MEPA tariffs: 'either developers pay, or all taxpayers subsidise authority', OPM says

In a statement, the government said Labour planned to increase the tariffs in 1997 when George Vella was environment minister, before an early election threw Labour out of power.

“Labour was ready to increase the tariffs back then so that the authority would not need any government subvention… now it is against increasing these tariffs.”

The new tariffs have attracted considerable criticism from Labour, which calls them a MEPA tax meant to subsidise the authority’s financial deficit. The Chamber of SMEs (GRTU) have also claimed the government is punishing the construction industry when it is still experiencing a recession in activity.

But government is saying the revision in tariffs was necessary so that MEPA is not financed by tax money. “Whoever applies for a development permit, pays the cost for the processing of that application. The rates have never changed since 1993, and anyone who did not avail themselves of a MEPA service was already financing it in the first place. These increases are meant to reduce the burden on families who were otherwise paying for these services.”

The OPM said Labour MP Roderick Galdes – a MEPA board member – was incorrect when he stated that people will have to pay for MEPA advice.

It also responded to criticism that MEPA had raided the Commuted Parking Payment Scheme funds to make up for its financial deficit: “Money used for transport purposes will be passed on to Transport Malta to ensure these funds are used for their appropriate purpose. There is no reason for MEPA to embark on transport projects that TM is responsible for.”

The commuted parking payment scheme (CPPS) is funded directly by the fees developers and businesses pay for not providing the required parking facilities for new building projects. MEPA helped itself to this fund for an interest-free €3.1 million loan to purchase Hexagon House in Marsa from HSBC, which cost €4.3 million in total.

The loan raised questions by the Hamrun local council, which says it was denied funds to finance its own public car park. Labour MP Luciano Busuttil said MEPA refused to grant a similar loan to the Hamrun council when he was mayor of the locality.