Issue link: https://maltatoday.uberflip.com/i/410228
maltatoday, WEDNESDAY, 5 NOVEMBER 2014 7 News Euro makes Maltese more European Muscat reiterates new power plant delay caused by 'tripartite negotiations' JAMES DEBONO A Eurobarometer survey shows that the Maltese are the most likely among the 18 countries using the euro currency to think that the euro makes them more European. This tallies with the findings of a MaltaToday survey published in September which showed that 32% mention the euro when asked to mention three markers of their Eu- ropean identity. Respondents in Malta (44%) are the most likely to say that the euro makes them feel more European than before, followed by more than a third of respondents in Ireland (35%) and Slovenia (34%). On average only about a quarter of euro area respondents think that having the euro makes them feel more European than they did before (24%). Only 16% of Greek respondents and 17% of Dutch respondents re- plied that the euro made them more European. Across Europe the self-employed (32%) are the most likely to say that the euro makes them feel more Eu- ropean, while manual workers (15%) are the least likely to do so. Not to be forgotten: the Maltese lira Malta is one of three countries where the largest proportion of re- spondents still convert the price from euros to their old national cur- rency when purchasing exceptional items like a house or a car. 50% of the Maltese still convert the euro to the lira when purchasing these items. But the percentage of Maltese who convert to the lira are in decline. In 2011 66% mentally converted the euro to the lira when buying a house or a car. By 2013 the percent- age dropped to 61%. In the past year the numbers of this category has dropped again by 10%. The other countries where a ma- jority still mentally convert euros to their national currency are Belgium at 51% and Slovakia at 48%. At least three out of 10 respondents in 12 countries still convert prices into their national currency when making exceptional purchases. At the other end of the scale, respond- ents in Ireland (8%), Finland (14%) and Slovenia (16%) are relatively un- likely to do so. Optimism for next year Malta stands out as being the only member of the euro area where a larger proportion of respondents think that their household income will increase this year. While 42% expect their income to increase, 41% think it will stay the same. In all other countries, except Greece, most respondents expect their income to remain the same. In Greece 47% of respondents think their income will decrease, com- pared with 39% who think it will stay the same. A relatively high proportion of re- spondents also expect their income to decrease in Cyprus (42%) and France (35%). The survey also shows that while 22% of the Maltese have seen their income increase during the past year, 20% have seen their income decrease and 56% have seen it stay the same. Maltese want 1 cent coins removed 96% of the Maltese would get rid of the one cent coin while 82% would remove the two cents coin. Only 32% would remove the five cents coin. In all but two of the 18 euro countries, respondents insist that the one cent euro coin should be removed. Very high proportions of respondents take this view in Ireland, Luxembourg and Malta (all 96%). Respondents in Finland (47%) and Latvia (51%) are the least likely by far to support removing the one cent coin. The Maltese government has ex- cluded removing the one cent and two cents from circulation. According to a spokesperson for the Ministry for Finance, the re- moval of these coins would fuel "perceived" inf lation. "Income levels in Malta are lower than those in the three countries mentioned. Therefore, one cent and two cent coins have a higher relative value in Malta". Additionally, the removal of such coins from circulation would re- quire rounding of retail prices, leading to perceived inf lation whereby people would suspect that retailers had rounded the prices upwards. Government should save more for pensions At least six in ten respondents in all countries agree that govern- ments need to save more today to prepare public finances for the age- ing of populations. Respondents in Malta (91%) and Ireland (86%) are the most likely to agree, while those in Greece (64%) and Italy (68%) are the least likely to do so. But only 27% of Maltese agree (down from 29% in 2013) that the retirement age should be increased to ensure sustainability of the pen- sion system. The percentage of Maltese who agree with increasing the pension age is the same as the euro area average. MIRIAM DALLI THE delay in the construction of a new power plant was caused by tripartite negotiations following the involvement of Chinese-owned Shanghai Electric Power, an invest- ment which did not form part of the original plan put forward by Labour during the electoral campaign. Addressing parliament, Prime Minister Joseph Muscat reiterated that parliament will be given "a clear