Thursday, 30th October 2008
New utility rates
Call for national protest against utility rates
Opposition Leader Joseph Muscat called on the country to unite in a national, non-political protest against the new water and electricity tariffs.
In a radio message, Dr Muscat condemned the government's decision to raise the bills, which would burden thousands of families and companies.
While the Union Ħaddiema Magħqudin (UĦM) said it would exhaust all negotiations round the table before considering taking to the streets, the General Workers' Union said it would have no problem joining a national protest if all social partners remained united and showed their opposition to the new tariffs.
"If this is our last option, we would have no choice but to take to the streets in protest," GWU general secretary Tony Zarb said.
UĦM general secretary Gejtu Vella said: "We have always believed in constructive social dialogue and will first exhaust all our options at the negotiating table". However, he did not rule out that the union could join in a protest, saying that the decision would be put to the council.
Earlier, Alternattiva Demokratika chairman Arnold Cassola had himself called for a protest and confirmed, when contacted, that the party would attend if the manifestation was a national one that involved all social partners.
Prof. Cassola said the party was very worried about the effects of the new tariffs and was prepared to participate in the battle for reasonable and sustainable energy tariffs.
Dr Muscat said the government could not have chosen a worse time to introduce higher tariffs considering the world was struggling with a financial crisis.
Moreover, the fact the government was backdating the introduction of the new tariffs went against the principles of economic stability and undermined the country's credibility in the eyes of investors. The government would have to repair the damage in Monday's budget.
Dr Muscat said the government was proving it did not believe in social dialogue and had turned consultation into a farce with the Prime Minister's absence in the last days being noticeable.
Instead, he said, Infrastructure Minister Austin Gatt had taken over and "with typical arrogance" bulldozed everything and imposed his decision on the social partners.
In reaction, the Nationalist Party said Dr Muscat should have made such comments when his party in government had raised the power tariffs, even though the price of oil was just $12 per barrel.
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Comments
Perhaps you might consider checking the facts yourself. Follow this link - http://www.imf.org/external/np/ms/2008/053008.htm before you assert that the IMF, the World Bank, or the European Union is forcing the Maltese Government to raise energy prices.
As sad as it is to admit, every taxpayer in Malta has been subsidising the Dockyards for at least 40 years. There came a point when taxpayers in Malta could no longer afford to continue subsidising the Dockyards. The same is true for Enemalta – the government has been subsidising consumers for their electrical consumption. While the same consumers, as taxpayers, have been subsidising Enemalta with their taxes. The major difference here is that the government ought not to even consider privatising Enemalta. While the Dockyards were an important component of Malta’s economy, the generation of electrical energy in Malta is a vital component of the economy that must never be allowed to fall into private hands.
If you have better ideas, as you imply that you have, perhaps you should share them with the rest of the nation. Political partisanship has no place in a discussion about such a serious issue.
Finis
• When the current economic situation stabilises, we can anticipate that oil prices will once again begin to climb based on the Golden Rule – “He who has the gold makes the rules.”
• The supply of the oil being burned now to generate electric power in Malta was probably negotiated months ago when the price of oil was at its highest. Therefore, it is unreasonable to expect a decrease in the cost of electricity the current price of oil has decreased.
• Therefore, no amount of public protest will remedy the situation.
• Until Malta is able to secure its own supply of oil, energy costs in Malta will continue to remain hostage to foreign producers of oil.
One could say that the current energy situation is the result of the bullying endured by Malta at the hands of Libya’s Ghaddafi in 1980, and the inability of Malta’s government of the day to deal with that bullying.
• The buyer has no control over the price of oil. The seller not only controls the price, but also knows about the future strategies that OPEC and other oil producers intend to employ to manipulate the price of oil. The buyer has no way of knowing these strategies and therefore cannot possibly accurately anticipate the future price of oil. Therefore, you could say that the buyer is playing a game of poker with the seller, while the seller knows what cards are being dealt when. The buyer cannot possible win.
• In addition, oil producers often use any excuse - from natural disasters to armed conflict, real, imagined, or anticipated – to manipulate the price of oil.
• Oil producers have been steadily pushing up the price of oil for years. In July 2008, the price of oil was about $126 USD per barrel.
