The Malta Independent 13 August 2026, Thursday
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A Diet for this government

Malta Independent Tuesday, 11 November 2008, 00:00 Last update: about 19 years ago

The new utility tariffs have exposed the weaknesses of this government in more than one way. If anything, the retroactive imposition of these tariffs clearly highlights a budget deficit running roughshod. Since it was difficult for this government to introduce new taxes after the big mouthed promises of tax cuts in the pre-electoral phase, the only possible way out was to introduce higher tariffs.

Confronted with such a budget deficit, the self-proclaimed macro-economists within our cabinet did not seek expert advice. I ask, why was the honourable Austin Gatt given such a say in dictating the new tariffs at this crucial moment in time for the economy of the island? Is it perhaps true after all that the gap in the budget deficit was due to gigantic miscalculations in the purchase or selling of fuel products and/or in the handling of the dockyard retirement scheme?

But even if this were to be the case, there is no reason to let macro-economics in the hands of minister Gatt. This could create a dangerous precedent whereby every minister feels entitled to come up with budgetary counter proposals to pamper his ailing portfolio and add further burdens on the consumers. Minister Dalli for example could come next with the introduction of a health scheme contribution. Dolores Cristina could follow suit with tuition fees. But first and foremost, such introductions have to fit in the macro-economic framework.

The new utility tariffs have shown that pre-election handouts have to be paid back even if the day of reckoning coincides with an economic downturn. Such a bad timing could translate into real distress for the entire economy. There is a clear proof that the present government is more preoccupied with saving its image as a disciplined holder of the state finances (which it is not) rather than showing good leadership for the economy as a whole as it is supposed to do.

For Maltese households and consumers alike this should be an eye-opener. The state has several ways at reaching deep into our pockets. It is therefore the duty of every Maltese to watch out. If utility tariffs and energy bills are now to serve as the milk cow for the state coffers, it is fair enough for us consumers to avail of every opportunity in reducing waste of these commodities. It is highly advisable to rely less on energy and water consumption provided by state owned companies.

Those who could do without an extra deep freezer should do so without delay. Deep frozen products are not the healthiest and if they are necessary they could be generally provided round the corner. Air condition and heating could multiply the electricity bill. Dishwashers and washing machines should only be used when necessary. TV sets, computers and printers must not remain on all the time. A second car is not always a must and driving should be reduced to a bare minimum. As normal citizens we should give this big spending government a lesson and fork out much less then it is projecting to take from us.

As consumers we should also start now with reducing our own carbon footprint in whatever we do. This must not always go hand in hand with a decrease in the standard of living. A new public transport as promised by minister Gatt could also help us succeed in this. His confrontational style however threatens to become the best guarantee for more future woes.

Agnes Debono

Kercem

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