Issue link: https://maltatoday.uberflip.com/i/1072992
14 maltatoday | SUNDAY • 20 JANUARY 2019 NEWS ANALYSIS JAMES DEBONO TURN back the clock to 2007, when a record 11,343 dwell- ings were approved under the Lawrence Gonzi administra- tion a year after local plans had allowed higher buildings in most towns, and development boundaries were extended to the benefit of the developers' lobby. However… stricter planning rules after 2008 introduced to assuage discontentment in the PN's pale blue heartlands, left smaller developers even more frustrated at seeing bigger cats pig- ging on land acquired in previous land grabs. Added to this was the impact of an eco- nomic downturn, which meant that developers were mak- ing less hay, as the sun lost its shine. The PN had simply lost its abil- ity to keep everyone in the construction sector happy… and the perception that some animals were more equal than others, crept in. By 2013 Malta saw a new rea- lignment, with Labour's Joseph Muscat managing to forge an unofficial coalition with the newly-formed Malta Develop- ers Association. Upon being elected, it was Muscat's turn to keep everyone in the construc- tion industry happy by opening the floodgates of development through astute measures, like translating height limitations in local plans from storeys to metres, injecting new life in the construction industry. Amid an economic boom, permits for dwellings swelled from just 2,707 in 2013 to 9,006 in 2017. It was time for developers to follow Sandro Chetcuti's advice to make hay while the sun shines, without even resorting to drastic meas- ures like extending develop- ment zones. Does the latest turn – where the MDA actually warns of economic suicide if govern- ment distorts the property market by selling public land on the cheap and even threat- ening legal action – suggest that the times have changed again and what risks is Muscat facing? 1. Muscat has lost the ability to keep everyone happy Widening the circle of ben- eficiaries of planning policies and decisions is one major factor distinguishing Muscat from previous PN-led govern- ments, which were perceived to favour a clique. In this way, Muscat has in- creased the number of those who have a stake in maintaining the sta- tus quo. But by of- fering public land on the cheap to Corinthia, Muscat risks fuelling the p e r c e p t i o n that some 'animals' are more equal than others. The MDA had always been scepti- cal on land grabs benefitting individ- ual companies. They had objected to the man- ner in which the ex-ITS site deal was valued and passed on to the Seabank Group for €15 million. But this time around, they are even more vocifer- ous. Muscat's failure to get a Paceville masterplan approved before deals are signed with individual developers suggests that he is facing conflicting pressures from different own- ers who want their piece of cake. This risks creating an unholy alliance between the developers in the area. Yet Muscat probably still has enough cards in his sleeves to keep everyone happy. Land reclama- tion, housing projects and the pending re- vision of local plans may all be cards which Muscat can use to win over developers who are now frustrated at seeing Corinthia getting a preferential deal, but who would be willing to oblige when they are the ones to benefit. 2. He has provided an opportunity to the PN to re- enter the game By pressing on with the Corinthia deal Muscat may have given the PN the oppor- tunity to reconnect with the developers' lobby on an issue which also angers environ- mentalists. It is therefore no surprise that Adrian Delia, who had been very lukewarm on con- fronting the DB group over its high-rise project, has taken a firmer stand against the Corin- thia deal. Corinthia may have miscalculated opposition in the PN, banking on its historic ability to wield influence with both parties, having offered jobs to former ministers like Karmenu Vella (PL) and John Dalli (PN). Ironically one of the last land deeds approved by a Nationalist government was a The sun still shines. But who is making most hay? Five risks Muscat faces with the Corinthia deal The Malta Developers Association is on the warpath over a deal to allow IHI plc a 99-year extension for land leased on St George's Bay and develop 100,000 square metres of residential and office space – thereby lifting a restriction on touristic development – for just a premium of €17 million. Is this the first sign of cracks in the coalition, which kept Muscat in good graces of the business establishment? Developers fear that projects like Corinthia's risk excluding them from the lucrative high- end market, thanks to land sold off on the cheap Joseph Muscat Sandro Chetcuti