After the walls of three buildings collapsed in two months in Malta near construction sites, the government halted all demolition and excavation works in the country on 13 June and drafted legislation to regulate the vertical. Legal Notice 136 of 2019 regarding the Avoidance of Damage to Third Party Property Regulations, 2019, came into force on 25 June.

However, the Kamra tal-Periti argued that there was a “lack of clarity between the principles made in the statement and certain statements made in Parliament,” after regulations came into effect and urged discussions with the government. The regulation was later amended through Legal Notice 180 of 2019, which came into force on 29 July.

“In the period between the publication of the two legal notices, the Council of the Kamra tal-Periti worked incessantly to ensure that the interests of the profession are safeguarded and that public safety is placed at the forefront,” the press statement sent to BM says.

“In particular, it is to be noted that the Kamra’s primary contentions with the Legal Notice revolved around the fact that periti [Maltese word for architects] are the only actors on construction sites who are properly regulated, while all other actors operate in an unregulated manner, to the extent that the industry had reached, in the Kamra’s own words, a state of crisis,” the statement adds.

Despite only two of the proposed changes by the association having been included in the amended legal notice, the Kamra tagged the progress to be “significant” related to matters that impact the industry, which have been recorded in a Letter of Commitment presented by the government to the Kamra tal-Periti.

Further changes coming

The Maltese government has expressed commitment toward establishing a new authority to regulate the building and construction industry, which will be accompanied by the promulgation of new building and construction regulations in line with the Kamra’s proposals published last May.

Additionally, the Kamra’s “long-awaited” registration, licensing and classification of contractors and skilled labourers by government is also in the pipeline, which is believed to ensure that liabilities are carried by the professional and the contractor in a more equitable manner in line with the Civil Code.

“The new regulations will clearly delineate the various responsibilities to be carried by each of the participants on a construction site, which will, in the interim period, be addressed by Forms of Contract to be published shortly by the Kamra tal-Periti. The new regulations will also address liability periods of the participants on a construction site, bringing them in line with existing European models,” the press statement says.

Immediately after the summer recess, the government said it will issue various amendments to the Periti Act, which currently regulates the profession. Such changes have been the subject of discussions with subsequent governments since 2007, the association underscores, adding that now there appears to be convergence on most of the proposed amendments.

“In terms of Legal Notice 136 of 2019, as amended, various aspects were agreed, including the establishment of a register, to be published by the Building Regulation Office, of persons who are competent to provide the services of a site technical officer, the amendment of the various forms that are to be submitted to the Building Regulation Office to be in line with the latest Legal Notice and the processes agreed to between the government and the Kamra, and the eventual integration of the provisions of the Legal Notice in the regulations that will be eventually established under the Act regulating the new authority,” the press statement adds.

The Kamra says that “practically” all of the motions approved by its EGMs held on 21 June and 5 July 2019 have been addressed and there is now a recorded commitment by the government to implement “significant” reforms to the industry. “The Council of the Kamra tal-Periti is confident that there is the political will to ensure a comprehensive reform of the building and construction industry, as also outlined in the Kamra’s document A Modern Building and Construction Regulation Framework for Malta (May 2019) which has already received the support of all the stakeholders who have been consulted to date,” the press statement adds.

According to the association, the Maltese government has acknowledged the fact that an overhaul of the construction industry is not only necessary but also needed to ensure that it moves forward in a sustainable manner. The Kamra tal-Periti believes that the Letter of Commitment is an important milestone for all actors in the industry, including the general public.

Turbulent times

After the walls of three buildings collapsed in the past two months in Malta near construction sites, forcing the government to temporarily halt demolition and excavation works, the Kamra called for an extraordinary general meeting.

Prior to the EGM the Kamra published its preliminary position, and after the EGM the Kamra pledged commitment to improving the public safety of citizens and urged the government to enter discussions with the association.

The Kamra also welcomed the recent listing of licensed masons published on the website of the Building Regulation Office (BRO). 

