Juan Ameen
PM hints at rise in tariffs
PM pours scorn on Muscat’s ‘apology’
The Prime Minister yesterday strongly hinted that the country should expect an increase in the price of electricity as oil prices continue to rise.
Although he stopped short of confirming that the soon-to-be revised tariffs would go up, Lawrence Gonzi said: “I’m very worried because oil has reached $75 a barrel. The tariffs are revised every six months...”
They were last revised downward by 20 per cent in May. However, the Prime Minister pointed out that the tariffs were reduced only because oil then cost around $40 a barrel.
“The world is still recovering from a recession and the price of oil will go up – we have to understand this,” he said during a political meeting in Żebbuġ.
The highly controversial tariffs were made official in December but were introduced retrospectively from October 1, not without some last-minute touches after desperate appeals by the unions and employers.
Earlier this year, Infrastructure Minister Austin Gatt admitted that the government had mishandled their introduction.
However, the Labour Party yesterday criticised Dr Gonzi’s “irresponsible statement” that might lead people to believe that their bills would be higher. These statements led to uncertainty, endangered jobs and damaged the economy, it said.
The Labour Party reiterated its stand that the government should in the next budget announce maximum tariffs, which would help families and businesses plan ahead.
During yesterday’s meeting, Dr Gonzi lashed out at Labour leader Joseph Muscat’s “so-called” apology for the violent events that took place 30 years ago on Black Monday.
He accused the Labour leader of pandering to everyone. “You can’t please everyone but must take a position,” he said, reacting to the fact that Dr Muscat had denounced what happened on Black Monday but at the same time said the PN should apologise for its tacit role in the Church’s attack on Labour and its supporters.
Describing it as the most hypocritical apology he had ever heard, Dr Gonzi said it would have been better had Dr Muscat kept quiet.
Instead, he tried to please both those who were hurt and Labour followers by also calling on the Nationalist Party to apologise.
“And apologise for what? For all those who were beaten for celebrating Independence Day, or beaten at Tal-Barrani or the attacks on Eddie’s house?” he said angrily.
On Black Monday, October 15, 1979, Labour thugs first burned The Times building and then attacked Opposition Leader Dr Eddie Fenech Adami’s family at their home. No one was ever charged with the attacks.
Turning to the controversy that arose after Finance Minister Tonio Fenech admitted going on a football trip on a private jet with two businessmen, Dr Gonzi insisted again that it was a mud-slinging exercise.
He condemned the person who sent Mr Fenech an anonymous letter in an attempt to blackmail him and linked it to a government clampdown on gaming arcades a few months earlier.
The letter was closely connected to the closing down of arcades and was an attempt to influence the government’s upcoming decision on the casino licence, Dr Gonzi said.
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J. Muscat
Oct 20th 2009, 08:41
I think that we need to remember when the price of oil was low n 1996 and the cost of energy for the conumer increased by a PL led government . Today we have all the facility ot reduce our costs with alternative energy and low energy bulbs...teach us to be responsible citizens!!!! that is a government with a scocila conscience not one who believed in pragmatism like the infamous AS!
C.ZARB
Oct 20th 2009, 07:47
@ Mr Gatt
I don’t care – my neighbour is paying’
Doesn't that phrase reminds you of the MPs salaries? Oh how brave this government is!
Neville Zammit
Oct 19th 2009, 22:57
I ask the readers to read the electoral programme of the PN of last gen election 2008. The electoral programme said that subsidees are essential because it will help those in need.
Now they are saying that subsides are a burden on the gov finance (which are supposed to be "fis-sod")!
