Malta’s “product” risks to collapse due to consistent power outages

LA VALLETTA (MALTA) (MNA/ITALPRESS) – Malta’s “product” risks to collapse unless the Maltese government takes drastic action to stop the strain on infrastructure and invests heavily to stop the chronic power cuts. Meanwhile, tourists visiting the island of Gozo have asked the hosts for certain refunds or left their self-catering accommodation earlier than planned as a power outage continues to plague the sister island. At this time of the year, both locals and tourists alike flock to Gozo to soak up the sun and relax. During the same period, the different localities are also celebrating their village feasts. All of this means that restaurants, bars and other businesses in the hospitality sector should be buzzing with activity. Malta’s constituted bodies and social partners issued a stark warning as power cuts continued for the second summer. They added that the situation is harming businesses and residents, inflicting heavy costs in damage, and denting the country’s economic development, they said.

Enemalta, the state-owned energy firm, has now installed 14 diesel-powered generators in various localities around Malta to cope with another power-cuts crisis amid a heatwave.

Poor planning, excessive construction and overpopulation were singled out as the main reasons for an infrastructure on its knees.

The warnings from employer organisations were blunt: “Due to the adverse effects on the quality of service, the private sector may have to curtail its own investment going forward until the government catches up,” said Marthese Portelli, CEO of the Malta Chamber of Commerce. She said the fact that power cuts are significantly affecting residential areas is largely due to the construction of more housing units, hotels and restaurants without the necessary infrastructure to support them. Portelli said that the government needs to commit to a five to 10-year plan of investment in infrastructure, developed in serious consultation with the private sector and with clear milestones and deliverables based on realistic growth projections considering the available skills. “These suggestions and proposals are not new, but they have been systematically and repeatedly ignored. Now even the public is realising the extent to which lack of planning impacts its well-being and quality of life.”

Tony Zahra, president of Malta Hotels and Restaurants Association, is concerned that the lack of investment and cohesive planning to address the growing population of residents and tourists in Malta is taking a toll on ‘Product Malta’. He insisted that decisions regarding Malta’s future over the next 15 years must be made now and communicated clearly to all stakeholders.

“The general upkeep and cleanliness of Product Malta is a continuing cause for concern,” he added.

Meanwhile, Michelle Muscat, president of the Association of Catering said she has been inundated by calls from restaurateurs reporting power cuts from all over the island.

Complaints have ranged from restaurateurs forced to throw away stocks to damaged appliances. Muscat said: “We are also losing clients. People are calling restaurants to check whether the power is on or not before booking. Then they go to the restaurant to find that after a few minutes, the power goes off again.” Muscat said her members are helpless because nobody knows how long this situation will persist. “Friday night was the worst. Restaurants were affected in Sliema, St Julian’s, Gzira, Hamrun, Santa Venera, Mosta, Naxxar. Gozo experienced regular power cuts for a day-and-a-half. This is not on.”

Paul Abela, president of the Malta Chamber of SMEs said that the situation was “very complex”. “Before green-lighting new projects, the authorities should start asking themselves whether the infrastructure will hold.”

The Gozo Business Chamber said businesses in Gozo are worried as they can no longer provide the guarantee that their operations will not be affected with the next power cut. “The businesses cannot plan. At the same time, they cannot offer the touristic products to those visiting and are experiencing damages to their appliances and the product itself.”

The Gozo Business Chamber also underlined, “The persistent outages, the huge damage between the Malta-Gozo cable as well as the energy insecurity are all affecting the business confidence,”underlining that operators are no longer sure that they can open their doors to clients while others are opting to foot extra costs by leasing out a generator.

Over 70% of the accommodation in Gozo consists of farmhouses and at this time of the year they would be fully booked. The Gozo Business Chamber added various localities have been hit by power cuts, and in some cases the interruption of the water. It added this is causing considerable damages, loss of customers, consumables, and working hours, and added costs to sustain the power supply in some cases.(ITALPRESS).

Foto: xf3

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