The Malta Independent 24 April 2024, Wednesday
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The housing sector

Censu Galea Monday, 16 April 2018, 14:59 Last update: about 7 years ago

I refer to the article, on Thursday 5 April, written by Rodrick Galdes, the Parliamentary Secretary responsible for Social Accommodation in Malta.

There were various points which need to be clarified in what he wrote. However, I will limit myself to that part of the article which states that 'Unlike previous administrations whose plans lasted from one election to the next, this government is brave enough to help set up structures that shall outlive ir. Through its new strategy Government is not only seeking to alleviate the current pressures faced by renting households. Its ambitions span to the stabilisation local market for generations to come and, more in general, towards a professional approach of the local property sector'. 

This statement could have made sense had it been written five years ago, just after the March 2013 election when the Labour Party had been in power for a couple of months. This could have indicated a complete change of the policies applied till then by 'previous administrations'.

Now, five years have passed since that election and the Parliamentary secretary should have spoken of the present government's track record rather than that of previous administrations.

As it stands I have served as Parliamentary secretary and Minister responsible for social accommodation for a period of five years between 1992 and 1996. I know what it means to be responsible for this sector. I know of all the pressures that try to influence you in your way forward.

However, I still consider 1995 as the year which made most of the difference when it comes to housing in Malta. That was the year when the first changes to the rent laws were enacted. It was the year when the (much maligned, and abused) Housing act was removed from our legal structure. This was the law which up to 1992 had been the cause of over 52,000 requisition orders, with all the abuses that resulted in a number of these cases. That was also the year when many of the Housing Authority schemes were launched for the first time. Most of those schemes have been retained even if, somehow changed during the years that followed.

These were all laws and schemes which went far beyond the 'next election'.

Since then, our social fabric has changed. It has changed dramatically, and all those in politics would do well to understand these facts. Some of those factors have been mentioned in Roderick Galdes' article.

Yet, now, five years after the election of the Labour Party to govern Malta, there are also points upon which to reflect. In spite of all the talking about the housing sector the number of applicants waiting to get government support has gone up and not down.

There are some reasons for this as well. First and foremost, the government, between 2013 and 2017 did not finish one single apartment. It is true that a few weeks before the election, there was a lot of media coverage for a block(!) of eight apartments that were to be built in Zebbug. 

Beyond that, little could be mentioned. On the contrary, what one can mention are factors that have impacted negatively on the social housing sector. One of the first things that came into force in 2013 was the dismantling of a scheme which had encouraged private property owners to rent their property to the housing Authority for a period of ten years, and then the housing authority handed over these apartments to those who were in need of housing support. Later on this scheme was (slightly changed) and reintroduced, with much coverage.

Yet, to address the housing sector it is hard work that is needed, and not media coverage. In 2013 there were hundreds of apartments which had their building permits already issued. Practically none have been built and the permits were allowed to be lost. 

It now looks like the Government will soon be publishing a white paper regarding the rental market. I am not privy of the contents of that white paper, and would therefore refrain from speculating on the contents of the same paper.

However, the government would do well to understand the reality of this sector. On its own the government will never be able to provide for all the housing that is needed. The private sector remains a very important source for the provision of the necessary housing stock.

All those coming to live here would need some sort of shelter. On the other hand we should make sure that the buildings that are provided would always be of a good (and satisfactory) standard.

The article by Rodrick Galdes was entitled 'It's beyond supply & demand'. That is true, but I also dare say 'it is beyond short term propaganda'. 

Let me hope that the past five years would prove to be a huge lesson from which to learn the real way forward. The most recent 'past administration' is the one between 2013 and 2017', and in this area it has left much to be desired. 


Censu Galea is a former Nationalist minister and MP


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