Increasing utility tariffs would harm competitiveness

Businesses were already burdened with the current water and electricity rates and should these rise again there would be a very strong negative impact on competitiveness, Gavin Gulia, the Labour Party’s spokesman for the economy and the self-employed said.

Referring to a statement by the Prime Minister last Sunday in which he hinted that the tariffs may rise again, Dr Gulia said that the commercial sectors most badly affected with the increases had been the retail and wholesale sectors and those operating in tourism.

Domestic consumption was already weak and should burdens be increased families would have even less money in their pockets.

But rather than aiding the economy, the government was wringing it even more. In such times, the government should not increase tariffs or fees for businesses but declare a maximum tariff it was willing to accept and freeze the government’s administrative expenses.

The sector’s regulator should be proactive and remember he was there to safeguard consumers, families and businesses, Dr Gulia said.