Labour Party ordered to vacate Valletta premises after 70-year tenancy

A board has ordered the eviction of the Labour Party from its premises in Valletta, which it has occupied for around 70 years while paying just over €50 a month in rent.

The judgment comes seven months after a constitutional court found the rental arrangement breached the owners’ fundamental rights and ordered the State to pay them more than €254,000 in compensation.

The property is now largely owned by the grandchildren and great-grandchildren of the widow who originally rented it to the Labour Party around seven decades ago. However, Labour itself owns a 4% share of the property.

That stake was acquired from one of the heirs in 2004 through a contract notarised by the current President before her appointment, Myriam Spiteri Debono. The same heir also transferred a further 1.13% share in the property to the jewellers who occupy part of the building.

The property owners, with the exception of Labour itself, instituted constitutional proceedings in 2023 against the Labour Party, its Valletta committee and the State Advocate. In February, the court found that the owners’ fundamental property rights had been breached.

The court awarded them €254,307 in compensation, with the amount to be paid by the State rather than the Labour Party.

During those proceedings, a court-appointed valuation established that the property had a fair rental value of €40,000 per year in 2022.

This was around 66 times the rent being paid by Labour, which amounted to just over €600 annually. Despite finding a breach of the owners’ rights and awarding compensation, the constitutional court stopped short of ordering Labour to leave the property.

The owners subsequently instituted proceedings before the Rent Regulation Board, making five requests.

They sought a declaration that the Labour Party could no longer rely on Malta’s rent laws to justify its continued occupation of the property. They also asked the board to declare that they could not be forced to continue renting the premises to Labour and that Labour’s continued occupation was causing them additional financial damage.

Finally, they requested that Labour be ordered to vacate the property within a short period of time.

Some requests were turned down.

The board held that questions concerning the rent laws themselves and their compatibility with fundamental rights fell within the constitutional courts’ remit and were therefore beyond the board’s competence. It also declined to specifically declare that every additional day Labour remained in possession of the property was causing the owners further damage.

One of the issues also considered by the board was whether Labour’s ownership of a 4% share in the property prevented the other owners from seeking its eviction. Referring to previous case law, the board concluded that Labour’s part-ownership did not prevent the remaining co-owners from seeking to recover possession of the premises.

The Labour Party was consequently ordered to vacate its Republic Street club within 30 days.

The decision is subject to appeal.

Magistrate Claudio Zammit presided over the Rent Regulation Board.

RSS Feed Source: Independent Malta Labour Party ordered to vacate Valletta premises after 70-year tenancy