• The recent disastrous worldwide economic situation generated by greed in the U.S.A. has resulted in lower demand for oil lowering oil prices to about $65 USD.
Using the example from your previous post regarding a gravely sick relative, suppose that you signed a 2-year contract to buy for a set price a medicine desperately needed by a relative. Now suppose further that some months after you signed the contract, the cost of that medicine went down, would you not have to honour the contract that you signed and continue buying the medicine at the originally contracted price regardless of the current price? That is the current situation facing the government with the price of oil.
Let us quickly examine the situation.
• Malta generates most, if not all, of its electricity by burning oil.
• So far, Malta has no oil of its own, and must therefore rely on buying it from a producer.
• Inability by any Maltese Government to secure sources of oil will bring Malta’s economy to a standstill and ruin it.
• The Malta Government has a department (whom we’ll call the buyer) whose job it is to negotiate contracts to buy oil for Malta.
• The buyer negotiates future contracts to buy oil from a producer (whom we’ll call the seller.) Cont'd
It had to come out sooner or later - Ah, the evils of EU membership. You are now asserting that there is a conspiracy whereby Brussels is forcing Malta to impose tariffs. How is it that Dr. Muscat, a former MEP for Malta, in unaware of this? How impressive of you– not only would you have us believe that you have detailed inside information about the relationship between Malta and the EU, but that you know the “true story” about the Dockyards - “it isn’t out yet”.
Which party are you ascribing to me as “your party”? Unlike you, I have no political affiliations and I do not indulge in partisan rhetoric; I am a neutral observer making unbiased comments about the situation.
What will Dr. Muscat’s day of national protest accomplish? Will it lower the cost of producing energy in Malta? What it will accomplish is the loss of at least a day’s worth of production in the economy simply to emphasise what we already know – that no one in Malta wants to pay more for energy.
If you have proof that there are “inefficiencies and deficiencies that Enemalta is running on”, perhaps you should do the nation a service by pointing them out specifically – without making unsubstantiated allegations – and then offering proposals to correct them. After all, having made the comment, “It hasn't got to do with oil rises or anything”, you appear to consider yourself an authority on the subject able to offer effective solutions. Who knows? Since you seem to have all the answers, you might be hailed as a national hero and elevated above Dr. Muscat to be Malta’s next PM.
I always voted PN cause it believes in social dialogue.... but was there dialogue at MCESD? Are the social partners happy with this dialogue? It is very worrying to have employers who create jobs in this little country (MHRA, FOI, MEA) warning against such rises. And it is so frustrating seeing the government moving ahead amidst all these serious warnings. Why is the government putting local and foreign investment, job creation, salaries, and the economy in general in this precarious situation??
Who, like me, follows world news can see what incentives foreign governments are injecting in their economy to ease the tension in this world economic crisis.
Let us consider Dr. Muscat’s “proposal” to the government to, “stop the imposition of the tariffs for the time being until the recession passes.” How will that change the cost of producing electricity in Malta? There is a cost to producing energy that must somehow be paid. There are three options - pay now with some form of surcharge; pay now with higher taxes or higher budget deficits; or leave it for future generation to pay for it.
What Dr. Muscat is proposing is reminiscent of how past governments of both political parties in Malta dealt with the Drydocks problem – throw money at it and pretend there is no problem. Some refer to this approach as the ostrich method of problem solving - sticking your head in the sand hoping that the problem will go away. Perhaps the government should consider a lower amount of surcharge until the problem is corrected.
At the same time, we should be aware that sticking your head in the sand lifts your rear end up exposing it to a good swift kick.
Meanwhile, please Mr. Schembri, do your research first – then comment.
@ALL Government Apologists..
You are all singing the same old and sqeeky `songs`... Namely.. (1). Dr. Joseph Muscat as Leader of the Opposition, should offer alternatives... And (2). How much higher utilities costs are paying other European Citizens, Americans and Canadians....!!!!
(1).. As far as i know, its not the MLP only that has suggested various alternatives, because the timing of these exagerated costs is wrong, but the whole of the MCESD members. ALL saying that at the moment our economy implies not to add insult to injury and continue burdening the taxpayer, but to leave his spending money untouched so we don`t give it additional shocks, to the detriment of all... meaning job losses and poorer families....
