Tonio Fenech defends ‘clear policies’ on energy in face of Labour criticism

Finance minister Tonio Fenech has defended government's "consistency" on forging ahead with the Delimara power station extension, and securing the European Commission's agreement on financing gas pipelines for border member states.

Fenech was reacting to Opposition leader Joseph Muscat's criticism that the tender issue to convert Delimara to a gas-fired power station, from its heavy fuel oil engine, had demonstrated a lack of vision.

In a statement, Fenech said Labour was in favour of a diesel-fired power station and also a carbon capture project, the latter being proposed by Norwegian firm Sargas. "Muscat says he will reduce utility rates but now how he will do this. Government this year absorbed the increase in the international price of oil not to have utility rates increase."

Fenech said this aid and the loan to safeguard Air Malta's viability had led to an increase in government deficit, but said Malta's financial position was still strong. "Muscat uses buzzwords that fill in the Opposition's political holes, but government's economic policies are bearing fruit. We've seen 3,000 new workplaces this year while unemployment in the rest of Europe is growing, thanks to €130 in foreign and local investment."

Fenech also stood by claims that the government had created 20,000 new jobs since 2008, which today was questioned by Labour MEP Edward Scicluna who said Eurostat figures show new jobs - as defined by the EU's statistical arm - totalled 9,700 since the government's re-election.

Labour criticism on EC recommendations

Earlier, Labour said the European Commission's calls to Malta to raise retirement age and tag the Cost Of Living Adjustment mechanism to productivity gains rather than inflation, were down to the Prime Minister's incompetence.

"These are the same country specific recommendations the EC had already made in 2011, to which the government did not raise any objection. This has lost Lawrence Gonzi all credibility to fight his case in the face of the new recommendations for 2012," Labour said in a statement.

"The government's credibility is now undermined... Gonzi's position is a dubious one, and is based on convenience, not conviction. It means GonziPN will raise the retirement age after the elections."