This is the full text of the speech by Malta Developers Association President Sandro Chetcuti at the launch of the study by KPMG at the Auberge de Castille, Valletta, on Thursday:
Hon. Prime Minister, Ladies and Gentlemen
Thank-you for the opportunity you have given us, even as a government, to enable us to launch this scientific, impartial study on property development in Malta and Gozo: sustainability and economic value added.
It was always the wish of the Malta Developers Association to instigate such a report and to substantiate our long-held beliefs. It is my earnest hope that all the proposals the MDA has made and the initiatives it has taken will result in something more concrete, with statistics that are studied in greater depth.
The MDA always took a number of initiatives, as you know, Hon. Prime Minister, put forward good ideas, made concrete proposals and you on behalf of the government also accepted our proposals. As a result, the building industry managed to generate a lot of job opportunities and today we can safely state with full confidence that we were proved right.
The building industry is not only the motor but is the backbone of the Maltese economy. When the building industry stops, we have always believed that every area of the economy is dealt a severe blow. However, obviously, we want what we do to be done with a certain sustainability and certain responsibility.
The MDA was set up so that we can work in a professional manner and to raise the quality of the buildings in our country up by a notch. Therefore, we wished this study to be carried out over three years. Initial results will be made available six months from today – by the end of June. This data will then be monitored, year after year, for three years. This is the agreement that we have made with KPMG, the international professional services firm that is well known, not just locally but also abroad. We chose a firm that is impartial, independent and has credibility.
We thank the main banks in our country because if we did not have their support this study would not have been financed so quickly. In particular, I wish to thank the Bank of Valletta, who was the main sponsor of this study; HSBC and APS Bank contributed so that this study could be undertaken.
We look at the industry not just as an investment but as a value added to society in general: an industry that, as I said earlier, employs a lot of people. Through this study, we are going to be able to establish precisely how much employment the building industry generates, both directly and indirectly. Let us not forget that today, as the business has evolved, many studies are requested even to safeguard the environmental impact and it is indeed important and a priority for us to look after the environment much more than ever before.
Developments – and the plans that are being made from time to time – require studies from professionals including engineers, architects, notaries, lawyers and archaeologists. Tradespeople are also involved – tilers, plasterers and painters – along with importers of all the requisites, including tiles, metal, aluminium, glass and other products. The list is never ending.
In this study, we also wish to observe the type of supply we have and the demand today and the demand we may have in the near future. We, the MDA, are against having an over-supply of property, which is a matter of concern to us.
So far, we have always acted on our gut feeling, the foresight of the Maltese entrepreneur, who did a very good job because the country thankfully has a bit of everything. However, we need to substantiate it with something concrete – facts so that the economists, the government and whoever needs it will have the information – a point of reference to check what is being proposed.
Monitoring, as I have just said, is very important. Why is this study being done? It is being done because we have a vision of a more professional industry. Let me give an example. When we wish to attract investors to come to acquire property in the country, today there are few references to make what we are telling the investor more credible. Thanks to this study there is going to be a reference so that especially if someone is going to invest long term he will know how economically strong and sustainable it is.
We felt the need to have statistics and information in one place. We also felt the need to recognise how our industry is going to react from time to time. We do not wish to end up with things (property) that nobody wants or wishes that remain unfulfilled – on paper only – or waste a lot of money on studies that remain on the shelf.
We wish to have this scientific study that can be referred to when someone dreams of doing something both with the entrepreneur’s input and also with this study.
Hon. Prime Minister, I thank you from the bottom of my heart for giving us the opportunity to be here sharing this initiative with you as the government. I commit myself that, at the end of June, as soon as this study is finalised, we will be examining the outcome so that the policies that are put forward and the MDA’s proposals, among other stakeholders, will have greater credibility and you will be more comfortable understanding why we are proposing certain policies.
You can see the video of the announcement with the speakers, Mr Chetcuti, David Pace, Partner of KPMG, the three representatives of the sponsoring banks and Prime Minister Joseph Muscat https://www.facebook.com/mda.malta
