Bid to ease impact on industry, small firms

Small enterprises, industry and those in the tourism sector will be holding intensive meetings with the government in a bid to ease the impact of the revised tariffs despite the fact that the rates will not be cut.

Finance Minister Tonio Fenech said talks at yesterday's Malta Council for Economic and Social Development meeting centred around cushioning the effect of the new tariffs on industry, small enterprises and those in the tourism sector because households were receiving a one-time payment amounting to a total of €10 million.

He said cutting the tariffs was not discussed because this was not part of the equation.

Describing the three-hour meeting as "productive", Mr Fenech said the conclusion was that intensive meetings would be held and that a follow-up meeting would be held.

The meeting was requested by the social partners to discuss the new tariffs. Although it had backed the initial request, the General Workers' Union decided to boycott it, saying the urgency of the meeting had been ignored. GWU general secretary Tony Zarb said the union did not want to be a rubber stamp of decisions that had already been taken.

Reacting to the union's decision, Mr Fenech said this was "a mistake", adding that the union had "shirked its responsibility".

The president of the Malta Hotels and Restaurants Association, George Schembri explained that the association had made a presentation on the impact of the new tariffs on the tourism industry.

Pierre Fava, president of the Malta Employers Association, said it had proposed the establishment of a tripartite energy pact that would establish how energy prices would be determined, factoring in the price of oil, the level of consumption, inefficiencies at Enemalta and alternative energy.

Mr Fava said the meeting was "consultation in reverse" because the tariffs came into force on January 1 without any form of consultation.

The Chamber of Small and Medium Enterprises - GRTU was not satisfied with the explanation given by the Malta Resources Authority. GRTU director general Vince Farrugia said the stimulus package announced in the Budget was not enough to mitigate the impact of the revised tariffs.

Helga Ellul, from the Chamber of Commerce, Industry and Enterprise, echoed his concerns adding that the introduction of the tariffs was "shock treatment" for companies.

The Union Ħaddiema Magħqudin and the Confederation of Trade Unions expressed satisfaction that the safeguarding of jobs remained a priority, with layoffs being "the last resort".

At the beginning of yesterday's meeting, MCESD chairman Sonny Portelli got the backing of the social partners in a vote of confidence.

Before the meeting started, the Forum trade union grouping again protested it had not yet been allowed to sit on the MCESD. Its president, John Bencini, said the unions were concerned at the negative impact of the new tariffs on people's pockets and the economy.

The Labour Party said the consultation with social partners should have been held before the new tariffs were introduced. It criticised the government for going ahead with the tariffs, which, the PL said, were an added burden on families and businesses.