The General Retailers and Traders Union has reiterated its call on government to reduce energy tariff reductions by 30% for small- and medium-sized enterprises. Currently, businesses and households are benefitting from a 25% reduction in energy tariffs.
During a press conference this morning, Paul Abela, president of the union, explained that when one takes into consideration the fact that the government is purchasing energy from Sicily unofficially through the interconnector at the rate of between 4 and 7 cents, the current oil prices which are quite low, and the BWSC plant’s efficiency, there should be room for the government to further decrease the energy tariffs.
He said that it emerged that the government was using the interconnector when a recent electricity blackout occurred. It transpired that the Enemalta plant was switched off at the time and the government was using the interconnector.
While on the subject, Mr Abela called on the government to be transparent and to publish the interconnector-related contracts Malta has with Sicily.
In that way, he continued, people will be able to evaluate whether the current decreases in tariffs are justified or not.
When pressed to say whether the GRTU will be publishing the studies it conducted which led to its proposal for further energy tariff reductions, Mr Abela said nothing binds the GRTU to publish them.
He was quizzed by journalists on whether the GRTU simply emerged with the proposal without having concrete studies in hand.
He explained that it is the government which has the resources to conduct an in-depth study on whether energy tariffs should be decreased further and if it results that it is not viable to continue decrease the tariffs then they currently are, then the GRTU will not continue to pressure the government to decrease the tariffs further, at least for the time-being.
Traffic situation affecting competitiveness
The traffic situation, he said, was having a negative impact on competitiveness. He explained that delivery vans were taking long to reach their destinations, consumers were half-hearted to go through the hustle and bustle of going shopping and therefore resorted to online shopping, among other issues.
Philip Fenech, the vice-president of the GRTU and deputy president of the hospitality and tourism sector, suggested that the government should provide incentives for owners of properties to refurbish certain properties in villages, especially in Gozo, so that tourists can experience village life and this sort of lodging provided to them.
He also said that there was a need for Malta to promote culture so that certain months such as April and November, which do not attract as many tourists as other months, are covered.
The GRTU said that an alternative should be sought for those wanting to cross to Gozo in the event the service of the Gozo Channel stalls due to some problems which may occur, such as a catamaran service between Valletta and Mgarr, Gozo.
It also suggested that non-trading companies which are practically dormant, and small businesses which employ as little as 10 people, should not be subject to audits. It is understood that such audits cost more than €1,000.
CVA system not working
Turning to the CVA system in Valletta, the GRTU said that as things stand, the system is not leaving its desired results and the government should hold consultation sessions with the GRTU and businesses to find a better solution.