Firm agrees to settle €98,000 rent bill

Agreement has been reached between Malta Industrial Parks and Marsalite Ltd on the payment of overdue factory rents which total €98,000, the Investment and IT Ministry said.

The agreement was reached at talks held on instructions by Investment Minister Austin Gatt after MIP officials this morning launched action to evict the company from the factory.

The ministry said that of the rents due, €62,000 had been outstanding for over five years. It said the company had ignored various proposals made by MIP for the arrears to be paid. In July 2007 MIP made another offer for gradual repayments. Instead, the company yesterday made a proposal which was found unacceptable by MIP since it meant that only a quarter of what was due would actually have been paid.

The ministry stressed that it was government policy to ensure that factory users paid their rents. Having it otherwise would create an uneven playing field and amount to an illegal subsidy on factory space.

The ministry welcomed the agreement between MIP and the company, especially as no jobs would be lost. It augured that Marsalite would now honour it.