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News | Sunday, 19 July 2009
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Muscat calls for ‘maximum tariff’ declaration

Opposition leader Joseph Muscat yesterday called on government to declare the maximum tariffs consumers could possibly expect next year for water and electricity.
Speaking at the close of a half-day national conference on inflation organised by the Labour Party, Joseph Muscat said that this government declaration is crucial for all consumers to be able to predict their expenditure, given that tariffs were raised even when oil prices went down.
“Many families, especially from the middle class, are falling into huge difficulties to make ends meet, and they are simply not spending money because they cannot predict the cost of their next utility bill,” Joseph Muscat said while bringing forward 23 proposals to counter inflation and create jobs and economic growth.
Joseph Muscat insisted on complete transparency in services provided by government, the reduction of inefficiencies, putting a halt to excessive bureaucracy and combating negligence.
The Labour leader also called on government to boost capital investment as a method to create productive jobs and increase value added for the country.
“Government must ensure that the announced reforms do not have an effect that is totally contrary to what was envisaged,” he said, explaining that in all reforms made so far, the consumer always had to face an increase in price or tariffs, rather than a reduction.
“This situation is odd and cannot be ignored,” he said, explaining that the best thing the conference has brought out was the fact that there seems to be no more complacency about inflation and its causes, since the general feeling traditionally was to let inflation fizzle out and let things sort themselves out automatically.
“Let us do something concrete now, and let us do things right and tackle other related matters seriously,” Joseph Muscat said.
The Labour leader insisted that government needed to set the example, and now that the rent reform has been transposed, government should consider social needs when it considered raising rents on its properties.
Muscat mentioned corruption as an element that also contributed to inflation, because it similarly raised prices for honest consumers.
Another proposal is for government to introduce a one-year moratorium on increasing charges for businesses, and monopolies to be replaced by proper competition.
While stating that the PL was not against privatisation, Air Malta he said should not be privatised, as it was a vital national asset that is rendering a crucial service to the Maltese economy.
He called on government to tackle what he defined as “market imperfections,” especially where fruit and vegetables are concerned, calling for a reform at the Pitkalija, where prices apparently are inflated.
Medicine prices must also be kept in check by government through the existing but apparently unused control system.
In a statement issued later in the evening, the Finance Ministry said Muscat’s speech was inconsistent and made points taken from the government’s programme.
The ministry said Malta had the highest rate of absorption of EU funds and of job creation, and that the government was working on deficit reduction and consumer legislation.


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