Rent reform is long overdue

Over the years, successive governments have refrained from carrying out essential far-reaching changes to rent legislation.

The emergency which justified the original restrictive legislation was instead made more restrictive over the years. Court decisions from Valletta to Strasbourg denouncing the current state of play have been piling up. The rent reforms of 1995 and 2008 cannot be discarded, however they were not followed up. They were appropriate small first steps but too much time elapsed with no adequate follow-up action. Successive governments have been reluctant to disturb a hornet’s nest hoping that somehow time will solve the matter.

It is within this context that Government’s proposal to carry out a root and branch reform of the 9,700 remaining pre-1995 tenancies is thus a responsible and courageous political move. Through it government will be shouldering the accumulated shortcomings of all its predecessors, red and blue, which have generally ignored the matter over the years. The Greens in Malta have over the years actively campaigned on this specific issue: justice for the landlords must be carried out together with adequate protection of vulnerable tenants.

At the time of writing the statements made by Prime Minister Robert Abela and Social Accommodation Minister Roderick Galdes have not been followed up with the publication of the specific legal texts which will implement the policy declarations made.

The proposals as described so far, are, in my view acceptable in principle. It is however expected that when the detailed legislative proposals are published, these are accompanied by studies carried out, including costings. An essential healthy public debate needs to be adequately buttressed by well-researched background information.

The proposal as spelled out by Abela and Galdes is based on two fundamental points. It seeks to tread the difficult path of protecting both tenants and landlords.

Tenant protection will be achieved through ensuring that vulnerable tenants will at all times have access to a home, be it their current one or, in some cases, possible alternatives provided through access to social accommodation. This is essentially a transitory provision applicable to the identified 9,700 pre-1995 tenancies and is undoubtedly a restrictive condition on landlords. It is however of central importance. It is to be counterbalanced by a mechanism which determines a more reasonable determination of rental income which will be coughed up by the state in part or in whole depending on the vulnerability of the tenant. It is also a mechanism which over the past years has generally been accepted by the Courts as constituting a fair and reasonable rental income.

Of fundamental importance in the proposal as communicated so far is the manner of determination of the payable rent. This will not be left completely to the whims of market forces as it will be capped at 2 per cent of the property’s value. This signifies that, hopefully, some lessons have been learnt from the fallout resulting from the complete liberalisation of the post-1995 rental market.   

The proposal will be addressing an accumulated social problem with a substantial financial outlay consisting of millions of euros annually.

So far, the rent payable in respect of pre-1995 tenancies have been subsidised by the landlords who, in a number of cases are themselves in need of help! It is appropriate that this support is shouldered by the whole community, through the state, who now steps forward to shoulder the problem in the spirit of national solidarity.

So far most have acknowledged that pre-1995 tenancies are a tough challenge. What matters, now, is that we face this challenge head-on. It cannot be postponed any further.

published on The Malta Independent on Sunday: 7 March 2021

Nimmansaw is-suq tal-kera

Il-ġimgħa l-oħra 17-il għaqda, prinċipalment attivi fil-qasam soċjali, ippubblikaw dokument importanti intitolat “A Proposal for Rent Regulation in Malta” dwar dak li għandu jsir biex is-suq tal-kera jkun immansat. Dan id-dokument jipproponi li s-suq tal-kera jkun regulat u dan f’kuntest fejn dak kollu li għandu x’jaqsam mal-propjetá f’Malta tħalla jimxi għal riħu għal ħafna snin. Bosta approfittaw ruħhom minn dan u stagħnew inġustament, xi drabi minn fuq il-miżerja ta’ ħaddieħor.

Wasal iż-żmien għal ftit sens ta’ ġustizzja fis-suq tal-kera. Dawk vulnerabbli, bla ebda dubju l-iktar li ntlaqtu mir-rebus li ilu jiżviluppa prinċipalment mill-2008, ilhom jistennew li l-kuxjenza soċjali tal-pajjiż tagħti ftit kaz tas-suq tal-kera.

