Pretty vacant

Some argue that Malta is so small and so densely populated that we must necessarily sacrifice our natural environment or embark on questionable ventures like high-rise development. All these apologists of unsustainable development are wrong because the shocking truth is that one in every four dwellings in Malta is vacant.

This is absurd in a country in which land is such a scarce resource. Among the main reasons contributing to this lousy state of affairs one finds our country's outdated rent laws. The million dollar question is why have Malta's MLP and PN governments ignored this situation?

Due to our outdated rent laws certain rents are kept frozen at pre-war levels. Since the income derived from such properties is minimal, property owners cannot even afford to pay for the maintenance and upkeep of these dwellings. Therefore, a large number are left vacant and in a derelict state! This state of affairs also results in absurd situations like the following one:

Ganni used to pay Lm15 a year to rent an old but decent house from Salvu the land owner. Ganni's property was inherited by his son Robbie who opened a panel beating business in the same property. Robbie pays Lm15 a year in rent despite making a fortune from his business. This gives Robbie an unfair advantage over other businessmen who have to pay hundreds of liri in rent. On the other hand Salvu's daughter is marrying and has started paying a loan on a new place. Salvu wished to give her that old and decent house as a wedding present, but there is no way of getting rid of Robbie, who has made enough money to buy a villa in the countryside!

In a country where elections are decided by a few thousand votes none of the big parties wants to take a courageous decision on this issue. The liberalisation of the rent sector might harm the interests of the lucky beneficiaries of this absurd situation. We all remember what the Labour Party did when the PN introduced cash registers and VAT. We all remember the pre-electoral pact signed between the MLP and the hunting lobby on the eve of the 1996 election.

Six months ago, AD chairman Harry Vassallo wrote to the prime minister and to the leader of the opposition. In his letter Dr Vassallo proposed the nomination of a commission from three political parties. This commission would be given the task of reforming the country's rent laws. All three parties would be held responsible for the decisions taken by the commission. Nobody would be able to score electoral points at the cost of the responsibility of others. AD is also proposing that any reform in this sector should take in consideration the situation of those who pay artificially low rents but whose income is very low. The state should subsidise the rents of these people.

The liberalisation of the rent sector would increase the supply of rented dwellings. The liberalisation of this sector might also result in a greater choice and a wider range of prices for the consumer. In order to ensure a greater supply of rented properties and discourage land hoarding, fiscal incentives should also be offered to those land owners who introduce new properties in the rent market within development zones. Fiscal disincentives could be introduced on those land owners who keep properties vacant.

Dr Vassallo's responsible proposal found a great deal of support in Maltese civil society. It found the support of prestigious organisations like the Chamber of Commerce. Unfortunately, Dr Vassallo's proposal has been ignored by Alfred Sant and Eddie Fenech Adami. Petty partisan interests have prevailed over the national interest.