Friday, 4th September 2009
A House of Cards
The recession has brought with it a slump in property prices all around the world. The effect wasn't as severe in Malta where while some movement was seen on the lower end of the house market, no major falls in prices where experienced. While most young couples seeking their first house have less purchasing power today than they had before the economic crises, the price of houses hasn't had an equivalent decline.
Young couples in their twenties or early thirties are finding it excruciatingly hard to find a decent home especially if they are paid minimum wages or have recently lost their jobs. It is indeed a complex and difficult situation where the government has its hands tied due to its less than ideal budgetary status. On the other hand it cannot stay in eternal denial while the problems keep on piling up. Something needs to be done.
Labour's youth branch FZL came out with an interesting reply* to Parliamentary Secretary Clyde Puli's National Youth Policy document. The parliamentary secretary's document fails to discuss the housing problem and how youths are those who are feeling the brunt of this issue. No mention is made of how to aid couples who are looking for a house or how the rent reform should ameliorate the situation. Maybe the Nationalist government feels uncomfortable talking about new housing schemes when straight after the 2008 election it stopped the Equity sharing scheme, despite promising otherwise in the election campaign. Or maybe it doesn't consider this issue to be a priority in these hard times. Whatever the reason it doesn't say much of the Parliamentary Secretariat for Youth's sensitivity to Maltese young couples' financial woes. Mr Puli should bring home the bacon and present a factual and concrete plan on how to aid young couples who really need a helping hand to buy a new decent house.
FZL's reply* goes on to say that a long term plan must be formed keeping in mind the overall sustainability of the housing sector with a special consideration to young families. An acquaintance of mine who has more faith in this administration than I do remarked that it would be interesting to see whether the government would take up this suggestion. Although I felt like retorting with the words 'Fat chance!', given this administration's not so scintillating record in the sector, I decided on a more cautious 'We'll see' not wanting to polemise. Still, I find it very difficult to understand how after so many empty promises this government is still able to take the micky out of some people.
This was particularly evident in Gozo where in a last gasp attempt to win over some crucial votes, couples who had been waiting for the Housing Authority to help them get a home, were assured that they would be given a house straight after the election. To this day they are still without a house. Apparently the scheme they were convinced to apply for was abruptly suspended a few weeks after March the 8th.
The government's plans on housing since last year's election have turned out to be a house of cards. One strong wind and they were all blown away. What makes it more tragic is that it isn’t just another futile promise that wasn't delivered. When one plays about with the lives of others one crosses that fine line between political apathy and plain decency. And that's just not right.
* For the full version of this document visit : http://www.fzl.org.mt/FZLDokumentTaReazzjoni.pdf
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Comments
York. He will celebrate an opening of a very very small Maltese owned English school and or class in New York. Do you think anyone would be listening to Gonzi at the UN?
Please don't spin what I wrote. I mentioned Tin Lizzies to put the matter of time in perspective and that one depression is never like the next one.
With regard to forecasting what will happen for the next 5 years, whether in government or not, is a very imprecise science, so much so that the American government, the author of the regulations of their banks' policies, was unable (or unwilling) to take corrective steps before the bottom fell off and carried the rest of the world with it.
If one objectively put things in perspective, Malta has had one less problem to deal with and its financial institutions remain the 5th strongest in the WORLD. Hard to dispute this fact.
You should name one government which fulfills ALL its promises during one mandate. I bet you cannot. Circumstances change and not always to suit a government in power. This is one such instance and no moaning from the Opposition will change it.
Funny that you mention economists. Most of the time they cannot agree amongst themselves what the causes of a recession are until well after the fact and what the remedies will be afterwards.
Mr. Martinelli an election programme is supposed to plan the next 5 years for the country. It is upon such plans a government is elected, and hence it should take into consideration the different situations a country should encounter during those 5 years, let alone during the same year of the election. Furthermore the NP was in government before that election, and so their predictions should have been based on a clearer picture of the state of the Maltese economy.
Where are the adjectives?
Just in case you haven’t noticed, I will ignore you when you resort to personal adjectives like “Stuff which still makes your head spin. Maybe those are the gyrations which continue to put you in a tizzy!” Decent people debate a subject objectively and decently. Objectively doesn’t always come easy but decency is painless.
The circles Dr. Gonzi partakes in are circles of power. He will be off to the UN on September 21 for an important meeting of Heads of States, while Joseph can leisurely spend a few more days at the beach! No climate change or recession problems for lucky him!
