LAWMAKERS yesterday froze millions of euros before approving the budgets of the island’s four biggest semi-government organisations (SGO), with the worst-hit being the Cyprus Telecommunications Authority (CyTA).
Even though the House Plenum approved the budgets for the Cyprus Broadcasting Corporation (CyBC), the Cyprus Tourism Organisation (CTO), Electricity Authority of Cyprus (EAC) and CyTA, their available funds were dramatically slashed, after a number of amendments submitted by the parties were passed, if not unanimously, by majority vote.
The CyBC was especially criticised for requesting a 20 per cent increase in its budget at a time of financial crisis.
An amendment submitted by DIKO requesting the removal of funds provided for the CyBC’s general expenses and services was unanimously passed, reducing its requested expenses by 25 per cent. All parties except AKEL accepted another alteration suggested by EDEK’s Yiannakis Omirou, for deducting a provision for new work positions.
According to House Finance Committee Chairman, DIKO’s Nicolas Papadopoulos of the CyBC was requesting a 20 per cent increase on its budget compared to the previous year, at a time when other vital SGOs, such as the EAC and CTO, had reduced theirs.
“The EAC’s budget is reduced by €35 million, people are being laid off, yet the CyBC is asking for 20 per cent more funds than last year – at a time when we are battling to avert a 10 per cent deficit,” he explained. “The average wage of a CyBC worker is €75,000, it is overstaffed and this is all at the expense of the Cypriot taxpayer. It is at least provocative to be asked to approve funds for more positions and expenses.”
DISY’s Averoff Neophytou compared the local state broadcaster to the British BBC, which in 2009 and 2010 was forced to axe programmes and thousands of employees in a bid to survive. “And yet the CyBC is employing more people and spending ridiculous amounts of money on things such as €5,500 on a dance act for the programme to choose a song for the Eurovision,” he said.
But CyTA was by far the worst-hit, with almost €50 million of its requested funds being frozen – meaning they will have to go through the House in order to be released in the future.
A unanimously-approved amendment by AKEL led to the deduction of €1.3 million for bonuses and incentives, as well as €2 million for compensations for early retirement. Deputies also refused to approve budgetary funding for the authority’s TV network Cytavision, amounting to €20,775,000. Other deductions included €11 million for advertising purposes and €10 million for investments by related company Digimed.
The CTO fared slightly better, with its budget being unanimously passed, though a number of funds were frozen.
Following a suggestion by DIKO, €15 million earmarked for advertising in Cyprus and abroad was frozen, as were €2 million for the purchase of services and other incentives to improve the island’s tourist product.
The Plenum also approved a 10 per cent reduction in funds for CTO employees’ overtime and other benefits, as well as the office’s operational expenses. A total of €150,000 was deducted from funds to restore, decorate and maintain the organisation’s buildings.
Finally, parliament unanimously passed the EAC budget, freezing just €855,000, which involve compensations for early retirement.
