Wednesday, July 22, 2015

When Shopping Is Unconstitutional

Shopping. It's one of the tourism niches by which governments - national and regional - set considerable store (so to speak). But when they speak of shopping, they have in mind avenues of luxury retailing in Palma, Inca's leather shopping trips or traditional shops selling traditional products and produce, newly to be established on farm land as means of revitalising rural economies.

This latter measure was dreamt up by the last government. It was one of the Partido Popular's better bits of legislation. Of course it was criticised because it appeared to only benefit already wealthy landowners, but then criticism was to have been expected: it was, despite the opposition, a move applauded by many.

The Bauzá government also adopted measures with regards to retail development. They did not satisfy everyone - far from it - because these were seen as charters for vast retail outlets to rise from the Mallorcan land and to undermine smaller retailers in towns' high streets (or what passes for high streets in Mallorcan terms). These outlets were not ones of a tourism character. They were for the island's general commercial development. Hence, the Carrefour retail park - Primark and all - is due to be ready next year. Hence also the arguments over developments such as Ses Fontanelles.

The PP administration was, for the most part, following orders: those of Madrid. One of these orders had to do with the so-called ZGATs, zones of high tourist influx. They allowed for greater opening-hour liberalisation (especially in the off-season) but were perceived as being prejudicial to smaller retailers and beneficial only to large retailers and the multiple chains. One town, Alcudia, initially vetoed the ZGAT, bowing to pressure from the smaller retailers and so meaning that supermarkets had to close on Sundays (raising a question as to why they had been opening). Only a short time later, the veto was reversed: the large stores had won the argument.  

The last government was attacked for being a friend of the large retailers in the same way as it was a friend of the large hoteliers, and there was no better evidence of this than when the government caved in over the introduction of a "green tax" to apply to large retail sites. Legal action was threatened; the government backed down. But though the regional PP went along with much of what powerful retailers wanted and Madrid had ordered, it didn't follow orders completely. It legislated, and the legislation included a check and balance. There had to be two levels of approval - governmental and municipal.

The latter of these was only following a long accepted principle whereby municipalities have - in theory and often in practice - the final say over developments that affect their local urban planning. Madrid has now taken exception to this local legislation. The levels of approval do not accord with state law. The Balearic legislation is deemed unconstitutional in that the primacy of state law has been challenged.

The PP government did occasionally run foul of Madrid with items of other legislation considered to have been unconstitutional. Elements of the tourism law, for example, had to be redrafted following the arbitration of the body which has the ultimate word (short of the Supreme Court) on such matters - the Constitutional Tribunal. So, it is not entirely unusual for Madrid to step in if it finds regional legislation that doesn't satisfy the provisions of regional autonomy and the state-region relationship. Regardless of political complexion, such interventions can and do occur: a PP national government instructed a PP regional government to make legislative amendments.

Madrid's unconstitutional characterisation of Balearic law as it relates to large retail sites has far greater implication than the rewording of comparative legal minutiae. Though legislation drawn up and approved by the regional PP government, Madrid now says it's wrong. It is a rejection which is being nuanced as an "aggression" towards the new administration, whose minister for trade and industry, Iago Negueruela, has countered by declaring the intention for what in effect would be a moratorium on new large-scale retail developments (he hasn't used the word as such, but others have). And for the most part, the retail industry, even the large retailers (albeit with some reservations) supports him.

This is a support not only driven by commercial thinking, it is support for the right to decide what happens with land and with the general economic mix on the islands. Large retailers bring jobs, yes, but they are mostly McJobs. Does Mallorca need ever more large supermarkets when commonly accepted principles of population:store ratios in parts of the island are already well out of balance? Greater competition is good, but at what cost to overall economic welfare? Madrid is being petty. Very petty. It might have constitutional law on its side but it cannot claim moral law. The national PP has made a rod for its general election back. It should think again.

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