Action to Assist Families Make Ends Meet

Speaking to The Malta Independent from Luxembourg yesterday, Finance Minister Tonio Fenech said: “We need to adjust our economies and accept the fact that prices will increase long term, but we need to address the issue of families who cannot make ends meet.”

He continued: “If governments start to play with taxation, especially in regard to energy, we will send the message to producers to charge more for the raw materials as we would be showing them that we can ‘afford’ it. We need to take specific measures to help specific families.”

Mr Fenech said that yesterday’s meeting focused mostly on the food and energy crises. In addition, there were preparatory discussions for the Heads of Government Council to be held later this month. The theme is set to be what Europe can do to address both the above-mentioned issues.

Mr Fenech said that it would be a misconception to think that Malta suffers more than others because of import rates. “Every country in Europe and indeed the world is feeling the pinch and Malta is no different,” he said.

The Finance Minister said that this government had anticipated the spike in inflation on food and energy, and attempted to counter it by reducing tax band ceilings, increasing the cost of living allowance and exempting certain families from paying the water and electricity surcharge.

“Another issue was bio-fuels. There is debate as to whether the targets set on emissions and bio-fuel production will affect farming in Europe and whether or not these factors are piling on further pressure.

“The conclusion is that Europe needs to stick to these targets, but also needs to ensure that it does so in a sustainable manner,” said Mr Fenech.

The EU has fended off allegations its push for bio-fuels – from such foodstuffs as canola, corn, soybeans and sugarcane – has triggered soaring food prices world-wide, saying increased US output is more to blame.

Less than one per cent of EU cereal production is used to make ethanol.

Two-thirds of its canola production is used for biodiesel but that production as a whole accounts for only two per cent of global oil seed demand, according to EU data.

View the Malta Independent story by clicking here.

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