Watch: Excessive Red Tape Making Property Much More Expensive, Malta Developers’ Head Warns
Malta Development Association president Michael Stivala has warned that excessive red tape in the construction industry is resulting in more expensive property prices.
During a discussion on NET Live about the Jean Paul Sofia public inquiry, Stivala said that the MDA agrees with the inquiry’s criticism of excessive government bureaucracy.
“Everyone is filling out forms,” he warned. “Architects are no longer architects; they are made to fill out all of these papers instead of concentrating on the design of buildings and ensuring work is being done properly.”
“This red tape costs developers a lot of money, and ultimately the people suffering are those families who want to buy a property but have to spend tens of thousands of euro to cover all this red tape that doesn’t lead to any result.”
Stivala stressed that he isn’t advocating loosening enforcement, and indeed criticised the government for not obliging contractors to take out insurance in cases of harm to workers or neighbours in a new licensing law.
However, he warned that bureaucracy-related costs add up, leading to higher property prices and a general sense of confusion.
“You end up having to deal with 21 different authorities, with all of them pointing fingers at each other and no one aware of who is responsible for what,” he said.
“We end up spending hundreds of thousands of euro extra on projects, and ultimately it means property buyers must fork out this money instead of using it to furnish their apartments.”
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