Poor Malta, m'inxiex kellek tghaddi!
andre muscat
Oct 19th 2009, 22:48
"Prime minister worried about tarrif going up????TAL BIKI...... Malta Resource Authority Slows down the introduction of subsidies for alternate energy to the Point of QUALIFIED alternate energy engineers going 10 times complaining and have to have long board meetings to achieve one complaint from hundreds of obstacles which other eu countries have overcome and achieved 15years ago.I MY SELF HAVE GIVEN UP ON THE RED TAPE WHICH IS TO STOP YOU FROM GETTING FUNDS (MRA SHOULD STAND FOR MALTA RIEQDA AUTHORITY!!!!) This is the culmination of Governmental Hypocracy that after sleeping for the last 20years still haven't legally formulated a long term plan for alternate energy. TAL BIKI Still no feed in tarrifs to boost private partnership with photovoltaIcs.GONZI PN HOPE YOU ARE READING THIS ARTICLE, BECAUSE I HAVE GIVEN UP ON YOU. And to think you are still worring?? WE NEED REAL CHANGE WITH FACTS NOT EMPTYWORDS.
Gordon Farrugia
Oct 19th 2009, 21:56
imma ahna vera pajjiz tal-mickey mouse!!? ghala m'ghamlux hedging agreement meta l-prezz kien $40... possibli baqghu jistennew l-bajda taqa f'halqhom?? anke kieku kompla niezel iz-zejt il-fatt li l-hedging jnehhi l-incertezza taghmel gid kbir lil ekonomija tal-pajjiz.
maria curmi
Oct 19th 2009, 20:01
ISSA GHADIET LELEZZJONI FLIMKIEN KOLLOX POSSIBLI HALLAS CITTADIN NARAKHOM 4 SNIEN OHRA.
R.Gauci
Oct 19th 2009, 19:40
@ Sunny Said Very well said !! Just one little correction the common people in Malta are living to work not work to live !! I can see the difference now living abroad !! In Malta there never had been a vision for the future and the planing in all sectors of infrastructure that is roads, transport, building,power station etc. had always been a shortsighted one!! For example I don't understand how in Cyprus an Island similar to Malta in all aspects are capable to produce solar water heaters to be used in their houses and apartments and also export them! By providing this equipment at a reduced prices would be a start to encourage the use of solar energy and created jobs!! A lot thought that they would had passed the hot potato to the future generation and didn't realised that it had already burned their hands!!
Anthony Formosa
Oct 19th 2009, 17:07
Can someone enlighten me if the hotels electricity water and electricity bills are still subsidised by the government and paid by the overwhelming majority? Is it necessary that at 05:00 most hotels are is glooming at these early hours, besides the light pollution a lot of energy is wasted.
E Gatt
Oct 19th 2009, 16:09
@ Galea L As a significant portion of the wages/salaries/pensions are paid by the government (and the remainder by businesses) then your suggestion would increase the burden on taxpayers. Your suggestion is easy but does not address the problem. @ Deo Micallef I agree that more could be done for cheaper sources of electricity. Realistic ‘high’ prices have encouraged wider use of alternative forms of power and hopefully our link to the European electricy grid will help. I am sure that Enemalta and the GWU could find ways of increasing productivity and reducing costs. @ Charles Zammit In this case the ‘taxpayer’ pays tax to government and then loses direct control over how it is spent. Before the reform, taxpayers were paying for the excessive consumption of ‘cheap’ electricity used by other ‘users’. Example a careful individual (taxpayer) was paying part of his/her tax towards subsidising the swimming pool of his neighbour (user). The previous system was wasteful, wrong and treated us immaturely. Nobody (obviously me included) enjoys paying higher prices but the truth is we live in an oil-dependent country in a world of depleting oil reserves.
Vincent Galea
Oct 19th 2009, 15:58
Oil prices continue to rise " It is evident that a new world is imminent, and the transition, I believe, is not likely to be very pleasant. This problem is beyond the grasp of our politicians.
charles zammit
Oct 19th 2009, 14:13
the taxpayer is helpless and the user? and who is the taxpayer and who is the user. i cannot fathom how these gozni apologists go to any lenght and try to strech all arguements to justify
the exorbitant utility bills even when oil prices were at their lowest level in years. come on admit that this is a wornout government who held to power by a fistful of votes and considering the last landslide its has become a super minority government.
deo micallef
Oct 19th 2009, 14:10
@ E Gatt
The price of electricity shot up mainly so that we subsidise the inefficiencies of enemalta and because the govt failed to invest in any kind of renewable energy despite being in power for more than 20 years, so we have to continue relying on foreign oil . Also when I was working in libya a couple of years ago had the opportunity to visit a huge refinery built on the libyan coast where it`s sole purpose was to pump oil and gas to Italy through the newly built underwater pipelines. Libya have vast quantities of natural gas and they sell it to the Italians at a very cheap price. The operators of this refinery could not understand why the Maltese failed to connect with this pipeline and take advantage of cheap gas prices.
