The controversial law exempting developments on hospital grounds from an environmental impact assessment is under discussion between the government and European Commission, after it was revealed the law may breach EU rules.
The Times of Malta reported that the law, enacted in summer on the eve of the Santa Marija feast, is not in line with the EU directive on EIAs – one of the EU laws most strictly enforced by Brussels to keep member states in check on the environment.
A Commission spokeswoman warned that a member state could not legislate to introduce an automatic exemption without considering the nature of the project. Such blanket exceptions could only be invoked in cases of national security.
But the government is standing its ground, telling this newspaper it had its own legal advice on the matter, which it intended to follow up and discuss with the Commission.
“The government is not yet notified that the legal notice you refer to is not in line with EU law. Following the report in the Times of Malta, the government has engaged in talks with the European Commission to seek clarifications on the matter,” a spokesman said.
The exemption was accompanied by a separate legal notice, also issued on August 14, under which no development permit will be required for developments on hospital grounds.
A planning expert had told this newspaper that the EIA exemption was likely to set Malta on a collision course with the Commission. A high proportion of cases before the European Court of Justice are about alleged breaches of this directive.
This could also spell trouble for the developers, as banks might be reluctant to continue financing the project
This was confirmed by a spokeswoman for the Commission. The ECJ, she said, had repeatedly stated that by establishing criteria exempting in practice all projects of a certain type from requiring an EIA, member states exceed the limits of their discretion. The exception is if a project is not likely to have significant effects on the environment.
She insisted the method adopted by a member state to determine whether or not a project needs to be assessed must not undermine the objective of the directive: no project likely to have significant effects on the environment should be exempted from assessment.
An exception can only be made if a comprehensive screening shows the project is unlikely to have a negative impact.
Asked about possible repercussions if the Commission took legal action against Malta, a legal expert said this could also spell trouble for the developers, as banks might be reluctant to continue financing the project.
The exemption was granted a few weeks after the government announced that Singaporean firm Vitals Global Healthcare had been chosen as the preferred bidder for a €200 million investment in the redevelopment of the former St Luke’s Hospital and the Gozo General Hospital.
The latter site will also host a new medical school and campus to be used by Barts Medical School.
Questions sent to the director of Vitals Global Healthcare over 10 days ago were not answered.
Mater Dei, Mount Carmel and St Vincent de Paul were also included in the EIA exemptions granted by the legal notice.
Last August the government justified this development exemption by saying it would accelerate its plans to address the shortage of beds in public hospitals and help to improve healthcare services.
caroline.muscat@timesofmalta.com