Governments are sometimes forced to bail out struggling banks that are too big to fail. This is done because the cost of letting a bank go under is often greater than that of bailing it out with taxpayers’ money. But should this principle also apply to social clubs, including band clubs, an important element not in the financial sector but in local culture?
The government is facing a dilemma that is not easy to resolve. The imminent eviction of the Stella Maris Band Club tenants became real last July. Judge Lawrence Mintoff referred to a decision by the First Hall of the Civil Court in a case instituted by the owners of the club in which they asked the court to declare that the Stella Maris club rent should not be renewed.
The judge confirmed the earlier decision of the Constitutional Court, which said that the law intended to protect band clubs from eviction was anti-constitutional. The tenants who administer the band club are bound to return the premises to its owners by Wednesday, November 23.
Negotiations between the owners and the government to try to reach an out-of-court settlement to end this saga have so far failed. The government offered to pay the owners €250,000 for the remaining period until the original lease to the owners expires in 2026 and the property returns to a government entity.
A government source has told Times of Malta: “The two sides are very far apart. They are demanding more than €1 million. We think that’s an unreasonable demand, given that the lease will expire in less than four years’ time.”
Community leaders supported the Stella Maris club members. The National Band Clubs Association said it was disappointed at the news, noting the bank’s long history and ties to the Stella Maris festa in Sliema.
The San Gejtanu club in Ħamrun and some other clubs face similar legal battles and possible eviction from their premises. The Ħamrun club argues: “We cannot lose band clubs. These clubs are what 60 per cent of Maltese people consider part of their culture.”
Negotiations often lead to brinkmanship. Final decisions are only reached after one of the negotiators blinks first. The risk of setting the wrong precedent will influence the government’s decision on how far it will go to appease the worried Stella Maris members.
The mismanagement of taxpayers’ money has become notoriously frequent in recent years. Wasteful projects sold as serving the public interest turned out to be too costly for hard-working taxpayers.
Under the European Convention on Human Rights, people have the right to possess a property that is lawfully theirs. Governments cannot take property away without proper reason and neither can other people. For too long, different administrations have ignored this principle and preferred to kick the can down the road to avoid taking unpopular decisions to protect citizens’ property rights.
Governments are just stewards of the public purse and taxpayer money. On the other hand, the preservation of the different elements of local culture is an essential priority for any administration. Intervention could be seen as justified to prevent widespread cultural and social disruption.
A total of 23 band clubs across the islands are under the threat of eviction as a result of recent court rulings. The government is in talks with the owners of 10 of these properties so far.
Once the government has chosen to intervene, it can only be hoped that common sense will prevail and negotiations with the clubs’ owners will conclude in a fair manner for all stakeholders.