Galea. L
Oct 19th 2009, 13:45
E Gatt
Subsidies were there to make good for our miserly wages/salaries/pensions. Since they were removed the wages/salaries/pensions should have gone up by the same amount.
Since they did not it means that under your Gonzi government for its brave decision the standard of living of all those who were benefiting from the subsidies has gone down. No wonder people are not even making ends meet and are being reduced to poverty under your Gonzi government.
Charlie Privitera
Oct 19th 2009, 13:43
Oh yes, people will have to come to terms with this.
But then, apparently the 4-2 MEP election defeat didn't have any effect on you. May you learn the hard way, then.
Gordon Matthews
Oct 19th 2009, 13:40
Wind power would be cheap, would work really well in Malta especially the last few weeks.
laurence schembri
Oct 19th 2009, 12:47
Dear Prime Minister, apologies are due both ways.
laurence schembri
Oct 19th 2009, 12:44
Yes! And why not?
E Gatt
Oct 19th 2009, 11:07
There were two reasons for the initial increase in the price of water and electricity:
a) The burden was shifted from the ‘helpless’ taxpayer to the user
b) The world price of Oil shot up.
Even if the price of oil had not increased, rates would have gone up because of the government’s brave decision to relieve taxpayers of subsidies. Painful as it may be, this system has resulted in consumers becoming more energy efficient and cost conscious. The principle of ‘I don’t care – my neighbour is paying’ has been replaced by ‘I'm the one who is responsible for my own bills so I will be careful’. The government is also aware that some people need assistance and 30,000 families pay drastically reduced bills.
The global recession caused the price of Oil to fall and this was reflected in the reduction we pay. The World is slowly recovering from the recession which is good news – the bad news is that demand for oil will increase and so will the price. The price of Oil is increasing (doubled from January 2009) and it’s not the government’s fault!
Sunny Said
Oct 19th 2009, 10:48
I don't care about apologies... those don't get money and security in our lives. I am more concerned in the rising prices! It's like we are just working to live. Possible there isn't an alternative way for energy? There is Solar, Wind, Nuclear... and much more!
Instead of investing into a new plant which still runs on oil... it would be best to guarantee clean and mostly affordable energy for the families. It's impossible to cope with all the expenses and need of this modern and fast life that everyone is living. How can a couple which is already an impossible mission to buy a home or apartment and start a family... so let's not make it worst with Vehicle petrol price rise and energy price rise.
I don't have a party that I follow and my points are only of myself.
Galea. L
Oct 19th 2009, 10:26
Is there anything wrong for the PN leader to apologize like the PL leader and the Archbishop did for whatever wrong was done in the past?
Do you have the gall to deny that the PN never did any wrongdoing against MLP and PL supporters when everyone can consult archived newspapers and see the facts themselves?
Or is it convenient to continue harping to the past whenever the government is scraping the bottom of the barrel?
And when the oil dropped from nearly €150 to $40, why didn't you lower the tariffs accordingly?
The more you continue with your arrogance and denial the more the people will not believe you.
Franco Farrugia
Oct 19th 2009, 09:59
It is NOT a mud-slinging exercise and as PM, you insult those people, like myself, who voice their concerns at what is happening in this country. You do not have your ear to the ground, listening to what the people are telling you. You have lost control over everything ... except the tariffs, it seems. You know people have been struck very hard by raising tarrifs and you are threatening to raise them further - this is either true or else it is a ploy so that when the budget is ot and tarriffs are not raised, peole will sigh in relief. Either way, it is disgusting.
And as regards 'pardons' and 'apologies', the one that is really in the people's mind is not over the despicable events that took place 20 years ago but what Minister Fenech did! Tis the apology that was expected - but now,it is beyond repairing by a simple apology.