Infrastructure Minister Austin Gatt admitted yesterday that the increases in the water and electricity rates should have been introduced in January rather than October. "We should have taken longer to introduce the changes," he said, adding that he blamed his "party first of all" for taking too long to come up with a new tariff system.

Asked whether he had any regrets, he said that, in retrospect, the new system should have not been introduced in October. Instead, the government should have increased the surcharge, he said. When the new rates were announced, there was a chorus of disapproval with social partners saying their introduction should at least be postponed while they were consulted properly.

The minister had hardly budged then and the new rates were introduced retroactively from October.

"We should have started discussing the new tariffs with the intention of implementing them from January," he said.

However, the surcharge would have gone up to about 195 per cent, with people paying about 10 per cent more than they were doing with the new tariffs. Labour leader Joseph Muscat had said the new tariffs were equivalent to a surcharge of 185 per cent but this had been disputed.

The minister defended the award of a tender to extend the Delimara power station to Scandinavian bidder BWSC, saying this worked out cheaper and would bring down emissions below EU levels.

Israeli bidder Bateman Litwin has protested against the outcome and even initiated legal proceedings this week calling on the government, Enemalta and the Director of Contracts not to award the contract to BWSC. The minister confirmed that the contract had been signed on Thursday.

Speaking of the projects being planned for Valletta (also falling under his portfolio), Dr Gatt said all pedestrianised streets in Valletta should be paved by the end of next year, adding that the City Gate project should return the Grand Master's palace back to its glory as the crown jewel of Valletta and the centre of the island's heritage. Designs by Renzo Piano are expected to be unveiled at the end of next month.