TOO MUCH discussion and comments surrounding possible foreign investment in Cyprus could provoke potential investors into withdrawing their interest, the government warned yesterday.
Government spokesman Stefanos Stefanou said too many public remarks risked jeopardising efforts to develop relationships and attract foreign investment at a time when boosting the island’s financial, commercial and tourism sectors was crucial.
“We have to be careful not to kill any efforts,” he said.
Stefanou was referring to fierce criticisms regarding the president’s recent visit to Qatar. Although opposition DISY claimed to welcome the possibility of foreign investment in Cyprus, the right-wing party said the government appeared to be making plans to develop a plot of prime real estate at the detriment of local businessmen, which it would not accept. The land in question currently houses an army camp opposite Nicosia’s Hilton Hotel.
Stefanou and the Commerce Minister, Antonis Paschalides, were both adamant the government had no plans to make deals behind closed doors and that everything would be done according to the letter of the law.
Paschalides said: “Yes Qatar is very interested but it is premature to criticise or make statements that benefit no one.”
The minister said if the time came for a deal to be made it would be done with full transparency and according to set procedures.
“Who said Cypriots will be excluded? Lots of thoughts are being given to include everyone. As long as they have the gusto, drive and money, and yes money because nothing is given to anyone for free,” he said.
However Stefanou and Paschalides warned that too many critical comments could offend the oil-rich state, prompting it to pull out of a potential business relationship as it had done in Greece in the past.
The warnings and assurances did nothing to deter DISY deputy leader Averoff Neophytou from reiterating that his party welcomed all foreign investments but not if it put Cypriot businessmen in an unfavourable position. He said the government had to create incentives for locals who might then show an interest in investing in the area or in other similar plots of land. The government would then have to accept whoever came to it with the best price and had the cash to follow through with the project.
“Speaking from Doha yesterday the Commerce Minister said it is a matter of weeks before the final decision. Where is the transparency there,” said Neophytou.
AKEL leader Andros Kyprianou said it was blatantly obvious the comments only served one purpose which was to undermine the president of the Republic and the government.
He expressed his complete surprise at the reaction from DISY when negotiations were only at an “investigative level” and had gone no further.
“If there is any interest and investments are to go forward it will be done with total transparency,” he said.
Kyprianou said the island’s presidents had always made contacts with potential investors and investigated possible business ventures without making them public.
“This is not the first time such a procedure has been followed, for goodness sake,” a clearly exasperated Kyprianou told newsmen.
A group of Qatari representatives is expected to fly to Cyprus sometime in June to continue direct negations about possible business investments. It is thought the two countries will examine then how best to co-operate to develop the state owned plot opposite the Nicosia hotel because by law state land is not for sale.
