Simon Busuttil
Popular decisions and right decisions
Hands up all those who are happy to receive a higher utility bill. Since I see no hands, I am safe to assume that people are not happy paying higher utility bills, regardless of whether fuel prices go up. And any government that wants to remain popular should logically seek to avoid decisions like raising utility tariffs.
So why is this government going down the hard and unpopular way by allowing higher utility bills?
To answer that question, don't turn to Joseph Muscat who will be joining the street protests against higher tariffs because there are big brownie points to be earned at the polls by opposing higher bills.
Indeed, the Labour leader even took the government to task because, as he put it, "utility bills had risen because of the government financial deficit". And he took exception to the Finance Minister's statement that the utility bills had to make good for the deficit so that Malta would not end up like Greece.
There are no two ways about it.
For Dr Muscat, it is ok to keep utility bills artificially low even if the public deficit goes up as a result. Far from being moderate or progressive, this policy is as dangerous as they come. Let us consider the implications.
Malta's deficit is just above the established limit of three per cent of GDP for eurozone countries. Most other eurozone members have even higher deficits, largely due to the impact of the economic crisis. But the worst in class is, no doubt, Greece, whose deficit is hovering at the astronomical level of about 12 per cent, dangerously out of control.
Only the other day, Malta was given the green light by the EU to bring its deficit back down to the required limits by the end of next year rather than this year. This gives our Finance Minister some leeway, but not much, to get our books in order.
But if Dr Muscat were Prime Minister today, he would be going down a different route by flouting our commitment to return the deficit back to its limits in order to cut utility rates. That would be bad news for our deficit but also bad news for all of us. And Greece is a textbook case of just how perilous this route would be.
A lot of ink has already flowed on the humiliating situation in which Greece finds itself today and I will not go into all the details. Suffice it to say that the country's Budget and its implementation are now being monitored with a fine-tooth comb in Brussels and the country's statistics are deemed wholly untrustworthy. That does not endear Greece well with investors that are responsible for job-creation.
All this has happened because Greece has been living for the day without any care in the world for tomorrow. And it has a track record of backing off in the face of painful reforms and of street protests. One government after another baulked at opposition to reform and failed to take difficult decisions at the appropriate time.
Indeed, when the Prime Minister of Greece, George Papandreou, was leader of the opposition barely a few months ago, he was hardly supportive of the painful reforms that his predecessor wanted to push through. Street protests and virulent parliamentary opposition crippled the previous government and led to its downfall at the polls. The result? Under Mr Papandreou, reforms are not just inevitable but much more painful than ever. For starters, Greece has committed itself to cut its deficit by a full four percentage points in just one year. That's right - a full four per cent. Comparatively speaking, this is like wiping out Malta's entire deficit in just one year. The sacrifices that would be required from all of us to do that are hard to imagine.
Or are they? In Greece, this will be done by a series of measures ranging from cutting back on public benefits, public services and public investments, including essential ones, by increasing taxes and even by reducing public sector wages. The social costs on the Greek population will be higher than ever and it is likely that the Greek economy will find it even harder to bounce back from recession. It is a vicious circle and Greece is a clear example of where we should not be heading.
We are still in time to avoid going down the route of this Greek tragedy. But to do so, we must take the difficult decisions today in order to avoid more painful ones tomorrow.
So, yes, higher utility bills are not a popular decision. But public office is not about taking popular decisions. It is about taking the right ones.
Dr Busuttil is a Nationalist member of the European Parliament.
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George Azzopardi
Feb 25th 2010, 09:52
What Dr.Busuttil is not mentioning below is that the current deficit situation was the outcome of none other then the PN
government. So before Simon Busuttil tries to be the prophet and telling us what Joe Muscat would be doing, it would
be better to try and establish what and who had brought us in this financial position in the first place.
One need not look far in the past to check this out. Just see how much expenditure was raised a spent blindly during
the last elections.
Which brings me to the last point I would like to raise. It's quite clear to everyone what are the government's
tactics. I'm quite sure that a couple of years from now the utility bills will start decreasing again once the next
elections become closer!!
laurence schembri
Feb 25th 2010, 06:36
Dear Mr S Fenech, changing ones opinion and ideals is not strictly a woman`s privilage,
Take the UK as an example, the Labour Party was dead against joining the EU, in today scenario the opposite is happening, the Tories that through a Referendum managed to unite Britain to the EU are the Eurosceptics, given half a chance David Cameron will take Britain out of the EU tomorrow. So why should we be different.
C.Sammut
Feb 24th 2010, 17:47
Must we politicise this issue? And must we compare ourselves with countries that failed? What are the other member states doing where citizens with an average wage can afford their heating bills? And what are we doing wrong?
s fenech
Feb 24th 2010, 16:52
joseph muscat, long on rhetoric .....short on specifics! must have learnt form his sticking out his neck for his leader in denouncing the euro
v mercieca
Feb 24th 2010, 16:11
Dear Dr Busuttil
My wife and I shall join the 11 unions and Dr Muscat in this cause, same as we did in the 80's when we joined Eddie Fenech Adami in the streets against the government of that time on the school issue.
What is good for the goose is good for the gander .
lgalea
Feb 24th 2010, 15:24
We do not care about your attempts top excuse your government and its insane tariffs. We do not have YOUR salary and have not had the Lm6,000 a year salary increase like your government's Primer Minister, Ministers etc.
