BWSC accepted responsibility over turbine damage – Gonzi

Prime Minister Gonzi announced that Delimara power station extension contractor BWSC has "accepted responsibilty" for the turbine damage which will set back the handover process by up to six months and will require Marsa to re-activate its four boilers.

He added that BWSC will also "cover the damages incurred".

The statement comes in the wake of government's announcement a day earlier that it will bee seeking to apply the full contractual penalties against BWSC for any delays in the handing over of the plant, as well as any losses or expenses incurred by the turbine damage.

This, Finance Minister Tonio Fenech had said, will include the comparatively higher energy generation costs of running the Marsa boilers, as well as emission penalties given how it is now "very unlikely" that Malta meets its 2012 emission targets.

Speaking during a political activity in Mellieha, Prime Minister Lawrence Gonzi referred briefly to the Delimara turbine damage incident which will delay the plant extension handover and eventual operation by up to six months.

While attempting to downplay the incident by saying that the testing was completely routine and was intended to, Gonzi stressed that the damage took place when the factory was “still under guarantee.”

He emphasised that the company will also make good for Malta’s losses incurred by the turbine damage, specifying that BWSC “will have to pay for all the damages that we have suffered.”

Gonzi also referred to Foreign Minister Tonio Borg’s nomination to the post of EU Commissioner, following John Dalli’s recent controversial resignation.

Gonzi said that the reason why Government was swift in presenting a new nomination for the EU Commissioner is because “we are currently in a very delicate phase.”

He explained that this is related to discussions which are underway regarding the Multi-Annual Financial Frame-work, an EU Budget that will cover the coming seven years (2014 – 2020).

Gonzi indicated that the discussions regarding the budget are fraught with conflict and disagreement, “as there are some who want to dump the budget.”

However, Gonzi said, Malta is insisting that “we have things left we have to work on to reach European levels”.

"We are making our arguments, but our voice needs to be heard at all levels, and as strong as we can,” Gonzi said.

“With EU funding, we managed to change the country from the roots upwards,” Gonzi insisted, emphasizing that to date, Malta obtained in the region of €1,000 million in EU funding.

Discussing Borg’s nomination, Gonzi said “Tonio is a person of seriousness, values, and integrity. I am confident that he can represent the interests of country in this position,” he said as the crowd clapped enthusiastically.

He also added that “there is a process that needs to be followed” pointing out that the nomination hinges on a number of factors.

He said that it will first need to be considered by EU Commission President Jose Manoel Barroso, discussed at a council level, and also be subject to the European Parliament.

However, Gonzi added, a sacrifice was required, as the position “requires a commitment that goes above and beyond political partisanship “ and required “a sign of this awareness and commitment.”

To this end, Gonzi said that Tonio Borg will be stepping from his role as Deputy Party Leader, while he will be retaining his other roles until his nomination is confirmed and accepted.

Gonzi did not refer to any possible replacement who would take up the position of Deputy Leader of the Nationalist Party.

Gonzi also reiterated that the present legislature is nearing its end, and that the government is working on important work related to the budget.

Gonzi insisted that the PN is “not hiding from the people”, and it is saying how it plans to expand the economy and in which areas it will be investing.

He reiterated the PN’s focus on job creation, education, and the health sector. He hit out at the Labour Party, accusing it of being evasive in its positions.

“I am afraid of those who do not tell me what they are planning,” Gonzi said pointedly, assuring the audience that “with the PN, you always know where you stand.”

Gonzi also emphasized the Nationalist Government’s track record on job creation, reiterating the 20,000 new job claim.

He insisted that it was through the Nationalist Government’s caution and foresight that local manufacturing industries did not pick up and leave.

He said that they remained in Malta and kept on creating jobs because the Nationalist Government was able to help them weather the storm.

Gonzi also pledged that all those “genuine” job seekers would remain firmly on the PN Government’s agenda, “including people with disabilities” he emphasized.

Gonzi also spoke of the high degree of assistance that local small businesses and employers obtained through EU funding schemes, and insisted that this was due to the decisions taken by the Nationalist Government in recent years.

The Prime Minister also underscored the importance of the tourism sector, and that insisted that despite the government’s creation of new industries, such as e-gaming, financial services and life sciences, the tourism industry remains paramount.