Stephen McCarthy, CEO at the Housing Authority
In general, the sustained economic growth that we are experiencing has been accompanied by sustained increases in the standards of living and welfare of the Maltese and Gozitan citizens. The IMF, the European Commission and various credit rating agencies have credited the current government with achieving an economic growth for the Maltese islands that is one of the strongest in Europe, “reflected by rapid income convergence towards the EU average”.
This success has been achieved through the government’s hard work in facilitating a favourable business environment to its primary actors by providing prudent policies and the necessary structural reforms. The government’s pro-business stance or its push towards the free market was the key to wealth creation. While nowadays there is almost complete consensus on such policy stances, one finds it hard to accept the problems that are associated with the free market.
One case in point is the housing market which is experiencing hefty increases in rental accommodation. While direct intervention in the market through rent control is highly undesirable, some market regulation may be necessary until market forces will push rents to more affordable levels. The government, through its budgetary measures and long-term housing policies, is effectively addressing social housing problems.
The housing problem can never be completely eradicated but appropriate measures can definitely contain it. Specific sectors of society may be more vulnerable to fluctuations in rental accommodation than others.
One particular case involves that of the Gozitan students who opt to study at Maltese educational institutions such as the University of Malta, Mcast, ITS and others. The Gozitan University Group, among others, was right to raise their concern with respect to affordable accommodation for Gozitan university students who reside in Malta for the duration of their studies.
The main issues concern the fact that: (i) an increase in rent resulting in paying €150 for a shared room in Msida near the University eats away a large chunk of their stipends and the €500 quarterly grant; (ii) it causes financial hardships on their families; (iii) it makes them more dependent on their parents and less independent compared to their Maltese counterparts; (iv) if education is for free then how come they have to pay for rent and living expenses. Some reflections on these issues may be appropriate.
Some market regulation may be necessary
No doubt Gozitan students are at a disadvantage when compared to Maltese students. The question more often than not is one of extent and potential remedies. To put everything in perspective, as has been discussed earlier, Gozitan families must also have gained from the benefits of higher sustained economic growth and positive policy measures as Maltese families.
It is true that higher rent expenditures make students more dependent on their parents but higher grants make them more dependent on the State. Many Maltese students seek financial independence by working part-time. Also rents tend to be higher in Msida so accommodation should be sought elsewhere.
One may furthermore point out that some Gozitans own their own Msida flats/apartments. Free education does not mean everything else is free. It is worth considering what other countries offer as free education. Furthermore, education in Malta is supplemented by a munificent stipend system.
The cost outlay on education is ever increasing with new and better services being offered. This is desirable as long as it is sustainable. Nevertheless, one must acknowledge that Gozitan students studying in Malta is an issue. As such, a serious study on the needs of Gozitan students must be undertaken, especially to identify those who truly deserve further state support.
A long-term solution is for the University of Malta to offer Gozitan students accommodation places at its students residence with the possibility of the State subsidising.
Beppe Galea, European Studies graduate and vice-chairman of the European Democrat Students.
How many times have you heard someone complaining about the sorry traffic situation in Malta? After a long day’s work, the last thing anyone wants is to spend an hour, sometimes more, stuck in our infamous traffic. This is why, hundreds of Gozitan students prefer to rent a flat close to University Campus instead of crossing all the way from Gozo and back every day.
It is not an easy decision to leave your parents’ place on turning 18, especially considering that the average age of a Maltese person leaving home is currently 31.8, among the highest in the European Union.
In recent years, the rental prices have shot up, making it difficult for people, on an average wage, to afford decent housing. It is even more challenging for full-time students to pay up to €300 a month for a room close to campus.
Think of a Gozitan family with two or three children, all attending the University of Malta. The financial burden on such a family is enormous, and this undoubtedly puts Gozitan students under tremendous pressure. Regular monthly expenses such as food, electricity and water bills, internet subscription and the like, are doubled for Gozitan families with children at University.
The government boasts of robust economic growth and unprecedented budgetary surplus. It would be easy to ask for subsidies to make student accommodation affordable. But subsidies do not solve problems, they merely postpone them. Maltese students are lucky enough to receive free education and as responsible students we must not put further pressure on the government to solve every problem by simply asking it to throw money at it.
Subsidies and grants are possibly the easiest solution, but the easiest solutions are often the most short-sighted ones
What is needed is a long-term strategy, led by the Ministry for Education. The Gozitan University Campus should be at the heart of this strategy, revolutionising the way the campus operates.
In a time of distance learning, blended learning, MOOCs and video-conferences, and with virtual reality making huge strides forward, the Gozo University Campus should not remain limited to offering a few low-response evening courses or teaching elderly the art of traditional woven cloth, as important as they may be.
The Gozo University Campus must truly become a modern educational hub, using cutting-edge technology and eliminating the need for Gozitan students to be at the main University campus every day.
Another option is to follow in the footsteps of most international universities offering student residences on campus. The residencies would make possible an authentic campus community life, and provide students with another enriching and valuable experience.
Contrary to what the general conception might be, Gozitan students do not want to depend on the government when it comes to their education and would be more than willing to sacrifice their monthly grants for a long-term, strategic plan for a proper University campus in Gozo.
It would help boost the Gozitan economy, with thousands of students staying in Gozo throughout winter. It would enrich all aspects of Gozitan life and, most importantly, it would be an investment with solid returns, as opposed to an unsustainable grant system with no end in sight.
Subsidies and grants are possibly the easiest solution, but the easiest solutions are often the most short-sighted ones. The challenge ahead asks us to put aside political bickering and to join forces in understanding where the challenge lies and to work for a sustainable, long-term solution, that benefits all.
If you would like to put any questions to the two parties in Parliament send an e-mail marked clearly Question Time to editor@timesofmalta.com.