Gonzi confirms Sargas proposal would mean cheaper energy

Prime Minister Lawrence Gonzi has confirmed that the KPMG report which was commissioned to crunch the numbers of Sargas' biofuel energy proposal concluded that the proposal is viable and worth exploring from a financial standpoint.

Speaking during the customary Sunday morning dialogue, Gonzi said that the "technical" study carried out by auditing firm KPMG concluded that "based on numbers, it makes sense for the proposal to be explored further."

At the same time, Gonzi was highly critical of Sargas' proposal, insisting that its prototypical nature suggests that it is not a viable option.

"If it is as good as it is claimed, why don't we find it everywhere," Gonzi asked, while at the same time conceding that however "one shouldn't set something aside simply because it is new."

Recounting the meetings held between Sargas and government representatives, Gonzi maintained that he had "misgivings from the very start" over the fact that the technology makes use of coal dust in its biopaste fuel.

However Gonzi admitted that the Sargas proposal would mean cheaper energy generation costs.

"It is true that coal is cheap. It is true that with coal, I could lower prices. I could lower them from one day to the next" Gonzi said.

He however called into question the technology's environmental impact, given its dependence on coal.

Gonzi recalled the coal 'mountain' in Marsa, and insisted that "one cannot forget what it meant to the country."

He also pointed out that coal-dependent technology could be problematic for an EU member state, given how the EU is ever-vigilant regarding emissions thresholds.

However, he noted, that Sargas proposed solutions whereby the emissions would be captured through technological means and transported to Libya or other countries to be stored underground,

"However, I had questions. Did they have any agreements with Libya? Did they have any guarantees with the Libyan government over this process? Would the EU let them? And what would the result be?" Gonzi said.

Gonzi also noted that government is also wary over the fact that Sargas was requesting a 30-year agreement at fixed prices, with no guarantees that fuel prices would not rise in the meantime.

Gonzi however played down the possibility of cheaper utility prices, insisting that even if the government were to take up the proposed technology now, "it would need years before the plant can start working."

"We studied it. We have the reports. We have the analysis. We know where its weaknesses are, and we will keep studying it," he insisted.

"We will make the best decision for the country when the moment is right, taking into account all aspects and keeping in mind not only the present but also the future," the Prime Minister affirmed.

He also called on Labour Leader Joseph Muscat to "be clear on whether his pledge to lower utility prices is based on the Sargas technology proposal or not."

"If this is not the case, then how does he keep making his promises when oil prices keep going up? Gonzi said.

Speaking about the upcoming PN Deputy Leader election which will see MEP Simon Busuttil and Finance Minister Tonio Fenech going head-to-head, Gonzi welcomed both their candidacies.

"I must say how proud I am with their candidacies.  Both of them do the PN proud," Gonzi said, adding that "this is what the PN is capable of offering."

Gonzi also insisted that the PN "remains a young and energetic party that is capable of responding to the challenges of today, as well as those it will face in the future."

"We will now leave it to the coming days so that, as happens within every political party, a decision is made, and then we move forward with that decision," the PN leader said, referring to the election which is scheduled for 30 November.

During the dialogue, the Prime Minister and Nationalist Leader spoke at length about government investment in sports, culture, drama, and the creative industry.

He also hit out at the Labour Party and Labour Leader Joseph Muscat, insisting that any promises or pledges would need to be funded by taxpayer moneys.

He insisted that in 1996, Labour won the election on the promise that it would remove the VAT system, without saying how.

"They won the election, and in the budget a few weeks later they introduced 33 new taxes," Gonzi said, drawing a parallel with Muscat's pledge to reduce energy prices.

The PN leader also insisted that Sant's 1996-1998 administration resulted in financial disasters, deficit and debt increases, and unprecedented unemployment.