Relief for farmers as ground rent conditions are changed

Farmers who were granted farmland at Qammiegh on temporary emphyteusis in the 1960s are having their contract conditions changed because they would otherwise have seen their ground rent rise 100- fold, Home Affairs Minister Tonio Borg has told a parliamentary committee.

He said the land was granted to farmers between 1966 and 1967 on an emphyteusis of 99 years. The contract conditions had laid down that ground rent would be revised after 33 years and 66 years according to the current value of the land.

When the first contracts came up for revision in 1999, the Lands Department established that the ground rents should be revised to around Lm100. The farmers, who used to pay Lm1, "were not amused."

Dr Borg said that the Cabinet had decided to change the revision criteria so that the rents would be revised on the basis of inflation, not the current value of the land. This meant that ground rent would rise to an average of Lm5.

Care was being taken, however, to ensure there was no abuse. Tenants, therefore, would not be able to transfer their land to anyone other than their relatives. If they did, the original conditions would apply.

The change to the contract conditions is part of a six point motion on the transfer of property being discussed by the committee.

The motion also provides for a site near St Mary`s Hospital in Luqa to be transferred to the Foundation for Social Security Services on emphyteusis for Lm100 a year.

A storehouse in Marsa is to be transferred to the Eden Foundation for Lm200 a year and the former Naafi bakery in Marsa is being sold to Maltacom for Lm250,000. Dr Borg said the price had been established by the previous administration.

He said tenement 178 Merchants` Street, Valletta, was being passed on to the YMCA for Lm150 a year.

He said several sites were also being transferred to sports organisations on emphyteusis or lease, depending on the type of title the government enjoyed on that particular property.

Labour MP Joe Cilia said that where the government was passing on land to sports organisations on lease, it should have shown further commitment with the organisations concerned by telling them that this could be changed to emphyteusis if it acquired that particular place. This would encourage the clubs to invest in their concessions.

The debate continues.

The committee earlier approved the financial estimates of the Office of the Auditor-General. The estimates were also approved by the House yesterday.