Not enough parking for 4,000 planning permits issued since 2019

€31 million paid by developers to PA urban improvement fund for not providing enough parking spaces

The PA received €31 million in contributions to its Urban Improvement Fund and Commuters Parking Provision Scheme
The PA received €31 million in contributions to its Urban Improvement Fund and Commuters Parking Provision Scheme

The Planning Authority issued nearly 4,000 permits which involved a monetary contribution to compensate for parking spaces not adequately provided for by the approved development.

The total number of such permits declined slightly from 2,501 in 2018 to 2,380 in 2019; a sharper decrease was registered in 2020 when the number of these permits dropped to 1,549.

The latest statistics provided to MaltaToday do not indicate how many individual parking spaces were lost in the past two years. But the fact that thousands such permits were issued suggests that thousands of car spaces have not been provided for.

In 2018 more than 8,000 parking spaces were not catered for in the 2,501 permits issued against the payment of a contribution for lost parking spaces.

Planners consider this mechanism to be a double-edged sword: while not providing parking spaces exacerbates traffic and congestion in localities, providing for all parking spaces also entails more excavation, and that means greater disturbance and possible danger for people living in their vicinity.

The PA has received €31 million in contributions to its Urban Improvement Fund and Commuters Parking Provision Scheme, which money gets spent in projects benefitting localities. Thanks to its income from this compensatory mechanism, the PA spent €7 million in urban improvements contracted in 2019 and 2020.

An analysis of figures by MaltaToday shows that the largest amount of such permits (279), were issued in the northern locality of St Paul’s Bay where developers paid €2.4 million in lieu of lost parking spaces between 2019 and 2020.

Other localities where a substantial amount of permits requiring compensation for lost parking spaces were Birkirkara (203), Sliema (178), Gzira (160) and Msida (150). This suggests that the problem of parking is most acute in the north harbour region and the north of the island.

St Paul’s Bay accounts for nearly 7% of all permits requiring compensation for under-provision of parking while the Sliema, St Julian’s, Gzira, Msida, Swieqi and San Gwann conglomerate accounts for a fifth of all such permits issued in 2019 and 2020.

In Gozo the largest amount of such permits were issued in Victoria (88) followed by Xaghra (73).

CPPS and UIF funds

The CPPS and UIF funds are financed directly by fees paid by developers, businesses and shop-owners to MEPA if they are unable to provide the required parking facilities for their projects – for example, underground garages for a block of apartments.

The fees apply to all developments when a change of use of an existing building carries a higher parking requirement, for example change of use from a shop to a restaurant or bar. The fee is also charged when a developer builds additional floors on top of an existing building. Fees are also paid by restaurants who take parking spaces when establishing an outside catering area.

In 2018 the PA introduced a three-tier rate system whereby a one-car space not provided for would cost the developer €2,500.

From the third to the ninth car space not provided for on site, the developer has to make a contribution of €6,000 per car space. From the tenth car space upwards, a €10,000 contribution per car space is imposed.

While 70% of the generated fees are directed towards the locality-based Development Planning Fund, the remaining 30% are directed towards green transport proposals called the Island-wide Green Transport Fund (IGTF).

  2019 € paid  2020 € paid Total permits € paid
St Paul's Bay 173 1.5m 106 0.9m 279 2.4m
Birkirkara 125 0.9m 78 0.5m 203 1.4m
Sliema 118 1.2m 60 0.7m 178 1.9m
Gzira 107 1.2m 53 0.4m 160 1.6m
Msida 93 0.9m 57 0.8m 150 1.7m
St Julian's 83 1.1m 59 0.7m 142 1.8m
Qormi 91 0.6m 43 0.2m 134 0.8m
Mosta 87 0.6m 47 0.3m 134 0.9m
Marsascala 67 0.6m 52 0.3m 119 0.9m
San Gwann 68 0.7m 42 0.3m 110 1m