Updated 7.30 p.m. 

Mepa said this evening that its tariffs currently did not include the cost of printing services related to the processing of development permits, but it reiterated that bills issued to a number of clients were an administrative error, and they had been withdrawn.

The Authority issued an explanation after Labour spokesman Roderick Galdes in the morning slammed the charges, describing them as a tax and saying they were illegal because Mepa tariffs are regulated by legal notice.

The bills were also criticised by the Developers’ Association.

Mepa explained that prior to the 2010 reform, it used to request applicants to submit six hard copies of their development application documents when the development was in a development scheme. Applications for planning permits outside development zones (ODZ) entailed the submission of eight hard copies. These documents inlcuded plans, site plans, application forms, and photos.

In 2007, it  introduced the E-Applications system and most  architects submitted their applications electronically. As a result, the authority reduced the submission of printed documents from six hard copies to four.  

When the MEPA reform was put into effect, the new E-applications system became mandatory. Therefore, all planning applications are to be submitted digitally by the architect. Mepa became responsible to offically print and file the applications, forwarding copies tot he various authorities and bodies which needed to be consulted over the various applications.

Once the application process was finalised, an additional three copies of the approved documents were printed and handed to the applicant, the architect and enforcement officials.

The present tariffs, issued through Legal Notice LN58/2011, did  not include printing services, the Authority said.

“The Authority is evaluating the costs of this service as per application. Expenses vary accordingly. This exercise is being put forward to drastically reduce printing costs and resources. Bills issued by MEPA, for the request for payment of printing costs are to be excused as an administrative error. As a result, this morning, a circular was issued explaining that the bills were being withdrawn.”

The Malta Developers Association said that Mepa was 'totally insensitive' when it billed its clients for 'printing costs' related to their development application.

The association said the bills were issued without explanation as to how Mepa had decided the valuation of these expenses and whether these in fact reflected the actual costsof paper and printing.

"Once again, Mepa is showing that it is totally insensitive and is not understanding the circumstances in which the property industry in Malta finds itself today," the Developers' Association said.

Earlier, Mr Galdes said the bills issued by Mepa were  illegal as Mepa charges were regulated by legal notice.

He said Mepa had written to some 3,500 families, asking them to pay between €125 and €450.

He described the new charge as a 'new tax' and said it was illegal because Mepa fees were covered by legal notice.

He noted that in the last line of the letter, the clients were told that if they did not pay within 30 days, their application would be suspended.

He had confronted Mepa about the letter and was told by officials at 10 p.m. yesterday that the letters were 'an administrative mistake'. Mepa, he said, had told him that the letters would be revoked. He noted that some people had already paid and asked if they would be refunded.

He expressed his surprise how no one had noticed that a mistake was being made while the letters were printed, signed and packed for delivery.

Mr Galdes said that despite the exorbitant increase in planning applications which were supposed to cover printing costs, the authority was this year expected to make a loss of between €8 and €12 million.

He called on Prime Minister Lawrence Gonzi to explain.

Shortly after Mr Galdes's press conference, Mepa said that its was withdrawing its requests for payment and the affected applicants would be receiving a letter informing them of this decision in the coming days.