Opposition trafficking in data leaked, stolen from government departments

Infrastructure, Transport and Communications Minister Austin Gatt yesterday accused the opposition of daily trafficking in data leaked and stolen from government departments. The opposition was free not to use Mitts e-mail accounts, but he would not accept the opposition's crocodile tears that personal data were sacrosanct.

Speaking in the budget debate on his ministry, Dr Gatt said that a year ago he had described the international market as very unstable, with oil prices rising up to $200 per barrel. The markets had now crumbled and oil was being sold at $52 per barrel.

But the price was still 450 per cent more than under Dr Sant's administration. He said that the 17 declarations made by the Leader of the Opposition were all wrong. The Labour leader's anonymous advisor had calculated that the new tariffs would amount to a 194 per cent surcharge, when in reality they amounted to between 125 and 135 per cent. He said that according to the Harmonised Index for Consumer Prices (HICP) published by Eurostat the related increase in prices between October 2007 and 2008 amounted to 51 per cent. This worked out as a surcharge of 126 per cent. He accused the opposition's economic advisor of comparing October 2008 with the previous month and not with October 2007.

Dr Gatt accused the opposition of deceiving the public over family expenditure because one could talk only of individuals, with the increase of the energy tariffs being between €0.85 and €1.45 per week per person. The rent for three-phase meters was being increased to €195 and not to €900, as claimed by the opposition. The increases mentioned by the opposition referred to installation costs.

He denied that the government had introduced the new tariffs retroactively. The government had offered to bring in the new tariffs in January, adopting a surcharge of 160 per cent for the last quarter of 2007. But in the MCESD the unions had not agreed. He also said that it was impossible to read 250,000 meters in one day, as had been proposed by the Leader of the Opposition. Consumers would not pay for extra consumption, because every six months consumers would receive the actual meter readings.

Enemalta had been consulting with the regulatory body since the announcement of the new tariffs in the MCESD. It was not true that the government was not transparent on the matter. Information was provided on the ministry's website. Enemalta bought its fuel needs every month on the market and then merged with that price the profit or loss made from hedging. The increase in the price of fuel amounted to 80 per cent of expenses incurred by Enemalta. Energy night tariffs had been in place for years, with Enemalta using key performance indicators.

Dr Gatt said the government was treating sewage before it was disposed of into the sea. The project needed an investment of millions of euros and these had to come from taxation because according to EU directives the government could not subsidise. It was untrue that electricity theft amounted to €50 million, and fuel prices in Malta were cheaper than in the UK and than the EU average.

Dr Gatt then revealed the opposition's anonymous advisor as being Mr Sandro Demarco, a Central Bank manager responsible for confidential HCIP data which the Bank forwarded to the European Central Bank.

He tabled a copy of the "screen shot" under "Properties" which he had retrieved from the Maltastar website as proof of what he was claiming.

The government is investing heavily in the generation and distribution of electricity by substituting the Marsa power station with a new turbine, installing an additional turbine by 2012, connecting the island to the European power grid and installing smart meters, among other initiatives.

The minister disagreed with the GRTU on postponing the new tariffs. It was essential to invest in the electrical infrastructure, to buy fuel and to cover wages and all other expenses by Enemalta. This could be done through tariffs or taxation. If the government were to subsidise the energy sector instead of increasing tariffs, it would be forking out €100 per head irrespective of whether one was a minimum wage earner or earning €30,000 annually.

The government believed that one had to pay according to consumption while it helped low income earners and gave incentives to those who saved on electricity. The meter rentals had last been revised ten years ago, and this too was subsidised.

Enemalta inefficiencies were seven per cent for technical reasons and the rest related to a surplus of workers and work practices. Another six per cent of Enemalta's inefficiencies were the result of old meters. This had been addressed after the government concluded a contract for smart meters with IBM amounting to €47 million. Other discussions with IBM were underway.

Speaking on the WSC, Dr Gatt said the corporation was working on the treatment of sewage with an investment of €8 million on three sewage treatment plants. Other studies had been commissioned on the use of this treated water. He said that nothing came free, and according to the EU Water Directive, consumers had to pay for treated water and for all sewage expenses by 2010 (opposition calls of "Shame"). He added that consumers would have to pay for sewage expenses as from next year. The WSC was investing €25 million to build the largest sewage treatment plant at Ta' Barkat.

Management skills were missing in this sector, and a reform of the sector and of the Public Transport Authority's organisational structure was in the pipeline. As a result his ministry had issued two directives, one on illegal works carried out by local councils and another on the quality of work in the construction of roads. The Roads Division Board had been given directives to be adopted in the construction of new roads or resurfacing of others. A monitoring unit had also been set up to coordinate work.

He said that as from next January resurfacing of roads would no longer be performed by Enemalta and WSC contractors but by the Roads Division within the ADT. Permits for new roads would not be granted if certain conditions were not observed. These works would be monitored by a Quality Assurance Unit set up for the purpose.

Minister Gatt said that the three priorities in this sector included the continuation of road construction in residential areas, the TEN-T programme and the rebuilding of the Marsascala bypass and Valletta Road in Żurrieq.

At present, public transport did not provide a suitable alternative to using one's own car. The transport sector reform aimed to introduce more taxis, a better service by coaches and more electric mini-cabs while also strengthening the ferry services. The government's obligation was to the general public and not to the transport operators.

Dr Gatt said that an extensive reform in public transport was needed. The government would be guided by EU directives which give three choices: the setting up of a public authority, which the government did not favour; the setting up of a private company after issuing an international call for tenders; and the use of SMEs and by direct order where the service was limited, as in Gozo. He explained the third proposal, which he said was objected to by the European Commission. The only option was the call of an international tender for the operation of the public transport service.

Minister Gatt listed the objectives of the reform, adding that the government had engaged the services of international transport consultants who drafted a new transport network. A service level agreement and the financial package were being drafted. The government would start implementing the reform in Gozo, where transport needs were much smaller than in Malta.

On information technology he said that the introduction of electronic passports would cost the country €12 million. Electronic identity cards were to be introduced by the end of next year.

Minister Gatt dealt with the extraction of usernames and passwords at Mitts last September and the ensuing investigations. He tabled the initial report on the Mitts organisation by the external review team and comments by members of the Mita board. The report confirmed what he had said in the ministerial statement. It mentioned by name the persons responsible for deficiencies in operations at Mitts. The board of directors had again offered its resignation, which he had refused.

The external review team had concluded that policies and budgets were in place, that the board of directors had not been informed of any deficiencies which were not remedied, that it had been given wrong advice and that it had decided to change passwords.

Minister Gatt noted that the independent report showed its satisfaction that no data from the core system of government services has been penetrated. He confirmed that the reports orchestrated in the media were a pack of lies. The opposition was free not to use Mitts e-mail accounts, but he would not accept the opposition's crocodile tears that personal data were sacrosanct when the MLP daily trafficked in data leaked and stolen from government departments.

He was expecting a second report from the external review team with recommendations on the way forward. The government was to distinguish between the security of operations and the operations by Mitts, setting up a National Information Security Agency in consultation with the opposition.

Dr Gatt said that Malta remained at the forefront of EU countries in giving e-government services. Malta would start implementing what was known as "fibre to the home" technology, giving better internet services.

He announced that Mepa had approved permits for the first phase of SmartCity, and the foundation stone of the project would be laid next Tuesday.

Certain policies need to be changed to tackle bureaucratic practices in engaging specialised personnel in the sector.

Concluding, Minister Gatt said Nationalist governments had always provided direction to the country, and had warned the people before the election that difficult times lay ahead.