The Prime Minister has blamed an “obscene” agreement reached by the previous administration for high gas prices charged by private operators.

Joseph Muscat said the agreement reached in 2008 when Enemalta’s gas division was privatised failed to give the private operator any incentive to buy gas in bulk and use its storage facility to the full.

He was speaking this afternoon when receiving a delegation from the General Workers’ Union at Auberge de Castille.

Dr Muscat said the plan to reduce water and electricity tariffs for families by March next year was on track and the Government now wanted to focus on the price of gas.

He said the Government made submissions with the resources authority to come up with a new formula when setting the benchmark price of the sale of gas.

“The agreement, which we had opposed in 2008 because it was not in the best interest of consumers, did not provide incentives for the private operator to stock on gas supplies when the price was right,” he said, adding the company was only buying minimum quantities of gas and leaving the bulk of its storage facility empty.

He reiterated industry’s concern that not enough skilled workers were available to fill in high-end manufacturing jobs such as tool makers.

Dr Muscat said the Government was committed to close any loopholes employers may exploit to employ workers on precarious conditions.

He was reacting to GWU general secretary Tony Zarb’s comment that despite the Government’s “good” initiative to draw up procurement rules that tried to stamp out precarious work, some employers had found loopholes.

Mr Zarb, who led a high-powered delegation, pledged his union’s support to the Government in its fight against precarious employment.

ksansone@timesofmalta.com