Prime Minister Lawrence Gonzi said today that while people protested last Friday over prices, it was significant that the protest was not over jobs, which was the main problem which many other countries were facing.

He insisted that the increased prices were a reflection of rising prices abroad. The government, however, was doing its bit to ease their impact, as reflected, for example, in the energy benefit given to those having a low income, with some families even receiving €500. Families having elderly persons were also being given more benefits.

Other measures included financial incentives on the purchase of solar heaters and photovoltaic panels.

Solutions for the rising energy costs had to be found in this way, and not through subsidies, which only meant taking money away from other sectors, such as pensions, health and education, he stressed.

In many cases, Dr Gonzi said, subsidies given in the past were simply a drain of the country's resources while the real problems were not addressed. The dockyard had been a case in point.

During his speech, Dr Gonzi said the government was working to close the power station at Marsa, something which would be good need for the south of Malta, where residents complained of poor air quality. That power station also consumed a lot of fuel for its output.

The government was therefore investing on extending the power station as well as linking to the European power grid. This involved borrowing by the country, but it was investment which the country needed.

On Air Malta, Dr Gonzi said he was determined to remove all burdens from the airline and the government was committed to doing whatever was needed for the airline to be viable in the long term.