Dr Gonzi said the government is studying the problem and its effects on the Maltese economy, and is taking measures for it to have as small an impact as possible.

Speaking during the annual general meeting of APAN (the PN Veterans’ Association), Dr Gonzi reminded his audience that ex-prime minister Alfred Sant had introduced a tax of Lm48 for each electricity meter and had increased the cost of water and electricity when the price of oil was falling. In 1996, the price of oil per barrel was $21, in 1997 it fell to $19 and in 1998 it further fell to $12.

This tax was immediately removed by the Nationalist government, which also reduced the cost of electricity and water. The price of oil has been increasing since 1999 and today has reached record levels. This situation has to be addressed before it becomes a crisis, he said.

The Nationalist government is working hard to include elderly people in every sector of society and to improve the quality of their life, said Dr Gonzi. This is important because the elderly still have a lot to contribute towards society, and the generation gap between them and younger people needs to be improved.

Concluding his speech, Dr Gonzi said that the next budget will be a important one which gives priority to the economy, education and the environment.