History of the GPD

The GPD's origin goes back to 1961 when a number of sections were hived off from a number of separate government departments and constituted into a single Land Department with a view of gathering under one roof the main roles concerned with the administration of government immovable property. This did not solely comprise roles related to the leasing of property but also included the acquisition of private property for a public purpose under the auspices of the Land Acquisition (Public Purpose) Ordinance.

At the time, Government's registered stock of property was under 10,000; considering also that large tracts of land were in the hands of the British Forces. Government property consisted mainly of old buildings inherited from the time of the Knights of St. John plus a number of dwellings and other units constructed after the devastation of World War II. At the time, Malta's industrialisation drive; that was to bring with it the building of Government-owned factories and the construction of housing estates for social housing purposes, had not yet started.

In such a scenario the conglomeration of sections from various other departments into a single unit to administer such property made a lot of sense. The problem lied in the fact that over the years Government's stock of built property continued to increase particularly following the demise of the British Military Forces in 1979. By the late 1980s the Land Department had seen the stock of property under its administration rise from a few thousand to well near the 30,000 mark. On the other hand the administrative and organisational structure of the Land Department remained largely unchanged - it remained a collection of sections each performing a particular role with little strategic interaction between them. This problem was exacerbated by the fact that staff levels had decreased in spite of the substantial increase in property units being administered.

Throughout most of its 40 years of existence the Land Department had been managed on a crisis basis with most decisions being taken in ad hoc manner within a wider general service context that clearly lacked an appreciation of the heavy portfolio entrusted to the department. Following the explosion of property values in the late 1980s and early 1990's the pressure on the department to provide a greater return on property and a more efficient service to its clients increased, particularly following the launch of the Public Service Reform exercise.

A significant move intended to install a clear strategic direction into the management of Government's immovable estate occurred in 1996, when the then Minister for Public Works & Construction, under whose portfolio the Land Department fell, directed that the department be reorganised so as to reflect the increased importance Government intended to give to its costly property assets. This initiated a process of reform through which the original Land Department was raised to a level of a Ministry Division. This saw the birth of the Land & Construction Division, subsequently aptly renamed to Government Property Division (GPD). This reorganisation exercise was aimed at providing more strategic meaning and intent to the management of government immovable property. As a consequence two new departments were established to provide a more focused approach to property management than hitherto possible. Under the new structure the GPD comprised:

i) the Estate Management Department - responsible for the overall management of government property, including the maintenance of up-to-date property terrier, property research and investigations, property application process and the determination of best use for government property;

ii) the new Land Department - responsible for the acquisition of private property for a public purpose and also for the legal aspects of government property management including the tendering process, lease contracting, property control inspections, revenue collection and enforcement.

iii) The Finance and Administration Branch - provides administrative and tactical support to the other two departments, including accounts and personnel, filing registry, messengers and data centre. This branch is also responsible for a set of watchmen to guard specific government property.

In 1997 the Building Construction Industry Department (BCID), the Valletta Rehabilitation Committee (VRC) and the Cottonera Rehabilitation Committee (CRC), and the National Parks Committee (NPC) were hived off from the Works Division and added to the portfolio of the GPD. This was to last for only a few months however. Following the election of a new Government in 1998, the GPD was shifted from the portfolio of the Ministry for Environment (subsequently renamed Ministry for Resources & Infrastructure) to that of the Ministry for Home Affairs (subsequently renamed Ministry for Home Affairs & The Environment). The BCID, VRC, CRC and NPC were however returned to the portfolio of the Works Division.

In the meantime in late 1991, following protracted negotiations the Maltese Government managed to conclude a significant agreement with the Holy See whereby immovable property belonging to ecclesiastical entities and not required for pastoral purposes was to be transferred to the state. In exchange Government issued several million Malta Liri worth of stocks in favour of the Church. In terms of the Church/State Agreement a Joint Office was set up specifically to administer ex-Church property transferred to the state. The Joint Office however operated in complete independence from the Government Property Division in spite of dealing in very much the same business.

In late 2001, the Ministry of Finance, the Economy & Investment decided that, given the identical nature of their business (both deal with Government immovable property), the Joint Office should move under the umbrella of the GPD. This tactical move was put into effect in January 2002 and has enabled the alignment of property strategies, objectives, policies and procedures.

The inception of the GPD in 1997 has brought with it numerous initiatives geared at improving the management of government immovable property, including the streamlining of a number of processes, the enactment of new legislation and amendments to existing ones. This has enabled the GPD to improve its effectiveness and efficiency in spite of suffering considerable reduction in its human resource levels.

(This text is largely taken with the author's permission from Mr. J. Caruana's M.B.A. thesis on "CPD - A Strategic Choice for the GPD", University of Malta, November 2001)