Alternattiva Demokratika chairman Harry Vassallo has said that the government’s state of denial regarding the price of property is driven by electoral interest.
Speaking at a press conference at AD’s offices, Dr Vassallo said: “The adoption of the euro in January 2008 is expected to cause a sudden injection of Lm200 million of hidden funds into the legitimate economy, making 2007 a truly exceptional year as the Prime Minister has declared. We have every reason to expect that the effect on the property market will be similar to that of the repatriation of Lm700 million some years ago.”
He continued: “With the government refusing to admit that there is a need to address the utter detachment of property prices from the earning ability of the population, the social consequences already experienced in recent years can be expected to become far worse.
“Government action accommodating the construction industry has already turned the whole country into a building site. Both the relaxation of height limitations and the extension of development boundaries have exposed every neighbourhood in the country to redevelopment that is not needed in any way. This process can be expected to become far worse with the injection of more funds having nowhere to go except construction,” said Dr Vassallo.
“The data on the situation of vacant property collected in the November 2005 census is already stale by over one year. Its publication must no longer be delayed,” he added. “We have every reason to believe that the facts and the figures will more than justify the concern shown by Alternattiva Demokratika for the past several years.”
“Alternattiva Demokratika welcomes the invitation made by the Church Commission on Peace and Justice to make this issue a major priority because of its social impact. We are glad to be able to say that we had anticipated the Church Commission by several years,” said Dr Vassallo. “A crucial part of any reform of the property market must be the creation of a feasible rental option and to this end the removal of the antiquated rent laws is essential. Our rent referendum campaign continues going from door-to-door across the country and we encourage everybody to support our signature collectors and to participate in the process themselves.”
“Property reform is a social issue, an economic issue, an environmental issue and a moral issue. We must all have an opinion on it and act accordingly,” said Dr Vassallo.