Labour's water and electricity proposals would lead to higher taxes

Labour’s plans for a reduction in water and electricity tariffs were an "Alice in Wonderland" proposal which would not work and would lead the country to higher debts which would have to be paid through higher taxes or tariffs. Addressing a news conference this afternoon, Finance Minister Tonio Fenech said that DNV Kema’s recommendation confirmed that a gas pipeline as proposed by the PN government was cheaper than what was being proposed by Labour. The PL’s proposals, particularly the estimates for the required capital projects were very low and another €200 million at least would be required for that infrastructure to be built in Malta. In particular, the proposed plant was estimated at €166 million. For comparative purposes, in 2009, Bateman’s tender offer with the same technology was of €186 million for a smaller 150 MW plant. The cost would, therefore, be closer to €240 million. Additionally, Labour also failed to account for the costs related to the acquisition of the tankers, and other infrastructure. Tonio Fenech pointed out that Labour’s imagery conveniently failed to show the true size of the storage tanks which were required. To cover the capability of the gas tanks...