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New power tariffs would wipe out economic stimulus - Muscat

The Budget will be judged on how it tackles the cost-of-living, how it protects jobs and how it fights corruption, Opposition leader Joseph Muscat said this morning.

However, he added, the government has already made all this impossible by "irresponsibly" planning to raise the water and electricity rates.

"This increase was announced before the Budget probably so that it won't be mentioned there. The government will say that there are no tax increases in the Budget, but what is this if not an enormous tax?"

Speaking at a PL activity, Dr Muscat said the utility bills hike would continue to "destroy" families and jeopardise jobs. The tariffs were being raised carelessly, at the worst possible time, sending out the wrong message to businesses and consumers alike. It also reflected "dishonesty" from the government because the rates were not reduced in the same way as oil prices when these fluctuated.

Dr Muscat criticised the Minister of the Infrastructure for not announcing the exact tariff increases and instead adopting a "wait and see" stance.

Dr Gonzi, he said, was seeking to gain €86 million from the tariffs increase, which constituted 1.5 per cent of the economy, which was the same amount that was invested to stimulate jobs.

"So first there are a lot of programmes and initiatives for economic stimulus, and then all that money is sucked back up. No wonder consumer confidence is about the lowest it has been in history."

The government, he said, was going in for the Budget while facing a series of accusations of poor judgement and corruption. He said that Finance Minister Tonio Fenech and the Prime Minister both needed to "come clean" and give a better explanation following serious accusations levelled against them. Dr Muscat highlighted a newspaper story about Mr Fenech being owed a "favour" from property-brokers involved in the Jerma Palace Hotel (See minister's denial in separate story).

Dr MUscat said the Budget was expected to feature many of the proposals made by the PL, which was a good thing, but all the proposals would be undermined if the utility tariffs were raised.

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Comments

Mark Galea (1 week, 5 days ago)
@joseph farrugia
Ma hemmx il-GWU? - dik qeghda flokha ... u Zarb sikwit iberikna - jgholli jdejh u jghid 'Issa Daqshekk!"
Amce Attard (1 week, 5 days ago)
Fejn hi l knisja,nahseb huwa ta imaturita politika min naha tal gvern prezenti billi ikompli jafas liz zghir. Hemm hafna iktar soluzzjonijiet kif jista l gvern ipoggi bil qeda madwar mejda u iggib l flus lejn pajjiza,GONZI FEJN HU SERHAN IL MOHH LI QATILNA QABEL L ELEZZJONI AHNA MHUX FRIDGE VOJTA SE NISPICCAW TAHTEK IMMA INGIHHU L FRIDGE .......
C. Zammit (1 week, 6 days ago)
Għaziz joseph farrugia,
Meta li il-Knisja titkellem nedula biex talaq ħalqa u fejn jaqblilna irridua titkellem. Il-knisja titkelem fuq il-verita u il-gustizja. Mandiex x'taqsam mal-budget u tmexija tal-pajjiz.

Ahjar naraw minn juza id-dawl u ma iħallas ghax jaqbzu il-meter. Jekk ma tridx id-dawl jibqa jola ghamel solar panels u wind turbins.
From Charles Zammit
Alex Right (1 week, 6 days ago)
Elextricity charges is nothing that the goverment can control, this is all based on factors such as oilprice USd conversian rates and the Maltese people will have to pay for it eaither through higher taxes if you want the guverment to subsidise it, or by paying the bill with the actual price. What can be done is looking at making the organisation more effective and save money that way, or find ways to cut the dependency of Oil.

Why not make Malta a testenviroment for a country where everything is enviromental friendly and make the EU pay for it.

Ban cars on gasolin, and only accept electricty charged cars, the distances are short and the amount of gas stations to convert is within a limited area,

Solar power on every roof, Malta has sunshine, this can be used to heat water and much more. Give people a reason to install it by making sure that the return on investment is less than 2 years. Water turbones in the sea, there is technology to get power from the sea, time to start using it!

So stop complaining, start acting and build Malta to a better place!
J Spiteri (1 week, 6 days ago)
@ Joseph Farrugia
"petrol, diesel, dawl, ilma, taxxa, il hajja ta kuljum, u elf haga ohra?@

1. Din is-sena l-petrol, diesel, id-dawl u l-ilma tbaxxew u huma qrib jew irhas mill-average Ewropew. Mur ghix xi gimgha l-Ingilterra ha tara....
2. L-income tax regghet tnaqqset ukoll. ghat-tielet darba konsekuttiva.
3. Hajja ta' kuljum - Naqbel mieghek.
4. Elf haga ohra - taf li ghandna l-irhas income tax fuq l-impjiegi fl-Ewropa kollha?
5. VAT ta 18% hija wahda mill-irhas fl-UE. Hafna pajjizi huma 20, 21 jew anke 25% f''xi kazijiet.
Edgar S. Galea (1 week, 6 days ago)
From the Opposition benches one can utter what one likes but when in Government one acts differently as one would be shouldering responsibility because one would have all the cards on the table.
lgalea (1 week, 6 days ago)
"Dr Muscat highlighted a newspaper story about Mr Fenech being owed a "favour" from property-brokers involved in the Jerma Palace Hotel."
The land was given to the company to build a hotel in the southern part of Malta. Once the hotel does no longer exist, it should revert back to the people and not speculated for private profit such as by building more flats or whatever.
joseph farrugia (1 week, 6 days ago)
Ara qabel fi zmien ilu meta kien joghla xi 5mils it tonn taz zejt in nazzjonalisti kienu johorgu jghajtu li l gvern se joqtolom bil guh...mela issa x qed jaghmel gonzi...petrol, diesel, dawl, ilma, taxxa, il hajja ta kuljum, u elf haga ohra? u l knisja ma tohrog tikkumenta alla jbierek? haw nies anqas ghandom x jieklu. fejn trid tiftah halqa l knisja. basta kontra l labour imma, ara kontra l pn xejn,,,qisu mhu jigri xejn.

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