Updated | PN questions cancellation of energy grant scheme, government reassures no funds will be lost

The Nationalist Party expressed its concern over the government's decision to interrupt the Solar Energy Grant Scheme for what were termed as technical problems.

The scheme, funded by EU funds, offers businesses an opportunity to invest in efficient and clean technologies.

In light of the €5.5 million scheme's suspension, the government is duty-bound to explain what brought the government to stop the scheme.

"How did the government decide which operators are eligible and which are not? Did the government receive any complaints over the selection process of the operators? Are the EU funds available for the scheme at risk?" the Opposition asked.

The PN statement signed by deputy leader Mario de Marco and MP Antoine Borg added that the ministry for European affairs should come clean on the reasons why the scheme was cancelled.

"The scheme is crucial to ensure that businesses invest and become more competitive especially at a time when the economy needs a stimulus to recover."

The Solar Energy Grant Scheme 2013 was cancelled by Malta Enterprise last week.

The reason attributed to this cancellation was "problems encountered in the process of pre-selection of suppliers".

Malta Enterprise - government's foreign investment promotion agency - said the decision was reached after consultations with the Managing Authority of the European Regional Development Fund, the findings of the Appeals Committee and a thorough consideration of the various options available.

However the Ministry for European Affairs said it had already identified alternate use of the funds originally allocated for the scheme.

"Considering the recently closed calls and commitments of funds, should the funds requested by the successful projects exceed the budget available, government will take the necessary steps to make that shift of funds between the respective priority axis possible to ensure full absorption of funds available," it said.

No funds will be lost, government says 

In reaction, the parliamentary secretary for EU funds Ian Borg said that the PN was not only "intentionally deceiving the public on the way EU funds are managed but it is also conveniently overlooking a statement issued by the secretariat in the wake of Malta Enterprise's announcement."

The parliamentary secretary reiterated that the funds earmarked for the solar energy grant scheme would be redirected to other initiatives and no funds would be lost in the process.

The statement added that the government was doing its utmost to slavage up to €200 million in EU funds which were unutilized and put at risk by the previous administration.