Mr Zammit said that this relevance to Malta’s economy was particularly notable in the development of the construction sector. “Statistics show that over the years, this sector has continued to consolidate, with record figures for the number of business transactions that have taken place,” said Mr Zammit.

Mr Zammit said the Resources Ministry, through the Building Industry Consultative Council, kept tabs on the sector and in turn, recommendations are passed on to the government.

Mr Zammit said that property was still regarded as one of the soundest investments to make in Malta. “In 2002, the percentage of people owning immovable property stood at 70.1 per cent compared to 38 per cent in Germany and 31 per cent in Switzerland.

“If one looks back at the 1950s, that percentage stood at only 21.2 and we must ensure that this market remains sustainable,” said Mr Zammit.

He said that while it was not easy to regulate property prices, government was committed to facing the challenges posed by the industry.

He said that is why the BICC was charged with entering discussions with the relevant authorities in an effort to review any impractical and outdated policies.

However, Mr Zammit said, nothing should detract from the powers of the Mepa to insist on certain quality and standards for construction.

“It is essential to keep using land that has already been tainted by development. We must also bear in mind that in the near future, we will be faced by the problem of applications to demolish buildings that were built in the 1970s and 1980s,” he said.