Speaking to this media house, Falzon acknowledged that while a tunnel between Malta and Gozo remains the most discussed option, it is unlikely to materialise in the short-term. Nevertheless, he insisted that the concept must continue to be studied as a potential long-term and sustainable solution.

The GRDA operates according to the Gozo Regional Development Strategy launched in September 2023. Falzon described it as a high-level framework built around eight thematic pillars, including connectivity, economic development, environment, and culture. Each year, the authority publishes a corporate plan with concrete action points and performance indicators. In 2024, around 85% of planned targets were achieved.

Connectivity features prominently in the strategy. While the tunnel dominates public debate, Falzon stressed that government actions suggest a phased approach: investment in ferries, fast ferries, and an airlink are seen as necessary steps before a permanent link could be realistically considered. “This is all an indication that the project must continue to be studied, but it definitely won’t be something we see in the coming years,” he said.

Falzon also cautioned against framing the tunnel purely as a Gozitan issue. A permanent link would also alleviate long-standing problems in areas such as Xemxija Hill, Mellieħa, and Manikata. Manikata, once a small hamlet, has become a major thoroughfare with about half a million vehicles passing through annually. In this sense, he argued, a permanent link must serve the wider northern region of Malta as much as Gozo itself.

Recent government announcements of a €130 million investment in the ferry fleet – expanding it to five vessels, including a dedicated cargo ship by 2029 – have sparked debate about timing. Falzon conceded that, in abstract terms, such investment could have happened earlier. However, he explained that policy priorities over the past decade focused first on stimulating activity and economic life in Gozo.

Had visitor numbers and population remained static, additional ferry capacity might not have been necessary. Instead, Gozo has experienced substantial growth. Overnight visitors increased from around 340,000 in 2014 to over 580,000 in 2024. Same-day visitors more than doubled to nearly 1.9 million. The registered population rose by 27% to over 41,000, while Gozo’s GDP climbed from €377 million to almost €1 billion – a 163% increase. Falzon acknowledged that this growth has created significant pressure on infrastructure and services.

New demographic trends have also emerged. Some first- and second-generation Maltese from countries such as the US, Canada, and Australia are choosing to retire in Gozo. EU and third-country nationals working in northern Malta are increasingly opting to live in Gozo due to comparatively lower rents. Additionally, hundreds of Maltese citizens now live in Gozo while commuting daily to jobs in Malta.

Until 2017, ferry trip numbers remained largely unchanged despite rising visitor figures, meaning capacity still existed. The Covid-19 pandemic then shifted government focus to economic survival rather than long-term capital investment. In this context, the launch of the fast ferry in 2021 proved pivotal. Falzon described it as a “game changer”: visitor numbers increased sharply, but vehicle numbers travelling to Gozo remained relatively stable.

The fast ferry has also transformed student mobility. Previously, many Gozitan students rented accommodation in Malta during the week, often near Msida. With fast ferry connections, more students now commute daily, reducing demand in these rental areas.

Other connectivity measures include a park-and-ride facility in Mġarr, the leasing of a fourth ferry vessel in 2019, and plans for fast ferry routes linking Gozo with Sliema and Buġibba. Together, these initiatives reflect the direction set by the GRDA strategy.

Beyond sea transport, renewed discussion surrounds an airlink between Malta and Gozo, enabled by the construction of a rural airfield. Past attempts – a helicopter service (ended in 2006) and a seaplane operation (2007-2012) – failed commercially. Falzon believes a new service could succeed if supported by a government-led framework of incentives, similar to the Public Service Obligation model used for fast ferries.

He emphasised that an airlink would not solve every day commuting challenges but would target a niche market of high-value tourists. Gozo already attracts higher-spending overnight visitors than Malta on average, and demand is increasingly spread throughout the year. The airfield could also host flying schools and other aviation-related businesses currently constrained by capacity at Malta International Airport.

Falzon also highlighted the need to modernise Gozo’s public transport system. While major improvements were made, services no longer reflect current levels of activity. The newly-established Mġarr Task Force operates under the principle “Less cars, more Gozo”, signalling a push towards modal shift.

A booking system for the Gozo Channel ferry is another proposal under consideration. Falzon argued that Maltese culture is accustomed to simply turning up and queuing, but better planning would benefit both passengers and operators. Knowing passenger numbers in advance would allow travellers to choose less busy crossings and enable the company to optimise scheduling.

