Refusing Mistra development could have cost government significant compensation suit

A MEPA refusal to issue permits for 774 apartments on the former Mistra Village site would have resulted in government paying the applicant damages equivalent to "a year's worth of health workers salaries", according to the parliamentary secretary for planning, Michael Farrugia.

Farrugia claimed that if the Malta Environment and Planning Authority had refused to issue the full permits for the project, the applicants - Gemxija Crown and the Montebello Bros construction firm - would have filed for damages.

The latest plans envisage six rectangular blocks to rise to a maximum of 12 floors from street level and 13 floors from the internal pedestrian level. The development will include 744 new units and a 1,800m2 retail area, which includes a supermarket.

In 2009 MEPA approved an outline permit for four boomerang blocks rising to 15 floors (992 units). The downscaling of the project is deemed to improve views from Selmun and Mistra valley but is still expected to have a dramatic impact on the landscape.

"MEPA's board had its hands tied from the previous administration and this is why the project was agreed to. Had it not, the government would have been asked to pay damages," Farrugia said.

He insisted that the damages would be equivalent to a year's salaries paid to health workers: "Or, for a year, the government would be forced not to issue children's allowance or old age pensions to pay for the damages instead."

Farrugia said that he did not usually speak publicly about such projects - trusting in the independence of MEPA - but said that the only reason he was commenting was because over the past few weeks, unjust accusations were being directed at MEPA over the Mistra project.

He said that the criticism being leveled at government by the Opposition that developments were being issued with permits haphazardly were "false and unfounded", adding that such claims were substantiated.

Farrugia said the government would listen to the interests of the public, adding that public consultations would remain a big part of government's agenda.

He said his ministry was currently working on various policies he hoped would become concrete within the the first quarter of next year, such as those on fireworks factories, solar farms, and fuel stations.

Also addressing the press in St George's Square was Environment Minister Leo Brincat who said the government was accentuating its electoral pledge that the environment was important, highlighting the fact that no extra environmental taxes had been implemented.

"The budget is clear evidence that the environment was, is, and will remain a top priority for this government," he said.

Brincat said that despite recent public criticism from various environmentalist organisations, the ministry's relationship with local NGOs was a solid one, saying that it understood their side of the argument. "Our relationship with environment NGOs is a strong one. We understand their concerns and are ready to listen to them and accept concrete proposals they put forward," Brincat said.

The minister stressed that one of the prime areas which the government was intent on investing in was on green jobs.

"The previous administration did not even allocate a single euro on investment towards a green economy," he said.

"Our plan over the next calendar year is to organise an intensive campaign so as to inform and educate people on the importance of green jobs," he said, adding that a green-thinking economy will inevitably lead to a better quality of life.

Brincat also identified the ever-growing problems related to pollution and climate change as two key areas which needed attention, and confirmed that the separation of the Environment Authority from its planning arm was imminent.