Regarding today's publications in the printed press and statements in the media referring to the guidelines for the formulation of a framework of compensatory measures for Akamas, as proposed by the Ministry of Agriculture, Rural Development and Environment, pending the publication of the Akamas Local Plan, I must clarify the following:
The guidelines for the loss of land value suffered by landowners in Akamas and supporting local communities are theoretical and undefined. More importantly, they are completely lacking in costing, which poses serious risks since their possible adoption would place an excessive burden on public finances that could hardly be covered.
Specifically:
[*]The payment of compensation for the potential loss of development of private real estate, including the exchange of private real estate for public real estate, suffers from serious legal issues and would impose an equal burden on the fiscal balance at excessive levels, with all the consequent consequences of affecting the prospects of the Cypriot economy and its credit rating. [*]A precedent is being set for the submission of similar type of requests by other affected owners. [*]It raises the issue of equal treatment from other affected parties in other Natura sites, white zones but also raises serious political issues such as compensation for the refugee world. [*]The creation of a Green Fund as proposed, apart from serious legal problems, lacks sufficient resources for compensation. Where it is applied in developed countries, specific resources such as the Urban Upgrading Fee from those favourably affected by developments as a result of Local Plan projects, or taxation on idle property in Development Zones are provided for. This is indeed a model that could be adopted throughout Cyprus, as it is informed by the concept of 'redistribution' of wealth from those who benefit to those who are adversely affected. As Finance Minister I raised these issues but there was a refusal to adopt these proposals, possibly due to political costs.
In light of the above, I believe that such proposals should be given serious consideration and study on an issue that is dated. Possible adoption of the so-called "compensation framework", and the inability to implement it in the future because of its serious problems, as was done under other governments, may also constitute a political mockery to the residents of the area.
In conclusion, as Minister of Finance, whose primary obligation, based on constitutional and other legislative provisions, is to ensure the sustainability of public finances, I was not in a position to consent to a framework of uncosted compensatory measures, tabled a few days before the departure of the Government as an attempt to counter reactions, jeopardizing the sustainability and macroeconomic stability of the economy.
(SX)
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