A heated debate followed the Labour Party’s motion for the revocation of the water and electricity tariffs, however these will not be revoked as the majority of MPs voted against the motion.

Following question time, parliament yesterday discussed the motion moved by PL’s spokesperson for Resources, Joe Mizzi. It noted the difficult social and economic situation families and businesses were facing as a result of the government’s decisions, when the international economic scenario called for stimulus policies. The burden was increasing as a result of inefficiencies, the way state monopolies were being run, incorrect assumptions and technical calculations such as the Return on Capital Employed. The tariffs, the motion continued, were increasing economic difficulties and jeopardising more jobs at a time when the economy needed recovery.

It also noted discrepancies between the different figures given by several government MPs and authorities in the past months.

A drainage tax concept was being introduced, it added and contrary to what was said, no public consultation had taken place before the new tariffs were announced.

Even when the government’s compensation to families was taken into consideration, record tariffs, as those announced in October 2008 when oil prices were more expensive, were being recorded.

As a result, our electricity fees were among the most expensive in the EU. The legal notices bringing forth the new tariffs were therefore “anti-social”, “undermining the economy and employment”, while “placing heavy burdens on families and enterprises”. These had an excessive impact on our country’s standard of living and competitiveness.

The motion therefore called for the new tariffs to be revoked and for all necessary steps to be taken to get the country back on its feet.

With motion time divided equally between the government and opposition, several MPs, including Prime Minister Lawrence Gonzi and Opposition Leader Joseph Muscat voiced their concerns, contributing to a heated debate.

In the introductory speech, PL member Joe Mizzi said that each MP had taken an oath of allegiance to the people, soon after being elected, but the motion had to be presented because it was clear that the people’s troubles were being forlorn.

The Malta Resources Authority, he added, was defending Enemalta rather than consumers. It was therefore not shouldering its responsibility while highlighting the government’s interference in the authority’s running.

He noted that the price of oil was 100 dollars a barrel in 2008, but while the price had recently dropped, the tariffs were 10 per cent higher.

“It is not just us on this side who are complaining, but everyone else outside,” Mr Mizzi said.

Rebutting the motion and observations which members of the Opposition were expressing, Dr Gonzi said the subject in discussion was of “extraordinary importance”. For another time we must ask ourselves what we should do as a country now and in the future, he noted.

“If we do not face the problem now and delude the people, we will have to face repercussions in the future,” said Dr Gonzi.

Our oath of allegiance meant we have to be loyal to facts not hide them. Decisions in the country’s interest were necessary, he asserted. Explaining that crude oil prices were 40 dollars-a-barrel six months ago and 80 dollars-a-barrel now, Dr Gonzi said he could not escape reality, keeping tariffs are they were, as PL was suggesting.

“Oil prices are what they are and will remain. We can never vote to lower them,” he said.

“No one of us likes to enter parliament while people boo, but a doctor must prescribe the bitter medicine and so must the government” Dr Gonzi said. He emphasised the government was to find solutions and so the proposed system was to reach five parameters: Be self-adjusting since we will never have control over oil prices, be flexible enough to permit a cushion for social cases and families to mitigate the impact, create incentives for families, hoteliers, factories, and SMEs to buy photovoltaic panels, solar systems, and energy saving bulbs, cut inefficiencies and reach the ambitious environmental targets by which it will be possible to switch off the Marsa power station for the benefit of our health.

“Then everyone will be cheering,” Dr Gonzi said.

He pointed out that the Opposition had understood the assertion that a fixed tariff system would not work. Accepting this point alone will drop the motion, Dr Gonzi said.

“Several Opposition MPs have spoken but no hint of a solution was given,” said Infrastructure Minister Austin Gatt in his comments. In addition, PL made no commitment to revise the tariffs if it is elected in government. We must therefore respect the present scenario’s reality, he added.

Enemalta was expecting to spend €207 million in oil purchasing fees this year. This made up 73 per cent of its expenses.

Cutting inefficiencies will make no significant difference, he said. Some €77 million of Enemalta’s expenses were unrelated to oil purchasing and salaries made up €44 million of this cost.

“We cannot cut salaries,” he said, “and we will not lay off anyone from Enemalta... as happened in Greece, Spain and Portugal, where people had good reason to protest”.

In the winding up speech, Opposition Leader Joseph Muscat said he was “disgusted” by the Prime Minister’s accusations that the PL wanted to damage the country because he believed both sides were working in the country’s interest.

The country was experiencing the steepest tariff increase in the EU, Dr Muscat said. He reminded Dr Austin Gatt’s promise last year that if oil prices dropped to below 80 dollars a barrel, tariffs will be cut, but in fact they were increased.

“The government itself has become a danger to employment,” he noted.

Rebutting the government’s blows, Dr Muscat angrily said that the PL had submitted several proposals, all of which the government ignored.

“A change in the Return on Capital Employed calculation alone would cut bills by €15 million,” he said.

He accused the government of being a “miser” on utility tariffs, when it was forking out millions for “commissions, the bridge between Malta and Gozo, Dar Malta, the VAT corruption pantomime, St George’s Square, City Gate and its roofless theatre,” among others.

At the start of the session, the newly elected MP Peter Micallef, who replaced Mr John Dalli, took his oath of allegiance to the people and the Republic of Malta.