Principles and reform

Political forces in today's society cannot simply sit still and adopt a voyeuristic type of approach to the developments that occur around us. We need to carry out analyses on an ongoing basis, contribute to discussion and see that things get done irrespective of electoral deadlines.

It is in this context that Labour published its initial reaction to the Government's White Paper on Rent Reform. This is the first time that Labour has come up with such a document to a White Paper since it was always argued that the Opposition should only react once the government had articulated its position through draft legislation. Even though this attitude might be technically correct, I believe that it is our role as representatives of practically half the population to contribute to discussion from early on.

Our reaction is based on the principles which will guide us in this debate, the points of convergence and issues which have been ignored or which have not been addressed in a satisfactory fashion.

Once the government comes up with draft legislation including the specifics, we will be able to put forward our suggestions and detailed amendments.

The guiding principle in the analysis of these and other proposals is that of social justice, accompanied with that of sustainable development and environment protection.

Everyone must be treated in a just manner, be it landlords who for many years were not paid a fair price for the property they put on the market, or tenants - especially the most vulnerable categories - who cannot foot the bill for the inertia in this sector for so many decades.

The solution lies within a balanced approach. By "balanced", one does not mean "piecemeal" but rather one that recognises the different realities and aims at achieving a fair deal. The solution should not be short-term but rather one that is economically and socially future-proof.

This is the essence of progressive politics.

Within this context, there is the possibility of convergence with the government on a number of points of principle stated in the White Paper.

These include the fact that it is the state's role to provide social accommodation and mitigate the impact of transition to reasonable market conditions. We can also agree on the fact that there is a need to stimulate a balanced accommodation market consisting of a mix of home ownership, rented accommodation and social inclusion.

Despite its intent to provide a holistic approach to the accommodation market, the White Paper fails to provide such a vision. The cohesive methodology between the different markets is identifiable only sporadically.

The government seems to indicate that it thinks that the rent option is there only for those who cannot afford to buy their own residence. This is not the signal that one would expect from a legislator that wants to change the way in which the option to rent is perceived.

This is both socially and economically undesirable.

One huge disappointment in the White Paper is the way in which important social realities in our society have been either forgotten or ignored.

Take the right to inheritance. The government's proposal limits it to a husband or a wife who is married and is not separated.

Realities such as cohabitating couples, same-sex relationships and same-family members living together are not addressed.

We need an avantgardist legislation which can be adapted to developments in civil rights that could be implemented in the time to come.

There are sectors that have been totally overlooked despite the fact that they have tremendous potential. For example, one can mention student accommodation, where one can start with the only category that makes use of this service to date, that is Gozitan students attending university.

Everyone pays lip service to small enterprise and the self-employed. Nevertheless, as the proof of the pudding is in the eating, this White Paper does not seem to envisage small business in the best way possible.

Labour believes in the country's entrepreneurs within the context of a vision where there is more competition, more work, more choice and thus more consumer protection.

Small enterprise policy cannot be limited to statements but must be felt in such an important reform.

Liberalisation is a means to an end and not an end in itself. Furthermore, we have to learn from experience. Back in 1995 there was a political consensus for reform of rent contracts from that year onwards.

Unfortunately, not only did that liberalisation not lead to more property being put up for rent but they actually decreased. People living in rented accommodation decreased while uninhabited properties increased.

There are two facts that are evident from what happened over the past 12 years. On one hand, many people still opt to buy property when the amount being paid for rent is in many instances similar to that of monthly mortgage repayments. On the other hand, the lack of a system that provides for clear rules and proper conflict resolution within a definite period discourages landlords from putting property up for rent.

Thus, there is the need for a better model of liberalisation.

Dr Muscat is leader of the Malta Labour Party and a member of the European Parliament.