Regarding calls to expand Mġarr Harbour, Falzon urged caution. While expansion may ultimately be necessary, he believes optimisation of existing space should come first. Malta’s limited land resources require more efficient use rather than default expansion.

On planning and development, Falzon said Gozo requires a distinct set of policies separate from Malta’s. Many residents fear Gozo could follow Malta’s trajectory of intensive development. While Falzon disagrees that Malta has been “ruined”, he accepts that people want Gozo to retain a different character.

Planning must strike a balance between preserving identity and enabling residents to live well. Possible measures include façade directives favouring limestone, and protecting areas dominated by terraced housing through strict height limitations. He also addressed fears that a permanent link would trigger overdevelopment, stressing that strong planning policies – similar to those protecting Mdina – could safeguard Gozo’s character.

Falzon argued that some localities, such as Xlendi and Marsalforn, have already undergone heavy development without any permanent link, demonstrating that infrastructure alone does not determine outcomes; policy does.

Gozo has also been selected to participate in the EU Mission “100 climate-neutral and smart cities by 2030”. Through this initiative, the GRDA will receive technical assistance and access to pilot funding via the NetZeroCities platform. By May, the authority intends to publish a climate neutrality plan outlining benchmarks, targets, and timelines.

Potential measures include different waste-collection schedules, electrification of public transport, and retrofitting of ferries. The plan will present realistic options, after which government will decide which targets to adopt.

Economically, Falzon said Gozo has experienced notable shifts. The most significant has been the establishment of Barts Medical School, which aligns with the GRDA’s emphasis on educational projects. With around 300 fee-paying students, the school has created a new economic niche, contributing to GDP growth while also increasing rental prices near the Gozo General Hospital.

Gozo is also attracting start-ups in gaming, technology, and other innovative sectors. Falzon cited examples of locally founded companies that have been acquired by major international firms and recognised in global maritime rankings.

He noted strong employee loyalty among Gozitans, shaped by historically limited opportunities and a culture of resilience. Government incentives and regional support schemes have facilitated progress, though challenges remain.

The post Gozo’s growth fuels new demands on transport and planning first appeared on The Malta Business Weekly.

The survey found that the public is only getting more concerned about the issue: the share of people who cited inflation and rising prices as a key concern has increased when compared to the last Eurobarometer, which was taken in March and April 2025.

There were parallels when people were asked what they felt the two most important issues facing the country were and what they felt the two most important issues facing them personally were.

In both categories, respondents pointed towards “rising prices / inflation / cost of living” as the most significant issue.

40% named this as one of the most important issues that the country is facing – up by five percentage points from last March and nine percentage points higher than the EU average.

61% meanwhile said that rising prices is one of the two most significant challenges that they are facing on a personal level – up by a staggering 16 percentage points when compared to last March, and 13 percentage points higher than the EU average.

Immigration and the environment were also high in the list of people’s concerns.

Immigration was the second most cited challenge when people were asked for the most significant issues facing the country were, with 30% of respondents naming it, while the environment was the third most cited challenge for the country, with 26% of respondents naming it.

Concern on both of these areas has increased significantly during the year: the share of people who cited immigration as a significant issue increased by 10 percentage points when compared to March 2025, and the share of people who cited the environment as a significant issue increased by 8 percentage points.

In both cases, the share of people concerned far outstripped the EU average: while 30% of Maltese cited immigration as a key issue, the EU average stood at 15%, and while 26% of Maltese cited the environment as a key issue, only 8% in the EU did.

17% of Maltese said that they saw government debt as a key issue, followed by 16% who cited housing as such, 12% who cited health, 9% who cited education and another 9% who cited threats to democracy.

There were other areas where the Maltese people were far less concerned than their European counterparts, however.  Only 5% of Maltese respondents said that the economic situation was a significant issue, compared to an EU average of 19%, while only 3% of Maltese respondents cited security and defence as a key issue, compared to an EU average of 13%.

When asked about concerns on a personal level, while the cost of living dominated concerns (61% of respondents citing it), the environment ranked second (26%), followed by health (19%), immigration (13%), living conditions (13%), and housing (11%).

