know how to speak nice words. But has anybody thought about the efect it would have if the people instead of spending put the money away due to fear of a worse situation. This would couse an even worse economical situation.
Secondly I would wait to see the EU plans on this matter which should be made known soon.
maria falzon (on 24/11/08)
Dear A Vella. wasn't it also the present govt's argument that when he reduced taxes, he actually ended earning more due to the increase of economic activity? Is it possible that you cannot realise that we are not in a vacuum? The rest of the world is pumping money into their economies to avoid futher collapse, and here you are defending our local wannabe gurus who are saying that we can afford to increase taxing? Obama is even considering pumping an other $500Billion, over and above the already $700Billion? in the uk they are reducing VAT... and the story goes on wherever there is someone sane governing a country? But here we have a pair of primeministers (instead of the pair of idejn sodi), and as the maltese saying goes... vapur b'zewg kaptani ........
I. Azzopardi (on 24/11/08)
Why are Xmas lights already sparkling at our roundabouts when we are more than a month away from this festive season? Are the households the only ones who are expected to exercise care in the consumption of electricity? No problem as it is us who are paying for such consumption as in the case of enemalta inefficiencies, theft etc.
Joe Galea (on 24/11/08)
@Nathaniel Ebejer & the other PN apologists: Why do you have to revert to insults towards everyone who has a different opinion from yours? Is it a PN's plan to rebut arguments with insults? Maybe because there are no arguments to rebut other arguments who are not in favour of the government. Regarding the postponement of the surplus, this is a real joke, since Gonzi himself before the elections told us that dark clouds were seen on the horizon. Using this analogy it means that GonziPN was already much aware of the international crisis. So all his HALO talk was all electoral crap.

For all those insulting J. Muscat for any minimal eye blink he does, in this case JM just said he won't comment on the talks and not on the tariffs.



Anthony Briffa (on 24/11/08)
It is very nice to talk of a cultural change towards the use of energy, but at this point in time, when the economy is at a standstill, it is not the time to impose tariffs, which are asocial. The Italian government is approving a “Paccetto di emergenza” to put more money in the peoples’ pockets. Also the reduction in the price of petrol and diesel will mean a saving of about € 2,000 per year per family as a result of falling oil prices. In UK VAT is coming down to 15% till after the festive season. These are measures which put money straightaway into the peoples’ pockets. In Malta though, we are talking of discounts on consumption and reduction on the water and electricity meters. If accepted, these are long term benefits and will not solve the immediate problems the families are facing now. And for god’s sake let us stop talking about the dull festive seasons under MIntoff and the increased tariffs of Sant. We are living the same situation now. There exits an urgent need for a whole re-think, otherwise this Christmas, will be as dull as ever. I wish the Government a very Happy Christmas!!!!!
Keith Davis (on 24/11/08)
The average VAT rate in the EU is 19.4% so Malta is below that, Sweden and Belgium top with 25% & 21% and only Cyprus and Luxembourg have 15%!
J Martinelli (on 23/11/08)
@ ALBERT FENECH (his Caps)

The American government is injecting some $700 billion, just to keep most (not all) banks afloat. The fate if Citybank is still in the balance even after laying off some 75,000 workers. Malta has no such problems.

Ditto for the UK.

The recession in the States, UK and most other countries is only partially due to the financial industry collapse. The global recession is the result of people losing faith in their future ability to managing their debts while keeping up with their day to day living expenses. Thus demand for goods and services will diminish so, factories and service providers will require less manpower.

Malta will be affected and the few hundred so far working four day weeks will no doubt escalate since the demand for our exports will decrease as the recession deepens.

Injecting any funds in the Maltese economy at this point will not help matters much and one has to be careful that if such funds are provided, they will not go into a company's bottom line, but rather for increasing production and efficiency and be ready for when things get back to normal.

Maintaining subsidies will also be counter-productive.
L Cardon (on 23/11/08)
@ John Grima

For correctness sake the basic standard VAT rate in the EU is 15 and not 18 percent..

