‘Obscene’ price agreement on gas cylinders was against consumers’ interests – PM

A framework which established the price mechanism for the purchase of gas cylinders in 2008 went against the interests of consumers, Prime Minister Joseph Muscat said today during a meeting with the General Workers Union.

"We raised the issue while in Opposition. But now that I have the full details, I can confirm it's an obscene set-up which does nothing to incentivise the operator to buy stocks of LPG ahead of time," Muscat said.

Muscat was addressing a meeting with GWU officials. Present for the meeting were ministers Chris Cardona, Evarist Bartolo, Helena Dalli, and the PM's chief of staff Keith Schembri.

Insisting it was the former PN administration's fault, Muscat said price stability in the price of LPG was essential for families, pensioners and businesses.

The government has now asked the regulator, the Malta Resources Authority, to revise the mechanism by which the price of LPG is set. 

During his introductory speech with the GWU, the Prime Minister also spoke at length about precarious work, which he said was being carried out by a "handful" of employers. Echoing a proposal by the Malta Employers' Association, Muscat said a clear definition of precarious employment was needed, which would distinguish between illegal employment and other short-term methods of employment.

Carers, security officers and cleaners are frequently the workers most at risk of being engaged on precarious or sub-standard conditions, such as being paid below the minimum wage.

"Government had to get its act together as this had been for years with contracts issued by government. There is little we can do until these contracts expire but we have already issued guidelines for new contracts being awarded," Muscat said.

Muscat said the bidders themselves had admitted to the poor working conditions because winning a government contract "was a race to the bottom".

"We need to incentivise employers against poor working conditions. If we simply keep looking at the cheapest bid, we are the ones putting them in that situation," he said.

Muscat admitted there were already bidders who have tried "to be creative" and find loopholes in the new guidelines.

"We have already identified one of these loopholes and we will eliminate it. Just the same, we will continue looking for other loopholes."