Farrugia on the warpath: compensation on Renzo Piano works, 'or we won't pay VAT'

The Chamber of SMEs (GRTU) has written to the Prime Minister to demand financial compensation for losses to Valletta-based businesses on account of ongoing construction and embellishment projects in the capital city.

GRTU has warned government that, in the absence of any arrangement to compensate businesses, “we have no option but to issue directives to members not to pay VAT, trade licences and CVA. As you can imagine these constitute an element of cost to the business community, which they cannot carry in the absence of business and sales.”

Parts of South Street, Melita Street and other parts of Valletta are currently undergoing paving works, while the City Gate area, including Freedom Square, is closed for preliminary works on the Valletta Regeneration Project, piloted by Renzo Piano.

GRTU argues that these disruptions, which cause losses to businesses in the area, are being carried out in breach of regulations issued by the same government not to carry out such works in summer. “Despite of all the rules and regulations that prohibit construction works in peak tourism months, dust and construction equipment is all over the place and it seems that Ministers Austin Gatt and George Pullicino are immune to the laws of the land," the chamber said yesterday.

In a letter to the Prime Minister, GRTU director-general Vince Farruga complained of what he described as a “dramatic blow to the business performance of all retail and catering outlets in Valletta. Valletta has been entrusted with an additional difficulty, not only is it difficult to come into Valletta and find a parking, but it has become also dangerous for customers to walk around Valletta,” Farrugia wrote. “GRTU is therefore not surprised that tour operators and cruise liner managers are advising tourists that visiting Valletta would be at their own risk.

Farrugia described as “incredible” that while the Ministry for Tourism imposes construction and street works limits on tourism localities during the summer season, the same restrictions are not imposed on government authorities, mainly the infrastructure and resources ministries, who carry on with their works irrespective of these legal restrictions.

“GRTU is saddened that its complaints keep falling on deaf ears and the people responsible for communicating with GRTU, as the national representative of retailers and business establishments in Valletta, is completely disregarded and very feeble replies are given by the Government officers responsible for the genuine complaints raised by GRTU on behalf of its members. This a complete disregard of business interests, which is absolutely unacceptable.

For this reason, the GRTU warns of measures including refusal to pay VAT, trade licenses and CVA.

“The alternative is to dismiss labour. Our members would rather accept the implications of not paying dues to Government than sacrificing loyal workers who have no responsibility whatsoever for the situation created by Government’s inability to meet correctly the logistical consequences of the work currently going on in Valletta,” Farrugia said.