Land Minister Jason Azzopardi has justified a decision to rent parking bays from the private sector, saying the move will free up car spaces in Valletta.
Dr Azzopardi was answering questions sent by The Times on the €3.2 million expense the Government will incur to rent out 100 parking slots at the MCP car park in Floriana.
“These 100 car spaces will serve to vacate car spaces used by the Government inside Valletta and will also serve the requirements of the new Parliament premises,” Dr Azzopardi said.
The arrangement forms part of the lease extension agreement approved by Parliament’s Audit Committee last week. The MCP operators’ lease was extended but they are obliged to build up the middle section of the multi-storey car park and roof it over with a public garden. The extension will provide 400 spaces.
Nationalist backbencher Jesmond Mugliett resigned from the committee claiming the expense was too high and the valuation too simplistic.
The €3.2 million will be paid in the first 10 years and the slots will be available for the whole 94-year lease period.
Asked to clarify how the rate charged to the Government was different from commercial rates charged by MCP, Dr Azzopardi resorted to “a simple calculation”.
“If one had to make a simple calculation by dividing the €3.2 million by 94 years and the result further divided by 100 spaces, the end result is €340 per annum... this will result in a rate of less than €1per day,” Dr Azzopardi said.
He added the rate charged to the Government was different because it was set for all the period of the emphyteutical grant.
But Mr Mugliett yesterday insisted the calculation of a lease-hold over a definite period could be arrived at by “a discounted cash flow calculation”.
This is not a simple calculation, he added, where the critical factor was the discount rate used.
Mr Mugliett, who failed to raise any objection during the committee meeting which he took part in before resigning, said the calculation would have needed a thorough examination and discussion.
This was not possible in the committee because MPs did not have the valuation calculations and explanation beforehand, he added.
“Members of the committee should have been treated with better respect... rather than having to make rudimentary questions at the only opportunity available.”
Mr Mugliett had walked out of the committee meeting after submitting his resignation to its chairman Deputy Prime Minister Tonio Borg.
“I left, rather than questioning the calculation process since I knew that a satisfactory answer to further questions would not be forthcoming,” he insisted.
However, he did not explain why he failed to voice his objections before his resignation.
ksansone@timesofmalta.com