Reduced energy tariffs crucial in fight against poverty, minister insists

Government's decision to reduce electricity and water tariffs was helping to further reduce poverty in Malta and was a catalyst for economic growth, social solidarity minister Michael Farrugia said on Tuesday. 

Farrugia, who was addressing a press conference at the Labour Party headquarters with MP Charles Mangion, would not say whether cases of poverty were due to personal choices or living beyond one's means. 

"I can only speak of what the government has already done and is doing to tackle poverty, including policies like in-work benefits, increasing the minimum wage and reducing energy tariffs," he said. 

Farrugia said that the government remained committed to reducing poverty and eradicating it completely, if at all possible. 

He said the government's decisions on Enemalta were showing positive results for the company but also for families, through the reduction in household tariffs. 

"The reduced bills were a catalyst for further growth in the economy, with €80 million a year remaining in people's pockets," he said. 

Farrugia said the government's commitment to do away with the use of heavy fuel oil had also been of utmost benefit for many people, especially in the south of the country. 

The stronger economy made it possible for the government to enhance in-work benefits, tackle the minimum wage and remove nearly all the tax payable on pension income, to name but a few policies, the minister said. 

"Even Caritas acknowledged that a family unit with two children had paid €443 in energy tariffs in 2012, but only paid €156 in 2015," Farrugia said.

"The benefits to families through the reduction in energy tariffs is obvious and can be felt by everyone."

Mangion said that the latest report by credit rating agency Standard and Poor's had identified the leader of the Opposition as the biggest threat to Enemalta's continued success. 

"When we came to government in 2013, Enemalta was €100 million in debt and an embarrassment," he said. "Whereas the last Standard and Poor's ratings raised Enemalta's rating from CCC to BB, a significant rise which it contributed to many policies, including the decision to switch to gas."

Through the reduced electricity tariffs introduced by the government, Maltese families and the economy had benefited from an additional €280 million, Mangion said. 

Seeing Simon Busuttil tear up his copy of the energy contracts with ElectroGas and Shanghai Electric in Parliament did not bode well for Enemalta or the country under future PN governments, Mangion said. 

"Even foreign investors might be put off by setting up shop in Malta upon seeing such behaviour," he said.