Dar Malta one year on

Picture this scenario. In a land called Extravaganza, a government agency leases 80 apartments in an up-market complex each costing 500 liri monthly, thus incurring an expense of half a million liri over a 12-month period.

The official position is that these apartments are required to house foreign delegations. However, for reasons unknown, these apartments remain empty for the full year. A public debate ensues. Cries of scandal, nepotism are bandied about. Those who oppose the authorities have a field day. All criticism is, however, nonchalantly shrugged off.

Now back to reality. A year ago, the government purchased an office block in the centre of Brussels for Lm6.5 million. At the time, we were told that this building would need to be refurbished at an additional cost of some Lm2.5 million, that it would be called Dar Malta and it would house various government agencies operating in the EU capital.

I was critical of this decision principally on two counts. In the first place, I held that adequate and ready to move into offices could have been purchased for substantially less than the Lm9 million or thereabouts this building will cost when completed (and I emphasise the word when). Secondly I maintained, and still do, that Malta cannot afford this sort of extravagance given our financial position.

I did, however, overlook another angle. I am informed that this building is still in exactly the same state it was in when purchased 12 months ago. No great shakes, one might argue. True, if it were not for the fact that the finance cost to date of Dar Malta is already nearly Lm500,000!

So here lies the analogy between the imaginary 80 apartments and the notorious Dar Malta. Had the apartment scenario I described actually taken place in Malta, we would have had uproar with calls for resignations, magisterial inquiries and what have you. The Dar Malta purchase has, however, taken place outside Malta and as the saying goes "out of sight is out of mind".

If Dar Malta remains empty for another 12 to 24 months, the finance cost alone on this "investment" will be between Lm1 million and Lm1.5 million. While there is now no option other than to complete the project, I hope that our government shall, in future, be extremely wary of dabbling in the property market with public funds.

In a similar vein but much closer to home, could it possibly be true that a sea passenger terminal is being constructed in Gozo at a cost of Lm15 million liri? If it is, it might rank as an even greater extravagance than the Dar Malta purchase!

How can one ever justify spending this sort of public money on unnecessary luxuries? There are many more important things that could be done with Lm15 million. Why this obsession with affording Gozo preferential treatment? Is it not enough that the taxpayer has provided Gozo with a safe harbour and state-of-the-art ferryboats?

If the authorities considered expenditure in Gozo in proportion to tax collected from the island, this project and many others would never even leave the drawing board!

According to figures given in Parliament by the Prime Minister, every Gozitan pays an average of Lm170 in VAT and Lm125 in income tax annually while the Maltese person pays Lm460 and Lm369 respectively, nearly three times as much. Put another way, if the per capita payments were in line between the two islands, the government would collect another Lm9 million annually from Gozo in VAT alone.

So there we have it. Dar Malta in Brussels, a ferry terminal in Mgarr and the much-talked about conversion of the old opera house site into a parliament building could set the country back between Lm40 million and Lm50 million.

At the same time, we read about the dire financial difficulties being faced by homes and organisations that provide shelter and assistance to disabled persons. Isn't there something wrong here? Can we please try to get our priorities in some order? I am sure that a majority of the Maltese people would much rather that an additional Lm2.5 million of their taxes be spent on helping people with special needs than the expenditure of Lm50 million on the above projects. Survey, anyone?