Malta Developers’ Association President gives a frank interview to Design & Build.
With a forthright approach, Sandro Chetcuti explains the reasons which prove that the Association genuinely has the environment to heart and shares his conviction that development and the environment can move forward together.
That the Malta Developers Association cares and respects the environment may seem by some to be a perfect example of a contradictory statement. But in reality, it does make much sense.
MDA’s President Sandro Chetcuti is adamant that the developers’ lobby can include the nurturing of a healthy environment. This statement is substantiated with a simple, yet powerful example. “If a person builds a house and incorporates a garden, adds a few trees, a pond – then they are adding value to the house. However, if when getting out of the front door all you find is confusion, badly planned areas and uneven roads – then the house immediately loses value. When a development’s surrounding environment is a result of proper planning then the value of that property is higher than if it isn’t. And therefore, when designing hotels or other developments – one should consider amenities such as grounds where one can walk and enjoy fresh air.”
The Association, has over time and time again, emphasised that the developer does not benefit from Malta being developed haphazardly. “No” he insists. “Development should be done wisely and carefully.” Chetcuti points out that it is the seasoned developer who has been in the business for years and for whom construction is the main source of income, who is most likely the one who is vilified because of his or her success. “The Association does have the environment on top of its Agenda. For the Association, the environment means having wide open spaces for people to relax in, play areas for children and trees to provide shade, improve air quality and climate amelioration.”
The environment is all about having well planned towns, wide open spaces, trees flourishing and play areas for children. This happens with money
The Association’s stand is that of ensuring a healthy environment. Chetcuti explains that the safeguarding environment is definitely not just about spending hundreds of thousands of euros on studies devoted towards, for example, a particular flower species (“whilst of course these are sometimes necessary, through experience the money and time spent on such studies whittle down to practically no tangible results”). “The environment is all about having well planned towns, wide open spaces, trees flourishing and play areas for children. This happens with money.” He believes that the income which the Government derives from from developments should be directly allotted towards enhancing the environment.
It is important to realise that a developer is required to pay a substantial planning gain tax – in addition to the other fees and levies that need to be paid in order for permits to be issued. The Association has long argued that the planning gain fee should not only contribute to the country’s infrastructure, but it should also contribute towards the environment – that means having open spaces surrounding the development in question.
Rabat’s urban environment planning is an apt example of developing a city’s surroundings in a manner which enhances the citizens’ quality of life.
Ensuring a good surrounding environment does not necessarily mean going to Dwejra to get a breath of fresh air. On the contrary, it means that at any point in time, residents should be able to have access to areas in the vicinity – that do not require car travel, where they can sit on benches area whilst children can play in safe open spaces.
The Association has long been badgering the Government to introduce more pedestrianised areas in village cores, thus limiting traffic in the area resulting in more clean air and less air, noise and light pollution.
The MDA recently announced the appointment of a Director General. Will this appointment lead towards a better synergy between development and the environment? I ask.
The Association, Chetcuti explains, had been looking for a competent individual to fill this role. What it was looking for was someone with the right credentials to discuss, argue and challenge Government when touching on the subject of the environment.
The Association firmly believes that former Nationalist Party Member of Parliament Dr Marthese Portelli fits the bill to a tee, particularly because she brings her direct experience in the field with her. This is due to her previous role of Shadow Minister for the Environment. Chetcuti furthermore underlined the fact that she cannot be accused of any conflicts of interest since she has no involvement in the construction industry in any way or another.
Dr Marthese Portelli brings into the MDA her wealth of political experience in protecting and enhancing the environment.
Her appointment also puts paid to insinuations that the Association has a partisan approach. Being ‘pro-Labour’ or in favour of the current Government was something it has been accused of many times. Moreover, it also should put an end to unfair judgements towards the Association and its perceived lack of interest towards the environment – mainly drawn from the fact that its members are obviously active within the industry they represent.
“Marthese Portelli being an ex-member of parliament for the Nationalist Party restates the Association’s policy of being impartial. The Association chose a person who is not involved in the industry but yet brings so much experience into the industry.” So, now that the Association has incorporated within it the role of Director General, will there be any changes to the role of the President? The Director General is chosen by the Council to be employed by the Association, whilst the President – an autonomous figure within the Association – and the Council – which are voluntary roles, are elected by the members. Going forward, the role of the President will be akin to that of a Non-Executive Chairman, Chetcuti clarifies.