Il-ħolqien ta’ xibka soċjali, anke fil-qasam tal-kera, huwa prinċipalment responsabbilitá tal-Gvern. Il-Gvern jagħmel dan mhux biss billi jipprovdi oqsma residenzjali affordabbli għal dawk l-iktar vulnerabbli imma fuq kollox billi jiffaċilita l-aċċess għal suq tal-kera mmansat, jiġifieri suq relattivament ħieles imma suq li fl-istess ħin jkun wieħed ġust. Suq immansat hu wieħed li jopera f’parametri ġusti stabiliti mill-liġi: suq raġjonevoli għas-sidien imma ġust ma kull xorta ta’ inkwilin.

Il-mudell propost mill-koalizzjoni ta’ 17-il għaqda huwa bbażat fuq numru ta’ konsiderazzjonijiet bażiċi: id-dritt fundamentali għal post fejn toqgħod, id-distinzjoni ċara bejn id-drittijiet u d-doveri ta’ sid il-kera u l-inkwilin li t-tnejn għandhom dritt għal serħan il-moħħ, li jkun iffaċilitat is-suq tal-kera għall-kirjiet fit-tul, id-dritt tas-sidien li jistabilixxu l-kera inizzjali u l-mod kif din tkun varjata imma dejjem fil-qafas tal-parametri regolatorji intiżi biex jistabilixxu qafas ġust, kif ukoll li jkun iffaċilitat id-dħul fis-suq tal-kera ta’ propjetá presentement vojta għal diversi raġunijiet.

Id-dokument hu qasir ħafna, kull ma fih hu 12-il paġna. Imma hu mimli bi proposti li huma kemm validi kif ukoll li jħarsu fit-tul.

Hu pożittiv li s-Segretarju Parlamentari għad-Djar Roderick Galdes, li presentment qed jagħti l-aħħar irtokki għall- White Paper dwar is-suq tal-kera, meta kien qiegħed jiltaqa’ ma rapprezentanti ta’ dawn is-sbatax-il għaqda indika li, b’mod ġenerali, hu kien f’sintonija mal-għaqdiet fil-ħsieb tagħhom li jinbena mill-ġdid suq tal-kera li jkun jista’ jopera f’limiti ġusti u raġjonevoli.

Roderick Galdes, professjonist dwar l-ippjanar tal-użu tal-art, qiegħed f’posizzjoni unika bħala riżultat tal-esperjenzi inter-dixxiplinari tiegħu, li jassigura li l-politika dwar id-djar tidħol gradwalment fis-seklu wieħed u għoxrin wara li għal madwar tmenin sena kienet miżmuma milli tiżviluppa. Id-dikjarazzjoni tiegħu hi sors ta’ tama għal bosta li wara kollox hu possibli li suq tal-kera immansat jista’ jipprovdi kera ġusta.

Il-proposta fil-qalba tad-dokument tas-sbatax-il għaqda hi dwar il-ħtieġa li l-kirjiet ikunu kollha regolati minn ftehim li jsir bil-miktub. Dan il-ħsieb hu motivat mill-ħtieġa li d-drittijiet u l-obbligi kollha jkunu mfissra b’mod ċar u b’hekk jassigura l-kontroll tal-abbużi kontinwi, kemm mis-sidien kif ukoll mill-inkwilini. Fit-tfassil tal-proposti tagħhom il-koalizzjoni tal-għaqdiet għarblet l-esperjenzi ta’ diversi pajjiżi Ewropej, fejn (ġeneralment) jeżisti suq tal-kera b’saħħtu li hu ukoll wieħed ġust.

