An early end to North African crisis ‘an illusion’ – Gonzi

Prime Minister Lawrence Gonzi described the current political crisis in the Arab “continent” as “a volcano” and any feeling of a quick end to the predicament in a few weeks was just “an illusion”. The all-round concern about rising oil prices was endangering world recovery from the international financial crisis.

He was speaking in a question-time mini-debate with Opposition Whip Joe Mizzi that had started on Monday over the legality of Enemalta Corporation’s revised utility tariffs and yesterday drifted into the current international situation.

The Labour Party, he said, was probably the only European opposition attacking its government for reviewing fuel prices, when in the UK the fuel prices had risen to their highest point in recent history.

Dr Gonzi said it was time for the government and the opposition to be united not only in statements and about humanitarian aid, but also in cognisance of the international situation.

The latter was an enormous challenge for good governance. Over the past years, even up to 2010, the government had developed strategies that had been thrown out of kilter by recent developments. The situation warranted joint, responsible revision by the government and the opposition together.

The opposition’s criticism in the current situation was surreal. He appealed to the opposition to be mature and sincere, failing which Malta would suffer long-term harm.

Mr Mizzi said the Prime Minister was aiming for political mileage. If the government had heeded the opposition’s repeated advice for hedging and greater fuel storage facilities, even overseas, Malta would not have had to face so many problems. But the government was too stubborn.

Although Enemalta had blamed the situation in Libya for its recent fuel price-hikes, the truth was that the supplies it was delivering had been bought at cheaper prices before the Arab crisis came about.

The government could still hire storage facilities overseas.

The Prime Minister was being dishonest in accusing the opposition of causing harm to the country; instead, it was the government that had brought the island to its knees in a very grave situation through its lack of planning.

Dr Gonzi said he hoped Mr Mizzi’s stance was not representative of the Labour Party’s opinion, because it was a show of crass incompetence.

Enemalta had two to two-and-a-half months’ supplies in storage, while the EU directive called for 90 days in actual storage or guaranteed for quick delivery. If Mr Mizzi had known what was going to happen and told the government, Malta would have made a good profit through advance supplies of fuel.

On the contrary, if the government had heeded the opposition’s advice to hedge fuel prices at US$90, Malta would have incurred huge losses when prices slipped into the 70s.

Dr Gonzi called on Mr Mizzi not to simplify and second-guess a complex process. Even the government’s experts had said they could not be presumptuous by trying to foretell what could happen at any time. They had advised hedging against currency exchange rates, and the government had done it.

Instead of pulling up its socks and helping in a difficult situation, the opposition was only seeking political mileage, the Prime Minister said.