Solving short-term problems, faced by industrial areas and industrial zones such as the burning issue of rents and government land repossessions, until a study is completed to recommend solutions to all issues, Minister of Energy, Trade and Industry, Natasha Pilidou, argued, with the Parliamentary Committee on Commerce giving a three-month deadline for there to be developments on the issue.
The Parliamentary Committee on Commerce, which discussed the need to establish a unified policy on the management of industrial sites and zones, heard complaints that the Land Registry Department is sending multiple retroactive charges to businesses on the basis of rent reviews.
As mentioned in the meeting, a study has been called for under the Industrial Policy 2030, which will map out all issues related to industrial policy, including the need for expansion or creation of new industrial zones and areas and all general issues. The study, which will take into account all stakeholders, is expected to be completed by the end of the year.
"In the meantime, we need to look at the issue of rents, the issue of recovering and re-advertising parcels that have problems," Pileidou said, speaking before the committee, explaining there are issues that will be resolved based on the recommendations of the study. She also said that the industry's contribution to GDP is 8%.
Committee chairman Kyriakos Hatzigiannis said we cannot wait a year (to complete the study) and should move at a faster pace."
He gave a three-month window until a new session is convened on the issue.
"All industries all industries all crafts are losing opportunities if there is no framework for the management of industries and crafts areas and zones. We have all diagnosed that the situation is unbearably dysfunctional and no one is getting out of it," Hatzigiannis said in his remarks.
[BB]As mentioned in the committee, the responsibility for industrial policy lies with both the Ministry of Commerce and the Ministry of Interior, while on some issues there are also responsibilities in the municipalities.
Speaking before the Committee, Pileidou said that the Ministry has no objection to taking over the industrial sites policy and streamlining the policy, but pointed out that the Ministry cannot take over the collection of rents from the use of state-owned parcels, a responsibility that the Land Registry has. He said if this is done there will be an impact on the speed with which applications are processed or policies are set.
The Director General of the Ministry of State, Constantinos Constantinou, explained that industrial areas are structured developments made by the state, while industrial zones were defined within urban plans for specific developments and in them there can be state land or private land.
He argued in favour of bringing industrial policy issues under the Ministry of Commerce.
He said, among other things, the study that has been called for will assess the existing infrastructure, evaluate the existing financing policy and determine new needs.
He referred to the distortion that exists in terms of setting rents for state-owned plots, saying that in 2010 the yield of the plots was 5-7% while in 2012 by a Cabinet decision the margin was frozen at 3% and then reduced to 2.5%. He added that in mountainous areas the yield was limited to 1%.
However, he explained that in industrial zones, where there are state and private plots, they are leased under free market conditions, which also raises the issue of state aid.
He also said that the issue of rent differentiation will be addressed by terminating the leasing of parcels in industrial zones and the allocation of available parcels in industrial areas.
In addition, in response to a question, Mr. Constantinou said that as part of the preparation of the 2022 budget, the Ministry of Interior submitted proposals to the Ministry of Finance for the expansion of two existing industrial areas in Kiti and Xylotympou, but for procedural reasons the Ministry of Finance rejected it because it considered it as a new policy.
He said that after consultation with the Ministry of Finance, the MFA will submit a proposal to the Council of Ministers for approval and inclusion in the next budget.
AKEL MP Giannakis Gavriel denounced that businesses leasing state-owned land and paying their rents regularly without any notice received extra charges of thousands from the Land Registry on the basis of the review. He said a plot for which the rent was €500 per year was revised to €2,000 resulting in the business incurring thousands of extra charges and court summonses have been served.
In response, the DG of the Ministry of Lands said there is no legal obligation for the Land Registry to send notices of the change in charges, but acknowledged that there is an issue in relation to this matter which will be looked into.
Speaking to the committee, DISY MP Nikos Sykas said decisions must be taken and we cannot wait for the study to be completed, while Onoufrios Koulla noted the risk of issues arising due to state aid.
AKEL MP Andreas Pasiourtidis pointed to the issue of the expansion of the industrial zones of Kition and Xylotympos as very important, saying that 88 new craftsmen and professionals should be able to operate and be housed, thus contributing to the economy of the place and local communities.
In addition, Michalis Yakoomi, MP of DIPA Cooperation, expressed the position of the party that both the Industrial and Craft and Industrial areas could be exclusively under the control and management of the Local Authorities, as is the position of the Union of Municipalities.
A representative of the KEBE said that it would be ideal if there was a unified management of the issue. He noted that since the new valuations were made in 2010 rents have skyrocketed, adding that despite improvements rents remain significantly higher.
He noted that industrial sites are an important tool for industry and the right policy needs to be found.
A representative of the OEB described the issue as very complex and added that as a matter of principle management should be uniform. He referred to industrial zones, where the way of calculating rents is high and noted that the charge should be made on the basis of and not on the basis of market value.
General Secretary of the POVEC Stefanos Koursaris said for his part that it is not easy to adopt a uniform policy and added that industrial zones should be considered as a separate part because they have separate peculiarities.
Source: CNA
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