Stuff which still makes your head spin. Maybe those are the gyrations which continue to put you in a tizzy!
Contrary to your wrong impression, I'm very much aware about what happened eighty years ago (1929 depression) but it is wrong to compare the circumstances then to today's. In 1929 the Americans still had Tin Lizzies on the road and the word 'computer' was unheard of.
When FDR concocted "the New Deal and as the name implies it was based on tackling the dire economic situation" the depression already existed.
When the NP made certain promises in the early 2008 election campaign nobody knew what was coming, how big a deal it was going to be and what methods were to be used to combat the recession. Countries adopted different measures on the run. The USA is spending over one trillion dollars and yet net jobs continue to decline since it takes months for Federal funds to percolate to lower strata of the economy. Are Americans taking to the streets? No. They know well enough that governments can only do so much. Have they labeled this recession as the 'Bush' recession or the 'Obama' recession? No again because they are united in purpose, that being to get out of the bind ASAP. Not in Malta, I'm afraid!
What is elementary is that worse situations have been faced like the 1929 Depression and that you do not seem to know about it. Ben Bernanke, that was recently reconfimed as the Chairman of the United States Federal Reserve is an expert about the topic, guess why!
Mr. Martinelli, the electoral program that elected Franklin Delano Roosevelt was titled the New Deal and as the name implies it was based on tackling the dire economic situation. In that case no one promised "Sailing Boats".
go tell THEM that it's elementary.
the future of our young families is not the same as promising to eliminate the deficit and have a surplus.
so much for family talk and values by our dear PM.
elementary, my beloved mr. Martinelli
Commenting on the causes and effects of a world recession and the collapse of major banking systems has nothing to do with attempting "to defend anything that happens in this country " Read my comments again.
It is also an undeniable fact that no government has ever faced the same set of circumstances facing governments today around the world. Solutions are not easy to come by and there is no 'one-size-fits-all model to go by. Some experts say that deficits should not be of any concern at this moment while others say that government spending should be cut as soon as the first signs of recovery are perceived. Who is right? Or, are they both right?
The most important thing, however, is that a government has a plan and follows it. Making corrections at an appropriate point in time will get the fiscal train on tracks again. Such plans may involve postponing promises made during an election campaign. Those who vote based on promises made by different political parties are somewhat naive since no government can single-handedly prevent changing circumstances in large countries on whose trade our economy depends.
Elementary, my dear Mr.Micallef!
Some housing policy schemes were called off a month after the General Election in March 2008. Even if for the arguments sake, this was due to circumstances which we have no control on, the government shouldnt have promised them before the election!
i clearly remember Gonzi speaking about thunderstorms coming our way during the campaign! when thunderstorms are coming, you don't promise sailing boats!
Housing Policy is one big failure of the Gonzi administration. No more, no less. And today's generations are speaking of the BIG difficulties they are facing NOW! not World War II
Up until a year ago, almost to the day, young couples were actively searching to buy their first home. Then, like a lightning bolt, their hopes were dashed not through their fault but through inadequate policies by governments in countries much larger than Malta. Unfortunately we have become unwilling victims of a dire situation, much like what happened in 1940. Today bombs don't fall from the sky destroying buildings and life, but unpleasant impositions of new circumstances affect us all.
The difference between WWII and today is that while during the war there appeared to be a total resolve to withstand and destroy the enemy, today such resolve seems to be lacking and we stand divided.
This isn't an NP-LP problem and the solution has to be a positive approach by both.
One can only hope!!
Nevertheless, the 'the chosen few' are getting richer and richer, while GonziPN is shrugging off any political responsibilities of the above problems.
Thanks to GonziPN, the present disastrous situation is a photo copy of the situation of the late 60s. Maybe even worse.
Our dear country deserves much better. GonzipN please note!
Housing prices can't keep on going up like this. Something is wrong. And before some Mr Conservative-know-it-all claims that prices go up because of the demand...the situation is not at all like that. We have thausands of unused units, many for sale and have been for sale for ages. It's about time developers reconsder their profit margin. And yes, the government MUST intervene. We need more incentives. I am not saying that it is the government's business to build houses. The private sector can do it, but the government has to help the young buyer invest.
We need to consider all types of families when we draft a housing policy. But I guess I'm asking too much from the Conservatives here....the only hope is Labour!