Compensation claim for Valletta works nonsensical – ministry

The Infrastructure Ministry yesterday dismissed as “nonsensical” claims for compensation by the Valletta business community because of the adverse effect paving works in the city were having on business.

The ministry said the business community commended the work just last week.

Reacting to the call for compensation by the Chamber of Small and Medium Enterprises – GRTU, the ministry pointed out that while its director-general, Vince Farrugia was demanding compensation, the union’s lawyer, Jan-Karl Farrugia, sent a letter to the ministry thanking it for “the rapid progress and little inconvenience that the project has caused to the shop community”.

“The GRTU, or at least its director general, does not seem to be aware that before and throughout the implementation of the embellishment works, the GRTU and the shop owners were fully consulted and informed through meetings, direct mailings and advertising. Moreover, before the start of works on each phase (or street), at least one meeting was held on site with the GRTU, many times in the presence of the shop owners themselves,” the ministry said.

When contacted, Mr Farrugia did not agree at all.

“There was zero consultation. When we attended meetings it was because we got to know about them and not because we were invited. We had to beg to attend a meeting on something which is infringing on the profitability of our members. Unless we cry, beg and scream, the business community is given very little consideration,” he said. Referring to the letter quoted by the ministry, Mr Farrugia said it was only about shop owners in St John’s Street.

He said that, rather than compare statements and letters, the ministry ought to consult with shop owners before embarking on projects of this magnitude.

“Shop owners in Valletta are not willing to pay their trading licences till the whole paving and construction works in Valletta are completed. The loss of business is tremendous while shops’ liabilities continue to grow as sales fall and fall. Why should traders pay their trading licence when they cannot trade,” he said.

The ministry insisted that the paving of the pedestrian areas of Valletta and the upgrading of its entrance were projects that had long been required by all, first and foremost by the shop owners represented by the GRTU.

It said the work represented “an unprecedented standard of provision for pedestrian access, disruption minimisation and site management... but there was no construct­ion project that was immune from any form of inconvenience”.

On the timing of the works, the ministry said the project actually started in February, which, according to shop owners, was a good month for works. It was paused for festivities, and on their explicit request, such as Mothers’ Day and Easter. The ministry said the work intensified in summer because of various practical reasons, including the Parliament recess, the reduced workload of the law courts and other entities, the reduced operating hours of several establishments including commercial ones as well as the request by shop owners to have works completed well before Christmas.

“The GRTU seems to suggest that no upgrading works should ever occur in case they cause inconvenience to shop owners. But, as their criticism before the works started so loudly claimed, the shopping business cannot thrive in a city which is allowed to degenerate and which is starved of the investment it needs to be upgraded,” the ministry said.