The government has pointed to the slowdown in the property market and to tighter bank lending after its reform in the planning system was blamed by the Labour Party for the “drastic drop” in the number of development applications being submitted.

On Tuesday, Labour spokesman Roderick Galdes said it was the rise in tariffs, caused by the government’s “amateurish” planning, that was one of the main causes for the drop of 40 per cent in planning applications so far this year, as reported in The Times.

This lack of vision and added expense were going to further damage the property market, he said.

Mr Galdes, who is also a planning authority board member, pointed out that Prime Minister Lawrence Gonzi and Environment Parliamentary Secretary Mario de Marco had “boasted” that these new tariffs would lessen the burden on taxpayers.

However, as a result of the drop in applications, taxpayers were going to fork out the highest ever subsidy to the Malta Environment and Planning Authority.

The tariffs, he said, even failed to offer any incentive to people who wanted to rehabilitate an existing property, making it harder for those in the business.

In reply, the Environment Secretariat said the government was implementing the reforms needed for sustainable development and environment protection.

Labour’s statement criticising the drop in applications clashed with other statements it released in the past in which it had criticised the government for releasing land for development while there was a stock of vacant properties, the secretariat said.

“The opposition has to be clear and state whether it is in favour or against further development.”

It said the number of development applications had dropped partly because they went through a screening process that determined whether an application was acceptable in principle. This meant that the planning authority’s resources were being focused on applications that made sense.

Also, the property market – locally and internationally – was going through a difficult time and international banks were being strict in approving loans for development projects.

Through the measures implemented in the planning authority reform, the number of pending applications had fallen to 2,700 in 2011 from 4,300 in 2010, the secretariat added.