Labour MP Marlene Farrugia raised a number of questions on the Enemalta-Shanghai Electric deal when she spoke in parliament this evening.

She said this agreement was important because of the fact that power generation was being taken out of the Maltese people's hands. What were the implications of such a decision?

It was good that power generation would be switched from heavy fuel oil to gas. Labour had promised an immediate switch.  When would this happen?

It had been said that Enemalta would become a regional player. What did this mean? What implications would this have on the environment, health and jobs?

The people should be told how competitiveness would improve when, although power tariffs had been reduced by 25%, the oil price had dropped by 50%.

Although allowance had to be made for exchange rate changes, abroad, utility and fuel prices had dropped as well, so what competitive advantages did Malta have?

If Malta would benefit from the Shanghai deal as much as the government was saying, what improvement would there be in the salaries of the workers and on the economy? Would one see a general improvement of the minimum wage and the eradication of precarious work? 

Economic Affairs Minister Chris Cardona said reduced energy costs would mean lower prices for exports and increased competitiveness. This was confirmed by a Central Bank report.

The lower tariffs meant €50 million could be ploughed back in business and industry while the cut in tariffs for domestic users meant an improvement in   private consumption and an increase in imports.

On the way Enemalta would become a regional operator, he said the company would team up in joint ventures to provide services in other countries, such as maintenance of electrical plants, creating more jobs. 

 

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