Opposition Leader Joseph Muscat, this afternoon announced that if the PL is elected to government the Permanent Residence Scheme will be revised in consultation with all stakeholders, to give an injection of new capital from abroad.

He also proposed that the Final Withholding tax, which can go up to 35%, is to drop to 15%. In case of property leased to the Housing Authority and which benefits from more advantageous rates, the existent rules will apply.

Dr Muscat was addressing a business meeting for developers and people involved in the construction industry.

The proposals follow a number of others announced earlier this week and which are intended to cut bureaucracy and give business some push.

Reacting to the news that Standard and Poor’s have downgraded Malta’s credit rating, Dr Muscat said this may effect on interest rates and investment. He explained a number of reasons have been given for the downgrading including public debt and that of public corporations notably Enemalta.

Low female participation in employment, the fact that the economy depends on a small number of sectors and private indebtedness, all contributed to the decision taken. This opinion reflects that of the PL, Dr Muscat said, adding that so far it is the only party to propose an alternative for Enemalta.

A number of sectors, including construction, should not be forlorn as they can contribute to economic development in a sustainable manner.

Among the proposals announced is that when a new regulation is introduced, this should replace another that is outdated. Meanwhile, he believes the sunset clause should come in. This allows for laws with a limited time frame and which would either be updated after five years or dropped.

Pierre Galea, a member of the Malta Developers Association asked whether the 3.5% stamp duty for first time buyers can be waived and like a number of developers and architects present, he complained against the high Mepa tariffs.

Another developer, Anton Camilleri, complained against Mepa’s lengthy procedures and the fact that developers cannot commit themselves to timeframes regarding delivering property.

Perit Manny Galea said Mepa must judge in a sustainable manner and keep the balance between development and sustainability.

Sandro Chetcuti spoke of the need for a market for debilitated buildings especially in village cores and the right incentives to help people consider reusing these houses. Meanwhile, Perit Simone Lenicker from the Chamber of Architects spoke on the need for a design competition when it comes to infrastructural projects.

Perit Michael Falzon on the other hand voiced his concern that Mepa’s roles of issuing development permits and environmental protection are resulting in confusion.

In his replies, Dr Muscat said a number of proposals for first time buyers will be announced and a concrete plan of action will be put forward regarding Mepa since the 2008 reform had failed. When fees went up, the revenue dropped so the government still needs to subsidise the authority.

The PL will not attempt to re-invent the wheel but follow the best practices of other countries. He also noted that clear decisions must be taken regarding the five-year permit timeframes as certainty is necessary.