Muscat pledges rent regulation if subsidy experiment backfires

Joseph Muscat muses about rent regulation, throws his weight behind proposed harsh drink driving laws

Prime Minister Joseph Muscat
Prime Minister Joseph Muscat

The government will step in to regulate rent prices if its plan to ease the pressure on low-income tenants backfires and inflates the rent market further, Prime Minister Joseph Muscat said.

In an attempt to ease the burden of inflated rent prices, the government will this year double rent subsidies for low-income earners living in private properties – from a monthly maximum of €83 to €166. The means test to assess who qualifies for the scheme will also be revised, rendering some 2,800 people eligible it, double that of the current 1,400.

However, former Housing Authority chief Albert Buttigieg has warned that tax-evading landlords would in all likelihood compensate for their new tax burden by increasing rental prices, thereby negating the doubled subsidy. 

Interviewed on Arena, Muscat pledged to take direct action if such market predictions prove accurate.

"If we pay an extra €83 in subsidy to a person paying €500 a month in rent, then that person's rent will effectively decrease. However, it will mean nothing if landlords take advantage of the higher subsidy by increasing rent prices. If we observe that this measure only serves to inflate the rental property market, then we must start looking at regulation."

'Ready to lose votes for sake of harsh drink driving laws'

During the interview, Muscat brushed off criticism on harsh drink driving laws in the pipeline that will slash the national alcohol limit for drivers to 0.5g per litre of blood, increase fines for drink drivers, and empower wardens to administer breathalyzer tests.

"The people have not yet realized, although they soon will, the implications of this law," Muscat said ominously. "Malta had the most lax drink driving laws in Europe, which is completely unacceptable when you take into account the number of accidents on the road.

"Some people will complain about this law, but this is not an issue of a few beers but of life or death. It's not only about Paceville; Malta has a culture whereby people drive to weddings, get drunk and then get back in their cars. People can simply hire a taxi; €15 here and there isn't make or break. I'm ready to lose votes to have this law in place.

"Everyone is a bravu after fatal road accidents, going to funerals and posting Facebook statuses on what a great person the victim was, but I'm disgusted that no action has been taken so far to clamp down on drink driving.

In his interview, Muscat also reiterated that the EU must strike a migrant deal with North African countries to pre-empt a second refugee crisis this summer, as well as that the Maltese government must address the public's genuine concerns on immigrants so as to prevent them falling into the laps of far-right movements.