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Press Conference 27/10/2007

Greens propose a change in surcharge rates

In a press conference held in Sliema, Alternattiva Demokratika - The Green Party encouraged government to change the present surcharge mechanism which it described as “calculator politics”. The party is instead proposing a system by which the rate of surcharge will vary according to usage and efficiency. The Greens are insisting that their proposal, unlike Labour’s, is cost neutral to government and therefore affordable.

In his opening statement Chairperson Dr. Harry Vassallo stated that “government and opposition are both wrong on the way the increasing cost of energy is being tackled. Government has yet not understood the polluter pays principle and insists on charging a uniform rate of surcharge. Although this system is designed to recover the increasing cost of fuel, by appliying one rate of surcharge it that does not act sufficiently as an inducement to get people to be more efficient. On the other hand we are faced with Labour’s economically unaffordable and environementally irresponsible “bulk discount” of 50%. This proposal goes contrary to the polluter pays principle and will unfairly subsidise the heaviest users using taxes paid by those who are making an effort to be energy efficient.”

Party Spokesperson on the Environment and Energy Ralph Cassar explained that “what we have proposed in this budget is the introduction of a mechanism that applies not one rate of surcharge across the board, but instead a system with different rates of surcharge that will be applied according to the rate of consumption per person in each household. With this system those families making an effort to be energy efficient will be rewarded by a lower rate of surcharge. On the other hand, those families that are clearly not making an effort to be energy efficient will be subject to a higher rate of surcharge than is presently applied. In this manner the heavy users will subsidise the efficient users. Our proposal is a refinement of the polluter pays principle, and we encourage government to adopt it, particualrly since our proposal is cost neutral. Government should bury its pride on this matter and implement our proposal.”

Dr. Vassallo insiststed that “what we are proposing is simple, workable, effective and cost neutral. It is a measure to alleviate financial burdens on those who are truly making an effort. We also must remark that it is very disappointing that government has no medium to lonmg term plan how to deal with the energy crisis effecting the whole globe. There is virtually no talk about serious investment alternative energy and even less tak about increasing efficiency of our power plants and measures to help families and businesses to install energy efficient devices. Government is simply shifting the burden onto the consumer without considering what needs to be done to tackle this very serious issue. It seems that only with the Greens in parliament will the energy issue be given due importance. This is a commitment we will take in order to tackle the issue short -term by addressing the need to have a differentiated surcharge and medium term by embarking on a serious program to invest in
renewable sources of energy.”

Ralph Cassar
A/PRO
99894962

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