The authorities do not care

The summer months were hell for Xemxija residents. They had to bear continuous excavation works at the former Mistra Village site, notwithstanding that during the summer months such works ought to have been on hold in terms of a tourism related restriction. These works are the cause of nuisance not just to tourists but more to residents in view of both excessive noise and the continuous generation of dust.

Unfortunately, the authorities do not care. Their priorities continuously prefer the building construction industry to the residential community. It is only when they are faced with a serious accident that they try to give the impression that they care. Their crocodile tears, reforms and public inquiries impress no one, nowadays.

The Planning Authority website informs us that the current development planning permit (PA 6747/18) for the Mistra Village project is valid until the 29 April 2024.

 It was approved in February 2019 and  renews a previous permit. Its validity has been contested by Xemxija residents through a planning appeal. The point at issue is that applicable land use planning policies, had, in the meantime, changed. Yet the planning authority rubberstamped a renewed development planning permit notwithstanding that it is obliged in terms of the Development Planning Act to reassess the original application if no works have been taken in hand.

The case ended up at the Court of Appeal, which, on 10 May 2023 identified this shortcoming and sent the case back to be re-examined by the Environment and Planning Review Tribunal (EPRT). In his judgement, Chief Justice Mark Chetcuti pointed out that the presentation by the developer of a commencement notice, on its own, is not sufficient proof that the site is committed. Actual proof of commitment is required. As a result, it is therefore questionable whether such an application for renewal should be exempted from being re-examined by the Planning Authority in the light of new policies.

This is the reason, as a result of which, suddenly, excavation works were taken in hand almost round-the-clock!

Perusal of the Planning Authority website reveals that the Building & Construction Authority (BCA) only authorised the commencement of excavation works in March 2023 just a few weeks before the Chief Justice delivered his verdict, and many months after the permit was actually renewed. The Planning Authority assesses applications haphazardly, continuously favouring developers and ignoring those factors which contribute to a realistic critical analysis of what is being proposed.

In addition, no one is monitoring the excessive noise and dust generated as a result of the development in hand. The noise and dust are causing neighbours in the residential area surrounding the site, unnecessary stress and distress.

All this is being done in order to build more flats and penthouses, a substantial number of which will remain vacant or underutilised, even if sold.

St Paul’s Bay, which is home to Mistra Village at Xemxija,  has 37.3 per cent of its residential units which are either vacant or else underutilised. (Mellieħa is in close second place with 36 per cent of its housing stock in the vacant/underutilised category). The 2021 Census report on residential property published recently identified 7,377 flats and penthouses in St Paul’s Bay which, on Census Day, were either vacant or underutilised. Underutilisation meaning that the property is being used as a secondary residence or for seasonal accommodation.

Where do we go from here?

Part of the current mess would have been avoided if no works commence prior to the conclusion of land use planning appeal proceedings.

The problems however run much deeper than that. The authorities generally act prejudicially in favour of development and developers. It is an almost unconscious attitude which is deeply ingrained within the DNA of the authorities. Residents are considered as a nuisance. They are generally ignored and rarely factored into policies and decisions taken.

At the end of the day, it is no wonder that development and developers run roughshod over our residential communities. They are aware that the authorities are pre-programmed in their favour.

What we need is not just a behavioural change within the institutions. Change within the institutional DNA is the urgent requirement. Maybe having the residents themselves take the decisions on the actual permissible development in their neighbourhood is what is really required. Then we will have the required change. As the authorities do not care.

published on The Malta Independent on Sunday: 1 October 2023

The island of villages is under threat

Regional development policy seeks to improve the well-being of regions. Within the European Union it is commonly referred to as the cohesion policy. Through regional policy one seeks to eliminate disparities between regions: it encourages, assists, and finances initiatives to bring this about.

A draft Gozo Regional Development Strategy was published for public consultation very recently. It identifies the basic characteristics of Gozo and seeks to present a blueprint for the future of the island.

The draft strategy makes interesting reading. It contrasts with, and, at times, it is even in conflict with current policy and practice. There is nothing wrong with this, as it denotes a willingness for change from within. Whether this will eventually translate into concrete action is still to be seen. It is however a positive first step and must be recognised as such.

The basic philosophy of the strategy is encapsulated in the term “an island of villages”, used to describe Gozo.  The smallness of the village is used in contrast to the relatively larger urban areas. The term conveys a sense of calmness resulting from being one with nature, which is easily accessible in the village. Fields surrounding the villages link them directly to nature, radiating vitality. Most importantly, nature is respected in the village. It provides us with food and basic ecological services. It is our constant partner which, if we handle with care, will never let us down.

The smallness of the village is beautiful, economist Ernst Schumacher would have emphasised. Schumacher’s work grew out of his study of village-based economics. The full title of his work is: “Small is beautiful. A study of economics as if people mattered.” Economics is not just about numbers and so-called growth. At the end of the day, it is about people. Unfortunately, people are not always taken into consideration when policies are formulated.

