9 - 11 November 2000

Settling outstanding bills

Economic Services Minister Josef Bonnici, in reply to a parliamentary question, said that Enemalta Corporation was owed over Lm26 million in unpaid electricity bills. This sum, he said, was split between private residences and businesses to the tune of Lm13,231,803 and just over Lm3 million from the commercial sector. Another Lm5.6 million relating to current bills are still outstanding.
The corporation does not keep a detailed account of private households and small businesses that are late in their payments and neither does a system exist to ensure that payments are received in time. To make matters worse, the corporation has been hard hit by the increase in the international price of petroleum this year. While these increases have affected countries all over the world, the burden has been borne by Enemalta rather than the public.
Increasing the price of fuel to consumers is not necessarily the perfect solution to easing the corporation’s financial situation as witnessed by the reaction of thousands of motorists all over Europe. However, no corporation can continue to bear the brunt of oil increases without somehow balancing the figures.
Earlier this month, Finance Minister John Dalli made it very clear that there will be no increases in the prices of fuel and other related products in the forthcoming budget. Yet the question that arises is: ‘how will Enemalta be able to sustain itself in the light the current oil crisis without increasing prices on the consumer?’
There is no simple answer. There are two important points to take into consideration. Enemalta is owed Lm26 million. The first step Enemalta must take is to make sure it collects this considerable sum of money. The corporation cannot afford to sit back and wait for the money to come in. Clients who have defaulted their payments should be treated in the same manner: no payments, no service. Maltacom, which also faced a similar situation, set a deadline for payments and stuck to it. Those who did not pay ended up without a telephone service. The exercise had its desired effect.
Earlier this year The Malta Independent on Sunday had reported that a number of French companies were showing great interest in Enemalta. The government has embarked on a privatisation programmes that has seen a number of companies expected to be privatised within the coming months. A total privatisation of Enemalta is not on the books, but there is no reason by the
government and Enemalta should not look beyond our shores for a strategic partner.

Good news for Malta

The European Commission’s position paper on Malta has shown that Malta is well prepared and a front-runner among applicant countries to become a member of the European Union. The paper says that Malta – and Cyprus – meet the economic criteria necessary to become members and that these countries are capable of withstanding pressure and market forces within the EU as from now.
This is good news and not only for the government which has been pushing ahead with its programme to take Malta into the Union. Although the Commission’s paper gives the government the encouragement to continue working hard, it must not be blinded into believing that all is well. The government must not fall over its feet in over-enthusiasm. This report, which is very positive, is not a ‘yes’ to membership. As Foreign Minister Joe Borg said, the report shows that Malta is well prepared but not that the country will be among those in the first enlargement wave.
This newspaper has always felt that Malta’s place is in the Union, however it has also stressed that membership must not come about at the expense of the people’s interests or welfare.
Dr Borg is fully aware that the greatest obstacles still have to come. The government may have closed a good number of Chapters, to the Commission’s satisfaction, but this does not mean that closing the remaining ones will be as simple.
The referendum will be held after the conclusion of negotiations and “once the government has informed the public regarding the results of the negotiations”. We feel that the government must pay even greater attention now. It is in a position to show the people that what it has done is of benefit to the whole nation. Yet this is not enough. Dr Borg and his team must convince the people that choosing the path to Europe is the right choice. This will only come about if the public is presented with factual information that also highlights the problems we, as a nation, will undoubtedly face.