At EU level, the concerns of Maltese were largely in line with those of their European peers.

The most cited issue was Russia’s invasion of Ukraine, with 33% of Maltese respondents citing this as one of the most important issues facing the EU at the moment – a figure actually 7 percentage points higher than the EU average.

This was followed by immigration (25%), security and defence (21%), the conflict in the Middle East (18%), and the “international situation” (18%).

57% of Maltese said that they have trust in the European Union – up by five percentage points when compared to six months ago and nine percentage points higher than the EU average.

Respondents were also asked how much they trusted certain types of media.

Radio and television were mediums most trusted by respondents: in both cases, 47% of Maltese said that they tended to trust these two types of media.

This was followed by the written press, which registered 42% in trust, and then websites (36%) and online social networks (just 18%).

50% of respondents said that they were satisfied with how democracy works in Malta – up by six percentage points when compared to six months ago, and five percentage points higher than the EU average.

A total of 92% of respondents said that they were satisfied with their lives, a figure which was down by two percentage points when compared to the last time the survey was taken six months ago.

The figure remains above the EU average for life satisfaction of 86%.

96% of Maltese people said that, taking everything into account they feel that Malta has benefitted from being a member of the EU, and 69% of Maltese are optimistic about the future of the EU.

The post Rising cost of living the top concern for Maltese, new Eurobarometer finds first appeared on The Malta Business Weekly.

Finance Minister Clyde Caruana presented the Budget for 2026 in Parliament on Monday, and while the government will not be upping any existing taxes or adding new ones, it is still estimating that it will collect €480 million more in taxes when compared to this year.

Caruana has long been vocal about clamping down on those individuals and businesses which are not paying their taxes, and in summer said that tax authorities would be cracking down on tax dodgers “like a ton of bricks.”

The government is estimating that by the end of the year it will have collected €7.344 billion in taxes for 2025 – which is up from the €7.182 billion collected throughout 2024. 

The estimate for 2026, however, is even higher, as the government estimates that it will collect €7.814 billion in taxes – both direct and indirect.

The main powering factors behind this is an increase in the amount of income tax collected, an increase in the amount of Value Added Tax (VAT) collected, and an increase in social security contributions.

The government is expecting to have collected €3.266 billion in income tax during 2025 – which is actually less than the €3.416 billion collected throughout 2024. 

For 2026, the government is aiming to return to and exceed the amount of income tax collected to 2024, by estimating that it will collect €3.482 billion – an increase of €216 million.

The estimate the amount of income tax to be collected during 2025 was actually under-estimated: the government had estimated that it would manage to collect €2.848 billion but in actual fact will have managed to collect €418 million more by the end of the year.

As for VAT meanwhile, the government is looking to collect €1.695 billion – an increase of €120 million when compared to the €1.575 billion that it is set to have collected by the end of the year for 2025.

Elsewhere, the government is estimating that it will collect €1.838 billion in social security contributions during 2026 – up by €118 million from the estimated total to be collected in 2025, which in turn was some €154 million more than what was collected in 2024.

The government estimated that it will collect €326 million in customs and excise duties – €2.2 million more than in 2025 – and estimated that it will collect €473 million in “licences, taxes and fines” – up by close to €14 million compared to this year.

Tax collection has long been a bone of contention for Clyde Caruana.

This week he told Parliament’s Public Accounts Committee that some 70% of active companies in Malta do not declare any profit and therefore do not pay a single cent in taxes – despite the government ongoing efforts to improve tax collection, which now also includes an AI-powered system.

“At some point we need to start analysing companies’ profits. What is eating away at their profits, or is this being engineered?” Caruana questioned, as he lamented that there are billions of euros that will likely never be recovered.

In a pre-budget event last week, Caruana said that restaurants pay an average of just €4,500 in corporate income tax per year – lower than most average citizens.

Caruana had been asked about the possibility of the government introducing a lower VAT rate for restaurants – a proposal which did not make it into his speech earlier this week.

The post Government estimating that it will collect €480 million more in taxes during 2026 first appeared on The Malta Business Weekly.

Perez, who was appointed CEO of ElectroGas Malta in June 2024, explained: “The most important factor in guaranteeing a reliable electricity supply is having a mix of generation sources. If a country depends entirely on one type of power generation, it is only a matter of time before problems arise – problems that inevitably impact the population.”

