That the construction lobby is the darling of this administration is no secret. There is an open door policy to those representing this sector in Castille, while others have to wait in the queue. When he was prime minister, Joseph Muscat spent more time meeting the developers’ lobby than he spent talking to the rest of the social partners combined.
Robert Abela met the construction lobby immediately he was appointed prime minister while other constituted bodies were given an appointment three months later. The developers’ lobby also have a strong hold on both political parties. The famous (or more appropriately, infamous) fourth floor at Labour Party headquarters and the close links between the developers and the Nationalist Party allow certain operators in the sector to act with impunity.
What was once the Planning Authority had its teeth and claws pulled out, and the manner in which applications for building permits are currently being processed added to the construction frenzy.
Yet we need to show some sympathy for the devil and acknowledge that the escalation in construction activity has been fuelled by demand side-factors as well. The selfish interests of land owners, speculation, division of inherited property, cashing out of large houses to have a comfortable retirement, low interest rates on savings deposits – these have also contributed to the surge in demand for property.
However, it is the role of the state to intervene to control market forces, especially in circumstances where private gain runs counter to the greater good. In this, the government has failed miserably. It has allowed, encouraged even, a mad bull to have free rein to rampage at will at tremendous cost to the environment. After a series of near misses, this laissez faire attitude has now resulted in a loss of life. It is no surprise that many perceive government and the developers’ lobby to be joined at the hip.
It is no surprise that many perceive government and the developers’ lobby to be joined at the hip
It’s not that the wild bull needs to be put down. Rather, it needs to be tamed and given direction. Malta will always need a construction industry. Our cultural heritage, from the Neolithic temples to our majestic fortifications, is mostly based on a history of building achievements which give our nation its character.
The Malta Employers’ Association (MEA) has made numerous proposals, unfortunately unheeded, to turn the construction industry from public enemy to a partner in sustainable growth.
The MEA has called for any development on ODZ to be approved by a two thirds parliamentary majority, to have a level playing field among developers, for a commitment for holistic development which includes provisions for infrastructural requirements for all projects, and for a “strategy to shift the emphasis of this industry from the generation of buildings which may not always be in demand to a strengthening of the national infrastructure to make Malta a better place to live in”, (Memorandum to Political Parties 2017).
Recently, the MEA also proposed partial state-financing to political parties to sever the link between business and politics. It also voiced its concern about construction waste, and while land reclamation may offer a partial solution if conducted professionally, we have stressed that there is a difference between land reclamation and an underwater landfill.
As things stand today, this industry is mostly driven by short-term, personal gains, as many developers scramble to tear down existing buildings, or to turn undeveloped land into soulless blocks of apartments. The industry is either operating myopically through a dense dust cloud which keeps its operators from asking whether there is an actual demand for all the building units that have been given the green light by the authorities, or else they are realising an undisclosed strategy which aims at generating an insane demand for property through a dramatic increase in Malta’s population.
These scenarios are equally terrifying, and give rise to anger among the general public. Clearly there is a need for a re-thinking of this sector, for proper governance and enforcement, to have a strategic fit between development goals and those of other economic sectors, and to prioritise quality of life above unsustainable economic gains.
Joseph Farrugia is Director General, Malta Employers’ Association