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maltatoday, SUNDAY, 4 JANUARY 2015 4 News Landlords to get right to increase paltry rents on controlled properties CONTINUED FROM PAGE 1 Although the Civil Code gives landlords the right to reclaim their property up- on termination of a lease, in 1979 the government passed a law to protect tenants so that any lease of up to 30 years contracted before 21 June, 1979, can be turned into a rental agreement. "Thousands of families who were leasing homes in the seventies went on to enjoy these properties at low rents, and then bequeathed these contracts to their children, leaving landlords no option but to accept measly rents for houses often worth millions on the marketplace," one lawyer – whose clients are peti- tioning the courts to reclaim their rent-controlled property – told MaltaToday. Under the changes the govern- ment will introduce in 2015 to ad- dress the injustice of the 1979 Act will be a statutory minimum rent, revisable every three years accord- ing to the cost of living index. Owners will also be allowed to raise the annual rent by a percent- age. Under the 2009 amendments to the Civil Code, this is set at 6% of the amount of expenses paid to effect repairs to the rented house. Tenancies cannot be inherited any longer and will be subject to a cut-off date for persons residing with the tenant for four years our of the last five years, but new rental payments will be determined by a means test. Landmark decision The automatic conversion of temporary leases into rental agree- ments is a primary bone of conten- tion between tenants and landlords, with the latter often up in arms due to the paltry rent-controlled pay- ments they are still receiving. One such landlord, and author- ity on the property market, Chris Testaferrata Moroni Viani, had described the situation with Mal- taToday as a "mass injustice" on landlords. "While providing indirect social housing and alleviating poverty concerns, the law has imposed a string of adverse effects on land- lords," Testaferrata had told this newspaper in November 2013. "Coupled with the paltry rents landlords receive and the fact that tenants can permanently reside in a dwelling owned by third parties, even after the expiration of the original lease, landlords have been facing a situation where they can- not enjoy their own property due to the automatic conversion," he said. Conversely, landlords also do not have the chance of taking back their rightful property, sometimes having to settle for rents as low as €116 a year, for example. In October 2013, the Court of Constitutional Appeal confirmed a landmark ruling that found that the automatic conversion of temporary leases into rental agreements, was illegal. Lawyers Cedric Mifsud and Michael Camilleri, who submitted the constitutional claim on behalf of their clients, said tenants claim- ing a permanent right to occupy a property which is not theirs, were now faced with a flawed legal basis for their right. In the case, the Court of Con- stitutional Appeal confirmed that tenants Andrè and Tessie Azzop- ardi could not avail themselves of the 1979 Act to rent a property at Lm100 (€233) a year, after the lease terminated back in 1991. They previously paid an annual emphyteusis of Lm50 (€116), be- fore the lease was automatically converted to a rental agreement. The rent at law could be reviewed every 15 years. The landlords, the heirs of Bar- tolomeo and Giuseppa Bezzina, had leased out their Gharghur property to the Azzopardis back in 1974, for a period of 17 years on an annual rent of Lm50. In 1991, the Azzopardis availed themselves of the right accorded to them by the Housing Decontrol Ordinance, and started renting out the property for Lm100 a year. The landlords claimed that the real rental value as verified by the court-appointed expert was €9,800 in 2011 – just an example of the sheer disproportionality of the rents Additionally, the government had to pay the Bezzinas €15,000 in compensation for the rent, just the kind of natural consequence to the unjust law that the government can no longer tolerate. Amato Gauci ruling The seminal ruling that is forcing the Maltese government to amend its rent laws is the Amato Gauci case, which Malta lost in 2009 in the European Court of Human Rights. In the Amato Gauci case, the ECHR said that a fair balance had to be struck between the demands of the general community for hous- ing protection, and the protection of an individual's fundamental rights. Given the low rent payable – just €210 in annual rent – in the Amato Gauci case, the European Court said that the Maltese government had "failed to strike the requisite fair balance" and awarded the land- lord compensation. The house had been leased out for Lm90 in 1975 for 25 years, and was later converted into a rental con- tract in 