The utility tariffs proposed by the government have been described by the President of the Malta Hotels and Restaurants Association as being "shock treatment of the highest degree."

Kevin DeCesare told an extraordinary general meeting of the association today that the government should withdraw its proposals and engage in real consultation with the social partners.

"The MHRA is upset about what was done but equally by the way it was done. The way this matter was handled shows a great deal of disrespect for industry," Mr DeCesare said.

These tariffs, he said, came out of the blue, not having been included in the pre-budget document.

"In fact, government always led us to understand that the capping system will remain in place due to the importance of maintaining our competitiveness and employment levels," Mr DeCesare said.

"It is ironic that while Internationally all governments are using mechanisms to cushion economic shocks, our government, in its wisdom, decides to do the exact opposite and send industry into a frenzy presenting such serious changes in an unprofessional way."

He said the MHRA would be insisting with government that before any decision was taken on the matter,a proper socio-economic impact study should be conducted.

"We simply cannot accept a quick fix that has not been thought through properly as this could lead to serious loss of employment and problems within the industry," Mr DeCesare said.