According to the results of the latest Federation of Industry survey, prospects for the manufacturing industry are good but the impact of increasing energy costs was reducing competitiveness, Labour spokesmen Charles Mangion and Joe Mizzi said yesterday.

They said the survey also showed that workers’ salaries grew at one per cent less than the rate of inflation, leading to a reduction in the quality of life.

Instability and increasing energy prices were giving unwarranted shocks to this sector and the government should intervene to guarantee stability, they added.

Dr Mangion and Mr Mizzi called on the government to use buying and/or hedging measures for the purchase of oil to enable industry operators to be able to plan efficiently.

The Labour spokesmen said the government should address the serious social problems that had been created because of the surcharge on electricity and not pass on the cost to the consumer.