As for Greece, it was a CONSERVATIVE government like your PN Government that has put Greece into its present predicament for which according to reports we will have to make good by giving them a share for loans. This is the same thing that your PN is doing to Malta like it did before during the 1960's before it was ousted in 1971 when the new PL Government did not find enough money in Malta's coffer to pay the Government employees. Malta is already in the same situation as Greece and the only thing that is not so worse is because most of Malta's government debt is with Maltese citizens as far as we know. Let's hope that there will be no surprises when the next PL government take office.
laurence schembri
Feb 24th 2010, 15:02
Aeschylus, Sophocles and Euripides are the creators of Greek Tragedies, the Greeks have a long history of tragedies, the EU should have read Greek history before accepting them in the Union. Why am I jotting this rubbish out, oh yes, the word `deficit` also originates from Greek. I like the Greeks,really.
laurence schembri
Feb 24th 2010, 14:26
There is some truth in what you say, but when the price of oil was hovering around $147 a barrel the E&w bills where cheaoer then they will be as from January 2010, so the deficit issue does come into it.
Anthony Pace Gouder
Feb 24th 2010, 13:44
Simon, hearing the Minister who has now been relieved ,due to the RE-SHUFFLE , of the Water and Enemalta Corporations, declaring solumnly that his Government was pre-determined to collect /bag , if not mistaken , some 57,000,000 Eu from the W&E new utility bills, confirms clearly this as a source of Govt. Revenue .
Even more assuring is the fact that NOW these Corporations fall under the Ministry of Finance !
Its like a shop-owner raising the prices HOPING to register a set Profit for the fiscal year . Unfortunately all this depends on the number of and the CUSTOMERS" BUYING ATTITUDE !
Anthony Gatt
Feb 24th 2010, 13:42
Jidher li dawn is-sinjuri ma jridux iharsu lejn ir-realta' f'wiccha! Ghalxejn SB urihom it-tragedja ekonomika Griega. Issa jaghmluhom l-istrikes fil-Grecja bil-mizuri ta' awsterita' li ser ikollhom jittiehdu. Billi tbiddel il-gvernijiet kollu ghalxejn ghax xorta il gveern ta' wara ser jibqa marbut mal-istess sistema. U hekk ukoll dawn il-bhahan li ma jridux jammettu l-verita' Il-verita vera hija morra u trid issehh, u hadd ma jiehu pjacir biha. Imma dik hija l-verita! U imnalla m'ghandniex il Partit Laburista jmexxi l-pajjizna ghax kieku ilna li wasalna ghas-sitwazzjoni tal-Grecja. Il-Gvern qed jaghmel minn kollox biex izomm mal-parametri tal-ewropa biex l-ekonomija tissahhah. u l-impjiegi jizdiedu. Imma dan kollu huwa bzieq ghar-rih skond Sammut, Spiteri u Abela u min jahsibha bhalhom.
Joe Grech
Feb 24th 2010, 13:36
@Dr. Simon Busuttil - Most people, myself included, may agree it is important the economy doesn't slide further into negative territory; also that Utiliy Bills NEED to be paid.
But people are angry about things like:
Enemalta inefficiency that has cost taxpayers dear;
inability by the administration to collect government dues - the VAT scam; companies not paying for the lease of government supplied premises; companies not paying National Insurance contributions...
the most financially vulnerable will be hit hard by the Utility Bills whereas owners of hotels, restaurants, SMEs will at least be helped by E.U. and government schemes set up to help them;
it is scandalous that residents of summer residences are considered as 0 residents in Utility Billing - this fact ensuring they will be fleeced under the new Utility Bills;
the salaries of doctors have been considerably upped but those of other employees have remained the same; Why this preferential treatment?
the financial Buy-out packages governement gave Dockyard employees, Bus owners were excessige even way above Treasury end of career financial packages.
People are offended when government unilaterally decides to commence highly questionable projects (roofless theatre, unnecessary Parliament) at a time when the economy requires careful spending.
Pierre Fiorentino
Feb 24th 2010, 13:13
Thanks Simon for informing us that the utility tariffs rose due to the excessive DEFICIT brought about by successive PN goverments!
John Schembri
Feb 24th 2010, 12:52
Fine words indeed. How about our ministers setting an example? Driving smaller cars instead of the current extravagance. The one thing that is hard to stomach, for those of us on a budget, is that the government still goes ahead as if money is no problem, with Piano projects and uncurbed spending in the ministries. These are not things one does in a time of austerity. And this is what it will have to answer for next election. The people will remember this time. Il partit tas-sinjur must reinvent itself or suffer next election.
Raymond Camilleri
Feb 24th 2010, 12:41
what Simon failed to mention is the utter neglect by HIS PARTY in govrernment of the energy sector for the 20+ years they have been in government...very convenient omission
R Abela
Feb 24th 2010, 12:17
First Eddie's biography on TV last night; then Joseph Muscat on Dissett and now this article from Simon Busuttil.
Why do I feel like crying? Why is it that the Maltese electorate will probably buy Joseph Muscat's empty marketing ploy "Sale sale sale" instead of the responsible politics of Lawrence Gonzi as so simply articulated by Simon?
The difference between the artificial PL and the responsible PN are so stark - yet many will choose not to see what is staring them in the face because the pocket is king - just like it was in 96 when the majority thought Alfred Sant would remove cash resgisters - placed there for the benefit of all of us to clamp down on tax evasion - which directly affects me the salaried employee.
It is high time the PN got its PR machine into gear or we will be throwing out the baby with the bathwater!
ASpiteri
Feb 24th 2010, 11:58
i can't wait for the next general election...PN will of course heading to the opposition seats and then the battle for leadership!
hope its simon busutill...so inspiring!
C.Sammut
Feb 24th 2010, 10:11
Frankly Dr Busuttil the citizen doesn't care about all this. All the citizen wants are salaries that sustain basic needs bills. If basic needs can no longer be afforded, what use is trying to explain the politics behind it? Are we expected to be understanding about the fact that we can't even afford hot bath water let alone cool rooms in ever increasing temperatures in Malta? Or do we expect a government who is able to make this possible for us?