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PN turn up heat on Muscat’s energy policy and minimum wage position
Finance minister says Labour cannot reduce tariffs before five years and completion of gas pipeline to Europe.
24 September 2012, 12:00am
Matthew Vella
Matthew Vella
2 min read
Finance minister Tonio Fenech says converting Delimara to gas will take five years at least.
Finance minister Tonio Fenech yesterday accused Labour leader Joseph Muscat of 'confirming' he would not reduce any energy bills within the coming five years.
Fenech said Muscat's solution to reduce energy bills by converting the Delimara power station to gas, as opposed to the heavy fuel oil being used today, was in line with government policy but a misleading proposal.
"There is no gas pipeline between Malta and Europe so a massive investment has to take place, and this won't happen before the EU funds from the 2014 financial framework come.
"Considering the nature of such an investment, from tendering to permits, to completion, this will take five years at least. Our experience in building the Malta-Sicily interconnector proves this," Fenech said.
Joseph Muscat recently told unions at last week's Labour congress that reducing energy tariffs was key to improving the lot of low-income groups and businesses' competitiveness.
But since saying he would not raise minimum wage, fearing an artificial increase in businesses' costs that would also raise prices, Prime Minister Lawrence Gonzi has taken the Labour leader to task.
"Nobody knows where they stand with Labour. Two years ago Muscat spoke about introducing a living wage, which he then toned down... now he is going to another extreme, saying it would be useless to raise the minimum wage. Labour will freeze the minimum wage," Gonzi said in an obvious allusion to a mandatory wage freeze Labour instituted in the 1980s in a bid to control inflation.
On his part, Muscat said the PL's decision to not push for an increase in minimum wage was a "controversial moment" and acknowledged the widespread surprise at the PL's adoption of a policy position uncharacteristic of a labour party. "We analysed our priorities, and decided that the priority for the current situation is economic growth. If this is not so, there will be problems with regards to workers rights, job creations, and the sustenance of the welfare state."
Tonio Fenech has accused the Labour party of proposing four different versions of dealing with Enemalta prices for electricity, saying Muscat suggested using diesel, reducing the return-on-capital-employed formula which reduces the amount of investment that is passed on the bills, and even toyed with carbon-capture solutions.
The Labour party, responding to the finance minister, said the government was in a panic over the raised water and electricity bills. "GonziPN has no credibility in the field of energy when it purchased a power station that operates with heavy fuel oil instead of gas."
Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...
Mark Fenech •
Matrix. Just have a look at the annual bonus. It was LM116 in 1987 when PN came to government and it is still the same 25 years later, just converted to EUR270. Any more comments are superfluous, the minimum wage is not the cabinet's remunerations which were increase behind our backs by EUR600 weekly way back to 2008.
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Dan il-bracy Tonio Fenech l-istess wiehed li faqa' l-kaxxa ta' Malta? Hallina Ton. Ghandek futur ahjar fis-senserija!
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Iz-zieda ta Gonzi and Co sejra tkun €600 fil-gimgha ghaliex dak il-Prim Ministru, u tal-haddiem sejra tkun ftit QAMEL ghaliex fuq ix-xefaq jidher il-MALTEMP. Ripetizzjoni tas sena 2008.
Jekk tkun tal-qalba insibulek xi haga zgur basta tkun ittesserat ma tal-Maduma.
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Eh! Tajjeb , mela seta u jista jorħos id-dawl u l-ilma sur ministru!!!
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OK the competion has started, gonzipn has launched its electoral competition, mainly who lies the most, leading is gonzi himself followed close by Tonio jetset Fenech and George Pulicino. Another competition, that who says the most stupid thing is presently a tie between Simon Busutill and gonzi.
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Finance minister says Labour cannot reduce tariffs before five years and completion of gas pipeline to Europe." but I'll bet gonzipn will not wait 5 years to take the €500 per week wage increase.
Zack Depasquale •
Some facts on the minimum wage in Malta, the minimum wage was established in Malta in 1974 under the great Dom Mintoff, at the rate of LM12.50 today’s currency Eur29.00, from that day forward accept for the cola increases the basic minimum wage never got a raise. With the cost of living adjustment in 13 years between 1974 – 1987 the minimum wage tripled from Eur 29 to Eur 75. Between 1987 and 2012 25years the minimum wage only doubled from Eur 75 to Eur158.11. So please pretty please with sugar on top can someone from GonziPN tell us where did this government raise the basic minimum wage?
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Matrix: No one can answer you that because Gonzi never made reference to it till now. But the best predictor of future behaviour is past behaviour...meaning: Gonzi said he will adjust favourably the tax bands and never did; he never said he will give himself a pay rise...and he did!
Igor P. Shuvalov •
These reactions by the Government and the Nationalist Party proves:
1. That the Government and the Nationalist Party are on the defensive: they are just parrying the blows instead of putting forward any suggestions
2. They are twisting facts: Muscat never saidthat a new Government would not give the usual cost of living adjustment to minimum wage workers.
3. They are living in the past -- as in every single meeting and interview given by the Prime Minister he is always referring to the past, of course giving his won interpretation of history
4. That when they criticise Muscat for not making public his future plans, they are not really interested in the proposals, but they just want time enough to twist these proposals, as they have just done in the past and in the present, in order to try to win political mileage.
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Allura wara 25 sena fil gvern ma kellux cans jaghmlu il Gas Pipeline ma l-ewropa biex ma kienx ikollu ghalfejn jaqsam dahar il-poplu bil kontijiet esegerati tad-dawl?
Zack Depasquale •
Let us be clear for once, can someone please answer this simple question. How much is Lawrence Gonzi going to raise the minimum wage? Cost of living adjustment is not considered a raise in minum wage so please dont add this as a minimum wage raise. I hope someone will answer this simple question but I very much doubt it.
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On the question of the minimum wage, Lawrence Gonzi LIED when he said yesterday, that Dr. Muscat and the PL, if elected, would not give the cost-of-living increase to minimum wage earners ! HOW CAN LAWRENCE GONZI LIE IN SUCH A DISGUSTING MANNER, JUST TO TRY AND SCARE GULLIBLE VOTERS ???
WHAT A DISGRACEFUL PERSON LEADING OUR COUNTRY !
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If, according to Tonio Fenech, it will take so long to have the interconnector woth Sicily, and thus change the Delimara power station from heavy fuel oil to gas, doesn't this prove that we have a grossly irresponsible and ineficent government once it has wasted so many years to start on this project ?
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p.n. qarrieq u manipulativ. assolutament gidba tal minimum wage.
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Il-PN saru jilghabi defense...ma jawgurax tajjeb! (sic)