He highlighted Enemalta’s approach as a positive example: “It’s not just one or two power plants providing energy. There is also an interconnector with another country, as well as PV panels on rooftops. This diversity ensures that electricity comes from multiple sources, which is becoming essential for energy security.”

While ElectroGas plays a central role in Malta’s energy landscape, Pérez noted that the company is only one part of the wider system. “Our priority is to deliver the country’s base load. That responsibility provides peace of mind to Malta, knowing that we are here to ensure supply stability.”

Reflecting on his 14 months with the company, Perez praised ElectroGas employees for their professionalism and sense of responsibility. “Our staff are deeply aware of the importance of their work. We make sure to recognise their contribution, as their efforts directly impact society,” he said.

He recalled a recent blackout in Spain that had fatal consequences due to the loss of critical devices and phone networks. “Events like that remind us that this work has a real impact – and we take that responsibility very seriously,” Perez added.

Delimara plant cannot cover peak demand alone

Perez acknowledged that Malta’s Delimara power station would not be able to meet the island’s peak electricity demand on its own if the interconnector with Italy were to fail.

The ElectroGas CEO confirmed that the company’s Delimara 4 power plant produces more than 46% of Malta’s electricity. In addition, ElectroGas supplies gas to Enemalta’s Delimara 3 plant, bringing the company’s contribution to around 60% of the island’s total energy use.

However, Pérez cautioned that without the interconnector, Malta would struggle to meet summer peak demand. “For peak season in summer, probably not,” he admitted when asked whether the Delimara station could compensate for a complete interconnector failure.

He stressed that ElectroGas supports Enemalta’s strategy and in strengthening national resilience: “As operators of one of the country’s most critical facilities, and as a key player in the local energy mix, we actively support Enemalta’s efforts to enhance national resilience.”

Renewal talks with Enemalta yet to begin

ElectroGas’ contract with Enemalta requires it to supply electricity for 18 years, with nearly half that period already elapsed. Perez confirmed that discussions about renewing the agreement have not yet started.

“It is still too early for those talks,” he said. “When the time comes, the decision will depend on whether Enemalta is satisfied with our performance. We are proud of the work being done here and continue to invest in upgrades, such as the upgrade of the gas turbines, to improve efficiency.”

Regarding fuel supply, Pérez noted that Delimara currently relies on a gas tanker, which was originally intended as a temporary solution until the Malta-Italy pipeline is completed. “At this stage, I have not heard of any changes from Enemalta. They are the decision-makers on gas supply, and I don’t expect developments in the short-term. The LNG terminal can always offer flexibility and diversify gas supply to Malta. This is in line with the trend in other European countries which are heavily reliant on Russian gas,” he said.

Sustainability, ESG, and community engagement

Since Pérez’s arrival, ElectroGas has strengthened its focus on sustainability and environmental, social, and governance (ESG) commitments.

“This plant replaced a heavy fuel oil facility, reducing particulate and SOx emissions by 90% thanks to LNG. It’s a major improvement for Marsaxlokk and the surrounding communities,” he said.

The company has increased its community outreach, running initiatives such as its Community Investment Programme. Current projects include collaborations with NGOs like Inspire and the Red Cross, support for ambulance equipment, and environmental clean-ups.

Recently, ElectroGas partnered with an organisation representing Ukrainians in Malta, donating bicycles to refugee children and supermarket vouchers to families in need. “We want to be sustainable, but also to care for people in need and support society,” Pérez said.

Responding to negative publicity

ElectroGas has in the past been associated with public scrutiny and ongoing investigations. Pérez acknowledged this context but emphasised the company’s current direction: “Since joining ElectroGas, my experience has been that the company is operating to high professional and governance standards. Indeed, the governance here is among the best I have encountered. We continue to strengthen our compliance framework, align with international best practices, and maintain full transparency with our stakeholders. These efforts are essential to ensure that ElectroGas remains a trusted part of Malta’s energy future.”

He added that while external controversies may at times overshadow the company’s role, “what I see daily is the dedication of our people, whose work provides a vital service to the country. Their professionalism deserves recognition, and our focus is on building trust through consistent performance and responsible operations”.

The post Energy mix essential for secure power supply, ElectroGas Malta CEO says first appeared on The Malta Business Weekly.

