MDA Reaction on Court Judgment and Urgent Need for Reform

MDA Reaction on Court Judgment and Urgent Need for Reform

 These recent judgments clearly demonstrate how essential the proposed planning reforms are.

Today’s court decision does not conclude that the project was technically flawed in itself. Rather, it establishes that the Planning Authority lacks the legal discretion to determine which of two applicable policies better fits a specific site. In effect, the Authority is being told it cannot interpret overlapping policies when exercising its technical judgment.

This creates a serious institutional stalemate.

On one hand, the Planning Authority is expected to assess projects and apply policy. On the other hand, the courts are effectively restricting its ability to exercise technical discretion where policy interpretation is required. That is not a sustainable position for any regulatory system.

We are reaching a point where the Authority is being divested of practical decision making power. This is a totally unacceptable state for a country that depends on legal certainty and orderly development.

The consequences go beyond developers. When approvals become legally fragile years after being granted, confidence weakens, investment slows, and risk premiums increase. That inevitably leads to reduced supply and higher property prices.

This not only affects major investors. It affects ordinary families seeking to provide homes for their children. A system that generates uncertainty will ultimately make housing less accessible.

Malta urgently needs reform that clarifies policy hierarchy, strengthens legal robustness at the point of approval, and restores certainty to the planning process. Clear rules from the outset protect everyone.

Without structural reform, the country risks continued paralysis, reduced investment, and increasing housing costs. That is not in the national interest.