timeline" of the construction of the new power plant once all negotia- tions have been concluded. "The delay was caused by tripartite discussions that were never envis- aged. We worked well and attracted an important investment, despite the PN's statements that our plan would have never attracted inves- tors," Muscat said. He reiterated that the government had managed to turn Enemalta's fi- nancial situation "from a corpora- tion that was on the verge of bank- ruptcy to one that will start making profit". The Opposition reiterated its call for the government to publish the contracts which it is negotiating with Shanghai Electric Power and ElectroGas. Leader Simon Busuttil also ques- tioned the need of a re-gasification plant once the pipeline comes into being. "Both the interconnector and the pipeline are required to ensure security of supply. What would a country do if the pipeline is dam- aged by an anchor? These issues are not solved within hours. Should we leave the country without an ener- gy source for days?" Muscat said. He repeated that Labour's energy mix included both the intercon- nector and the pipeline, point- ing out that he had to personally intervene with two Italian Prime Ministers to ensure that the neces- sary permits for the interconnec- tor are obtained, after the previous administration failed to acquire these permits. "If Busuttil thought that the state of the interconnector was plug and play, he has no idea what he's talk- ing about," Muscat said. He said the re-gasification facil- ity could not be avoided to ensure that Malta doesn't find itself with- out a source of energy. The pipe- line, he added, was part of the gov- ernment's medium-to-long-term strategy while the interconnector on its own was not enough. Muscat also briefed parliament on the conclusions of the last Eu- ropean Council, held last month, which tackled climate change and the economy. In reply to other questions raised by various members of parliament, Muscat said the European Union agreed that its greenhouse emis- sions should decrease by 40% by 2030 when compared to the level of emissions registered in 1990. "Each member state is now ne- gotiating its targets at a national level," he said, adding that at this stage Malta would not be revealing these negotiations so as not to in- f luence other negotiations between the Commission and other states. He confirmed that Malta was the only country not to make use of a trading emissions system, a scheme that gives member states a capping of emissions, allowing countries to buy allowances ac- cording to their targets. Malta auctioned in the market, but never opted for the free allowance, argu- ing that emissions will be reduced by 60% through the use of a gas- fired power plant. However, Malta is targeting a special arrangement to use allow- ances in non-ETS – mainly traffic, agriculture, waste and old air con- ditioning systems. Muscat also told the House of Representatives that due diligence carried out into a Singaporean company, International Energy Group, proved to be "satisfactory". The government, through its in- vestments arm Malta Enterprise, has set up a joint venture with IEG. Malta Enterprise will have 10% of the shares. According to the PM, this joint venture will help Malta become "a trading financial hub" between Europe and Asia. In reply to a question raised by PN MP Beppe Fenech Adami on Muscat's last trip to Singapore to take part in the latest citizenship conference organised by Henley & Partners, Muscat said his involve- ment in these conferences was ren- dering results. Fenech Adami quipped whether there was an obligation in the con- tract for Muscat to act as "a sales- man" doing the works the conces- sionaires should be doing. "No, I have no obligation to rep- resent our country during these conferences," he said, adding that a full report by the IIP monitor- ing committee will be published as pledged. Fenech Adami pointed out that the contract was never tabled in parliament. Opposition demands publication of contracts signed with Chinese-owned Shanghai Electric Power and ElectroGas consortium The Maltese lira, withdrawn from circulation for the euro File photo: Joseph Muscat addresses parliament Mizzi confirms €23 million subsidy for national bus service THE subsidy for public transport will increase to €23 million in 2015, transport minister Joe Miz- zi said on PBS this evening. Speaking on TimesTalk yes- terday evening, Mizzi refused to confirm whether bus fares will go up, insisting that they would re- main affordable. Any information will be given in the coming weeks, after the contract with Spanish bus firm ALESA is signed. The former bus operator, Arriva Malta - a subsidiary of Deutsche Bahn - was paid €10 million a year to operate the service. When it took on the network it was ex- pected to run the service on a €6 million public service subsidy. The bus service was nationalised on 1 January 2014 with the depar- ture of Arriva. Joe Mizzi