The “island of villages” has been under siege for quite some time. It is a victim of overdevelopment. The 2021 Census report on residential property, just published, quantifies the extent of the problem: 45 per cent of residential property in Gozo is either vacant or under-used, in view of its use for seasonal or secondary accommodation. This statistic for the Gozo Region stands out in contrast to that for other regions. At a national level 27.5 per cent of residential property is vacant or under-utilised. The numbers for the Western region, at 22.1 per cent, are practically half the Gozo statistic.

This identifies a major threat to the “island of villages”. Why build so much if the resulting development remains vacant or else is hardly used. Can we, as a country, afford to keep churning out flats which remain vacant or unutilised for a long time and destroy our agricultural land in the process? This does not contribute to a positive quality of life. The island of villages is slowly being transformed into a ghost island.

The draft strategy apparently wants to end all this and dwells at length on the need to nurture a sustainable urban environment. Speaking on a point of principle, the authors of the strategy are right. It is however essential that they move on from words to concrete targets and action.

The point of departure for this strategy of “the island of villages” is that 45 per cent of its built-up area is vacant. At Marsalforn the relative percentage is even higher: a staggering 66.8 per cent of residential units were vacant on Census Day! This is not justifiable, not even on the grounds that Marsalforn is a seaside resort.

This has not happened overnight. It has developed one block at a time. It has accelerated with the decisions taken to extend the development zone in 2006 through the rationalisation exercise. Then, as a result, one million square metres of ODZ land became suitable for development. The practical results are here for all to see. It keeps getting worse by the minute.

The “island of villages”, as a result, is developing into a ghost island. Practically half of its residential property is vacant.

The Gozo Regional Development Authority is right to emphasise all this. However, I have to point out that it has no authority to take action to remedy the situation. That rests with the “Planning Authority” which has meticulously planned and implemented this whole mess.

Where do we go from here?

As a minimum we need a moratorium on large scale development, not just in the “island of villages”, but all over the Maltese islands.  The rationalisation exercise must be scrapped the soonest. It must necessarily follow that the building construction industry must be cut down to size. It has caused too much damage to the country. The threat to the island of villages must be forcefully addressed.

published in The Malta Independent on Sunday: 24 September 2023

Small is always beautiful

The Gozo Regional Development Strategy document, published for public consultation last week, is different from the crap which is usually fed into the consultation process.

It makes sense to speak of Gozo as an island of villages, reminiscent of German-born British econpmist E.F.Schumacher’s opus Small is beautiful. This is precisely the reason why Greens in Malta have continuously opposed the monstrous underwater tunnel between Malta and Gozo.

The tunnel would, among other things, discard Gozo’s unique characteristics. As a result of the projected tunnel, Gozo would no longer be an island of villages: it would be transformed into one village, one of many in the Maltese archipelago.

It is heartening, after so many years, for Labour in government, to realise this basic fact and start speaking some sense on regional planning and development.  It is definitely never too late to learn from past mistakes!

This is, however, just the beginning. Only time will tell whether this is just another exercise in greenwashing.

Many years ago, the Greens in Malta had proposed a specific target for Gozo’s Regional Development Strategy: Gozo as an eco-island. Government’s proposals are possibly slowly inching in that direction. It could do much better if it specifies this objective clearly and, in more detail, instead of going round in circles. This would necessarily mean having long-term behavioural change as a strategic objective, embedded in the Gozo document.

The proposed strategy speaks on the objective of a sustainable urban environment. Yet, the 2021 census report on residential property, just published, indicates that Gozo is the region with the highest proportion of vacant/under-used residential property in the Maltese islands. It is currently quantified at 45 per cent of the Gozitan housing stock. By no stretch of the imagination can this be classified as “sustainable”. 

It is a tough nut to crack overdevelopment which has been left to its own jungle rules for so long. A moratorium on large-scale development is an essential prerequisite as a first step to bring our house in order. This is an objective which I have been speaking on for ages. Its applicability should not be restricted to the Gozitan mainland.

The strategy rightly speaks on carbon neutrality and suggests that this could be achieved in Gozo much earlier than its attainment on the Maltese mainland. The generation of more renewable energy is one of the contributing elements to achieving this goal.

Another important measure is that of addressing the use of private cars. Applying a sustainable transport policy is crucial in this respect.

The strategy indicates that second thoughts on the undersea tunnel are possibly in the pipeline. This would potentially reduce a substantial number of cars from Gozitan roads.

It is pertinent to remember that the Gordon Cordina’s “feasibility study” on the Gozo tunnel had opined that car movements between the islands had to treble from 3,000 to 9,000 daily in order to ensure economic feasibility of the projected tunnel. 

