Opposition sees proposed ground rent of Casino Maltese as too low

Members of the opposition complained yesterday that the ground rent which the government was proposing to charge the Casino Maltese under a new contract was too low.

The contract forms part of a parliamentary resolution debated by the House Audit Committee.

Parliamentary Secretary Carmelo Mifsud Bonnici explained that in terms of the resolution, the lease of the Casino Maltese, which would expire in 2006, was being terminated and a new 50 year contract was being drawn up, with the ground rent being raised from the current £1,400 a year to Lm3,000, revisable at an additional five per cent every five years.

The government would also be taking over a number of ground floor shops which used to pay their rent to the club.

Opposition deputy leader Charles Mangion said that when the initial contract was drawn up in 1906, the lease was already £1,400. The increase which was now being proposed did not reflect a span of 100 years.

He also pointed out that while all the contracts for the other concessions had a "no discrimination" clause, this one did not.

Dr Mifsud Bonnici said that although the club did not discriminate between men and women, there were rooms which were reserved strictly for women and a room which was strictly for men.

Labour MP Joe Brincat asked if one had considered whether the building could be put to better use for the country. Could it, for example, be transformed into a museum of political history?

Committee chairman Lawrence Gonzi said this would be a positive initiative which could be taken up by the Casino Maltese itself.

The contract was then approved by the committee, but the opposition voted against.

The opposition also voted against concessions of property to the Birkirkara Tennis Club at a ground rent of Lm500 for 49 years and the Attard Scout Group and the Attard Girl Guides at Lm150 each for 49 years. The ground rent in each case may be revised upwards by 10 per cent every five years.

Dr Mangion pointed out that while the Casino Maltese ground rent was revisable at five per cent, these three concessions had a ground rent which could be revised at 10 per cent. The opposition felt the revision in these cases too should be of five per cent.

Dr Mifsud Bonnici said that while these three contracts would be automatically renewed, that of the Casino Maltese would not.

A concession to the Atlam Subaqua Club at Bahar ic-Caghaq for 49 years at Lm600 revisable at 10 per cent every five years and the renewal of the contract of the International Institute of Aging for another 10 years were approved unanimously.

However since the committee did not agree unanimously on all the concessions, the resolution will have to be debated in a plenary sitting of the House. The debate is expected to take place on Monday.