In an application filed with the Planning Authority earlier this year, the Malta International Airport (MIA) seeks to reconfigure the main airport car park in such a manner that it would create 66 new parking spaces and a lane dedicated solely to Y-plate vehicles.

How Y-plate taxis are handled at the airport has been the topic of discussion and changes over the past few months, particularly as the Malta Taxi Licensed Association which represents the white taxi operators, argued that the “unregulated presence” of Y-plate vehicles at the airport was putting them at a disadvantage.

As of last month, passengers who booked taxis through ride hailing apps such as Uber, eCabs, and Bolt have to go down to the main car park in order to get picked up.  Previously, people could be picked up right outside the airport’s arrivals hall.

MIA’s planning application now seeks to create a more formal environment for this new policy for Y-plate pick-ups to take place.

The plans envisage the creation of a largely one-lane ring round around the main car park which will be specifically dedicated to Y-plate vehicles.

In order to make this happen, the car park itself will be reconfigured: instead of parking spaces being laid out in parallel to the orientation of the terminal building, they will now be laid out perpendicular to it.

The reconfiguration will create 66 new parking spaces for patrons.

The area’s landscaping will also be reorganised, but no trees are expected to be removed.  Some will be retained while others will be uprooted and then replanted once the project is complete, according to the plans. Primrose trees will also be planted within the car park itself.

The Planning Authority is yet to pass a recommendation on the application.

The post Malta International Airport applies to create new dedicated Y-plate lane, reconfigure car park first appeared on The Malta Business Weekly.

The development, which is being proposed by RAD-ALT 1 Ltd, is situated on Triq il-Knisja l-Qadima in Manikata right next door to the hamlet’s old parish church, which is a Grade 2 scheduled building and which was recently restored.

The site is presently occupied by a single-storey vernacular building.  The roof of the building collapsed in around November 2024 and had attracted concern from the Superintendence of Cultural Heritage, which had said that the proposed development needed to protect the building’s original features.

The development in question does propose to maintain the vernacular building, but then also proposes the construction of a ground-floor garage and maisonette together with six apartments and two overlying penthouses.

The development had attracted several objections including from the Archdiocese of Malta, the Manikata Residents Association, Din l-Art Ħelwa, the St Joseph Parish Church, and the St Joseph Manikata Band Club.

The Mellieha Local Council also objected to the development, saying that it breached the Local Plan on multiple instances, noting that Manikata is designated as a Residential Priority Area mostly for terraced dwellings and other sites for villas, and its role as a small urban settlement within the countryside must not be compromised.

“As most urban centres, Manikata knows its origins in the environs of the old Saint Joseph Church, which is evident even from the building involved in this proposal. In the absence of a designated Urban Conservation Area for this hamlet, the few remaining features depicting Manikata as a small urban settlement, should be conserved, notwithstanding the leniency and oversights that prevailed particularly during the last decade,” the council had said.

“Irrespective of any development that has already been permitted, the Council reiterates that besides all the policies mentioned above, the Planning Authority should be morally committed to conserve our heritage and prohibit the overshadowing of the old Manikata Church,” it added.

The Superintendence of Cultural Heritage had later acknowledged as justified a technical report as to the collapse of the ceiling of the vernacular building, and also noted that the collapsed vaulted ceiling would be re-instated as part of the project.

As a result, the Superintendence did not object to the proposal “strictly from a cultural heritage perspective.”

The case officer noted that the apartment block will be setback from the vernacular building and from the church, and that the design shows that the building includes various stepping from the front and side elevation in order to lessen as much as possible its visual impact from street level.

The parish church and residents association had argued that despite the proposed stepping, there is still a substantial visual impact. “If approved, the new development will completely enclose the existing historical church. The lane between the application site and the church is already enclosed and deprived of light,” it had noted.

When it comes to parking, the case officer noted that the proposed development should include a total of 11 parking spaces, noting then that “the existing site can be considered committed for 1 parking space therefore the total requirement is 10 parking spaces.”

The case officer observed that the proposed ground floor garage can accommodate six parking spaces, meaning that there is a shortfall of four parking spaces which would be compensated for through a suggested contribution of €17,000 to the Planning Authority’s Urban Improvements Fund.

With the above in mind, the case officer recommended that the application be granted.

