MHRA ‘shocked’ by electricity tariffs proposal

The Malta Hotels and Restaurants Association yesterday lambasted the government’s proposals for a revision of the structure of electricity tariffs, claiming that this was presented without prior consultation and in a way that showed a lack of respect towards the industry.
“The MHRA is upset about what was done, but equally by the way it was done,” the association’s president Kevin De Cesare said at an extraordinary general meeting yesterday. “The way this matter was handled shows a great deal of disrespect for industry: industry that employs thousands of people and generates millions in economic activity annually.”
The main bone of contention is government’s shock decision, announced during a recent meeting with the Malta Council for Economic and Social Development, that the electricity tariff system will be changed with effect from 1 October.
“This message was delivered during the meeting without any prior notice or consultation,” a visibly irate De Cesare told MHRA officials, adding that the reason capping was introduced for hotels and industry is more relevant now than it ever was in the past.
“Together with the Federation of Industry, the Malta Employers’ Association, Chamber of Commerce and also the main unions on the MCESD, we have unanimously agreed about the lack of electricity tariffs. Additionally we have all complained very vociferously about the total lack of consultation on a matter, which affects businesses in a very substantial way,” De Cesare said.
The MHRA president expressed concern that government delivered a “shock treatment of the highest degree” when the international economic situation is going through its most turbulent time.
“It is ironic that while internationally, all governments are using mechanisms to cushion economic shocks, our government, in its wisdom, decides to do the exact opposite and send industry into a frenzy, presenting such serious changes in an unprofessional way,” De Cesare added.
Above all, hoteliers and restaurateurs expressed dismay at having been presented with a fait accomplit.
“What happened to the promises of consultation?” the MHRA president asked. “What happened to the promises of working together?”
Kevin De Cesare also lambasted government for claiming that there was no need to carry out a socio-economic impact report regarding the revised tariffs.
“The MHRA was shocked to hear such a statement,” he said. “During the various meetings held with our counterparts who sit around the MCESD table, everyone agreed that the effects on employment and the economy in general could be very substantial and everyone was extremely surprised at the way government understated the importance of this issue.”
The MHRA will insist with government that before any decision is taken on the matter, a proper socio economic impact study is drawn up, discussed and a way forward agreed upon by the social partners, De Cesare warned.
“Does government really want to see more hotel closures and loss of jobs from an industry, which it claims it wants to reach a level of excellence by 2015?” the MHRA president fumed.
For its part, government has insisted that no final decision has yet been taken on the proposed tariffs.

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