A group representing thirteen localities in Malta is calling for a new law to be passed, after a developer avoided paying more than half a million Euro into a community fund.

Builder Anton Camilleri was supposed to pay €623,325 under a scheme which sees developers paying €25.00 for every square metre they construct.

That money goes into a fund for local environmental and urban projects.

But on Tuesday, Mr. Camilleri appealed the €25.00 at a tribunal and asked for it to be reduced to €4.66 per square metre – the amount developers used to have to pay.

Now he will pay just €116,187 – a fifth of the original fee. 

The decision by the Planning Authority to uphold the request - which centres around the demolition of the Moynihan and Dolphin houses in St. Julian’s - has angered many.

“This is setting a dangerous precedent,” said Michael Fenech Adami, President of the Central Regional Council. “Now when other developers see this, they will use the same argument. We didn’t even know the tribunal was happening and now it’s done and final. It’s the residents who will suffer.”

Mr Fenech Adami and his council represents the Attard, Balzan, Birkirkara, Gzira, Iklin, Lija, Msida, Pieta', San Gwann, Santa Venera, Sliema, St Julians and Ta' Xbiex councils.

Residents from these areas have been objecting to the construction of six-floors of offices, a nine-storey commercial development overlooking the beach, a low-rise hotel at Cresta Quay, a car park for 1,449 cars, as well as the restoration of the historical Villa Rosa. But they have not been successful.

“Now we will also lose this funding, which helps improve the quality of lives of our citizens, through projects in our localities,” added Mr Fenech Adami.

“We appeal to the Planning Authority to ensure that the rate of €25.00 is protected and respected, and eventually established to the Planning Act through Parliament. We sincerely hope that common sense will prevail and such rights are respected in order to foster equity.”