The post Plans for apartments adjacent to old Manikata church recommended for approval first appeared on The Malta Business Weekly.

In a briefing on Tuesday morning, Transport Malta architect Antoinette Conti told journalists that the project would aim to divert vehicular traffic away from the residential zones in the Cottonera area and also create a project that would incorporate areas for alternate means of transport.

The project will take up 3,000 square metres of agricultural land – but Conti pointed out that this is considerably less than the 14,500 square metres that a four-lane proposal for the area from 2007 would have taken up.

While the 2007 proposal cut straight through agricultural land to create a four-lane bypass, this proposal seeks instead to upgrade existing roads in the Kalkara area and connect them with an existing concrete rural road and through a field which runs underneath the St James and St Louis bastion walls in Zabbar – which will both be converted into a fully-fledged road – right up to Notre Dame Gate.

The final project will be a two-lane road – one lane up, one lane down – rather than a four-lane proposal which was initially mooted in 2007, but the 1.6km stretch will also include fully segregated pedestrian and cycle lanes.

“We want the design to complement the area,” Conti said, as she explained that the project was design in such a manner that it would preserve the bastion walls and features as much as possible: the cycle and pedestrian areas are in fact situated in the fort glacis and other ditch areas so they can be kept intact.

Around 30 trees and shrubs will be removed as part of the project, but Conti said that some 40 new indigenous species will be planted in their stead.

Architect Walter Portelli, Head of the Key Projects Section within Infrastructure Malta, said that the project would be carried out in phases, with the first one starting as early as the end of next month.

This first phase will impact Triq il-Missjoni Taljana and Triq Santa Liberata in Kalkara and Birgu respectively, while the second phase – which will start in around July – will see works on Triq Joseph Calleia and Triq il-Kanun tal-Mija, both in Kalkara.

These interventions will not require a planning permit, Portelli said, as they are within the existing footprints of the current roads.

Planning permits will be required for the works which will join the area around the Notre Dame Gate to Kalkara at Triq Santa Liberata, he said.

Conti explained that this area around Notre Dame Gate will see the most intervention.

Currently, there is a concrete rural road which ends around 120 metres away from Triq Santa Liberata.  The concrete road will be upgraded significantly for this project, while Conti said that the expropriation process for the fields between where the concrete road currently ends and Triq Santa Liberata is currently ongoing.

Portelli said that the project is expected to take between three and four years to complete, and will cost around €8 million.

The post New €8 million bypass to be built between Zabbar and Kalkara first appeared on The Malta Business Weekly.

The NAO said in a report that there were 16 local councils which ended the 2023 financial year with a negative working capital – something which was the office said was concerning.

A negative working capital comes from a comparison between one’s current liabilities – ergo, payments that are owed – and one’s current assets – ergo, the sources available to honour a liability.

“Current assets are those assets that can be easily liquidated within the next year, such as stocks and debtors, whilst current liabilities include any debt that needs to be settled within the year, such as creditor balances and short-term loans,” the NAO explained in its report.

Having a negative working capital indicates that the council in question “is likely to face difficulty in paying back its obligations,” the NAO observed.

What the office found concerning is not only that the number of councils facing financial difficulties had increased when compared to 2022, but also that the financial situation of all of those already in a deficit, with the exception of three, worsened rather than improved.

The local council in the worst financial position in this regard is Qormi, which has a negative working capital of €399,034.  This is a significant change from the previous year, where its working capital stood at €668,951.

The Għarb local council registered a negative working capital of €224,375, the Attard local council registered a negative working capital of €217,980, while similar figures of €217,225 were registered for Mosta and €215,882 for Birkirkara.

The other local councils registering a negative working capital were Kalkara (€188,266), Rabat (Malta) (€160,522), Pieta (€134,602), Żebbuġ (Gozo) (€121,047), Xgħajra (€83,831), Għargħur (€70,905), Dingli (€50,402), Santa Luċija (€22,003), Nadur (€8,075), and Rabat (Gozo) (€2,441).

The Eastern Regional Council also registered a negative working capital of €161,117.

Out of these, the local councils of Attard, Dingli, Mosta, Nadur, Qormi, Rabat (Gozo), Rabat (Malta), Santa Luċija, and the Eastern Regional Council all had a positive working capital at the end of 2022.

