The Malta Hotels and Restaurants Association yesterday informed the government that it will not accept the proposed utility tariffs, which if implemented, will lead to a loss of jobs in the hotel industry.
During an extraordinary general meeting held yesterday, MHRA president Kevin DeCesare told concerned members that that association will not accept the tariffs that were unexpectedly presented to the members of the Malta Council for Social and Economic Development (MCSED).
“We were led to believe that the capping system will remain in place due to the importance of maintaining our competitiveness and employment levels,” said Mr DeCesare.
He lashed out at the government for dropping the proposed tariffs on the council unexpectedly without any form of consultation.
“The association was also shocked to find out that the government stated that there is no need for a socio-economic impact report on the proposed tariffs,” said Mr DeCesare.
In fact, the MHRA is commissioning a socio-economic impact report on the tariffs and the MCSED is doing the same.
“Our message to the government is clear. These costs are unsustainable for our industry which is already struggling for what will be a very difficult winter. Unless the government sits down and discusses with us alternative solutions, we will have to fire people,” he said.
Vice-president Winston Zahra pointed out that the hotel sector will be negatively affected in three ways: through the new tariffs, increased prices of supplies from local manufacturers and the increase in cost of wages.
He asked members to come forward with suggestions in case the government refused to sit down and discuss possible solutions with MCSED members. One member pointed out that the MHRA is a strong pressure group and that it was time to act.
However, many members called out for a comprehensive public relations campaign clearly explaining to the public the effects of the new tariffs on the hotel industry.
“It seems the government is using public opinion against us – people don’t seem to understand how these tariffs affect us and there is a general mentality that they are paying extra taxes to pay for our capping,” said another member.
Mr DeCesare also criticised a comment passed by Finance Minister Tonio Fenech who said that the hotel industry is not investing enough in environmentally friendly measures such as double-glazing.
He pointed out that although double-glazing is not high on hoteliers’ agenda, many hotels have invested in energy serving devices. “However, I wonder what energy saving devices have been implemented in our new hospital?” he queried.
Mr DeCesare criticised the government for leaving out the tariffs from the pre-budget document discussed in the MCSED meeting. “The most crucial element was left out of such an important document – we are angry at the way this whole issue was tackled.”
He also had harsh words for the time frame granted by the government for feedback by the constituted bodies. “The report was drawn up in six months and they expect us to give feedback within two weeks – it is ridiculous.”
Mr DeCesare called on the government to be reasonable and, together with other social partners, discuss possible solutions. “We are not going to accept these tariffs and we are not alone – all the members of the MCSED will present a common front.”