Need for services to foreign investors

Labour MP Roderick Galdes said the opposition was ready to give its contribution so that problems arising from the suspended Permanent Residents Scheme would be solved and that the best mechanism would be established to ensure a smooth transition. Discussion and political maturity would contribute to stabilise the market.

When the scheme was suspended there were promises of sale amounting to millions of euros. Therefore, direction had to be given on any pending applications. At the same time, the opposition agreed that abuses had to be curtailed.

It seemed that during the last 25 years, the government had failed to update or to review the scheme to reflect changed circumstances. It was wrong to suspend the scheme instead of substituting it with another one.

Foreigners investing in property on the island created economic activity and they had paid €5.6 million in taxes in 2008. Everyone agreed that one had to attract foreigners who would not be a burden on the state.

If the problems were linked to thresholds, it was the government’s duty not to let the scheme become unsustainable. It had to take action at a time when the construction industry was vulnerable because of the international recession, the Libyan crisis and problems linked with Mepa. There were about 60,000 properties which were vacant and other properties which needed major restoration work. Workers in other industries were also suffering because the construction industry had a large ripple effect.

Mr Galdes said that the property market scheme had to be marketed as part of Malta’s initiative to become a financial and cultural centre. One had to project Malta as a country where it was safe to invest. He said that at the moment there was no synergy on how the authorities could provide services to foreigners interested in investing in Malta.

The schemes should not be too rigid, Mr Galdes said.