Updated July 29, 6.40am with MAM statement

Social partners have welcomed the government’s decision to double Malta’s yearly budget allocation to the country's energy distribution network.

Malta Council for Economic and Social Development chair David Xuereb said people around the meeting table emerged relatively pleased.   

“We left this meeting quite satisfied,” Xuereb said. 

Xuereb was speaking on the steps of Castille after an urgent four-hour meeting between the MCESD and the government, to discuss Malta’s recent spate of power cuts and their impacts.   

Surrounded by employer association heads and union bosses, Xuereb said that the MCESD had initially proposed to improve the energy distribution system and was pleased to see the government agreed with that.  

Prime Minister Robert Abela has pledged to invest €30 million a year in upgrading the national grid, up from the €15 million a year currently being invested. 

The pledge comes after Malta was plagued by power cuts for 11 days, most of which happened during a heatwave that saw temperatures climbing above 40°C.  

Xuereb said that climate challenges that go beyond Malta’s energy situation were a topic of discussion during the meeting.  

“We emphasised that climate change brings challenges that not only affect energy but also concern other aspects of our economy and the wellbeing of our country”.  

“We were of the opinion to consider other details that go beyond energy, like the general infrastructure of the country”.

Compensation talks at early stage 

Another topic discussed was the government's vague promise to compensate people who were negatively impacted by the series of power cuts. 

But the meeting was thin on details, with General Workers Union boss Josef Bugeja saying the only clear point of agreement in that regard was that compensation would be commensurate with damage, rather than across-the-board. 

The union was keen to see more funding for worker training, he said. 

Malta Chamber CEO Marthese Portelli said she was pleased to see that the government had taken up its request for an urgent MCESD meeting - and that the government was so strongly represented during the meeting. 

Aside from Abela, social partners could exchange their views with Energy Minister Miriam Dalli, Finance Minister Clyde Caruana and Social Dialogue Parliamentary Secretary Andy Ellul, who all attended. 

Malta Chamber CEO Marthese Portelli warned that ministry spending would need to be razor-sharp.

Portelli said the government now needed to prioritise investment in energy distribution.

"This means revisiting ministries’ priorities to ensure that projects and initiatives being budgeted for contribute positively to climate change mitigation, increase quality and well-being," Portelli said.

The Chamber also insisted that businesses that are investing in energy-efficient systems should be given preference over those that are not, she said. 

Malta Employers Association director-general Joseph Farrugia also welcomed the decision to improve Malta’s energy distribution network, but said that unbridled construction and an increase in population are putting pressure on the country’s infrastructure.   

“There needs to be a strategy that defines what direction we are taking and then see what infrastructure is needed to maintain a certain level of development,” Farrugia said.  

There is an aspect of “firefighting,” but at the same time, there needs to be a long-term vision, not only in terms of energy but also industrial development, he said.   

“Are we going to have a labour-intensive economy that requires more people and more construction (to house them), or are we going to be more restricted and emphasise added value,” he questioned.  

Still, the meeting was positive and productive, he said.  

The Medical Association of Malta had more mixed feelings about the meeting. 

While it was pleased to see the government assume responsibility for the power cuts and pledge rapid investment into energy infrastructure, the MAM said there also needed to be a plan to expand the country's health infrastructure. 

"Mater Dei Hospital utilizes daily all 6 makeshift wards. It is good to reflect that these added makeshift wards were only intended for use during major incidents," MAM said. 

It noted that the Vitals and Steward privatisation debacle had cost the country €400 million and that currently, surges in daily hospital admissions led to elective services such as operations and outpatient appointments being cancelled.