The Kamra sent a letter to the minister, asking to clarify a number of points. At the same time, the Kamra also asked for a meeting prior to the publication of the legal notice.

Kamra tal-Periti met the government to discuss the new regulations that were brought into force, during which the association outlined its issues with the current regulations, and the positions voted upon in the extraordinary general meeting on 21 June.

The post Kamra tal-Periti welcomes new amendment first appeared on The Malta Business Weekly.

The use of these kick scooters in public spaces is illegal, hence, Transport Malta Enforcement Officers have issued fines with regards to such use. “The fines are set by the ‘subsidiary legislation regulating Electronic Scooters, SL65.26 – Low-powered vehicles and pedal cycles regulations’,” the statement sent by TM adds. Transport Malta, however, states that the authority is “currently reviewing its policies and draft regulations about the use of electronic [kick] scooters,” the statement sent to BM concludes.

As electric [kick] scooters are easily accessible at low prices, people are increasingly in favour of using them to commute, which is convenient given Malta’s small size and heavy congestion on its roads. Still, these electric [kick] scooters can ride up to 25-30 kph, which makes them fall closer to motorised vehicles than children’s toys on the spectrum of vehicles. Hence, riding them in pedestrian areas can be dangerous, while joining traffic on the roads includes liabilities that need due regulation.

EDITORIAL NOTE: The present story has been updated with a clarification in reference to the word “electric kick scooter”. For further information between electric kick scooters and electric bike scooters please see our Style Guide.

The post TM reviews electric kick scooter policies as public use remains illegal first appeared on The Malta Business Weekly.

The Maltese government halted all demolition and excavation works in the country on 13 June 2019, as an emergency action in view of the recent spate of structural collapses which occurred adjacent to construction sites. The Council of the Kamra tal-Periti considered this measure necessary, due to the potential risks to public safety. Therefore, Maltese Prime Minister Joseph Muscat announced that new regulations would be published regarding excavation and demolition works, in order to address a number of issues.

Draft amendments to the Avoidance of Damage to Third Party Property Regulations were published on Monday 17 June 2019, concerning the following aspects: definition of site responsibilities, increase in insurance cover and requirement for its renewal, the process for the submission of the method statement and condition report — including regarding the need and frequency of geological and geotechnical surveys — exemptions and penalties.  

The Council of the Kamra tal-Periti together with its team of technical experts has reviewed the proposed draft and has issued a preliminary position to all the architects. The chamber has also reported as an Executive Summary the following Kamra’s initial reactions, as follows:

1. The rush to implement these piecemeal changes to the regulatory regime that governs the building industry is ill-thought. Our regulations and legislative instruments need a complete overhaul, as the Kamra has repeatedly stated since 2007. Attempting to amend the current regulations without having considered their impact on other pieces of legislation as well as on current practices and capacity of the industry is a recipe for further confusion and lack of clarity, rather than addressing the issues of safety which these changes purport to address. Even if the purported aim is to address the dangerous process of demolitions and excavations adjacent to existing properties, the Legal Notice proposes to address all other construction activities, but, at the same time, fails to address the other dangerous process of loading party walls, and their foundations, designed to carry two or three storeys, by many more floors.
2. The amendments claim to clarify the roles of the figures engaged on a site. However, there are glaring incongruencies with roles defined in other legislation, and rather than clarifying, the proposals introduce new roles without defining appropriate competences while ignoring the existence of figures already defined in other legislation, such as licenced masons. It also ignores the blatant lacuna regarding the legal obligation for registration of contractors, who are liable, as per Civil Law, jointly with the perit [Maltese word for architect], for the structural integrity of buildings.
3. The proposed processes for the submission of method statements, geotechnical investigation reports and geotechnical design reports are cumbersome and more intent on establishing who does them, who submits them, when and to whom, than on establishing the criteria for their preparation. The Kamra is of the opinion that this is a result of the lack of research to understand how such instruments are used internationally, and trying to adapt them to the local situation, with no regard for scale or complexity of projects.
4. The proposed draft seems to imply that the measures proposed therein are to apply retroactively to ongoing projects. This will have implications on the capacity of the industry to respond in a meaningful manner.

