Alternattiva Demokratika yesterday welcomed the Malta Council for Economic and Social Development’s decision to draw up proposals on how the government could ease the burden on families caused by the water and electricity surcharge and the general increase in prices.
AD spokesperson for Economic and Social Development Michael Briguglio said: “The cost of living in areas such foodstuffs, energy and housing is resulting in heavy burdens on families, especially on low and middle income earners. Alternattiva Demokratika believes that in the first instance, the office of fair trading should be strengthened so as to combat inflation resulting from cartels.
“Above all, however, an active wage policy should be prioritised, aiming for wage increases, including the minimum wage, realistic compensation for inflation, and increased productivity. The latter requires better working conditions, for those in precarious conditions such as part-timers and workers on contract, but also for the thousands of full-time workers who are witnessing inferior working conditions and lower purchasing power.
“As regards foodstuffs, AD believes that government should subsidise basic staple items yet also introduce innovative mechanisms such as the encouragement of local farmers and producers to improve production in a sustainable manner and provide opportunities for them to sell their produce directly to consumers, avoiding artificial price increases.
“As regards energy, in addition to the need to invest in alternative sources, AD also believes that government subsidies on mainstream energy sources are essential. Instead of imposing increased flat-rate surcharges, Government should penalise those who are most wasteful in their practices. Modern information collecting and processing systems make such calculations easier to carry out.”
Briguglio said government can finance expected budgetary shortfalls with increased taxation on companies making windfall profits because of their dominant position in the market, such as banks and gaming companies, and progressive fiscal policy.
AD spokesperson on energy, transport and industry Ralph Cassar added: “AD’s proposal of adjusting the surcharge mechanism to benefit low-consumption users at the expense of the high-usage consumers has already found the support of MLP leader Joseph Muscat.
“We are also unpleasantly surprised at Austin Gatt’s recent declarations in parliament saying that alternative sources of energy are much more expensive than conventional sources. It is a well known fact that for example wind energy from land based turbines and from micro-turbines is in fact cheaper than electricity from fossil fuels.
“It is in Malta’s interest that – even for economic reasons – that we reduce our dependence on foreign oil. That a government minister does not recognise the urgency of planning for introducing clean energy sources in Malta is indeed very worrying. Where is the vision the government had promised us?”
AD chairperson Arnold Cassola said that the tackling of the increased cost of living is one of Alternattiva Demokratika’s priorities. “AD believes in an economic model which aims to balance economic, social and ecological factors. Through such a model, Malta can be productive and competitive, yet also socially just and sustainable. In the coming weeks we aim to meet governmental and civil society representative to discuss possible ways forward.”