(2).. Yes its true that such big countries might have much higher costs of water & electricity than us, BUT the heck Guys... The `take home pay` of workers of these countries are the same as ours...???? OF COURSE NOT... MUCH, MUCH HIGHER...
Soooo... The formula is simple... Higher tax burdens = Justifiable demands for increases in wages / salaries.. Which in turn could adversly effect our costs of production.. Meaning sales being less competitive..
And so on and so forth........
Why do I ask Dr. Muscat? Because as leader of the Opposition he is duty-bound to offer positive alternatives not just empty criticism and threats of protest marches. What will a protest march achieve? Perhaps you too should do some research about international energy prices along with Dr. Muscat.
Energy and water costs are going up everywhere. This problem is not unique to Malta. In Ontario, Canada - a place with access to the world's largest fresh water supply, water costs in some cities went up by 86% last year alone. Unlike Malta, Ontario generates a large part of its electricity using hydroelectric dams and nuclear power plants. Yet, electric power costs have also increased and continue to increase, while applications for additional increases are in process. Canada is also an exporter of oil and natural gas, yet prices for these commodities are also rising there.
They took quickly to the streets under a Labour Govt....ok ok..so they didn't get the Lm 9 a week increase that they wanted....
Now they want to exhaust all options...hello...wake up....all options exhausted...ask Austin Gatt.....
You are trying to twist around what I said. I never stated that Labourites do not have the right to comment - that would go against the principles of freedom of speech. I SUGGESTED that they comment CONSTRUCTIVELY (words are in capitals so that you realise that those were the key points of my argument, as you evidently didn't read the 'fine print').
Also, what does the government not having an absolute majority have anything to do with the price of eggs? The reality is that irrespective of whether they won via an absolute or relative majority, they are still governing! The situation in Malta is get the most votes and you govern, in the case of a bi-party Parliament - whether you like it or not, it's there, and you have to live with it! God forbid there would have been another situation like 1981 where the MLP governed on the basis of seats won, this despite the PN having many more votes in total!
Then you wouldn't even have a relative majority governing!
Just as you told me not to shut anyone's mouth (I wasn't), I urge you to think before you write.
"BUT HOW WOULD WE HAVE KNOWN WHEN AGREEING ON FIXED PRICING (from a friend of ours)"?. Maybe listen to suggestions from experts (not lawyers).
Make Enemalta effecient, by reducing all the waste, actually servicing the turbines more often than once every 7 years, and enforcing the laws about utility theft and if necessary restructure, and how about making a real effort at alternative energies? a real one, not the "we're thinking about a deep off-shore wind farm, maybe, dreamy eyes, alice in wonderland, effort.
The offshore wind farm was suggested in 2001, and I was present for the meeting. 7 years later, and we're twiddling our thumbs still.
It's all smoke and mirrors boys, smoke and mirrors.
Perhaps he should first research what is happening to the cost of electricity, water, petrol, oil, natural gas, and propane in other countries - U.S.A., Canada, or any other country - before he speaks. He is likely to discover that the situation in Malta is not unique. Demand is growing exponentially for oil and oil products because of growing car ownership in India, China, and other countries. In the meantime, oil producing nations and oil companies worldwide are greedily seizing the opportunity to increase their profits regardless of the damage that they inflict on the economies of countries, especially countries like Malta that do not have any natural resources.
Would Dr. Muscat be doing anything different if he were Prime Minister? Highly unlikely!
May God be with us all come next Monday!!!
I think i would prefer to pay 50c for a medical prescription and have my mind at rest knowing that when i got to get these medicines, they will be in stock. You, me and everyone knows that this 'introduction' was brought forward due to greed. Ive seen it with my own eyes as im sure you have, or even possibly done yourself. People getting their family doctor to prescribe extra medication just to keep in store for themselves.
And as for the other things u mentioned in 'your list' thats just a whole lot of balony.
Did you not know or see the increase on liquid petroleum gas and water and electricity that has risin in the past year???? maybe your living on another planet!
Its all talk behind doors and on the streets but when it comes to the crunch 'WE DONT DO ANYTHING ABOUT IT'
So wake up, make a stand and dont let this government wipe his feet in us AGAIN.