However, the proposed Legal Notice in its current form is not acceptable. The full version of the Kamra’s analysis on the draft will be published at the end of the consultation process following the EGM.

The post Kamra tal-Periti issues preliminary position prior to EGM first appeared on The Malta Business Weekly.

Dialogue on medical cannabis has sped up in recent years, many countries having already opened up or seriously planning to open up for utilising products from the plant for healing. Additionally, beyond the decriminalisaion of recreational usage, some countries are weighing the possibilities of legalising cannabis for leisure use. Cannabis has come a long way from being mentioned on the same page with hard drugs triggering life-long addiction and demise. Malta has been progressive about medical cannabis and could become one of the early starters in the field in Europe.

“Politically speaking, the country is in an advantageous position to develop a medicinal cannabis industry, particularly owing to the fact that Prime Minister Joseph Muscat is a huge advocate both for medical and commercial purposes. He has expressed his support for Malta becoming a key regional producer — and exporter — of medical cannabis and the county’s trade routes, climate and regulatory infrastructure can support that,” Alexandra Curley, Head of Insights at Prohibition Partners, tells Business Malta.

Malta decriminalised the possession of small amounts of cannabis in 2015 and legalised medical cannabis in March 2018. In the past year, companies with expertise in medical cannabis have appeared to cast an eye on the island. A handful of them is already negotiating with Malta Enterprise, a government body responsible for assisting investors in the country, about grabbing a licence and setting up shop in here.

PM Muscat earlier said that “the current system favours criminals and it would be far better to have controls over its distribution”. His governing party expressed support for looking at legal models adopted by countries like Canada. Currently, medical cannabis cultivation for domestic consumption and for international exports is legalised in Malta.

Immense market

With a population of more than 740 million people — more than double of the United States and Canada together — Europe has a promising future in the upcoming years in terms of medical cannabis. “Over the last twelve months, the European cannabis industry has grown more than it has in the last six years,” Prohibition Partners says in its “The European Cannabis Report 2019 4th Edition”. Six countries have announced new legislation and over €500m has been invested in European cannabis businesses. “According to our findings, Europe’s cannabis market is estimated to be worth up to €123b by 2028 and will likely become the world’s largest legal market over the next five years,” the report says.

“According to our findings, Europe’s cannabis market is estimated to be worth up to €123b by 2028 and will likely become the world’s largest legal market over the next five years,”

The European Cannabis Report 2019 by Prohibition Partners says.

Prohibition Partners — founded in 2017 with a mission to open up the international cannabis industry through reliable data and intelligence — estimates the medicinal cannabis market to be worth €58b by 2028 and the recreational cannabis market to come around €65b by 2028, in Europe. This is the unfolding market that Malta is most likely to tap into.

“Malta sits in a highly-interesting and strategic position between Europe and Africa but as a European Union member state, Malta is likely to tap into the European market, which presents higher value growth opportunities for cannabis exporters,” Ms Curley tells BM. “Despite its geographical proximity to Africa, I think it is unlikely that Africa will become an export market for Malta. Cannabis, both recreationally and medically, is still illegal in the vast majority of Africa and the three nations with legal medical frameworks (Lesotho, Zimbabwe and South Africa) have plans to develop domestic markets,” she adds.

‘Progressive’ nation

As a member of the European Union, Malta is more likely to be producing cannabis to EU-GMP standards which could possibly give the country an advantage over products manufactured outside the bloc. The country appears to sport a promising future in this field, being one of the most forward-thinking nations in the European Union.

“Malta is definitely seen as progressive in relation to other EU countries. Obviously, all eyes are on the region’s leaders like the Netherlands, Germany and Italy, but Malta has passed legislation to decriminalise recreational cannabis and also promote a profitable and accessible medical cannabis industry,” Ms Curley says.