2000 – without the consent of the owner. The European Court of Human Rights is considered to be the third level in judicial remedy – once the government is found guilty of com- promising the right of the landlords to enjoy one's property, the ECHR holds Malta liable for damages and demands changes to the law. St Aloysius rector confident that Church will respect law in its 'Catholics-only' teachers plan MATTHEW AGIUS THE Rector of St Aloysius' Col- lege, Fr Jimmy Bartolo SJ, has as- sured the public that a document emerging from an internal discus- sion to have top church school teachers to be practising Catholics would "naturally, respect employ- ment law and the constitution of the country". While slamming the "prema- ture" media reports of the draft document – 'Practising Catholic' as a requirement for eligibility and selection of staff in Church Schools – Bartolo stopped short of commenting on the document's imposition that those employed by Church schools need to have made "substantive life choices" that are in line with the Catholic faith. He said a report in MaltaToday that suggested that "substantive life choices" as a criterion for se- lection could, by definition, close the door to the employment of di- vorced teachers, gay teachers, sin- gle parents who have had children out of wedlock, or even parents of IVF children, were "simply fears". "There are entire paragraphs of what are simply lies – I don't know where you got the stuff about gay teachers and IVF," Bartolo said. "These are simply fears, but there is no truth to them. There are some things in these articles that are simply lies that sling mud at the Church. "It is irresponsible to take a docu- ment that is still a work in progress and massacre it," he added. Bartolo explained that the reason behind the proposed imposition of the "practising Catholic" condition was mainly a question of direction, as leaders promote their values in the vision and mission of an insti- tution. However, the specifics the plans by the Catholic Education Sec- retariat to reserve top teaching posts for "practising Catholics" only are to remain under wraps for the time being. "The docu- ment is still being discussed and is, therefore, a 'work in progress'," Bartolo said. "The important thing is that the ethos of the school is preserved. When parents send their children to a Catholic school they expect a Catholic formation. Therefore we must ensure this is given," he said. "From our end we would want to ensure this formation is given in a holistic manner that encom- passes faith, intellectual and social development. A Catholic school must have the opportunity to offer these things. "Obviously the values of the lead- er of an institution stand out. If you want to ensure that an institution is Catholic – or Muslim or Jewish for that matter – you do not place as leader a person who does not share those values," Bartolo said. The Jesuit would not be drawn to comment on the definition of the term "substantive life choices" repeatedly mentioned in the docu- ment, however. "Nobody is saying that the per- sons we employ must be perfect," said the Rector, "but once parents have chosen something for their children, they have a right to re- ceive it." He also expressed confidence that the heads of Catholic schools have the necessary "experience and wis- dom" to integrate their expertise into the document. "Once it is finalised, everyone can comment on what it contains, but until then we should refrain from speculation." The leaked document had in- curred the wrath of the Malta Union of Teachers (MUT), who reacted by releasing a scathing statement condemning the plans as blatantly contrary to Maltese employment laws and practices and indeed to "the most basic and fundamental human rights such as the right to privacy, the right to family life, inclusion and equal- ity". The union had warned that it was prepared to take any necessary ac- tion in order to protect members from what it described as "employ- ment practices reminiscent of the middle ages". Some days later, on 29 December, the union released a second state- ment in which it advised its mem- bers that initial talks had been held between the union, Apostolic Ad- ministrator Bishop Charles Sciclu- na and Gozo Bishop Mario Grech, resulting in bilateral agreement at least with regards to the principles discussed. The bishops had assured the un- ion that, amongst other things, the Church had no intention of in- vestigating the private lives of its educators. The union suspended its ac- tion and further discussions are planned. Bartolo pointed out that talks between the schools and the MUT are now underway and expressed confidence that the issue will be resolved soon, with the final text eventually being incorporated in the collective agreement. magius@mediatoday.com.mt Fr Jimmy Bartolo SJ