“This represents a misuse of public investment, enabled by the permissive and complicit licensing practices of Funchal City Council,” stated Élvio Sousa, leader of the JPP, in an official statement.

Funchal’s local authority, currently led by Cristina Pedra, is governed by the Funchal Sempre à Frente (Always Forwards Funchal) coalition, comprising the PSD and CDS-PP, which holds an absolute majority. The issue was initially raised by councillors from the Confiança coalition, led by the Socialist Party (PS), who hold no executive responsibilities within the council.

According to the opposition councillors, at least one flat within a 48-apartment development, built by a housing cooperative at controlled costs and inaugurated late last year, is already being marketed as a short-term holiday rental. This, they argue, directly contravenes local housing regulations and undermines the intended purpose of affordable housing schemes.

As the largest opposition party in the Madeira Regional Parliament, with 11 MPs, the JPP is calling for an “urgent parliament hearing” with both the head of the City Council and the president of the housing cooperative responsible for the development. The aim is to obtain full clarification and accountability regarding how such licensing was permitted in a publicly supported housing project.