Mizzi blames Enemalta debt, inefficiencies for higher utility rates

Opposition spokesman on the infrastructure Joe Mizzi yesterday said the real reasons behind the need for higher utility rates were not higher oil prices or the global financial crisis but the interest Enemalta Corporation had to pay on a debt of €200 million and the inefficiencies in the energy sector.

Speaking on the Bill implementing the measures announced in the budget, Mr Mizzi said that if the government were to base the surcharge only on to the price of oil, this would amount to only 61 per cent.

Malta was lagging far behind other countries where the energy sector was concerned. The situation was precarious because, for years, Nationalist administrations had neglected alternative energy sources and had done nothing to remedy the inefficiencies in running the sector.

He added that there were no real energy strategy plans despite the fact that the Malta Resources Authority had been allocated an annual sum of Lm100,000 for this purpose. The Delimara power station was a total failure and Malta would face serious energy problems in a year's time.

A year ago, he had predicted that energy tariffs would be trebled after the elections. At the time, the Prime Minister had said that it would be mad to substitute the surcharge for tariffs. Mr Mizzi said that before the election he had even predicted what criteria the government was going to use to establish the tariffs.

Mr Mizzi challenged the government to publish Enemalta's audited accounts. He said that the MRA was responsible for the way the new energy rates were worked out by the government and should publish these workings. The only solution the government offered was privatisation of parts of the corporation.

Mr Mizzi said that water tariffs would increase again next year. He had also predicted that the government would introduce a tariff for sewage treatment. The polishing plant is Gozo used inadequate technology with high running costs. It would have been cheaper to import water than to run this polishing plant.

Concluding, Mr Mizzi said inefficiencies would inflict a heavy blow on both the industry and on the people in general, who were already facing serious problems.

Nationalist MP Beppe Fenech Adami said the budget was not a two-faced budget as described by the opposition but it was a multi-faced, one which favoured employment, the environment, the family and solidarity. Above all, it was aimed to attract local and foreign investment. Millions of euro had been allocated to infrastructural improvements, environment, research and development projects in various areas, such as tourism. The budget continued to work towards the development of industry with a €20 million allocation to five schemes. The industrial zones were also benefiting from this budget, as they had been allocated around €20 million for upgrading and development. The work would begin in Ħal Far, with a project expected to cost around €6.5 million.

The budget also assisted enterprises which had potential, and Malta Enterprise had been allocated €500,000 to help Maltese enterprises to identify new markets.

Dr Fenech Adami said tourism was identified as one of the pillars of the Maltese economy, and the government had reacted to the challenges posed by the global situation by increasing the allocation for the MTA to €26 million, with €2 million being targeted specifically at dealing with such challenges.

The government had also aimed to incentivise student host families by increasing their non-taxable income to €3,500. Funds had also been allocated for the restoration of the bastions and the embellishment of areas such as Qawra and Sliema.

Local councils, which recently celebrated their 15th anniversary, had benefited from a €4.2 million increase in funding, as well as various incentives such as the local green challenge award.

The government had committed itself to the regeneration of various ports, and to the importance of yacht marinas in Malta. It was considering various new sites to develop these yacht marinas.

Dr Fenech Adami said that when it came to education the budget was investing in infrastructure and resources. The Foundation for Tomorrow's Schools would be benefiting from a €13 million increase over the coming year. The government would be looking into giving financial aid to private schools, so that they could employ the necessary facilitators. There would be investment in higher education through the university and Mcast.

The budget helped to increase the environmental conscience, as it worked towards systems of alternative energy and had even allocated funds to begin the offshore windfarming project. It would continue to invest in the Delimara power station in the hope of closing down the one at Marsa.

Labour MP Justyne Caruana said she could not help agreeing with several points raised by Social Policy Minister John Dalli because social justice went beyond political considerations. All MPs should concentrate on enhancing social inclusion throughout all strata of Maltese society.

At the same time she could not help attacking the government for all the promises it had not kept over the past 20 years. It could safely be said to be the single greatest entity actually working against the interests of Maltese families.

Instead of looking forward to the forthcoming festivities and thinking of Christmas shopping, families were counting every cent in apprehension of what was in store. The government was not being completely truthful in saying that all the problems were being imported. It had spent wildly in the run-up to the general elections and was now reaping the consequences.

Inflation was wreaking havoc with people's spending power. In the UK the government had rolled up its sleeves and taken real steps to help British families, but in Malta the government was saying that all was well with the economy and seemed to be too proud to learn anything from other governments.

Dr Caruana said that well-heeled professionals were being increasingly reluctant to go to work in government departments run by incompetent political appointees. The government should make a serious survey of the output of its people.

Conversely, the government seemed to have the funds available for highly-controversial projects which did not bode well for Valletta, with the prospect of the capital city having a veritable quarry dug under it.

As a mother she knew the importance of her role as a caregiver, but a balance should be struck with the rights of women to go to work and help the family finances. The notion of men staying home on parental leave to let their wives go out to work was still in its infancy in Malta, contrary to other European countries where parental leave could stretch even up to three years with full pay. The choice of caregiver usually came down to a comparison of which spouse could earn more.

Dr Caruana suggested that a decision should be taken on whether a married woman who went back to study also deserved to be paid a stipend.

She lauded the Commissioner for Children for her recent condemnation of child exploitation.

The fostering allowance should be reviewed to make it easier for financially-stretched families to foster children and give them a new experience of family life. It was sure that no family would apply to foster just for the allowance.

Gozo suffered from a lack of certain social services, to the point where a boy with behavioural problems had had to be sent to the mental hospital because there were no other facilities available. The government had still not ratified the convention on people with disabilities. Accessibility problems were usually the only setback for people with disabilities to run their lives independently.

Other speakers will be reported tomorrow.

At the beginning of yesterday's session, the House unanimously approved a motion by Deputy Prime Minister Tonio Borg nominating Labour MP Anthony Zammit a member of the House Social Affairs Committee.

Prof. Zammit fills the seat vacated following the demise of Karl Chircop.