I love the majority of the comments that are published on this site - they contain the word "RESIGN X" or "RESIGN Y", and generally contain no concrete solutions to any problems that are ongoing!
To people such as Godfrey Galea, I suggest that just as Nationalists shouldn't be blinded by their party's actions in government, you shouldn't be blinded by what Dr. Muscat is saying... simply because when you're out there, governing the country, it's a different kettle of fish to sitting in a nice, comfortable office at Mile End, criticising the government for its actions! Mark my words, if Dr. Muscat was leading the country, it wouldn't be as rosy as every Labourite seems to portray it! I will obviously not refer to the past and the disastrous 22 months in government under Dr. Sant (or have we forgotten that now?) as there is a new leader in place, but rest assured that just as Dr. Gonzi takes unpopular decisions, Dr. Muscat would be doing the same!
Finally, here's the crux of it all - you have to lump it, with this government, for the next five years - whether anyone likes it or not! Dr. Gonzi isn't going to "resign" (by your popular demand) because there is a group who feel he is inadequate for the job, and the situation can be reversed as well - if Dr. Muscat was in power and many Nationalists weren't happy about what he was doing, then they would have to lump it for five years as well! Thereagain, that's unless the 1998 crisis would re-emerge under such a leader...
So stop complaining, all you Labourites out there, because it's really just a waste of energy - or, if you're going to complain, do so in a constructive and suggestive manner!
What was good in 1997 should be good for today ???
Come to think....if in those days a consesus was reached and we started paying a bit more from those days enemalta will be in abetter position nowadys......
and also the maltese people.
See what has happened now.......we have to pay for the inefficiences of enemalta and most probably of the government for not takig proper action, when it should have enn taken
It is clear then, why many people are irritated. What is needed is a major strike to set the government on the right track. This is what Malta lacks, a responsive society helping to keep government in check.
If the DR Gonzi resigns will will not protest mark my words. LOL
Here is what your frend Leo Brincat's 1997 Budget contained. If you care to go down the list, Leo Brincat noe only proposed increse inthe elcectrical &, water tariffs, liquid petroleum gas but also a NEW TAX ALL TOGETHER IN THE FORM OF A SEWAGE TAX.
That is the MLP for you. Do as I say, but not as I do.
1, The introduction of a fee of Lm1 for every medical certificate issued by doctors in Government service to public employees;
2. The introduction of a 50c fee for every medical prescription by Public Health giving medicines for free;
3. Increases in charges on licenses, registration taxes, service charges and duties;
4. Steep hikes in electricity and water consumption rates, doubling the old tariff rates;
5. The introduction of a new sewerage tariff;
6. Price increases of liquid petroleum gas;
7.Reduction of stipends to University students (save for students attending the Institute of Health Care), wherein 50% of the stipend would be by way of a loan, as against the previous system wherein the full amount of the stipend was a grant (1997).
For the govt not to have deficits, the medium and lower class are suffering a defecit with their pay!!!
It's either going back to candlesor to go on the streets.
Gonzi should resign - he was irresponsible enough to sign a hedging contract at $115 a barrel and no oil is less than $70 a barrel. He is being bullied by his own minister.
The Maltese are far from MOHHHOM MISTRIEH and they WILL go on the streets when the new only PROGRESSIVE leader calls out.
Besides all others Unions etc don't even think that the poeple of malta would like to pay more for the busniesses they should account for it in there accounts and besides now adays are not the days anymore of the 30 to 70% profits if some one looks on the ent you will see that you will find products from the EU at 3/5 of a price or some times even less.
Besides we need to learn not to waste energy..... that will cost us less for sure.
Everyone needs to do his Part ( also report people adusing of energy) we have to pay there cost as well..
The great majority of the Maltese people needs someone to lead them and support them and the Labour Party and Dr Joseph Muscat as Leader is the right person at the right time !
Dr Muscat we are after you and thanks for your support !!
enjoy the walk!!!! wake up to reality my friend.......
It is either that he has not told the truth on TV or else he has taken the MCESD members for big ride? Maybe the Mcesd could enlighten the nation on this.
