Government points to abuse of property regulations

The government today defended changes it made earlier this year to the scheme for the redemption of temporary ground rents on former Church properties, saying there had been abuses such as cases where properties were redeemed for a few hundred euro and then sold for hundreds of thousands of euro within days.

Reacting to a statement by the GRTU issued yesterday, the parliamentary secretariat responsible for public properties said its schemes were never meant to facilitate speculation. It pointed out that in terms of the Church-State agreement, properties transferred from the Church to the State had to be used for residential and social purposes.

Speculation was not a social purpose.

The GRTU complained yesterday that new conditions imposed by the government were discouraging the redevelopment of the properties. The conditions lay down that the purpose of the properties may not be changed and should a property be sold, a quarter of the sale price has to be transferred to the government.

The secretariat said the purpose of the regulations was to enable those having temporary emphyteusis on their property to become owners of their residence, and not to facilitate speculation.

It pointed out that the new regulations still allowed transfer of properties between members of the same family, legally separated couples and persons with disabilities.

See also

http://www.timesofmalta.com/articles/view/20090813/local/grtu-demands-changes-to-government-property-regulations