Issue link: https://maltatoday.uberflip.com/i/405994
maltatoday, WEDNESDAY, 29 OCTOBER 2014 3 News Republic Street, Valletta next to the Courts China to pay €7.8 million for the acquisition of Pembroke land MIRIAM DALLI THE Chinese government is set to pay €7,880,000 to acquire an 11,115 square metre site in Suffolk Street, Pembroke, for the construction of a new embassy. A copy of the draft deed was pre- sented before a parliamentary com- mittee approving various resolu- tions for the transfer of government properties. The resolution pertaining to the Chinese transfer was however put on hold as the Nationalist Opposi- tion sought reassurances that the proposed development would not negatively impact the residents. "In principle we don't disagree on collaborations with China for the setting up of an embassy, which forms an integral part of diplomatic relations. Our question is however on what impact it may have on the residential zone and whether there will be any height limitations. We would however prefer if the resolu- tion is approved once we have stud- ied the plans and any impacts on the zone have been analysed," National- ist MP Tonio Fenech said. Parliamentary secretary for plan- ning Michael Falzon explained that the contract was modeled on the contract signed by the previous administration for the acquisition of the land in Ta' Qali for the con- struction of the American embassy. "The deed is to effectively sell the land in question so we do not have any plans. But once at planning phase, they would have to follow the same processes and normal regula- tions as per any other development," the junior minister said. Fenech went on to ask the com- mittee to postpone the approval of the resolution to the next sitting, allowing the Nationalist parliamen- tary group to discuss the matter. The property is being sold on the condition that "it is to be used solely and exclusively" for the building of an embassy. A local plan to accommodate the construction of a massive Chinese embassy in Pembroke were ap- proved under the previous govern- ment. The process to locate the Chinese embassy in Pembroke had started in January 2012 when amendments for the local plan were issued for pub- lic consultation and finalised on 15 November 2012 when the amend- ment was approved by the MEPA board. The amendment deemed the site as being suitable for the develop- ment of an embassy, as it is located within extensive landscaped open areas and directly adjacent to a planned road that is to link Regional Road with Pembroke. In the local plan approved by the government in 2006, the area now earmarked for an embassy had been previously allocated for the devel- opment of three-storey high mai- sonettes and flats on the condition that mature trees found in the area are safeguarded. According to these plans the em- bassy will be constructed within development zones, as the area was already scheduled for development since the 1990s, even though it has remained undeveloped for the past two decades. The local plan stipulated that a maximum of 304 new housing units could be built in this zone, as well as in another area of the same size in Pembroke, which was also allocated for housing, in the local plan. In February 2007, MaltaToday reported that China had asked the government for a plot of land of up to 10,000 square metres in Pem- broke – a prime site that has been earmarked for development by for- eign powers since World War II. The land earmarked in the local plan changes – roughly the size of the existing Pembroke cemetery – was significantly smaller than that envisaged in 2007, but still consid- erably larger than the present Chi- nese Embassy in St Julian's. Air Malta chairperson warns politicians to 'hold back' CONTINUES FROM PAGE 1 The Air Malta chairperson said that the airline is "confident, that subject to no surprises, the target we set our- selves this July, to keep our losses at last year's level of €16 million by the end of March 2015, is achiev- able." Although this will not be possi- ble in the short term, she said this is possible if the government sup- ports the airline in its restructur- ing efforts. These efforts, Micallef said, must include the sale of the Selmun Palace Hotel by March 2015 and the renegotiation of sev- eral major contracts, such as the catering one. Moreover, in the next few months Air Malta will bring in new avia- tion experts on board as it embarks on a f leet renewal project, which Micallef said will help the airline grow and sustain its revenue "and give us major cost savings." Looking ahead Micallef warned, "Air Malta must get out of restruc- turing mode and start thinking of long-term sustainability beyond 2016". She added that the airline has one last chance for long-term survival and has 17 months "to get it right". "If we are to make this work, and I am confident we will, we need eve- ryone's support. In some cases, this means holding back. That is my message to politicians, both gov- ernment and opposition." Asked to elaborate on her warn- ing, Micallef reiterated "all I'm saying is let the board and man- agement focus on the commercial challenges ahead." Now in its fourth year, the Euro- pean Commission's €230 million restructuring plan for Air Malta was meant to bring Air Malta's deficit under control. Under the restructuring plan mandated by the European Com- mission, Air Malta has managed to stabilise and reduce its operating losses for two consecutive years af- ter it had halved its workforce. But amidst increasing compe- tition and the suspension of the Libya route – one of Air Malta's most lucrative routes – the airline's revenues are under pressure and Micallef said that the airline lost €1 million a month since the suspen- sion of f lights to and from Libya. Previous Air Malta chairpersons had publicly supported the notion of privatisation or part-privitiasa- tion, however when asked by this newspaper what her position was, Micallef said "firstly we expect the government to keep its commit- ment to remain the majority share- holder in the foreseeable future". Moreover, she added, "we must ensure that if any initiative is taken this should lead to an increase in the economies of scale and an in- crease in volumes. We should only look at options which lead to an in- crease in earnings". On his part, tourism minister Edward Zammit Lewis said the government acknowledges how important it is to make a success out of the restructuring plan and insisted that although the "plan is not on track, we intend to reach the targets and achieve the goals set by the European Commission". Underlining the government's commitment to see Air Malta sur- vive, Zammit Lewis said "we have full confidence in the chairper- son, the board of directors and all employees and if everyone works together we can make it. We can make Air Malta a success story." PHOTOGRAPHY BY RAY ATTARD Maria Micallef