During this financial year, nine out of the councils were led by Labour Party majorities and four were led by Nationalist Party majorities.  Two had no party with a majority, while the Eastern Regional Council is led by a former PN mayor.

Meanwhile, just two local councils went from having a negative working capital at the end of 2022 to having a positive one at the end of 2023: the Gozitan villages of San Lawrenz and Sannat.

More concerning to the NAO was that two local councils and a regional council – all of which feature in the above list – ended the year with negative reserves.  This means that these entities do not have the necessary funds to make up for the deficit that they have reported.

These were the local councils of Kalkara and Xgħajra and the Eastern Regional Council.

“This Office considers the negative financial situation of the three Councils in question as unacceptable and for which prompt remedial action is required,” the NAO said.

31 local councils reported a deficit for the year 2023 – but all bar the aforementioned three had enough cash in reserve to be able to cover the deficits that they reported.

Across the board, auditors also found poor internal controls and a lack of substantiating documentation in 24 local councils and 3 regional councils.

All of this does not include anything about 11 local councils which failed to submit their audited financial statement before the NAO’s established deadline of mid-October 2024. These were the councils of Birgu, Fgura, Floriana, Għasri, Ħamrun, San Ġiljan, San Ġwann, Ta’ Xbiex, Valletta, Xagħra, and Xewkija.

In the case of Birgu, Ħamrun and San Ġiljan, the audits of both financial years 2022 and 2023 were still pending by mid-October 2024. Moreover, in the case of Birgu and Ħamrun, the audit for financial year 2021 was also not yet concluded, with the former also having those of 2019 and 2020 still in progress.

“This Office considers the situation unacceptable, as it demonstrates lack of accountability by the respective Council,” the NAO said.

The post 16 local councils in financial trouble as they owe more money than they have first appeared on The Malta Business Weekly.

Both – which were separate applications – were approved by a majority of five votes to two during a Planning Board sitting which ran for over three hours.

Board members Romano Cassar, who represents NGOs, and Mario Borg were the only two to vote against the project.  The Ghajnsielem Local Council voted in favour of both applications, although it wanted to see certain conditions imposed into the development.

The more recently filed application (PA 03884/23) proposes the Fort Chambray Phase 3 development, comprising of a 5-star aparthotel with 64 ensuite rooms, 50 serviced apartments and ancillary amenities; 105 “high quality Class 1 residential units with highly landscaped pedestrian environment and the creation of a new public piazza,” as well as part demolition of the existing underground parking levels, including excavations to extend further the existing two parking levels to accommodate garages for private use and car parking spaces for public use.”

The same application proposes the relocation and integration of the British Barracks’ front masonry arcade, inner facade behind the arcade and flanks within the proposed hotel main building; the internal and external alterations to the existing Dar it-Tabib and to change its use into 10 hotel ensuite rooms with ancillary outdoor amenities; the introduction of ancillary hotel amenities within the existing Knights’ Barracks comprising of hotel retail outlets and hotel restaurants at ground floor level, and hotel meeting rooms and conference facilities at first floor level,” among other things.

Photos: Artistic impressions of the project

The second application (PA 02454/16) is tied to the first, and proposed the dismantling of a British Barracks as part of Fort Chambray phase 3 development, to incorporate the arcade, the inner facade behind the arcade, and the flanks within the proposed hotel.

Various elements of Fort Chambray are scheduled as a Grade 1 monument of architectural and historical significance, the case officer’s report for PA 03884/23 notes, but objectors argue that the proposal has treated the Fort as an infill building site.

The British barracks itself is not scheduled, with authorities deciding that a request for scheduling could only be judged after the applications at hand were decided – a decision that NGOs and objectors derided as being senseless.

There were plenty of objectors during the Board meeting, all of whom made their voices heard against the project, with many particularly speaking out against the proposed dismantling and rebuilding of the British barracks.

Objectors raised the fact that the 1992 Development Brief for the site had stipulated that the British barracks should not be touched, but the developers and Planning Authority CEO Oliver Magro noted that the local plans supersede any development brief.

In judging both applications, Planning Board chairman Emanuel Camilleri stipulated that the case officer had recommended that they be approved and that internal and external consultees, including the Superintendence for Cultural Heritage, had no objections to the granting of the applications.

