Is private enterprise encouraged in Malta?

While it seems that everybody in Malta pays lip-service to the notion of a free market economy, I do not think that the authorities actively encourage investment, at least not by the small- to medium-sized entrepreneur. We can, in some measure, hold the Malta Environment and Planning Authority responsible for this state of affairs.

A recent experience clearly illustrates what I mean. In May of last year, our company submitted an application to the authority for permission to change the use of premises in Republic Street, Valletta from that for the sale of domestic appliances to the operation of a coffee shop. These premises had been licensed to conduct retail business for more than 70 years, so I did not foresee any problems.

After we clarified some minor details, the PA finally accepted our application on June 18, 2001. When acknowledging our application, the authority informed us that our request would be adjudicated by not later than September 18, 2001. How efficient, I thought.

With this date in mind, my company started to make preparations. As we slowly approached the date of September 18, I decided to chase the case officer at the PA for confirmation that this deadline would be met. Every time I was fortunate enough (have you ever tried to speak to somebody at PA?) to speak to this officer, I was told that our application was being processed.

September 18 came and went and our application had not been processed. Now the nightmare started. Endless telephone calls and personal visits by our architect ensued and every time the feedback was "soon come", as the Jamaicans say.

Pressure mounted and on December 10, 2001, I was verbally informed by the case officer that her report would be finalised that week and passed to the board for their decision. Nothing of this came to pass.

Christmas arrived and as is the norm in in Malta, nothing much happens for two or three weeks. After Christmas, with my patience all but exhausted and on the verge of abandoning our small project, I decided to raise the tempo and request the intervention of the bigwigs at the authority but even that did not produce the desired effect. Days turned to weeks and to months and all the time I was told: "soon come".

Then like a bolt out of the blue, on February 19, 2002, I was informed that our friendly case officer had made a recommendation for refusal. I was stunned. Frantic calls ensued and it transpired that the problem lay with the "Access to All" policy which basically aims to provide easy access to persons with a disability into all premises.

After more submissions, amendments and explanations, I was once again informed by the case officer that everything was in order but again it seemed that I was trying to squeeze blood out of a stone as our report was left in limbo.

A date of April 22, 2002, was set for the DCC board to adjudicate our application. The following morning, I phoned the PA seeking confirmation that our request had finally been approved but wonder of wonders the board secretary told me that our case had been deferred.

"To when", I asked? "Don't know", she replied. "What do you mean, you don't know", I insisted. "That's the way the system works here", was her curt reply.

That was not the end of it. A couple of days later we received a letter from the DCC board asking us to submit details of the roller shutter which we were going to install as in their words "the existing door is surely not going to be retained".

I did not know that the DCC also had clairvoyant powers. I phoned the PA offices next day and after listening to "hold the line please" for eight minutes, I tried to explain our situation to a senior administrative assistant and assured her that we had no intention of installing a roller shutter and every intention of retaining the existing door.

Our application was finally approved on May 28, 2002 after my company was obliged to pay Lm7,200 which, although termed as "a contribution towards a commuted parking scheme", is, in my opinion, nothing less than a tax on new development.

Why all this hassle and aggravation? How is it that the authorities accept a situation where it takes a full nine months for an applicant to be told that there are some items of non-compliance in his application?

Do we really expect our economy to move forward with these restrictive practices in place? Why cannot we eradicate a system that is held in contempt for the sheer volume of regulations that in the end oppress initiative?

This state of affairs also causes business and morality to move apart as it makes it virtually impossible to succeed without the systematic evasion of the law. The minister responsible must insist that the MEPA gets its act together.

Why do we not make a serious attempt to embrace the American system that encourages people to unleash their energy and skills to generate economic growth? This is just one of the reasons why America is the richest nation on earth.

The MEPA has truly grown into "sanctimonious and bureaucratic behemoth" which is out of control. The level of service it provides leaves much to be desired, to say the least. Malta is a loser because of its inability to act quickly. I do not accept the stance taken by many politicians who state that the MEPA is autonomous and therefore beyond reproach. The MEPA was set up by parliament and therefore is answerable to parliament and ultimately to the Maltese people.

It is unacceptable for the adjudication of a simple change-of-use application to take 12 months. The entrepreneur deserves and demands a better deal.