Energy diversification crucial for economic growth – Gonzi

Prime Minister Lawrence Gonzi yesterday said it was the government’s long-term goal to convert the Delimara power plant to gas.

The conversion would help reduce the island’s dependence on oil and lead to less polluting emissions, Dr Gonzi said, identifying the diversification of energy sources as a strategic goal.

A contract awarded to extend the Delimara power station was mired in controversy, partly because Enemalta chose technology that burned the more polluting heavy fuel oil rather than gas. As a result, the new plant has to have prototype air filtering technology to adhere to EU emissions directives and conversion to gas in the future will cost some €27 million.

Dr Gonzi also highlighted the undersea electricity cable that will connect Malta to mainland Europe via Sicily as a historic development.

For the first time in its history, Malta will import electricity, making it less dependent on its own generating capacity. The contract has been awarded and the cable is expected to come on line in the next two years.

Energy diversification, he said, was crucial to ensuring sustained economic growth. The wind farm projects were also part of the plan to reduce the country’s dependence on one source of energy.

The government’s strategy, he added, included assistance to households to use solar energy for heating and electricity purposes.

Highlighting the work done by his office over the past year, Dr Gonzi said the government had started its term with the ambitious target of bringing the fiscal deficit down to zero. The target had to be adjusted because of the recession but last year Malta was one of a small number of countries that had seen a reduction in its deficit.

Dr Gonzi expressed confidence that Malta would close this year with a deficit below three per cent of GDP.

Over the next two years, the government’s aim was to maintain economic momentum and keep the country competitive. At the same time, Dr Gonzi said, a number of infrastructural projects would come on stream including City Gate, rebuilding of major roads and the opening of a number of family parks.

On Air Malta, Dr Gonzi confirmed the restructuring plan would be presented to the EU Commission in the coming days but refrained from giving any details because it was “a delicate moment”.

The Parliamentary Secretary for Tourism, the Environment and Culture, Mario de Marco said talks with other airlines, including Ryanair, to open new routes were ongoing but care was taken not to have routes that had a negative impact on Air Malta.

Talking about the Malta Environment and Planning Authority, Dr de Marco said a National Environment Policy would be published this year.

He identified air pollution as a major challenge and insisted that the closure of the Marsa power station and the introduction of a new bus service in July were two key developments to improve air quality.

Divorce and democracy

The Prime Minister skirted the divorce issue as Malta heads for a referendum on the matter in a month’s time.

Dr Gonzi spoke about the issue when asked whether he was comfortable with a situation that led to a divorce Bill being presented in Parliament and a referendum to be held on May 28.

“I will bow before democracy,” he said, insisting this was part of the democratic experience.

Reacting to the controversy over the granting of long leave to a high-ranking civil servant so he could actively take part in the anti-divorce campaign, Dr Gonzi denied any civil service regulations were broken.

He confirmed that Frans Borg, the deputy Cabinet secretary, had applied for long leave and this was granted.

Dr Gonzi defended the decision, insisting this was not an electoral campaign and there was nothing wrong with people being encouraged to participate.