The Opposition was calling for further reductions in energy tariffs two years after questioning the viability of the promised cut in bills, Finance Minister Edward Scicluna said yesterday at a pre-budget consultation meeting.
Referring to PN leader Simon Busuttil’s backing for a GRTU proposal to make another 30 per cent cut in electricity tariffs, Prof. Scicluna said this plea should have been made under the previous administration.
“My predecessor would have said: get used to high bills. I will not say this. I believe the government has a vision... And the tariffs will go down according to the government’s vision.”
The exaggerated scepticism about the economic growth and the government’s financial targets had vanished and the people could see the government’s vision, Prof. Scicluna said to clapping across the hall.
At the beginning of the meeting, the minister noted that this year the budget was being presented earlier than usual because in November, which is when the budget plan was usually launched, Malta, was hosting two international events – CHOGM and the EU-Africa summit.
This plea should have been made under last administration
Apart from that, however, the government also wanted to present the draft of the budget to the Maltese before its Eurozone counterparts, who needed to approve it before it could be implemented, Dr Scicluna said. Answering questions from those present, Dr Scicluna defended the State guarantee on borrowing by the consortium building the new power station. Such guarantees were not unprecedented, he said, citing the building of a nuclear power station in the UK.
Referring to the increase in employment, he said this had taken place in the private, not public, sector. He explained that on average, between 600 to 800 people retired every year from the public sector, while between 3,000 and 4,000 people retired from the private sector. Between March of 2014 and March of 2015, a total of 7,000 jobs had been created in the public and private sectors, of which 680 were in the former.
About pensions, he said a draft has been completed for future pensioners – those who will be receiving a pension from 2060 onwards.
Today’s pensions, he said, were the result of decisions taken 10 and 15 years ago, however, the government was in the meantime working on launching benefits that would correct social injustices affecting today’s pensioners.
Meanwhile, insurance companies and banks would soon issue packages where the account holder would not be taxed over the savings parked there for a pension.