Liberalised market should result in competitive fuel prices – MP

Consumers should not pay higher fuel prices as a result of lack of transparency, lack of vigilance and unnecessary political partisan bickering, Nationalist MP Kristy Debono said.

“It is time for the government to show us its agreement and prove that it is negotiating the best deals for consumers,” Debono said, adding that the government should also clarify what it meant by ‘commercially sensitive information’.

The MP said the government should clarify whether the information was "sensitive" for Enemed, the supplier or the consumer.

“We expect the government to explain the benefits enjoyed by Enemed or the consumers as a result of these clauses which render the contracts commercially sensitive.”

Debono said the government should explain whether there were intermediaries in hedging negotiations, payments, declare the terms and clarify who was negotiating the fuel prices.

Debono said the government should not ignore that a fuel distributor was pressured by a supplier not to decrease the price of fuel even though the fuel was purchased at a cheaper price.

“Even though the market is liberalised, and therefore more competitive, this is not being reflected in real competitiveness and cheaper prices that would ultimately benefit the consumers,” she said.

Debono explained that there were five private operators that supply fuel locally and who managed to negotiate better prices than Enemed.

The MP said the MCCAA should pronounce itself on the matter and investigate.

The House of Representatives this evening discussed the Budget Implementations Bill with the sitting reserved for six Opposition MPs to deliver their interventions. But as PN deputy leader Beppe Fenech Adami pointed out, the government benches were bare except for the presence of government whip Godfrey Farrugia and a parliamentary secretary dropping by every now and then. Justice Minister Owen Bonnici was also present to adjourn the House.

Farrugia clarified that Finance Minister Edward Scicluna was currently away in Brussels attending a meeting of the finance ministers.

Debono urged the government and its entities to be more transparent, efficient and accountable and suggested the implementation of an independent economic mechanism that measures the return on public spending.

Pointing out that the Muscat Cabinet is costing taxpayers €50 million more than previous Cabinets, the MP said the government should be more transparent in its expenditure.

“One expects the government to develop a transparent scale by which the taxpayers can see how their money is being spent by the public entities,” she said.

Debono explained that the government will be costing a total of €250 million.

The MP also concluded that the taxpayers were losing some €50 million a year because of the public transport service. Debono’s conservative calculations, based on recent studies, calculated the losses incurred by the working population and students in respect to excessive waiting times and loss in income.

Her calculations were supported by an independent study carried by the Institute for Climate Change and Sustainable Development which confirmed that Maltese spent at least an hour a week stuck in traffic.

Debono pointed out that the 170,000 people working in Malta each paid €176 last year to support the public transport service and another €176 will be paid this year.

“The government should consider giving back the millions taxpayers paid to sustain the transport subsidies, in the form of tokens for bus fares,” she said.

Debono added that the European Commission’s winter forecast flagged the risks tied to the new subsidies to be given to the new public transport service providers. The EC said that “downside risks are linked to higher than expected subsidies to Malta’s new public transport service provider”.

Other interventions were made by MPs Joe Cassar, Frederick Azzopardi, Beppe Fenech Adami and Censu Galea.