GRTU wants proposals on commercial rents withdrawn
GRTU’s Executive Council on Wednesday will consider a motion calling on the Prime Minister to withdraw the government proposals for a reform of commercial rents.
The proposals were announced in the White Paper on rent reform.
The GRTU said a survey it had carried out showed that the proposals, if brought into force, would negatively affect an extremely large number of businesses.
"It proves that the government’s strategy to rush through with the Commercial Property Reform piggyback on the reforms of residential properties is ill thought and poorly supported by facts and statistics," the GRTU said.
It said that there were businesses which over the years had paid rents which today appeared small. Those rents had been originally based on rates of return that equated very favourably with the cost of construction or purchase of the same properties. Over the years many of these tenants paid hefty sums of money, most times as large or larger than the value of the property, to obtain particular rights and ensure continuity or succession of their business, the GRTU said.
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Andrew Azzopardi
Jul 11th 2008, 22:21
The Government's agenda is clear: the elimination of small, traditional shops ('mom and pop shops'). In the bright new scheme of things, there would be only chain storesand franchises mostly located in the new shopping malls under construction or planned all over the Island.
Rent reform is only the pretext.
Mario Cachia
Jul 11th 2008, 19:52
What a cheek!! After all these years reeking in profits from their businesses while paying a pittance of a rent to the landlords, you must have a cheek to moan about this now. The rent law as it is now is daylight robbery and nothing else.
Not only should the rent law white paper not be withdrawn, it should do away with the absurd 20 year time lapse and give back the property to the rightful owners with immedeate effect.
Then if the tenants want to negotiate , let them negotiate at today's prices.
Let the market regulate the prices!
I propose that all commercial properties not bound by a contract after 1995 should be returned to their rightful owners by jan 1st 2009.!!!
albert leone ganado
Jul 11th 2008, 17:28
What outrageous cheek of the GRTU and what a specious argument to back the status quo.
May I suggest that by the same argument clients should pay the same prices for goods as when these commercial outlets negotiated their original rents.
Doesn't the GRTU realise that this situation is also distorting the fair field of trade for a person setting up a new business and paying today's rents has to compete with businesses who have no premise costs to factor into their prices.
joe felice pace
Jul 11th 2008, 17:17
Yes, "tenants paid hefty sums of money". Which means that they make even heftier sums of money! This is like certain categories of transport workers, always moaning that they do not make money, and yet licences change hands at thousands of pounds. I have been around to long to believe such moaning
j dimech
Jul 11th 2008, 16:33
How outright obscene. And what a ridiculous and selfish argument.. Reading today's online times of malta is somewhat nerving, the PTA, GRTU and Restaurant Owners, one and sundry endeavouring to keep a business buoyant by calling the rules of the game and in the process creating an injustice and/or a disservice. Are we truly European and Catholic !
Eric Psaila
Jul 11th 2008, 16:21
What about the poor landlords. Ironic to call property owners receiving miserable rent landlords. Although not good enough for the landlords it is a start. Well done for this white paper. GRTU members is it just you who can make money to afford lovely cars, possibly even boats and all the riches of this world. Come off it and stop complaining that rents cannot be paid. Everyone deserves a share of the cake. You want it all. High prices low costs/wages and high profits. Due to the EURO we have complete transparancy. Price comparisons are earier today and we all know that the Maltese consumer is being taken for a ride. Surely you are making big profits.