'The right time to review all housing schemes' - Cristina

Education Minister Dolores Cristina told Parliament yesterday that she agreed with Social Policy Minister John Dalli that this was the opportune time to have a thorough review of all Housing Authority schemes. She also believed in incentives rather than penalties for owners to put their vacant properties on the rental market.

She said that over the years, the government had taken measures to alleviate the housing shortage through schemes for construction and maintenance and even financial initiatives.

It was a PN government which in 1995 had started the rent reform when it released new agreements from being regulated by the restrictive legislation, which had been introduced as a solution at the time. The biggest mistake was that no Administration had started dismantling the restrictive regulations, and society now had a compounded problem in its lap.

It was impossible to please everybody, but the government would continue to protect the vulnerable and do justice to property owners. It had been difficult to arrive at the present Bill which, although not perfect and could be refined, gave a sound basis for the government's targets.

Mrs Cristina said she was surprised by the Leader of the Opposition's call that the government withdraw the Bill. How had he arrived at this conclusion? The Bill contained proposals which provided solutions.

For a number of years the opposition had only played with words, asking what had happened to the reform. It was a pity that the opposition thought it was exempt from submitting its comments on the White Paper. The same position had been taken on the pension reform Bill.

The opposition feedback had never arrived, apart from reservations announced when the Bill was introduced. The government was still awaiting the amendments the opposition would introduce in committee stage.

The minister said that for a number of years, the necessary protection had been extended even to those who did not qualify for it, and this was one of the main reasons why there needed to be a transitional period. Because of the social and financial impact, things must be done slowly.

She said she did not agree that no prior socio-economic studies, research or assessment had been carried out. The government had taken its time to embark on very detailed research through the 2005 census, in which a number of questions had been tailored to arrive at the statistical information.

This had been compared to the information emanating from 1995, and certain profiling had been extracted. The annex and the information given in the White Paper gave a clear picture of where the rented accommodation existed and the tenants' age brackets.

The survey on income and living conditions had also been used to arrive at the profiling of those living in low-rented accommodation.

Mrs Cristina said the government must always look at ways and means to help those tenants who would be adversely hit.

She agreed with Social Policy Minister John Dalli who said this was the opportune time to have a thorough review of all Housing Authority schemes.

The authority already had many schemes which could help tenants at risk, in particular the rent subsidy scheme and the care and repair scheme which could both be extended to help the vulnerable, especially a number of women on a low income.

Mrs Cristina referred to the fact that, as from January 1, the Bill made it mandatory for a written agreement between the owner and the tenant. Tenants without a written agreement did not have peace of mind or stability.

Others were not even given a receipt and therefore they could not apply for rent subsidy schemes. Some owners, seeking to evade tax, pressured tenants not to divulge from whom they were renting. While owners had a right to enjoy the benefits of their property, tenants must also be protected.

The government had some 60 units leased to old people who were now in government institutions, under the so-called "double provisions". Some of these units had been vacant for five years when there was a dearth of social accommodation.

The de-requisitioning exercise was quick-paced, and as a result thousands of units had reverted to the owners while tenants remained protected. Notwithstanding, the owners remained hesitant to rent out. She said she believed in incentives rather than penalties for owners to put their vacant properties on the rental market.

She said that the Bill would make the government more responsible as to social accommodation. Clubs and property housing NGOs should be defined as commercial premises.