An opposition motion to revoke the new water and electricity tariffs, which came into force on January 1, was yesterday defeated in Parliament by 35 votes to 34.
The motion was moved by opposition spokesman on resources Joe Mizzi who said the new rates were undermining competitiveness, endangering jobs and making it difficult for many households to make ends meet.
Prime Minister Lawrence Gonzi said that while it was acknow-ledged that the decision to raise tariffs was difficult, the government had made available €17 million to help families ease the burden and also introduced packages to assist industry, hotels and SMEs to invest in cleaner energy.
This step and others would lead to changes that would ultimately result in closing down the Marsa power station, he said.
Opposition leader Joseph Muscat said government decisions were undermining families and jobs. People were suffering because of the steepest increase in electricity tariffs in Europe, a rise of 29 per cent in January over December, while the new hike in gas prices was being kept under wraps. Bills now were higher than when the oil price was above the $100 mark. This was the result of corruption and an incompetent government, he said.
Earlier, thousands of people thronged Republic Street, Valletta for the second time in 24 hours, to protest against the new rates.
Representatives of the Għaqda Unions Maltin, which has been strongly opposed to the tariffs hike, handed a letter to each Member of Parliament as they walked into the House, which was reconvening after a two-week break in which a casual election was held to replace former Social Policy Minister John Dalli.
The demonstrators walked behind union leaders down Republic Street until police barriers stopped them on the corner with St George's Square. The protest was organised by 11 trade unions which form part of the FORUM trade union confederation and by the General Workers' Union.
Demonstrators hurled insults at each Nationalist MP as they arrived at Parliament, with the chanting of "Mafia Mafia" and Gonzi pulċinell (Gonzi clown).
The proceedings in Parliament were being relayed to the crowd on loudspeakers. They booed when newly elected Nationalist MP Peter Micallef was sworn in at the opening of the sitting.
The union leaders then entered Parliament to follow the debate from the Strangers' Gallery.
However, Għaqda chairman, John Bencini, who is also the president of the Malta Union of Teachers, went straight home and followed the debate from there because he was "disgusted" at the insults hurled by the demonstrators at the government MPs.
"This is not our style of doing things and this incident marred the otherwise decent and peaceful protest we had on Sunday. I condemn the insults and language used and the people responsible should be ashamed of themselves," he said when contacted after the vote was taken.
Asked what the unions' next step would be, Mr Bencini said the politicians had spoken and this should be respected. On leaving Parliament at the end of the debate, General Workers' Union secretary general Tony Zarb said the unions had witnessed the betrayal of the people by a government that was insensitive to their needs.