Alternattiva Demokratika’s leader has heavily criticised the opposition’s proposal to slash the surcharge on utility bills by half, describing it as “an expensive electoral trick”.

At a media conference at the weekend, AD leader Harry Vassallo said the proposal was economically unsustainable, unless higher efficiency levels of energy production were achieved and unless the government got serious about the rate of electricity theft, which was still quite high.

Dr Vassallo said it was foolish of Labour leader Alfred Sant to make such promises without giving details of how he planned to finance the cut.

The proposal, according to the AD leader, was environmentally irresponsible since Labour tried to give the impression that there would be no consequences, apart from those related to energy consumption.

AD’s spokesman on the economy and finance, Edward Fenech, said: “It is a fact that the surcharge on utility bills has placed a heavy burden on many families. It is also inescapable that the steep rise in the price of oil led to the inevitable introduction of the surcharge.”

He said AD disagreed with Dr Sant’s proposal of what it referred to as a 50 per cent discount, but believed the government had not been sensitive enough with regard to the impact of this measure on people’s spending power. Ironically the government has been using “calculator politics” to deal with the surcharge, said Mr Fenech.

The AD spokesman added that AD’s budget proposals indicate the way forward. The party proposed that the surcharge mechanism should be changed so that there would be different surcharge rates kicking in according to consumption levels on a per capita basis.

“Our proposal is designed to be revenue neutral and therefore will not cost the country anything.

“Dr Sant’s proposal will cost taxpayers Lm25 million (EUR58.2 million) annually. It is ironic that this proposal would cost as much as another irresponsible proposal regarding the two-month tax holiday, which was made before the 1998 general election.”