Updated | 'We will not applaud fake stability' - PN leader

Opposition leader Simon Busuttil accused the government of adopting a policy of “doublespeak and bluffing” at the detriment of consumers and taxpayers.

Addressing the parliamentary debate on a fuel prices motion presented by the Opposition, Busuttil said the Labour backbenchers were enjoying perks and extra positions.

Busuttil reiterated that the Maltese consumers were paying expensive fuel prices because of a “hard-headed and incompetent government”, who is more interested in “calling the Opposition ignorant”.

“If the government is so good, how is it possible that we are paying such high prices?”

Busuttil said it was the Prime Minister’s direct responsibility that the Opposition was pressuring government to drop prices.

He said it was Joseph Muscat himself who took to the streets to protest against €1.31 fuel prices when the international price of oil was higher than it is today.

“One would have expected the government to reduce prices,” Busuttil said, as he continued referring to statements made by Muscat four years ago. One of these statements saw Muscat writing that the [then] government did not have the businesses and families at heart.

Busuttil said Muscat was locked up in his ivory tower and went on to question where was the General Workers Union today. “Is it that the GWU is finally enjoying the benefits of a Labour government? Is this the reason it is keeping its mouth shut?”

The PN leader said Muscat’s solidarity “stopped outside his office door” while lambasting government for not further decreasing utility bills.

Busuttil said the government gave workers the lowest cost of living adjustment since the wage freeze while charging them high fuel prices.

“We will not clap for the fake stability you’re supposedly giving,” Busuttil said, accusing Muscat of adopting politics of “double-speak, bluff and deceit”.

'Consumers suffer when international market dictates domestic prices'

Prime Minister Joseph Muscat insisted that allowing the international market to dictate domestic fuel prices created not only uncertainty but it did not benefit consumers.

“Prices dropped seven times during this legislature and it will continue decreasing even now that the international price is going up,” he said. “If we carry yearly comparisons we will see that the Maltese paid less than the EU average and while the prices will increase in Europe, they will continue decreasing in Malta.”

Muscat said the PN’s energy policy was “to allow the international prices to dictate” domestic prices, adjusting according to how much it increased and decreased.

“On the other hand we are in favour of stability. We reduced fuel prices for seven times during this legislature while households have already enjoyed a year of cheaper utility bills.”

Muscat accused the Opposition of “shortsightedness” and lack of understanding of energy policies. He said that when the opposition tabled its motion, the international price of oil was $48 a barrel. The following day, when the price fell to $44 a barrel, the PN once again issued a statement calling on the government to decrease prices.

“In less than 24 hours, the price suddenly spike by 8%. If we had to follow the PN’s argument, consumers would have ended up paying 23% more.”

He quipped that the Opposition leader – who was not present in the House during the Prime Minister’s delivery – was “extremely unlucky” that the international price spiked upwards at the same time the PN tabled its motion.

Finance Minister Edward Scicluna added that price volatility was negative on the economy while the “rational person” was risk averse.

'No problem in publishing hedging agreements once they expire' - Mizzi

The energy minister said that while before the discussion was on how to reduce prices, this issue today was by how. Konrad Mizzi said the government instructed Enemed to intervene. He said that for most of 2014, the prices in Malta compared well with the EU average but the situation changed close to the end of 2014.

The energy minister said he never mentioned a $43 figure but the price was “reasonable and good”.

He urged the Opposition to evaluate hedging agreements on a long-term basis, based on the government’s stability-of-prices policy.

Mizzi referred to the European Commission’s winter forecast and how the decrease in utility tariffs will raise Malta’s competitiveness. He said that the hedging policy for 2014 was a success because prices during the year were among the cheapest. “I urge the PN to look at prices over the year and not just on two months.”

Mizzi also said that he found no problem in publishing hedging agreements once these expired: "The only reason being that Enemed is taking part in a liberalised market."

Farrugia calls for ‘common sense’ to reign

Marlene Farrugia said that while stability had to be assured, the consumers must benefit from cheaper prices which reflected agreements reached. She called on MPs to work on the “deficit the political class” was suffering as the public was doubting the politicians’ work.

“Let us vote together if we all agree that we want to retain this country’s competitiveness and if we agree that consumers should not be burdened,” she said.

Farrugia said everyone knew that the previous administration suffered of lack of transparency: “Let us be the government that introduces practices of transparency and accountability and let us work to address the deficit the political class is suffering.”

Farrugia said that the arguments brought about by civil society on the prices of fuel led people to think more.  

The Labour backbencher said that, undoubtedly, both sides agreed with cheaper fuel prices that were sustainable, competitive and guaranteeing stability.

Labour lost its ‘social conscience’

Taking the floor, PN deputy leader Mario de Marco accused Muscat of coming up with excuses to defend the government’s dragging of feet before finally reducing prices: “It is now using the ‘stability’ excuse not to change prices. While civil society joined in calls to reduce fuel prices, the government remained silent. While everyone was trying to understand whether it was down to an unfortunate hedging agreement, the government did not utter a word.

“It has now accepted to debate it in parliament as if it were doing the Opposition a favour. I would have expected to discuss transparency in fuel prices and hedging agreements. But once again, the government refused to publish anything.”

De Marco said the Opposition was not against hedging “but it should be done in the correct way and transparently”. He added that the government should reveal who approved the hedging agreement, whether there had been a ministerial intervention, the duration of the hedging contract, the quantity of fuel purchased and whether the hedging included the currency.

“What we want to know whether there was a mistake and who will shoulder responsibility for that mistake. Government should be loyal to its principles when it took to the streets protesting against ‘high fuel prices’ which were in reality cheaper than today’s.”

De Marco said that the Labour Party had protested against €1.31 price for petrol saying it was “a burden on the worker”. “It didn’t care that the international price was of $100 a barrel. Its position today defies logic. Where is its social conscience now that it is government and can help consumers and workers?”

De Marco said perhaps Muscat was right: “Perhaps, despite all our efforts, things took place that undermined our work. But this same disillusionment is now being experienced by the people vis-à-vis this government. Government must be consistent with its positions and principles.”

‘Reduce fuel prices now’

Addressing parliament in the fuel debate requested by the Opposition, Marthese Portelli said the PN could not allow the government to continue charging consumers high fuel prices.

She said that it was a fact that while the international price of oil dropped drastically, the prices in Malta remained unchanged.

“It is also a fact that the Maltese are paying the highest prices in Europe, as shown by the European Commission. The difference is not a small one, and, removing taxes, we find a 17c-difference for unleaded and a 10c-difference for unleaded,” Portelli said.

The shadow energy minister said that in 2011, when the international price of oil was double than today’s, consumers were paying the same prices.

“The then Labour opposition took to the streets with unions. If it were not for Opposition, the minister would not even have met with the MCESD today,” she said.

Portelli said the Opposition was justified in speaking out and calling on the government to immediately reduce fuel prices drastically.

The government in January announced the first in a series of fuel price reduction. The first reduction came into force in February and two further reductions are expected in March and April. The reductions, the government said, will be possible thanks to new hedging agreements concluded at the end of December.

Portelli said that if the Energy Minister was quoted as saying that the government locked new prices at $43 per barrel, “why didn’t he reduce prices further?”

Portelli said that a businessman who spends €600 per week in diesel was spending €60 extra per week and €3,120 more on a yearly basis. The comparison was made with the EU’s average of €1.18.

The sitting is ongoing