Muscat meets Methode workers, insists utility bills for industries will go down

Opposition leader Joseph Muscat this morning told workers at Methode Ltd that companies could put their minds at rest that a Labour government would reduce utility bills not only for households, but also for the industries.

"The debt which government left to accumulate has finally caught up with us, and we can no longer run away from it. We are ready to support and help government in finding a solution to address Enemalta's debts," Muscat said during a question and answer session with the workers.

Enemalta has accumulated over €600 million in debt and government is in the process of setting up a special purpose vehicle to refinance the massive debt.

"While before government used to say it was 'impossible' to reduce utility bills, it has now recognized that there is the 'possibility' to do so through the interconnector. We still believe that if it had been our choice, we would have gone for a power station which operated on gas and not on heavy fuel oil," Muscat said.

"But our pledge has always been clear: a Labour government will reduce utility bills."

Muscat said this would be made possible by addressing inefficiencies and making use of the latest technology, "which makes sense".

"Although carbon-capture technology [proposed by Sargas] is one of the projects we would be considering, we have found other alternatives which could be used if this technology fails," he said, adding that public procurement would also be involved.

"However, we are not only simply looking at reducing the bills but also at their long-term sustainability. We will not be reducing the bills by making up for that difference by increasing income tax or VAT. Our aim is to go for energy mix and reduce our dependency on oil."

Answering to a question raised by a worker who said that the company's management faced problems of space and red tape against expanding the company, Muscat expressed his hopes that government had dropped the plans for the setting up of a Corporate Village in Mriehel.

"Using industrial space for the construction of offices and showrooms doesn't make sense. Manufacturing companies in Malta yearn for space and it wouldn't make sense not for factories to take it up when we have companies who want to expand and consequently provide further jobs.

"Corporate Village is not a priority for us. We believe in creating jobs and expanding companies and help those who want to expand," he insisted.

Muscat also pointed out that by building Corporate Village government would be competing directly with the private sector who invested in buildings to be rented out or sold off as office space.

The proposed site for the Corporate Village sits next door to Methode.