Consumers got the “best deal” in the form of fuel price cuts that will come into force in January because the government’s utmost priority was to stabilise the cost at the pumps, the Prime Minister said yesterday.
Joseph Muscat was reacting to criticism that the government’s decision to increase excise duty by 3c on petrol and diesel had eaten a significant chunk of the fuel price cuts that motorists were expecting as a result of the downward trend in oil prices.
As from the start of next year, the price of petrol will drop by 3c per litre and diesel will be 4c cheaper per litre.
The Prime Minster justified the government’s decision to increase taxation on fuel.
“Comparison with the EU average prices can only be made next January because it well may be that in three months’ time prices in Europe will start rising when the opposite will be happening here,” Dr Muscat said.
Comparison with the EU average prices can only be made next January because it well may be that in three months’ time prices in Europe will start rising when the opposite will be happening here
Outlining the main Budget measures, he said this was another step in the implementation of Labour’s road map for the country. He noted that, for the first time in some 20 years, pensions had increased while 160,000 people would benefit from a reduction in income tax.
The Prime Minister remarked that one of the major challenges ahead was the ever-increasing demand for beds in homes for the elderly. He cautioned that even though the waiting list for entry in government homes had been reduced from 2,000 to 1,400, in a few years’ time this would rise again and exceed 3,000.
Dr Muscat noted that each resident in a government home cost taxpayers €18,000. “This is not sustainable and we have to look for alternative models,” he said. In view of this, the government would be rolling out a scheme through which half of the expense incurred by a family to employ a carer for an elderly person would be funded by the State. “In this manner we are enticing old people to remain in the community and, at the same time, alleviate the load on government homes,” he said.
Dr Muscat noted that under such a model, the cost for taxpayers would be about €5,000 for each carer for the elderly.