AD largely positive on rent White Paper

Alternattiva Demokratika thinks that overall, the White Paper on rent reform is a positive exercise which aims to reach a reasonable balance amongst the different interests in civil society.

It may still be improved if the government takes serious note of all the alternative proposals that will be made as part of the national debate on the subject, AD said.

The party said it was willing to act as a social and political partner in order to ensure a reform which is socially, economically and ecologically sustainable.

AD chairman Arnold Cassola, secretary general Victor Galea and the spokesman on sustainable development and local government, Carmel Cacopardo presented AD's proposals on the White Paper to the Minister for Social Policy, John Dalli. Mr Cacopardo, who prepared AD's position paper, said this is an area which should be given priority by the state so as to avoid situations of homelessness or substandard housing. A new housing policy should aim to assist the most vulnerable groups, groups which are at risk of poverty, and first-time house seekers. The proposed reforms differentiate between tenants on the basis of their economic status. Agreement to this recommendation would be dependent on the type of burden and who is to shoulder it, he said.

Mr Cacopardo added that the transitional "one time only" condition for the inheritance of lease is an acceptable compromise. The fact that this transition does not apply to persons with reasonable economic worth is also positive and fair. The only AD concern in this respect is the restricted definition of the family in the government's proposals which ignores emerging family units. Prof. Cassola said AD thinks that the White Paper proposal that pre-1995 commercial properties achieve full rental value after a 12-year transition period is excessive and should be reduced to six years.

"We also think that the proposal that all pre-1995 commercial tenancies will be terminated within 20 years as from June 1, 2008, unless landlord and tenant arrive at an agreement at an earlier date, is also too long. AD is of the opinion that the transition would be more than reasonable if it is reduced by half to 10 years."

The AD position paper says that what was initially very worrying, however, was the proposal to exempt political parties from the impacts of rent reform. This, however, was eventually clarified by Mr Dalli who in a public statement on national TV stated that political parties will not be exempted.