Fenech favours 'locking' power tariffs - but no reductions expected
Finance Minister Tonio Fenech said this morning that it was unlikely that water and electricity tariffs would be reduced, since oil prices were not coming down. However he was in favour of 'locking' tariffs for next year as a way to ensure stability.
The minister was speaking at a business breakfast hosted by his ministry ahead of the forthcoming Budget.
He stressed that the main emphasis of the Budget would be to sustain economic growth and reduce the deficit, currently running at 3.8%.
It was true that all main economic indicators were positive, he said. Order books, exports and tourism were up, and this was benefiting workers, he said, although it took some time for consumer confidence to pick up.
Nonetheless, he stressed, Malta was not out of the woods yet.
"The economy is like a plant. It is no longer being trampled upon, and it is starting to grow, but it is not yet a tree. "
The government, he said, would, in the spirit of solidarity, keep an eye on the needs of those with a low income. However the focus of the budget would be on nurturing the economic recovery and further reducing the deficit.
The deficit, he said, had to be reduced by 1% next year, through economic growth and by more efficient government spending rather than increasing burdens on taxpayers and businesses.
During the discussion, when a person from the floor called for measures to encourage women to return to work, Mr Fenech said the country needed to discuss how, for example, school hours could be tailored to better enable mothers to hold a job, although this was not a Budget issue.
Mr Fenech insisted that everyone should declare his income for tax purposes, including people who worked from home.
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Michael Debono
Sep 28th 2010, 18:35
So us so called "foriegners" paying Domestic rate (30% more)with no one living in our home(accordding to ARM) and getting bills of €798 for 2 months will have to keep on paying this extortianate bills?Cant ARM see that if the meter is going round obviously it been used and people are living there,or is that to easy?
Marco Cremona
Sep 28th 2010, 13:19
Bottom line is ..... government is under EU pressure to increase water tariffs but of course this action will be unpopular with the population, businesses etc. and the Minister will try to delay the introduction of these tariffs. I am not interested in the politics of the matter. But as a citizen, I hope that we will not be faced with a situation where we will be fined for not complying to EU obligations.
One last comment : I hope government will not increase town water tariffs before controlling the boreholes problem. At present there is no charge on groundwater extracted through the 8500+ private boreholes, so an increase in town water tariffs will inevitably result in a greater incentive to extract groundwater - on which there is no control. It would be grossly irresponsible to continue to deplete our aquifers to the detriment of future generations because of political expediency.
It would also be interesting to know the PL's and AD's views re. the above.
A. Farrugia
Sep 28th 2010, 15:07
What an interesting comment you posted. Would really love to start seeing replies to such comments by local politicians...unfortunately, very few bother keeping in touch with the people's pulse through today's means (facebook and timesofmalta comments for instance), so I doubt you'll get the replies you're asking for.
Still, I think you made a very valid point here and it would be lack of accountability on the part of those responsible if no reply is given.
Marco Cremona
Sep 28th 2010, 13:12
It would be interesting to know how government will seek to avoid increasing the water tariffs when the EU Water Framework Directive obliges Malta to impose tariffs that reflect the true cost of the service being provided to the consumers by end 2010.
WSC gets almost half of its water for free (i.e. groundwater), but the Directive stipulates that WSC should be made to pay for the water it extracts - which charges will be passed on to consumers. If groundwater is valued at RO water, this will automatically result in a doubling in costs for WSC - and one would assume a doubling in the water tariff.
Moreover, town water in Malta is still subsidised - because WSC does not make ends meet through the revenue it collects for water sold - and these subsidies will have to go according to the Directive. That is, a further increase in the water tariff.
Thirdly, the water consumer in Malta today is not charged a sewage tariff. I doubt whether the existing situation of government paying the tariff on behalf of Maltese consumers is acceptable to the EU.
continued.....
George Cassar
Sep 28th 2010, 11:27
The government, he said, would, in the spirit of solidarity, keep an eye on the needs of those with a low income.
Such as the vast increase in salary of 125 Malta Liri every week the Prime Minister and his group got some time back to make ends meet?