Full details can be verified on the following link>

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/rates/index_en.htm
ALBERT FENECH (on 23/11/08)
Let us just wait for a three months period and after that, take stock of how many thousands of jobs have been lost, how many shops, restaurants and hotels have closed down and how many thousands of families are struggling just to pay off their water and electricity bills. Whilst the American and British Governments are doing their level best to boost their economies by boosting consumer spending power by making more money available, Malta's Government is doing the exact opposite - taking away spending power. In three months time we should know whether Obama/Brown are correct, or whether Gonzi/Gatt prove to be the winning team.
A Caruana (on 23/11/08)
@Nathaniel Ebejer

Do you believe in Father Christmas maybe Peter Pan?As it seems you have total faith in the government and so would like to ask you how many of his electoral promises did he finish from the previous legislation. Got any percentage? Are you joking when you are saying that the surplus was postponed due to the international crisis? Come on the crisis was forseen from mid-2006 let alone last march. Was the government playing video games?On CNN and Euronews it was continuously mentioned. Are you referring to the online casinos as regards the economic growth? I think that you should have said a TAX-growth. The utility bills have not gone in effect yet.So just wait. As regards mentioning Dr.Muscat honestly i NEVER mentioned him and did not expect a reply on him. I was talking the Maltese truth as the past budget could only be described as an alter-ego. UK is bankrupt?Are France, Germany and Italy too? If Europe goes down WE go down.

Reading your reply (or quoting Mr.Fenech) i realised that the idiom is correct again... empty vessels make the most sound. Anyway continue dreaming.... what was it ...ah... "Yes together EVERYTHING is possible!"
J Busuttil (on 23/11/08)
The UK Govt is decreasing VAT and the result will be MORE BORROWING. Ikollu aktar DEJN LABURISTI
A.Vella (on 23/11/08)
Well done Maria Falzon, you perfectly capture the way of thinking of the great majority of Maltese. Where, you see the government as this big monster that has the sole objective of taking away people's money.

Only when people start to see the government as us, and our money, not us and them will we start to develop in this country. Unfortunately, Joseph Muscat is not helping to change this way of thinking, and up to now has only excelled in cheap talk. Since, contrary to what he promised he is disturbing government plans with data manipulation and amateurish proposals, which are easily noticed by a well organized and professionally consulted political party like the PN.


Maria Falzon (on 23/11/08)
Would you just believe that. There are people who seem to prefer a higher vat rate than a lower one. Which common person, in the right state of mind would do that. If these people are so content to pay and want to pay for my vat bit, please go ahead.
edgar gatt (on 23/11/08)
@ J. Borg

Before writing that Malta is in recession because a few workers are losing their jobs or working a 4 day week, it would be worth checking what the word recession means before rushing to print.
Nathaniel Ebejer (on 23/11/08)
@ A. Caruana

The electoral promises before the election are there to be implemented over the 5 years, and not all in the first budget. Before the election we were not promised a utopia. We were promised a surplus in 2010 but has to be postponed to 2011 due to the international financial crisis. The people commenting in this section seem to have this idea in mind that at the moment the Uk is heaven on earth becaused the government is planning a few tax cuts, when the reality is that the UK is bankrupt and experiencing a recession and Brown had no other choice (also the UK general election is round the corner). Malta is still experiencing economic growth.
Muscat's proposals - He had all the time in the world to come up with some alternative proposals. Some were already implemented and a few minutes after his reaction speech, Minister Fenech literally rubbished and ridiculed most of them because they were based on wrong figures and calculations and contained no substance at all.
Hence, from what i read in Caruana's comment i must say i only agree with the first sentence where he himself claims to be an idiot.
J.Borg (on 23/11/08)
And how come the prime minister and now tonio fenech will be meeting the unions.

What happened to Austin Gatt........how come not involved!!!!!!!
J.Borg (on 23/11/08)
@ Randolph Peresso
Who told you that Malta isn't passing througha recession....what about those workers being laid down or made to work 4 days.
Also Joseph Muscat already told the government not to go ahead with the changes in W&E tariffs....but it's because he said so the government would do nothing.
Now that he is dscussing the tariffs with the unions changes will be made and GONZIPN will try and take all the glory because it listened to the people.....
Oliver Cini (on 23/11/08)
Dear Mr Zammit maybe this information will give you an indication where malta stands.

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf

Borrowing money will not solve the problems we have. will just make them worst. All our government for the next 10 years has to do is to make the sure the economy grows at a stable rate. who ever will be in power.
John Grima (on 23/11/08)
@ Edward Zammit

Please note that the UK had negotiated a permanent derogation with regards to VAT which allows them to set their own VAT rate irrespective of what is required from the dictators in Brussels. In fact in the UK no vat is paid on food, medicines and childrens clothing, and VAT on energy services like gas and electricity is 5% and the general VAT rate for everything else is 17 1/2% unlike the rest of E U which has a standard rate of 18%.

