(Adds Health Ministry statement)

Labour leader Joseph Muscat said today that utility bills had risen because of the government financial deficit, more than because of the increase in oil prices.

Dr Muscat was referring to a TVM news report that quoted Finance Minister Tonio Fenech, who said the utility bills had to make do for the deficit so that Malta would not end up like Greece.

The Labour leader reiterated that his party would be joining the Ghaqda Unions Maltin in its protest against the increase in water and electricity tariffs on Sunday to ‘legitimately and peacefully’ make its voice heard.

Speaking in Vittoriosa, Dr Muscat said that on the following day, Labour would be presenting its motion against the increase in tariffs in Parliament.

The Labour leader also spoke on the health reform.

He said Labour would not discuss the reform with the government unless the principle of free health care was retained. Dr Muscat reiterated that the government did not enjoy a parliamentary majority on the matter. More than one of its MPs opposed the reform.

"It is useless discussing the details of the reform if we do not agree with the principle it is built upon - that healthcare would stop being free," he said.

Dr Muscat said that prior to the election, the government had promised a surplus in government finances but the deficit exploded soon after the election.

This government, Dr Muscat said, was giving the country a roofless theatre and bottomless coffers. He criticised the Prime Minister's arrogance in not listening to what the people were saying about the Renzo Piano Valletta projects.

He said that the Finance Minister had told Labour MP Charles Mangion that the government had spent €15 million to safeguard jobs. This was money well spent. But the deficit was close to €200 million. What happened to the difference?

Businesses, Dr Muscat said, were seeing their water and electricity bills rise by 50 per cent. They would be paying the highest bills in Europe. How could Malta be competitive, he asked.

Enemalta, the Labour leader said, was a monopoly and the pricing of its services could not be calculated in a simplistic manner.

This government had also introduced the concept of a drainage tax besides a six per cent fine for late payments. The interest was payable not just on the actual bill but also on estimates.

At the beginning of his address Dr Muscat congratuled singer Thea Garrett and the author and composer of her song My Dream for winning the Malta Eurosong Contest yesterday.

HEALTH MINISTRY STATEMENT

In a reply, the Health Ministry said that the government's principle for the health sector was to provide the best care free of charge.

It said it was the Labour government which had started to introduce payment for health. This government removed the tariffs Labour had introduced on medicines. It also removed the Labour introduced tax on medical certificates.

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