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.