Marthese Portelli being an ex-member of parliament for the Nationalist Party restates the Association’s policy of being impartial
Thus, Marthese Portelli’s appointment as Director General sends an important message to all stakeholders that the Association is serious in putting the industry at the forefront of sustainable and pro-environment policies.
At time of writing, as Malta is facing steep uncertainty, the Association is looked upon to “once again be a catalyst for a new economic revival”. Similar to the political instability undergone in the latter months of 2019, Chetcuti explains that the current situation has not hit everyone to the same degree. It all depends on the individual’s exposure – for someone who has been overtrading, then yes they will suffer challenging times. On the other hand, those who implemented sound business structures will, despite feeling the effects of the storm, weather it well.
“Tourism and Construction – the two main pillars of the Maltese economy, have suffered a strong direct hit. It is clear that Tourism has suffered the most and it will take time to recover. Likewise, construction. But if we can return to be the kind of protagonists, we were back in 2008 during the financial crisis, then we can soon be on a good road to recovery.”
The Association is looked upon to “once again be a catalyst for a new economic revival”
In 2008, when the financial crisis threatened to wreak havoc across the economies of Malta, the construction industry took a leading role in salvaging itself. This was achieved by working on diversified projects. Chetcuti feels that there could be a repetition of this in 2020. Of course, the will to move away from the construction of apartment buildings must be fostered for work towards the creation of other, more significant and relevant projects to take their stead: projects easing the parking problem the island is facing – environmental and social projects are cases in point that can help our industry to duly regain its balance. “After such a pandemic like this, it would be foolish to say that the industry would not be negatively impacted. The importance is now damage control.”
Tourism and Construction – the two main pillars of the Maltese economy, have suffered a strong direct hit
Properties that were purchased for short-term rental accommodations are almost at a standstill, not just because incoming travel has been blocked but also because prior to this, the Engligh Language based arrivals cancelled their placements in the thousands. Others that could be negatively impacted are those landlords whose tenants are foreign workers. However, particularly in this case of foreigners working legally in Malta, Chetcuti feels that with the world being in a far worse state than Malta currently is, they have little reason to leave. “One has to see if Malta is capable of bringing the economy back on its feet.” Chetcuti recalled that “even when the tables were turned and the rest of the world was in better situation shape than Malta was, foreign workers still preferred Malta.” He continued explaining that Malta needs to be a model of how such crises are handled – to be fair, the current situation is being handled brilliantly by the Government, who has taken a very balanced approach throughout.
In times like these, the Association continues to lobby with the Government so that it becomes more efficient with its processes and that current bureaucracy is reduced. Waiting for months is not an acceptable scenario. Chetcuti believes that Government should temporarily revise its property related taxation programmes; “few people know that around 40% of a project’s value goes towards taxes. This is a hefty sum and the Association is putting a case to Government to have this reduced until the industry gets back on track.”
On the topic of raw material shortage, Chetcuti does not feel that this will be a challenge. Malta has its own resources and there are sufficient quarries available. However, Government should take the opportunity to properly address the issues that are still pending when it comes to construction waste. Right now is the right time due to the industry having a bit of a slowdown. Attempting to implement procedures during busy times is certainly not favourable.
“If the Government wants to bring the economy back on its feet then even after the tsunami has passed, it must become less bureaucratic, more innovative and think outside the box. It should look at supporting projects that are recreational, thinking of schemes that support investors as well as first-time buyers.”
even when the tables were turned and the rest of the world was in better situation shape than Malta was, foreign workers still preferred Malta
This is not the first time that Maltese people have faced adversity. History has shown that when the population joins forces, supports each other and puts aside any differences, they emerge stronger and more united than ever before. Whilst this pandemic is perhaps the most serious case of hardship that Malta has faced in a long time, Chetcuti is confident that by pulling the same rope we can get back to life as we knew it until only recently.
Chetcuti concluded by pledging the Association’s commitment towards bringing stakeholders together to pull the same rope, with the environment clearly on top of their agenda.
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