Aid to cover most users' hike in tariffs - Minister

The government's €10 million in financial assistance on utility tariffs will fully compensate most of the users who consume less than 10,000 units of electricity a year, Finance Minister Tonio Fenech said yesterday.

The scheme, he said, gave €55 to each household with an annual consumption of not more than 10,000 units and €25 per additional member in these households.

Almost 97 per cent of families would benefit from the measure and 70 per cent of these would see their increases fully covered, he told a meeting organised by the Union Ħaddiema Magħqudin on the implementation of the budget measures. Some would even have a surplus.

Admitting that higher water and electricity rates "placed a burden" on families, the Finance Minister stressed that it was this awareness which drove the government to fork out €10 million in direct financial assistance.

Moreover, he said, income thresholds were to be adjusted so people on social benefits would not lose them because of the energy benefits announced in the Budget.

Asked why the government had not means-tested this compensation, Mr Fenech said it would have been too costly to carry out such an exercise.

On another subject, he was asked whether there were any guarantees for Gozo Channel employees. He announced that should Gozo Channel lose the right to operate the Gozo ferry service after a call for tenders was issued next year, the new company would still be covered by Public Service Obligations and would, therefore, be required to take on the Gozo Channel workers.

Regarding the measures intended to assist micro enterprises, Mr Fenech said a number of investments were covered by this scheme and he urged businesses to contact Malta Enterprise to take advantage of it.

Over the past few months Malta Enterprise had approved €23 million worth of investment by local businesses that would see the creation of 200 new jobs, mostly in expansion projects.

Commenting on the economic situation locally and around the world, Mr Fenech said other countries such as Greece, Ireland and Latvia had taken drastic measures to counter the recession.

UĦM general secretary Gejtu Vella said the union organised the meeting in order to translate the measures announced in the Budget into practice. After having participated in the run-up to the Budget, the union wanted people to understand what the measures were all about and how people could benefit from them.