Alternattiva Demokratika ilha s-snin tħeġġeg dwar il-ħtieġa ta’ suq tal-kera b’saħħtu għax dan hu kemm ħtieġa soċjali kif ukoll ħtieġa ambjentali. Il-ħtieġijiet soċjali jkunu ndirizzati meta naqbdu t-triq li trid twassalna biex nassiguraw li d-dritt bażiku għal residenza diċenti jkun imnaqqax fil-liġijiet tagħna, kif ukoll applikata fil-prattika. Imma dan iwassal ukoll għal tnaqqis tal-impatti ambjentali tal-industrija tal-kostruzzjoni billi kemm-il darba jkun possibli li l-kera tkun waħda ġusta tonqos konsiderevolment il-pressjoni biex tkun żviluppata iktar art verġni, kif ukoll il-pressjoni fuq iż-żona ta’ konservazzjoni urbana u l-bini protett.

Alternattiva Demokratika taqbel b’mod ġenerali mal-proposta tal-għaqdiet. Sadanittant nistennew il-pubblikazzjoni tal-White Paper dwar ir-riforma tas-suq tal-kera u bla ebda dubju ser nieħdu sehem fid-dibattitu nazzjonali dwar is-suġġett. Għax wasal iż-żmien li s-suq tal-kera jkun immansat.

 

Ippubblikat fuq Illum : 4 ta’ Marzu 2018

 

Taming the Rental Market

The policy document entitled “A Proposal for Rent Regulation in Malta” published last week, has been endorsed by 17 NGOs that are mostly involved in the field of social action.

It is a proposal for rent regulation in a situation where everything concerned with property in Malta is spiralling out of control and has been in this state for a number of years. In the process, many have made lots of hay while the sun shone, frequently at the expense of vulnerable people.

It is about time that a sense of justice is restored in the rental market, and the sooner the better. The vulnerable – undoubtedly the hardest hit in the post 2008 free-for-all – have been patiently waiting for the country to listen to its social conscience regarding the rental market.

The creation of a social safety-net, even in rental matters, is primarily government’s responsibility. The government fulfils this not only through the direct provision of affordable housing to the most vulnerable, but also by facilitating access to a tamed rental market to the rest – a market which ought to be relatively free but fair at all times. A tamed market operates within reasonable and just limits: reasonable for landlords but also for a wide range of tenants.

The model proposed by the 17 NGO coalition is founded on a number of basic considerations: the fundamental right to a home, a clear demarcation of the rights and duties of landlords and tenants – both of which have the right to peace of mind, enhancing the long-let rental market, recognising the landlord’s right to establish the initial rent and its variation within a fair regulatory framework and incentivising entry into the rental market of property that is currently vacant for a variety of reasons.

The document is short and very brief, being just 12 pages long, yet it is brimming with far-reaching proposals.

It is encouraging that, when meeting representatives of the 17 NGOs, Parliamentary Secretary for Housing, Roderick Galdes – who is currently applying the finishing touches to a long-awaited White Paper on the Rental Market – indicated that he was generally on the same wavelength in seeking to reconstruct a rental market which operates within acceptable and socially fair limits.

Thanks to his inter-disciplinary experiences Galdes, a land-use planner by profession, is in a unique position to ensure that housing policy moves gradually into the 21st century after having been restrained for the past 80 years or so. His declaration is a source of hope to many that affordable housing can co-exist with a tamed rental market.

The central proposal of the NGO’s document is the need to ensure that all leases are drawn up in writing. This proposal is motivated by the need to clearly spell out rights and duties of both landlords and tenants, thereby ensuring that any abuse (by either) is, if possible, nipped in the bud. In their proposals, the coalition of NGOs drew on the experience of a multitude of other European countries where a healthy and (generally) fair rental market has been in existence for years.

For years, the Greens in Malta have been advocating the need of a healthy rental market, as this is both a social and an environmental necessity. Addressing the social necessity will ensure that we embark on the road which will lead to ensuring that the basic human right to having a decent home is entrenched in our laws and, hopefully, meticulously applied. This will also lead to a reduced environmental impact of the part of the construction industry, as the adequate development of a fair rental market will eventually decrease development pressures on virgin land as well as on urban conservation areas and protected buildings.

