Resident Parking

A recent court of appeals decision regarding the above subject raised two important issues. The court decided that the Pieta’ local council acted ultra vires when it introduced a residents’ parking scheme without the necessary permit from public authorities.

Two issues which come out of such a decision. First, that public authorities can issue permits to such schemes while the second raised the issue of the fines collected illegally by the Pieta’ local council.

From newspaper reports it was the first court which dealt with this problem. It pointed out that such schemes, though justified under certain conditions, would in themselves give preferential treatment to local citizens.

At first sight, there is nothing wrong in giving preferential treatment to citizens in the locality in which they reside. But if this is applied to all localities, we would end up in restriction of movement in Malta. The implications are serious not only to business and consumers but also to all citizens.

If such schemes become widespread, business will become localized again. The implications are that costs increase because certain economies of scale could not be implemented. The implication for consumers is that their choice will be limited as they would find it difficult to shop in another locality.

Citizens will find that they are really living not in Malta but in their home locality. The unfortunate thing is that because of local politics, at present there are already 19 localities which were given permission to introduce such schemes. Thus we find that those living in Balzan, Fontana, Floriana, Hamrun, Iklin, Mellieha, Msida, Mosta, Naxxar, San Gwann, St Julians, St Paul’s Bay, St Venera, Sliema, Swieqi, Ta’ Xbiex, Valletta, Victoria, and Vittoriosa are being given preferential treatment over the rest of the citizens because while they can park freely in other localities, they find their parking reserved when they return home.

The way forward is not to make such schemes more widespread but to do away with such schemes. They should only be introduced because of security or humanitarian reasons. When such schemes are approved, the authority issuing the permit should make a public announcement giving the specific reason for restricting the freedom of movement of the other citizens. These permits should only be issued after clear criteria are defined and issues. It is pathetic that while we are giving such importance to the Eurpean Parliament elections, we are permitting that one of the four freedoms, that of movement, on which the EU is based, is being tramped upon by the local authorities who seem to disregard such freedom with impunity as there is neither transparency nor accountability.

The second issue is what is going to happen to the fines illegally collected. Should they be returned to their rightful owners? A similar controversy cropped up when the government was put under pressure due to the controversial, for many illegal, VAT collected on car registration.

Those supporting the Government’s position found that they could not justify such a position and thus they reverted on an argument that if it was found that the VAT collected was mot done legally, the taxes collected should not be returned to their rightful owners as this would create an outflow in the government’s finances when we least could afford it.

But is such a position tenable? I don’t think so as otherwise the same argument could be used to justify any position taken, legal or not, by any authority in collecting money under the pretext of taxes, fines, administrative charge or any other name, with impunity. The reason is that even if the authority is found acting ultra vires, there will be no need to refund the money illegally collected. Its duty would be just to stop charging the illegal fee.

Would Mr Citizen accept the position that if the Inland Revenue Department has been found to be acting illegally as it is charging him a high income tax rate, this Department will only have the duty not to continue charging him this high rate but will not have any right to be refunded the illegally collected taxes?!