The government will have intensive meetings with employer and industry associations to find ways to dampen the impact of the increase in the power tariffs, a three-hour meeting of the Malta Council for Economic and Social Development agreed this evening.

Finance Minister Tonio Fenech described the meeting as productive and UHM Secretary General Gejtu Vella said social dialogue worked, but the president of the Employers' Association, Pierre Fava, said this was consultation in reverse since the tariffs came into force on January 1.

The GWU boycotted the meeting, saying it came too late and it would not be party to a rubber stamp.

Mr Fenech said talks would be held with the MHRA, the Chamber of Commerce and Industry, the GRTU and the Malta Employers' Association, some of which have compiled studies on the impact of the tariffs.

Mr Vella said it was agreed that dismissals would only be a last resort and the government would seek to help industries facing particularly serious problems.

Helga Ellul, president of the Chamber of Commerce, said the tariffs were unsustainable and such shock treatment was harmful to industry. She said the meeting had seen good understanding by the government and talks would be held on a staggered approach.

LABOUR REACTION

The Labour Party said the government had chosen to do nothing instead of taking the sensible decision not to cause further hardship to housholds and businesses.

The talks and studies which the government had now promised should have been made before the new tariffs were introduced, the party said, adding that the uncertainty which had been created was threatening jobs.