[WATCH] Clyde Caruana warns Labour government: ‘Hear the people’s call’

Decisions like the Villa Rosa local plan change could threaten the Labour government’s credibility, and if it ignores people’s concerns, it will suffer the consequences. 

This is Finance Minister Clyde Caruana’s warning to the very same government he forms part of. 

In an interview with MaltaToday, Caruana admitted the government’s credibility is at stake, and will remain at stake if it takes controversial decisions. 

“Last June people sent a clear message, and maybe the Villa Rosa decision contradicts what the people said in the June elections. The Budget speech was clear, now it’s up to the government as to whether to move in that direction or not,” Caruana said.  

Last month, the Planning Authority opened a public consultation to change the local plan for the Villa Rosa site in St Julian’s. Among the objectives of the review is to reconfigure the boundaries of the sub-zones within the area and to establish the allowable building heights for each sub-zone. 

This sparked outrage among civil society and within the prime minister’s own Cabinet. 

When asked about the Villa Rosa decision, Caruana said he understands that such decisions put people off and could impact the credibility of the government.  

He stood by the slogan of his budget speech – ‘Moving towards a country of quality’ – but put the responsibility of its implementation on the government as a whole. 

“The Budget speech was clear, now it’s up to the government as to whether to move in that direction or not. If the government doesn’t hear the people’s call from last June, then it’s up to the government to face the consequences,” he said. 

Caruana added: “I’m part of the government. I’m not the entire government. As I’m doing now in this interview, I have no problem expressing my opinion. If the government says one thing and does another, it can only lose its credibility.”

Looking beyond Malta 

Caruana agreed that the way certain economic actors behave can appear contradictory. He said businessmen are free to invest and develop as they wish, but the country’s resources and limitations need to be kept in mind. 

“We’ve reached a point where some industries may have to look beyond Malta’s shores to avoid saturating the local market. This would allow us to bring the profits of foreign investments back to Malta,” he said.  

Caruana admitted he finds areas like Paceville suffocating, and he wonders whether all the high-rises in the area might bring down the quality of the place. 

How the Ukrainian war put a spanner in the works 

One of Labour’s 2022 electoral pledges was a €700 million investment in urban greening projects, spearheaded by a new government agency called Project Green.  However, progress has been stagnant on these projects.

“The Ukrainian war had a significant impact on the government’s work. We took a hit from the explosion in energy prices, and that took up a lot of our resources. The government absorbed at least a billion euros. That’s a huge amount of money. And like everything in life, in these circumstances you need to set your priorities,” he said. 

Caruana added that prioritising energy and fuel stability was important to keep the economy going. “Now that energy prices are falling, although still high, we can continue our work,” he said. 

Caruana noted that Project Green has a €30 million allocation of funds for next year, intended for several projects. He said he understands people’s frustrations on the projects’ delays, but the financial priority for the government since 2022 was to stabilise energy prices.  

“I used to tell my colleagues – if we don’t subsidise energy prices, I assure you that people will only be talking about energy prices. The main priority for the country is to maintain stability in energy prices,” he said. 

This is the first time that a government minister has publicly acknowledged that progress on several projects to shift main roads underground and build gardens above them were stalled because of financial considerations. The projects, which formed part of the 2022 election manifesto, included roofing over a part of the approach road to the Santa Venera tunnels, and building tunnels for traffic to pass through in St Anne Street in Floriana and San Gwann. The latter two projects have been scrapped. 

Garnet Investments reaction

Reacting to Caruana's comments, Garnet Investments, the company behind the Villa Rosa development, said on Sunday the objectives listed by the Planning Authority for the local plan review were "important" to it. "The objectives that prioritise public open space will guide our new proposal," a spokesperson for the company said.

"We recognise that our original permit in 2018 did not include public open space, and given the growth in the surrounding area, we see the value in building on a smaller footprint to preserve a green lung for the community. As we move forward, we’re committed to presenting a project that enhances public open spaces, protects the environment, and draws top-quality international brands to benefit the area and local economy," the spokesperson said.