(Updated 5.25 p.m.)

The Prime Minister and representatives of the trade unions said this evening they had had 'very productive' talks on the utility tariffs.

The trade union leaders said that a new proposal had been discussed and they expect final workings from the government on Monday.

Among those present for the talks were the leaders of the GWU, the UHM, the MUT and the CMTU. The Prime Minister was accompanied by Deputy Prime Minister Tonio Borg.

Dr Gonzi, speaking later, also described the talks as 'productive and constructive' but said that at such a sensitive stage he could not give more detail. He said he was hopeful that the government could produce a final document on Monday.

The meeting started at 11 a.m., broke off at 2 p.m. and resumed at 5 p.m.

Dr Gonzi first met the trade unions last Tuesday when they made nine proposals for the power and water tariffs to be eased.

Dr Gonzi made his own proposal this morning.

The unions have called for the introduction of new tariffs to be postponed to January and for an elimination of the rise in meter charges.

They have also called for the consumption ceiling to be raised from 1,500 to 1,800 units per person per household.

They requested an increase on the eco-reduction system from the present 20 to 25 per cent on the first 1,000 units and from 10 to 15 per cent on the second 1,000 units.