The legislative environment seems to have created a safety net for providing services to high standards. “The law is definitely less ambiguous than other countries who have begun the process of legalisation of cannabis — South Africa being a case in point, where key definitions are unclear around what constitutes personal use or private space. The Maltese regulations have been designed to ensure that standards are maintained, thus preserving the country’s ability to benefit financially from the industry, particularly with regard to employment, taxes and revenues. While the intent is there, Malta will need to sort out regulations for international export before they can be seen as regional heavyweights,” Ms Curley underscores.

“The Maltese regulations have been designed to ensure that standards are maintained, […however,] Malta will need to sort out regulations for international export before they can be seen as regional heavyweights,”

Alexandra Curley, Head of Insights at Prohibition Partners.

The paradigm shift has been quite fast in the past years; the legalisation of cannabis for medical use and decriminalisation of possession in small amounts for recreational use is a long way travelled. However, how likely could Malta open up for legalised and controlled recreational cannabis use, similarly to Canada and some states in the US?

“It is not unfeasible that this would be the case. When you examine other legal markets around the world, recreational cannabis can follow the legalisation of medicinal cannabis or the decriminalisation of cannabis for personal use. It might not be in the next one or two years, but, it could happen in the mid-term. We would expect to see something of a snowball effect as other European countries start to legalise or decriminalise cannabis for recreational purposes,” Ms Curley says.

“Cannabis has already been decriminalised in Malta (2015) which means that possession is not a criminal offence, but there is still a long way to go to creating a regulated legal market. That said, Malta has been going through something of a renaissance of late, with the legalisation of same-sex marriage (2017) and updates to laws on IVF (2018). It is not out of the question that liberal political attitudes will also influence cannabis legislation too,” she concludes.

The post Malta’s progressive approach boosts its medical cannabis potential first appeared on The Malta Business Weekly.

The most recent reregulation was preceded by years of planning and takes place in an environment where Norway and Finland appear to hold strong gambling monopoly. Marching in the footsteps of Denmark, Sweden seems to open up its iGaming industry for private sectors, with the new legislation.

Under the new Swedish gambling law (SFS 2018:1138), companies are due to pay 18% tax for commercial gaming, a 0% tax rate applies for non-profit gambling activities, six different license types are available with prices varying from SEK 400,000-700,000 (roughly €38,200-€66,900), and an 18+ age limit is set for online gambling while a 21+ age limit applies to enter a physical casino, according to a report by gambling.com.

The new legislation is expected to create a safer market, improve consumer protection and game security, as well as provide clear market conditions. In the new environment, players can pause their accounts nationwide with a single action, as well as control tightens over illegal gambling activities.

All eyes on Malta

Malta is home to a handful of international iGaming operators and software providers, who are based in Sweden but carry out the bulk of their operations in the tiny Mediterranean island, so much so that Malta is often referred to as an iGaming hub.

The sector directly accounted for 11.3% of Malta’s gross value added — more than €1.1bn — in 2017 according to NSO statistics, after the country was the first to regulate the market in 2004. In 2017, the watchdog Malta Gaming Authority (MGA) issued a total of 165 new remote gaming licences, according to a report by EY in 2018.

Malta has seen the presence of Swedish software providers NetEnt, Evolution Gaming and Play’n GO, as well as casino operators Mr Green, Unibet, and Leo Vegas. These iGaming giants all have roots in Sweden but are also registered and therefore have operations in the island country. As a result, attention has risen over the market to see how the re-regulated Swedish environment would affect the sentiment in here.

The Maltese iGaming sector also needs to keep an eye out on Spain that has recently approved a remarkable tax cut of 5% for iGaming operator revenues. Gaming Innovation Group (GiG) and LeoVegas have already targeted the market by announcing expansion over there.

The post Sweden reregulates gambling market first appeared on The Malta Business Weekly.