Board member Mario Borg said that he was not confident that the points established in the development brief, particularly that there should be tangible benefits for the public and for heritage, were being achieved, and also said that a Social Impact Assessment and Heritage Impact Assessment should be carried out.

NGO representative Romano Cassar said that the proposal to dismantle and rebuild the British barracks is “a travesty which should never be considered.”

The local council stipulated that the ditch around the fort should be rehabilitated and opened as a public space, that a planning gain should be established, and that the development should include an interpretation centre for the public to appreciate the history of the fort.

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Speaking at the Mediterranean Fairs and Conventions Centre in Ta’ Qali, where the meeting is taking place, Borg said that Russia’s recent escalation must stop immediately in order to pave the way for a diplomatic process to take place.

Borg said that it is an honour for Malta to be hosting the council, “a proud milestone in our 60-year history as an independent island nation.

“Despite our size, my country has always sought to maximise its contribution to the international community,” Borg said.

He referred to the history Bush-Gorbachev summit held in Malta almost exactly 35 years ago.  Ironically, as Borg spoke, rain pelted down with the din making the Foreign Minister barely audible.  “It augurs well,” Borg joked, harking back to the summit 35 years ago which was held in similarly stormy weather.

“Today, as then, Malta stands as a staunch defender of peace and dialogue in the face of seemingly insurmountable differences and challenges,” Borg said.

“This is our third meeting since the beginning of Russia’s war against Ukraine, which continues to pose a systemic threat to European security,” he highlighted.

“When I outlined our priorities to the Permanent Council in January, I made clear that what we do for peace today will help determine whether we live in war tomorrow. Tomorrow has come, and little has changed. If anything, the situation has deteriorated,” he continued.

He said that institutionally the OSCE was on the brink, with no appointed senior leadership since September, no agreement on who will chair the organisation beyond its 50^th year and no unified budget since 2021.

“The difficulties we face, colleagues, are not unique to the OSCE and have not developed in a vacuum.  They are symptomatic of a broader crisis of our collective commitment to multilateralism. The principles, rules, and institutions that have underpinned international peace and security for almost 80 years are being questioned, challenged, and actively undermined,” Borg said.

Borg said that respect for sovereignty and territorial integrity, the inviolability of frontiers, and the non-use of force are four of the central principles guiding relations between OSCE participating States.

“We continue to condemn the flagrant breaches of these obligations in Russia’s ongoing aggression against Ukraine,” he said.

“We call on the Russian Federation to withdraw from the internationally recognised territory of Ukraine and end this war. The recent escalation of attacks must stop immediately to pave the way for a diplomatic process – one that leads to a comprehensive, just, and lasting peace,” he added.

Russian Foreign Minister Sergei Lavrov is present for the meeting – it’s the first time that Lavrov has entered the European Union since Russia began its invasion.  Also present are United States Secretary of State Anthony Blinken and Ukraine’s Foreign Minister Andriy Sybiha.

Lavrov’s presence has been controversial: Poland said that he should not have been invited and Lithuania downgraded its representation at the meeting as a result of the Russian Foreign Minister’s presence.

On Wednesday Malta was also forced into revoking the visa of Russian Foreign Ministry spokesperson Maria Zakharova as three EU member states refused to agree to exempt her from a travel ban. It is understood that those three countries were Lithuania, Latvia, and Estonia.

Borg said that the OSCE’s long-term survival may be in jeopardy if an agreement on its functionality is not reached

“We cannot kick the can the road because we have ran out of road,” Borg said.

“We constantly talk about our collective responsibility for this Organization and our commitment to multilateralism. It’s time to walk the talk,” he said.

The plenary session of the council is opened at around 10:30am. Lavrov was the penultimate representative to arrive, giving no comments to the media as he arrived. Multiple bilaterals are taking place in the margins of the council, and two side events – one focusing on gender and security and the other on media freedom – will also take place on Thursday.

The conference is expected to wind up on Friday afternoon, with sources saying that it was possible that an agreement will be reached on a new Secretary General for the OSCE to succeed Helga Schmid, whose term had to be extended by a year.

The post Ian Borg calls on Russia to withdraw from Ukraine and ‘end this war’ in OSCE council meeting opening first appeared on The Malta Business Weekly.