Shifting the blame onto the Labour party will do no good. It is the government's problem who has brought it himself. The Opposition is not there to make the Government's agenda but to assist the latter in serious decisions and prevent the Government from taking stupid decisions.
At the moment Dr.Muscat has focused on the National priority; stopping the government from taking stupid decisions. Alternatives come later.
So according to you since the government is cutting so much on subsides we should also expect a sharp decrease in the taxes we pay.
Since as u state u are a floater, then you are asking the wrong questions. Its not what Joseph Muscat is proposing that u need to find out. But why is Gov proposing this solution as being the only one possible? why now?why has gov not invested wisely in the past 20yrs? Why has he been taking us for a ride for all these years? Why has he not solved the holes in its administration? Why has it left it so late to tackle the inefficiencies at Enemalta (mind u gov has not proposed anything new as regards tackling these)? U should be one that thinks with his head, so if u mean what u say start doing that.
U cannot bluntly blame it on EU. Get the facts right. I think that EU was a good move forward, what was lacking was the inability of GonziPN to really take a stand when there was a need and be counted. And that my friends is lack of character.Kif nejdu ahna, "bla sinsla". And that is why we are in this situation. Now GonziPN has some credit in pushing us forward, but it has left so many loop holes and gaps and it has left too many hands to mix the broth that now it cannot even control what the left hand or the right hand do. Its a sort of Babylon all over again
The great majority of the Maltese people needs someone to lead them and support them and the Labour Party and Dr Joseph Muscat as Leader is the right person at the right time !
Dr Muscat we are after you and thanks for your support !!
Sorry to disappoint you, I am a dedicated floater who would NEVER vote PN.
Sure, we do as Bush did, "subsidize the rich!"
A "nanny state" for the rich! LOL!!!
are we to expect a situation of stagflation? or is this word too big to discuss at such a delicate time?
what will be government's and opposition's solution in this eventuality?
Shame on you
The greatest problems have been caused by the EU
e.g.
Destruction of our industries.
Privatization of MidMed and other parastatal companies that used to milk millions into Malta's coffer.
The imposition of VAT and other taxes including the minimum tax on energy products.
Imposition of customs duties and levies on products bought from outside the eu which all go TO the eu while WE pay the customs officers to collect them.
Hundreds of government workers going to Brussels weekly for meetings connected with the eu for which we pay.
The invasion of illegal immigrants and foreign settlers.
Loss of jobs for Maltese citizens.
No sovereignty to decide in Malta's interest.
These are just a few negative aspects of eu membership.
• Consumption would increase.
• Individual responsibility would disappear
• Malta’s carbon emissions would increase.
• Alternative energy incentives/investments would be less feasible.
• Financial pressure to delay upgrading the system would increase – more power cuts
• Income tax burden would increase.
The previous rates were heavily subsidised through our taxation which meant that consumers were under the false illusion that water and electricity was cheap. The new rates are more realistic. It therefore follows that with the new rates:
• Consumption will decrease.
• Individual responsibility will increase
• Malta’s carbon emissions will decrease.
• Alternative energy incentives/investments will become more feasible.
• Financial pressure to delay upgrading the system would decrease – less power cuts.
• Income tax burden will decrease.
Do you really think that this is happening because of the state of enemalta or the oil prices? Tonio Fenech made it very clear during his speech that the government has to eliminate the country's deficit by 2010. If not we would have to suffer consequences from the EU.
This is one of the measures that the government HAS TO DO now as time is running short. Don't give me the state of the world's economy bull..... Britain are ready to increase the country's deficit in order to increase the people's spending power and overcome recession. But what will GonziPN do??? Exactly the opposite!! Instead he tries to justify himself by what happened in 1997........ pathetic
Yes we will go out on the streets and we will protest against bad management and bad governing.
If we build an offshore wind farm, everyone protests.
If we build a nuclear reactor, everyone protests.
If we have to pay for power at what it costs, everyone protests.
Thanks to the "Progressive" (sic) mentality, we still expect everything for free/on the cheap.
Its about time we all realised that Malta is part of the real world and does not exist in a vacuum.
If Dr Muscat offers valid alternatives, rather than protests, he could be taken more seriously.
