ADPD – The Green Party Chairperson Carmel Cacopardo said Saturday that the current subsidies on fuel and electricity – exceeding one million euro per day – are not sustainable. While helping those in need is a priority, doing so in a sustainable manner is in the long-term interest of all.

At a press conference in Marsa, Carmel Cacopardo said limiting the fuel and electricity subsidies would ensure that more funds are available for those areas of society and of the economy that really need them. He insisted that the current subsidies on fuel and electricity – exceeding one million euro per day – are not sustainable. However, the subsidies could be reduced in an intelligent manner which could in turn lead to benefits on other sectors.

For example, reducing the subsidies on petrol and diesel would mean fewer cars on the road and encourage a shift to public transport which will be offered free of charge from next month. To this end, it might also push for an improvement in the services’ reliability and efficiency. As had been laid out by the National Transport Master plan, half of the trips by private vehicles are of less than fifteen minutes duration and public transport can be the more reasonable alternative. The same Master Plan mentions other measures which have been abandoned such as priority corridors for buses. We go a step further and insist on a Bus Rapid Transit system, and safer roads for clean transport such as bicycles, pedelecs and scooters. Since this week is European Mobility Week, it is pertinent to point out that Malta still has a long way to go to achieve the goal of sustainable mobility.

Those economic areas which are heavily dependent on petrol or diesel could be assisted directly through special assistance taking into consideration their needs. This could also apply in the case of the electricity subsidy. While basic domestic use should remain subsidised, aid to business and industry should be done in a tailor-made fashion according to the type of activity and its requirements. The money spent on subsidies could be better invested in energy efficiency and renewable energy programmes.

Cacopardo reiterated the importance of an increased use of renewable energy. “More renewable energy should be generated through better use of public buildings while encouraging more private users to do the same. Improving the distribution system could also assist in reducing the impact of the increased cost of energy on the Maltese taxpayer.”

“While helping those in need is a priority, doing so in a sustainable manner is in the interest of all – one million euros per day on these subsidies is definitely not!” he concluded.