The Nationalist Party and the Labour Party have traded arguments over a recent housing scheme.

The PN issued a statement first. It said it is fully aware of the social challenge many young people are facing, including that of becoming homeowners. "It is the Government's duty to address this challenge, as it is trying to give the impression it is doing. However, with the latest housing scheme announced for first-time buyers, the Labour Government, which claims to stand up for the little guy, is in fact doing the opposite, enabling big developers to benefit heavily from subsidies that could have gone to the people, had the Government built the apartments itself."

The PN said that under the scheme announced for first-time buyers, the Government "will give public land to selected developers, who will pay only what is referred to as 'ground rent'. The land will effectively be given away for free to these developers, who will then build the apartments and allow the Government to sell them at commercial rates with a condition that a 30% subsidy is applied to the final price."

"This means that the chosen developers will make higher profits than they would if operating on the open market. In fact, it is estimated that in the private sector, land accounts for around 60% of the total development cost. Therefore, if under this scheme the developer is only required to provide a 30% subsidy, they will still retain a considerable profit since the land was given to them for free. It is true that ground rent must be paid but we know this cost will ultimately be passed on to the buyer," the PN said. 

"The Government is being overly generous with the developers selected for this scheme. Had the Government built the apartments itself, this profit could have been transferred into a much larger subsidy. It is unfortunate that, when faced with criticism and valid concerns, Minister Roderick Galdes chose to go on Labour Party media and lash out, even on a personal level, rather than provide clear answers to the legitimate doubts being raised. The PN believes that although this scheme appears to assist those who wish to purchase their first home, and while it would be good for the Government to try to address this difficulty, it would have been far wiser and more transparent to avoid launching a convoluted scheme riddled with shadows and the stench of impropriety. Instead, the Government should have built these apartments itself and sold them at cost. Had it done so, the subsidy would have been far greater."

The statement was signed by PN MP Ivan Bartolo, Shadow Minister for Social and Affordable Housing, Pensions and the Fight Against Poverty

In response, the Labour Party said that the PN first votes in favour and then attacks a social measure aimed to help more young people become homeowners

"It is surprising how the Nationalist Party is retracting about the initiative for affordable housing launched by the Foundation for Affordable Housing, a foundation co-founded by the Government and the Church."

Just a few weeks after the PN voted in favour of the initiative it has now come out against it and is not trusting an independent body such as the Foundation for Affordable Housing which is made up of members of the Government and the Church, the PL said.

"What the Nationalist Party is proposing will not lead anywhere other than to bring the country into greater debt as well as creating financial problems in order to carry out a similar project."

"The initiative for affordable housing is a joint government-church project designed to avoid both increased financial issues and burdens as well as delays in having more housing stock for those in need as well as delays in such a social project."

"The PN spokesperson is factually incorrect that land is provided for free to build 260 new dwellings at affordable prices. The PN spokesperson is repeating what the MDA said, that it is no more than an allegation and not a truthful one. The land will be contracted by tender and there are payment of fees, leases and other charges which will go to the Affordable Housing Foundation to enable it to do more projects," the PL said.

"It is clear that the Nationalist Party is concerned that with this model the government will continue to offer adequate solutions for those who until now have never been able to become homeowners because of the price of the property. The government will not allow the market driven approach while the Nationalist Party opposes everything including such a social project."

"Because they are afraid of competition and because the government has come up with a solution with the Church, the PN has now come up against the initiative and against young people being able to obtain affordable housing for their own pockets," the PL said.