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[PIO] Minister for the Interior: In the next few weeks, the Provincial Local Authorities will be fully operational - We are resolving the problems

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Visit of the Minister of Interior to the Larnaca District Self-Government Organisation

The premises where the licensing department of the Larnaca District Self-Government Organisation (LGO) was housed were visited today by the Minister of Interior Mr. Constantinos Ioannou, as part of his tour to record any difficulties that may be recorded in the operation of the newly established Organizations. Mr. Ioannou was shown around the offices of the Larnaca EOA and was briefed by the President Mr. Angelos Hadjicharalambous and the management team of the Larnaca EOA.

In his statements to media representatives, Mr Ioannou said that, according to the briefing he received, despite the minor problems that occurred in the first few days of the implementation of the reform, "everything is running smoothly and this is good news. The minor problems were to be expected, but I am very pleased with the information I have received. This week was more about getting the staff acclimatised. We expect next week to get into a real rhythm of work, and the various problems that arise will be resolved along the way. But so far nothing substantial has presented itself."

Asked if more applications have been submitted and approved through the IUPODAMOS system since July 1, Ioannou said the number has not increased at this time. He noted that there have been some technical problems in the System, which are being resolved by the working group set up with officials from the Ministry of Interior and the private company. The Home Minister said that design on paper is one thing and implementation in practice is another, as is the case with any software system. "In the full development of the software, there were some - I repeat - very minor problems, which are being resolved. So I expect by next week it will now be up and running and performing at a real pace.

Then, in response to a comment about the EDAs' revenue from planning and building permits, and asked if there was any consideration by the Ministry to give 60 per cent of that revenue to the municipalities that claim it, the Minister clarified that 60 per cent of the licensing revenue is given to municipalities through legislation. "It is now enshrined in legislation. The 60% of the licensing revenue to the Provincial Organizations should be given back to the Municipalities for the known reasons that are there and the justification. Because with development comes projects on the part of the Municipalities that need to be done to assist development. The problem arises in the Provincial Agencies because the Provincial Agencies by giving 60% back to the Municipalities, a huge deficit is created in the Provincial Agencies. The licensing revenue is, more or less, as much as the expenses. So by attributing 60%, we estimate that there is a deficit of €12 million," Ioannou explained.

This, he continued, "we know this, we have identified it for months. It was a problem of legislation that has to be solved, it has to be found from somewhere. It certainly won't be by raising fees, that's what I want to clarify. We have already agreed with the President of the Union of Municipalities, so that in September we can start a discussion, to see the real costs, once they have the data, so that as a Government, as a State, we can help with a legislative regulation. In essence, the State has to contribute a large part of that amount."

He made it clear that whatever is done will be done after consultation. "Municipalities will not be deprived. On the other hand, we have to find that amount for the Provincial Organizations. It is a problem in the legislation, while 60 per cent was provided for, no provision was made on how to cover the deficit. We have been identifying this for many, many months. For this year it has been resolved. For next year we will find the solution," the Interior Minister said.

He reiterated that "the fees will not be increased because even if the fees are increased, 60% of the increase in fees will still be attributed to the municipalities. So to cover this loss, they have to be increased about two and a half times, which is impossible. Neither we nor anyone else wants that. Ioannou also said that this year the cost for personnel was budgeted by the Ministry of Interior Since it was budgeted with the Ministry of Interior's budget, it has been covered.

For his part, the President of the Larnaca District Organization Mr. Angelos Hadjicharalambous said that there is full consultation with the Minister of Interior and the Ministry's officials. "I think we are making very good progress. With the launch of the Larnaca District Self-Government Organization there are minor problems. We are here, we are addressing them in consultation with the Ministry and we do expect in the coming days to increase our production both for licensing, but also to solve some other individual problems in the other pillars, specifically for water supply and sewerage. Some of the problems that have come up will be sorted out and I think in the next few days, weeks we will be in full operation," Hajicharalambous said.

Asked to say what are the problems related to water supply, the President of the Larnaca EOA explained that the new Agency took over 16 new districts. According to Mr. Hadjiharalambous, the problems are mainly related to troubleshooting, explaining, however, that they are all being regulated. He expressed confidence that in the coming days and weeks the Agency would be fully operational. "We are already dealing with the problems, it's just that there is something new for us. We will see the volume, assess it, to provide solutions where needed," Hajicharalambous finally noted.

(MKE/EP)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO

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