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Spanish parliament begins debate on law to rein in rampant urban development

A bill to curtail rampant urban development and property speculation in Spain passed its first hurdle to becoming law Thursday when it progressed beyond the debate stage in Spain's lower house of Parliament.
Most political parties in parliament called for amendments to the bill drawn up by Housing Minister Maria Antonia Trujillo, so it could be months before final approval.

Opening the debate, Trujillo described the bill as "a project against urban speculation and in favor of transparency and citizen participation."

The bill is aimed at reining in a real-estate boom over the past decade which has seen major housing developments, golf courses and holiday complexes sprout across Spain.

Jose Luis Carretero, of the group Platform for Decent Housing, said the property boom is close to becoming an unsustainable bubble that could cause an economic slowdown if it were to burst.

"We have a group studying the bill and it could be that it'll cut back some of the overheating we're seeing but in my opinion the bill should have proposed considerably stronger measures to rein in excesses," said Carretero.

Trujillo has complained that the vast majority of houses are not for living in but rather speculation-fueled investments and fast-track ways for developers to get rich. Many of the projects lack adequate infrastructure plans in terms of water supplies and transport.

One example put forward by the government was a now-halted plan for the eastern town of Cullera, with 22,000 inhabitants, to build dozens of 25-storey apartment buildings to house some 20,000 people.

In the town of Sesena, near Madrid, which has a population of 10,000, authorities approved a development for 13,500 homes that could house up to 40,000 people.

With the new bill, the Socialists hope to impose greater vetting procedures for any project that envisages increasing a town's population by more than 20 percent. In addition, 25 percent of all new houses in such projects would have to fall under a government-controlled subsidized housing program.

Cases of corruption in the construction sector and under-the-table commission payments are reported by the Spanish media on a daily basis. In the biggest case, nearly 60 people have been arrested on charges relating to real-estate fraud in the southern jet-set resort town of Marbella, including a former mayor, several councilors and developers.

The new bill would replace one passed in 1998 under the right-of-center Popular Party, which the Socialist government says basically made all land that was not protected open for development.

Some parties complain the law would encroach on regional government powers over housing.

Carretero said that if the bill were to become law it would claim back for central government rezoning powers currently exclusive to local governments. At the moment almost all decisions relative to land use fall under local government. Central government wants greater openness in this process, Carretero said.

Carretero warned the law was unlikely to be passed if the opposition Popular Party blocked it in the final, Constitutional Court, stage.

"We plan to hold demonstrations outside the court to ensure the opposition doesn't hold the law up," said Carretero.

Platform for Decent Housing has mobilized tens of thousands of people in demonstrations in Madrid, Barcelona and Valencia calling for an adjustment in housing laws to enable young people to have easier access to affordable housing.

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