The government is offering to buy as many as 23 band clubs in 17 localities, using funds from the golden passport scheme in an attempt to convince frustrated landlords against retaking the properties.
Through its investment holding company, Malita Investments plc, the government intends buying many of the properties currently being leased to band clubs through the old rent laws.
Among them are band clubs in Valletta, Ħamrun, Paola, Żebbuġ, Sliema, Birkirkara and Mosta. Sources close to the culture ministry said the government is forging ahead with the plan to ensure certain localities do not end up without a band club, which is known to be a staple of Maltese tradition.
The plan is that after the properties are purchased by the state, the government will then enter into discussions with the individual band clubs to negotiate a fair rent.
Malita issued a call for owners who want to sell this property to register their interest to kickstart negotiations between the two sides. The money will be disbursed from the National Development and Social Fund (NDSF) which was set up to receive 20 per cent of funds from the Individual Investor Programme (IIP).
A spokesperson for the Culture Ministry told Times of Malta that Malita Investments plc issued an expression of interest to owners of private property leased to band clubs who are interested in the outright sale of the property.
“The NDSF, in pursuance of its aim to safeguard our national and cultural heritage, has formally announced its intention to negotiate with private property owners in order to acquire premises that are presently occupied by band clubs,” she said.
When asked for the budget for this initiative, the spokesperson said it was premature to mention figures since negotiations between Malita and the respective private property owners are yet to take place.
Sources said that while the bulk of properties cost around €500,000 to €700,000, there are some properties that run into the millions, such as the De Paule. In cases like Sliema's Stella Maris band club, the government would need to negotiate the remaining term before the lease expires in a few years' time.
Band clubs have been the subject of lengthy legal battles. Several cases of breaches of human rights dictated by the old rent laws have been decided and band clubs were being asked to fork out steep increases in their rents. Some of them were even threatened with outright eviction.
Faced by calls to address the situation, and in line with the Labour Party’s manifesto, then justice minister Owen Bonnici in 2019 promised to intervene to ensure band clubs would not be evicted.
However, the legal amendments which were meant to safeguard band clubs from eviction from their leased premises as a result of legal action by landlords were declared unconstitutional and in breach of the owners’ human rights. Malta’s highest court went one step further to declare it “a clear abuse of power”.
“Legislation neutralising final court judgments which is not justified by compelling reasons can never be considered legal… The court considers that the introduction of this [law] represents a clear abuse of power by the legislator and impermissible interference with the operation of these courts,” three judges presiding over the constitutional court ruled at the end of a case involving the De Paule Band Club, in Paola.
On Friday, the court threw out appeals by the state and the Stella Maris band club, bringing the landlords a step closer to reclaiming possession of their Sliema premises.
Nationalist MP Jason Azzopardi had told parliament last May that the government should set up a fund to help band clubs purchase their premises.