The Planning Authority board on Thursday postponed a decision on a request by Malta Freeport for a €1.5 million planning gain imposed over two development applications to be waived.
The applications involve the replacement of six cranes with more environmentally-friendly equipment.
A planning gain is a fee normally imposed by the Planning Authority on developers to make up for the impact of their proposed project on the neighbouring community. The funds are administered jointly by the PA and local councils.
The board members asked Malta Freeport to provide evidence to back its claims that it was already contributing substantially through corporate social responsibility initiatives to several Birżebbuġa clubs, groups and organisations. It had said it was paying around €100,000 a year towards a fund administered jointly by Malta Freeport Terminals Ltd and the Malta Freeport Corporation.
The matter was discussed by the PA board after the company appealed two conditions imposing planning gains on two of its applications. One application sought to replace two quay cranes with two new ones while the other sought to dismantle another four cranes and replace them with four new ones.
On one application, the PA imposed a planning contribution of €955,000 while on the other, the planning gain amounted to €477,500 – with a total planning gain of €1.43 million.
Malta Freeport appealed, asking the Environment and Planning Review Tribunal to review the planning gain. In June last year, the tribunal partially upheld the company’s appeal since the PA board had not provided any justification for the amounts it had requested. It sent the application back to the PA board for a decision.
New cranes reduce noise and light pollution
Malta Freeport lawyer Karl Grech explained that the law gave the PA the discretion to determine whether the planning gain should be imposed. He argued that the new cranes meant a reduction in noise and light pollution.
Furthermore, the company had, since 2011, been contributing €100,000 a year towards the neighbouring community and also committed another €500,000 toward a buffer zone between the freeport facility and the nearest village. There was also a planned project for the development of a multi-storey car park that could also be used freely by Birżebbuġa residents.
“With all these financial outlays, we have already surpassed the €1.5 million being imposed on these two applications, which, after all, will reduce the impact of operations on the surroundings,” Grech said.
“There have been 17 previous applications on this site over the years and no planning gain was ever imposed,” he argued.
Birżebbuġa council architect Carmel Cacopardo said the amount was not a planning gain because it was never referred to as such. It was a contribution towards projects in the community to cushion the impact the operation was having on its surroundings.
While stressing that contributions to community groups were commendable, Cacopardo questioned how the Malta Freeport was objecting to the calculation at a rate of just €1.16 per square metre when the planning contribution on other projects involving public land was calculated at €10 or €25 per square metres. The €100,000 a year did not address the impacts of the operation on the Birżebbuġa community, he insisted.
At the end of the discussion, PA chairman Emanuel Camilleri proposed deferring the application to allow Malta Freeport to submit documentary evidence in the form of receipts showing financial contributions made to local groups.
Board member Martin Camilleri insisted that the planning obligation should be retained but the other members voted in favour of a deferral.