By Athena Karsera
THE STORM unleashed on Wednesday by the government’s announcement of plans to privatise the Cyprus Telecommunications Authority (Cyta) yesterday continued unabated, with the opposition saying full privatisation went beyond minimum EU requirements on liberalisation.
The Cabinet has argued that privatisation is essential if Cyprus is to harmonise with the EU’s acquis communautaire, and an EU delegation last week singled out the telecommunications sector as needing swift reform.
But Diko deputy Tassos Papadopoulos yesterday cast doubt on the government’s interpretation of harmonisation criteria.
“The EU does not ask any more of us than simply to end monopolies and liberalise specific areas. They don’t, for example, say that Cyta has to be given to the private sector, they say that if someone else wants to start a telecommunications system, then he should be given the right.”
Papadopoulos said the House had not been properly consulted on the privatisation of Cyta. “Some deputies,” he added, “may still not have realised that the legislation allowing its privatisation has yet to be passed.”
Papadopoulos on Thursday made a joint proposal with Akel deputy Kikis Kazamias, suggesting that the House, through its Finance Committee, be kept fully informed of any decisions on the sale or long-term leasing of government property, businesses and organisations.
Governing Disy yesterday sought to calm public fears about privatisation: party leader Nicos Anastassiades said each specific privatisation would have to be examined in depth, and that neither monopolies nor oligopolies worked well, either in the government or private sectors.
He went on to note that Cyta was one of the most successful of the semi- government organisations, and had even made outside investments.
Anastassiades also had a word for Cyta staff, saying employees would not only be given the opportunity to contribute to the share capital, but would also play a role in the management of the privatised company.
Communications and Works Minister Leontios Ierodiaconou for his part defended the government against charges that it had steamrolled the decision without proper consultation. He said Cyta unions and politicians had all been involved in the Cabinet decision to privatise Cyta, and that, though there had been objections, ministers nevertheless felt that the plan should go through.
Addressing a news conference yesterday, Ierodiaconou said that long dialogues were pointless, especially since Cyta employees would not be affected by the change in the company’s status.
“The change in the regulatory framework is not going to affect the current rights of the employees. This is a principle which is acceptable to our side. The EU provides for it.”
He said this was an argument that the unions could not possibly deny, adding that consultations on such issues did not automatically need to drag on for a long time in order to be valid.
In this type of situation, he said, decisions had to be taken “in one day and not one year,” if the company was to remain competitive.
Asked what would happen if the House turned down the privatisation bill, Ierodiaconou replied: “everyone involved would be held responsible.”
The minister went on to say that the EU demanded complete liberalisation by January 1, 2003 but that a beginning was expected well before then.
He said that the main difference between the government and the unions was that the employees felt Cyta could become competitive after changes in the law regarding its operation, rather than after the full privatisation planned by the government.