That Mr. Zammit is the reason why the UK can change their vat charges and Malta cannot.
Randolph Peresso (on 23/11/08)
@ Ed Zammit

THere are 2 main differences in this regard. First, the UK is passing through a major recession while Malta isn't. And second, the UK is very near election date, while Malta isn't!!!!!
alan cox (on 23/11/08)
Edward Zammit I tell you why the UK goverment can cut the VAT by 2.5% because the British goverment is borrowing the money.The UK is almost bankrupt. They have been living on borrowed money for the last 10 /12 years.So it dosent really matter to borrow more. In the last economic list of countries that are most in debt the UK boasts of third placing after Pakistan and Egypt toping this list..It´s irresponsible and reckless politics the next generation has to pay for it somehow.
A Caruana (on 23/11/08)
@Joseph Agius

As a matter of fact yes WE are idiots. If you wonder why i am writing so as 8 months ago we were given the impression of a Utopia coming up with surplus and other "inconvenient truths" (i love the way politicians package words... its an art i am trying to learn) and now everything is the opposite. If this is not called IDIOCRACY i wonder what could it be called. I would like to know what has been implemented from the electoral manifest in these 8 months.... if not mistaken from those 355. That is 71 per year.

Once (somewhere during the first 2 months of this year) i heard on Radio 101 that prices were revised every 3 months when someone asked the minister during a programme. Seems everything changed. Was the hedging done for 4 years.... just in time for the next general election? Its obvious that the government found this (oil hike) convenient to start super taxes... luckily for him (but not us) the election is still far away. Its the same thing as Bush did .... he found the perfect enemy ... terrorists... to start wars
vincent magro (on 23/11/08)
kull decizjoni li tittiehed tista jew tkun tajba jew hazina.izda ma tistax tkun it-tnejn fl-istess hin.
mela jekk it-tariffi kif se jigu riveduti wara t-tahdidiet mal-unions se jkunu gusti,ifisser li kif thabbru x-xahar li ghadda kienu se jkunu ngusti.
il-unions taw lezzjoni lill dan il-gvern,u l'kull gvern li jista jkollu dan in-nazzjon,li meta nahdmu flimkien,insibu l-aktar soluzzjoni gusta,soluzzjoni li bis-slogan wahdu ma sibnijiex.
f'ottubru il-gvern wera arroganza kbira meta,minkejja li hemm stabbilit il-qafas fejn jigu diskussi dawn il-materji,ha d-decizjoni wahdu f'materja daqshekk importanti ghall poplu.
irid jinghad ukoll li il-gvern wera maturita meta,minkejja is-sahha esekuttiva li ghadu,xi haga li il-unions m'ghandhomx,rega mar fuq il-mejda tad-diskussjoni bil-konsegwenza li se jkun rebah kullhadd. fejn id-diskussjoni tkun fuq il-logika tas-sewwa, il-pjattaforma ghanda tkun ugwali ghall-imsiehba socjali kollha.
C. Marsh (on 23/11/08)
@ Joseph Agius - Are living on the moon. Joseph Muscat said he would not comment on the talks with the unions.
If you were in Malta 15 days ago you should know that he spoke in Parliament and gave not only his views but concrete suggestions on what should be done. So you are either living on the moon or on GONZI PLANET !!!!
Michael Gatt (on 23/11/08)
All I need is to someone explain to me how is it that the local Gov. is extracting money from the locals while foreign Governments are injecting money in the peoples pockets to create business
Joseph Agius (on 23/11/08)
Does Dr Muscat think people are idiots? First he says he will not comment but then, since he has an inkling that tariffs will not backdate to October 1, he says that they should not be backdate to October 1 so that he might have some credit and say that government did not backdate thanks to him!! cannot be cheaper!.......speaking of the gimmick not the tariffs!!
Edward Zammit (on 23/11/08)
Hope that Dr Gonzi, this morning had sometime to watch Skynews...Top news- UK temporarily putting down VAT from 17.5% to 15%...Cars Excise duty delay for a year etc...They can WE can't...Propbably the usual excuse - we're not allowed according to Brussels? Aren't they adopting what Joseph has been saying for the past two months...put the money into the People's pockets. Stimulate the economy...

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