Ah so now its Joseph Muscat's task to solve the problem, right? If he were in Gonzi's place u meant right? So instead of blaming Gov, for letting things get out of control over the years and not investing as the report by the experts said way back in 2005 and earlier, u are satisfied to blame it on the opposition leader. How easy it is to blame others for your own mistakes...and I think that u also have contributed to this situation because u have most probably voted PN...biex taxxaqa....u hallina
I believe you forgot another point who we should be protesting against
An arrogant government who tries to trample over everyone
When in 1997 there were protest for the same reason of the tariffs did you stop to think about the reasons you are giving here
if you notice these people they do not bother about your problems . they only try to understand you within 5 years when it is time to vote , the rest is up to you
This is a just protest, the people united will never get defeated !!!!!
I can t believe how certain people speak and comment as if they live in another country .
are you living well ?
are you not paying already enough ?
are you fed up with the ministers attitude ?
where is Dr Gonzi ?
I have the feeling the government really just does not care. Such an increase will first of all cost jobs and secondly it will reduce the purchase power of the citizen. In all it means that Malta will slide into a deep recession.
But what personally makes me angry is the following. I have a wife and two kids which all suffer seriously of Asthma. In Winter the attacks are very bad so that my wife hardly can go to work. The only thing to keep them health is to heat the house to remove the dampness. But we cannot use gas heating since gas heatings make asthma even worse. The only think which is good for Asthma are oil radiators. I guess everyone here can imagine our electricity bill just to keep the family health.
Now the government adverts that it helps such families and it also adverts that already 30k families get such a help. When we applied for help with certificates of our GP and the hospital attached help was refused because Asthma is not a serious disease. I guess everyone here can understand our frustration?
Do not ask answers from Joseph but ask them from whom it is concerned cuase they did all this mess.
No...we will be protesting against the inefficiencies that this gov. has left unsolved and the way in which he always finds excuses to tax us ppl in an uncontrollable and arrogant manner.
Just do not hear Joseph but hear what the social partners are saying and you get all the answers
How much per unit of elec
How much for the meter rent
How much per unit of water
How much for the meter rent
The smoke screen of Eco rebates and size of family just confuses the issue unless clear figures are presented so that individuals can see if they apply to them - at first glance, the Eco level would only apply to a family with a summer and winter house or to a garage but not for most modern families living in one residence all year.
When I have that basic information I can then work out if I can afford it or not.
Just saying that for so and so size family it will be such and such more (more than what I have not got a clue) is just to vague to work on.
It’s only natural to be upset and down about paying higher bills – who isn’t? We live in a free country and everyone has the right to protest till they are red, blue or even green in the face – who is denying this? You can either join a protest because “everyone else is doing it”, or for partisan reasons, or because you believe in what you're protesting against.
By joining the national demonstration, you will be protesting against:
• Millions of Chinese, Indian and other people in the developing world who have recently become car-owners and now compete for oil.
• Budget airlines that increased air traffic to fly passengers to countries like Malta.
• Increased world trade that uses enormous amounts of fuel to transport goods around the globe.
• Opportunities for cleaner and alternative ways of generating power becoming more feasible.
• Your neighbour and fellow taxpayer who you arrogantly believe should be subsidising your bills.
I am not blind to say this is just the government's fault for not investing alternative energy in the past 20 years since the situations these last two year have caught the whole world by surprise and there fore we, as a mere dot on a map will nevertheless be affected by the financial and energy problem tsunami.
It is no time to be defeatist or populist. It is time to demonstrate to the world of our greatest strengths - that of unterminable Resilience in the face of onslaught. Malta passed through incredible traumatic times through the ages: invasions changing culture, the Great Siege, World War 1&2, the 80s. We're still here and look around us now! Malta has progressed through immense sacrifces. We are changing! Change is inevitable! We will see this one through!
my friend i voted pn as much as you did and if i where you i zipp up . We did the same when alfred sant did it but to be honest at that time we were much better than we are today .
If we do so we realise that pn are inventing all excuses to cover their mistakes but at the end of the day what counts is our pockets and how are they being effected .
what pn should also mention is that ten years ago the tariffs were revised cause after an impact assesment was done they realised what a mistake was done . Are you going to do the same now Dr Gonzi - oh sorry Dr Gatt ( new primeminister )