There is an urgent need for a stable and transparent solution to the determination of tariff rates, Malta Employers’ Association president Pierre Fava told the association’s annual general meeting.
He said that employers in Malta were faced with the highest utility rates in the EU and with the unpleasant prospects of industrial unrest resulting from an unclear policy of how the rates were determined.
“This is certainly an issue where social dialogue should be instrumental in establishing a mechanism which will be acceptable to all social partners.
“For this reason MEA has been constructive and forwarded a proposal to government for the formulation of an Energy Pact, which would involve a tripartite team of experts to establish a model for the workings of tariff rates that respects the constraints of public finances, social solidarity, competitiveness and market realities,” he said.
Mr Fava said that a four-year energy pact would enable businesses and consumers to plan and reduce the current tensions.
However, urgent action was required for an energy plan which would also incorporate the efficient use, storage and recycling of water, to prevent chronic shortages in the near future.
“We believe that there is a much better chance of a solution if the social partners put their heads together in this way, rather than taking to the streets.
“The fact remains that a global recovery will most probably result in higher oil prices, and that Malta currently has a dependence on fossil fuel consumption, given that even the generation of our water supply depends on energy consumption,” he said.
Mr Fava said that Malta was in dire need of political consensus on major national issues.
“Our political parties must place the objective of having a competitive and sustainable economy ahead of pandering to marginal votes by making unrealistic promises. It is important for Malta to remove critical issues from the partisan agenda.
“Free medical health care, pensions, welfare benefits, student stipends – these can only exist if Malta manages to remain competitive and achieve higher rates of economic growth.
“An unbalanced social dialogue, which undermines the relevance of the business community will lead to sluggish economic performance which makes the citizens’ aspirations unsustainable.
“We should all learn from the current state of affairs in Greece to avoid experiencing a similar situation in Malta in the years to come.
“Although Malta is an island, it is not isolated. Indeed, because of its open economy, it is more connected to global events than many other economies,” Mr Fava said.