Valletta shops scheme launched

Parliamentary secretary for planning Michael Falzon launched the shops scheme in Valletta today, to put an end to abuses of the system under previous schemes.

Falzon said that the new scheme would effect tenants of government properties and that the ultimate aim was to spread the scheme to other localities and establishments, such as offices, after the results of the initiative are seen.

"The scheme introduced under the previous administration had been suspended due to various factors, including the complicated procedures, and the scheme will be scrapped in favour of the new simpler scheme," Falzon said.

"Those who have been breaching laws are being given a golden opportunity to get in line under the new scheme," Falzon said, warning that those who didn't make efforts to rectify their situation would face the consequences.

Falzon explained that the new shop scheme would mean that tenants could ultimately purchase a 45-year lease for their property, rather than a more temporary rent. This would allow tenants to declare the government property as security.

"The scheme joins other initiative s like the regeneration of strait street and the old market in promoting the development of the city." Falzon siad pointing out that the scheme had been agreed on by other staleholders and the grtu and that it was meant to encourage investment.

Falzon explained that so far, the scheme would apply to retail shops, food and beverage outlets and restaurants and that rates would vary according to the location.

Properties in Zone 1 would pay €500 per square metre, Zone 2 would pay €300 per square metre whereas Zone 3 and 4 would pay €100 and €20 per square metre respectively.

He added that the rate would also be different if the properties had more than one floor, with a 25% for first floors, 20% for the second floor and 10% for basement properties.