Business organisations say they do not yet have an opinion on the controversial Corinthia Group deal, details of which have been reported by the media for more than three weeks.
In the meantime, the government is expected to forge ahead with the deal, with a parliamentary committee set to discuss the issue early next month.
According to the proposed deal, a site in St George’s Bay, which according to real estate agents carries a market price tag of at least €700 million, will be given to the hotel chain for €17 million.
When approached for their views, representatives of the Malta Hotels and Restaurants Association, the GRTU Malta Chamber of SMEs, the Chamber of Commerce, Enterprise and Industry and the Malta Employers’ Association they were still either deliberating or seeking more information.
MHRA president Tony Zahra said his organisation did not yet have a position. “The MHRA has not been informed or involved in the negotiations that took place between the government and the Corinthia Group, consequently the information we have in hand is what has been reported in the media”, he said. Thus, he added, the MHRA was not in a position to give an informed view of the arrangements proposed.
He did say, however, that “on a high level and strictly on the development on quality hotel accommodation, the MHRA believes this would be positive for Malta as its adds to the stock of ‘Best in Class’ hotel accommodation available in Malta”.
Read: Corinthia deal includes rights to the peninsula seabed
Mr Zahra was the most forthcoming to comment on the deal negotiated by Tourism Minister Konrad Mizzi.
Still analysing the matter at hand which is still unfolding
The Chamber of Commerce, Enterprise and Industry, which represents many large business organisations, said “it has no position to express at this stage as it is still analysing the matter at hand which is still unfolding”.
The GRTU is still “working on a statement which will be released in the coming days”.
“We do not have a position on the Corinthia deal at this stage,” a spokesman for the Malta Employers’ Association said curtly. A question on whether the Corinthia Group was a member of the MEA remained unanswered.
Individuals within the business community said, when informed about the replies given by the organisations approached, such attitude was “clear confirmation” they did not want to rock the boat.
The business operators said this “reluctance” to comment on the Corinthia deal contrasted sharply with their stand on a similar deal the government had struck some two years ago with the Seabank db Group on the site where the Institute of Tourism Studies used to stand. They recalled that, then, the same organisations were critical of the fact that prime public land was sold on the cheap.
The deal with the db Group, also negotiated by Dr Mizzi, involved the transfer of 25,000 square metres of public land for speculation purposes for €15 million staggered over seven years.
So far, it has only been the Malta Developers’ Association from among the business lobby groups to come out against the Corinthia deal. It had also opposed the agreement with the db Group.
Dr Mizzi told MPs the agreement with Corinthia was based on the same parameters of the concession given to the db Group, being investigation by the National Audit Office.
While the former ITS site was given to the db Group after a call for tenders, the same did not happen in the case of the Corinthia project. The group is seeking to modify the concession rights it already had to be able to build residences and offices for sale.
ivan.camilleri@timesofmalta.com