Alternattiva Demokratika – The Green Party is generally in agreement with the NGO Coalition’s proposal. We look forward to the publication of the White Paper on the reform of the rental market and will definitely be actively participating in the ensuing national debate.

Taming the rental market is a long overdue objective that should be relentlessly pursued.

published in The Malta Independent on Sunday – 4th March 2018

Malta’s finch-trapping at the European Court of Justice

 

On May 1, 2013, Roderick Galdes, Parliamentary Secretary responsible for Hunting and Trapping announced that a technical loophole had been found “that would allow the Government to present proposals to the European Union to allow bird-trapping in autumn.” The European Commission has not been impressed and the loophole referred to by Roderick Galdes will shortly be examined by the European Court of Justice.

During the negotiations leading to Malta’s accession to the European Union, bird-trapping had been one of the areas referred to in the treaty itself. In fact, the Treaty of Adhesion provided for a transition period at the end of which bird- trapping in Malta was to cease permanently. The cut-off date was 31 December 2008.

This limited concession was subject to a number of conditions relative to the setting-up of a captive bird  breeding programme which was to be introduced by 30 June 2005 as well as to carry out various studies intended to establish the numbers and types of species held and bred in aviaries as well as their mortality rate and their replenishment to sustain the genetic diversity of the captive species.

All this was ignored, notwithstanding the fact that, way back in 2004, the authorities had  detailed advice as to how this was to be implemented.

This is the current state of play: the interpretation of the rules as accepted on the date of Malta’s EU adhesion.

 

Earlier this week, the Commission of the European Union decided to refer Malta to the European Court of Justice because Malta is not committed to end finch- trapping. The following was stated by the Commission in an explanatory press release:

“The case concerns Malta’s decision to allow the live capture (i.e. trapping) of seven species of wild finches as of 2014. In the EU, the capture and keeping of bird species like finches is generally prohibited. However, member states may derogate from the strict protection requirement if there is no other satisfactory solution, and if the derogation is used judiciously, with small numbers and strict supervision. As these conditions have not been met in this case, the Commission sent a letter of formal notice in October 2014, urging Malta to refrain from allowing finch-trapping. Despite this warning, Malta went ahead as planned with the opening of a finch-trapping season in 2014. In response, the Commission sent a reasoned opinion to Malta in May 2015, urging Malta to end the practice. Malta has replied, contesting the Commission’s analysis. Since Malta has not committed to end finch-trapping, the Commission has therefore decided to refer Malta to the Court of Justice of the EU.”

In a background note the Commission further noted:

“In Europe, many species of wild birds are in decline, and markedly so in some cases. This decline disturbs the biological balance and is a serious threat to the natural environment.The EU Directive on the conservation of wild birds aims to protect all species of wild birds that occur naturally in the Union. The Directive bans activities that directly threaten birds such as deliberate killing or capture, destruction of nests and removal of eggs, and associated activities such as trading in live or dead birds, with a few exceptions. It also places great emphasis on the protection of habitats for endangered and migratory species, especially through the establishment of a network of Special Protection Areas (SPAs).

Article 9 of the directive provides limited scope for derogations from the requirement of strict protection where there is no other satisfactory solution, for instance, in the interests of public health and safety or air safety, to prevent serious damage to crops, livestock, forests, fisheries and water, and for the protection of flora and fauna. Derogations may also be permitted for the purposes of research and teaching, repopulation, reintroduction and for the breeding necessary for these purposes.

Malta was allowed a transitional arrangement in the Accession Treaty to phase out the trapping of finches, taking into account the time required to establish a captive breeding programme. The transitional arrangement expired in 2008.

The case concerns the live capture of seven species: chaffinch, linnet, goldfinch, greenfinch, hawfinch, serin and siskin.”

Published in The Malta Independent on Sunday – 27 September 2015