If this issue is settled by shelfing the tunnel project, the number of cars on the road would still need to be addressed forcefully to inch our way towards carbon neutrality.

Small distances between localities in Gozo would be an encouragement to use public transport if this were more efficient: both punctual and frequent. The benefits resulting through such a transport modal shift would be substantial.

Transport electrification will not do much to achieve carbon neutrality. While contributing to a better air quality in our streets it would however add substantially to the daily consumption of electricity and make it much more difficult to achieve carbon neutrality. Hence the need for a modal shift.

There is also the issue of restricting car movements between the islands which the strategy ignores. Applying the polluter pays principle, an integral part of Maltese environmental law, one could consider the introduction of a congestion charge for private cars crossing over from Malta to Gozo.

This could work wonders to achieving a better air quality. It would also free Gozitan streets from a continuous vehicular invasion.

Small is really beautiful. Let us translate this reality into a better quality of life for all. The draft Gozo Regional Development strategy document is an opportunity which, if properly managed, can lead in this direction.

Published in The Times of Malta : 19 September 2023

Vacant properties: an investment or a launderette?

The publication of the 2021 Census Report on the characteristics of existing residential property once, more focuses the spotlight on the urban sprawl and in particular on the substantial number of vacant or under-utilised dwellings available in these islands.

On the day of the Census, the existence of 297,304 dwellings was recorded. Of these 81,613 were grouped as either vacant or else as being dwellings having a seasonal or secondary use. It works out at 27.5 per cent of the housing stock which at a national level is under-utilised. This varies regionally from a 22.1 per cent low, in the Western region, to a 45 per cent high in Gozo! From a 15.5 per cent low at Santa Luċija Malta to a 66.8 per cent high at Iż-Zebbuġ Gozo, which locality includes the seaside resort of Marsalforn.

While the Marsalforn numbers are most probably, primarily, a reflection of the predominantly seasonal accommodation in the locality, the overall numbers are still a cause for concern. The situation gets progressively worse.

The total number of vacant or under-utilised dwellings, 81,613, is equivalent to 6 times the size of residential Sliema or 8 times the size of residential B’Kara or 9 times that of residential Mosta. Given the small size of the country these numbers are substantial. They indicate the strain on both the environment as well as the public purse which is resulting from over-development.  These under-utilised dwellings are served with the required infrastructural services:  roads, electricity, public sewers and water services at a substantial public expense, which could have been more beneficially used in other areas where existing dwellings are actually in use, continuously!

The reasons for existing residential property being vacant or only being used occasionally are various. One cannot generalise. The census itself, in fact, identifies around 6,000 residential units as being in a shell state on the date of the Census.

There are several issues which should be considered and acted upon. Hopefully they will not be once more ignored.

With over 80,000 vacant or under-utilised properties, what sense does it make to continue dishing out development permits for large scale developments which keep adding to the stock of vacant properties? One of the major contributors to the creation of this mess is undoubtedly the land use planning rationalisation exercise, which in 2006 added one million square metres to the development zone. These are currently being developed.

With over 80,000 vacant or partially used properties it makes no sense to have a waiting list at the Housing Authority for those seeking alternative accommodation. The Housing Authority should tap the existing housing stock, rather than add to it, in order to address its waiting list immediately. The current projects of the Housing Authority are a waste of resources when such a large number of properties are available. This is bad governance of the worst kind.

A third consideration is to tax long-term vacant properties. It does not make any environmental sense to develop land (including agricultural land) and subsequently to keep the developed property vacant. Nor does it make economic sense to invest so much without seeking to recover economic benefits in the form of rent. Those who persist in keeping their properties unused in the long term should pay a vacant property tax which would in part compensate the public exchequer for the expenditure incurred in creating the ghost towns made up of these 81,613 vacant or under-utilised properties.

Taxing long-term vacant properties could encourage their being placed on the market, to the benefit of all. As a result, they would possibly avoid the tax altogether! The tax would have achieved its purpose in encouraging the use of all existing properties. It would have achieved its purpose of causing a behavioural change. This is the objective of most environmental taxes.

There is another issue: that of money laundering through property investment. Since Malta made it to the grey list of the Financial Action Task Force (FATF) a number of years ago, some attention is being paid to the property launderette, as both Estate Agents as well as Notaries are carrying out some form of due diligence on property which is being sold. It is not unheard of for a property sale not materialising if there is doubt on the source of funds invested or being invested.  Investigating properly unexplained sources of wealth would contribute substantially not only to cleaning up the country but also in addressing the stock of vacant properties.

The use of property to launder illicit gains is not a new phenomenon. Regulatory initiatives in this respect are however still in their infancy.

The primary conclusion from this Census is a clear message to the Planning Authority to get its house in order. Why build so much to keep the resulting residential units vacant? It is a question we have been asking for years. Unfortunately, they are not bothered to answer!

published on The Malta Independent on Sunday: 10 September 2023