Cutting monthly family benefits will be heavy blow

2011-12-10

FAMILIES should be offered incentives to have a third child, said Efthymios Strouthos yesterday, president of the Pancyprian Organisation of Five-member Families (POPO), calling the proposed government measures to cut large family benefits ‘unacceptable.’

Strouthos said what will really force such families to tighten their purse strings is that benefits would be only provided every three months or yearly, instead of on a monthly basis, as under the current system. 

“What they don’t understand is that people need the allowance monthly to pay off loans among other things and now they’ll get it every three months,” said Strouthos.

Our View: It’s certainly time to end tax evasion, legal and illegal

2011-12-10

IT WAS high time the head of the Inland Revenue Department (IRD) Giorgos Poufos put the record straight regarding the collection of back taxes and tax evasion, which had been presented by disingenuous union bosses as the root cause of all the economy’s problems. 

This view was reinforced by the Auditor General’s report, released on Tuesday, which claimed that the state was owed close to €1.5 billion in taxes, €1bn of which was owed to the IRD. In fact 40 per cent of this amount was the Auditor-General’s estimate of what was owed in interest and fines to the department and was based on the assumption that the €600 million was collectable.

‘State would save €230m annually following public payroll freeze’

2011-12-10

THE state would be saving some €230 million annually in the years following a public payroll freeze, Finance Minister Kikis Kazamias said yesterday, as he outlined before parliament the government’s priorities concerning the measures to consolidate the economy.

The government has decided to freeze public service salaries – including pay scale raises and cost of living allowance payments – for two years, as part of an austerity drive to avoid an EU bailout and potentially harsher measures.

Consolidating the public finances would also prevent EU sanctions for fiscal violations.

Defence Ministry, NG to take on EU presidency duties early

2011-12-10

THE DEFENCE Ministry and National Guard will take on the duties assigned to them during Cyprus’ EU Presidency six months earlier than other ministries. 

Defence Minister Demetris Eliades said yesterday the ministry and NG were ready to take on duties and responsibilities arising from the Cyprus Presidency of the EU Council from January 1, 2012, as opposed to July 1, 2012, when Cyprus is due to take over. 

The reason being, he explained, is that Denmark will take over the EU Presidency from Poland on January 1, but Denmark does not participate in the pillar of European Security and Defence Policy (ESDP). 

Remands for election violence

2011-12-10

THREE YOUTHS were remanded in custody for six days yesterday by the Nicosia District Court in connection with an attack on a student election process at the University of Nicosia last Tuesday.

The three youths join a 26-year-old second lieutenant working in the National Guard who was remanded in custody for eight days on Wednesday. Reports suggest police found leaflets at the 26-year-old’s house belonging to far-right groups Chrysi Avgi and the National Popular Front (ELAM). The latter has denied any involvement in the attack. 

Defence Minister Demetris Eliades said yesterday the National Guard is in contact with the police and is waiting to hear evidence to decide on whether to proceed with disciplinary action.  

Corruption held to be rife – study

2011-12-10

CORRUPTION is rife and widely spread throughout the public sector according to the overwhelming majority of Cypriot participants in the second “perceived corruption” study, conducted by the civic society Transparency Cyprus.

The results of the study were presented yesterday at a press conference organised by Transparency Cyprus and the European Parliament office in Cyprus on the occasion of the World Day against Corruption; which the UN has identified as December 9.

This is the second study carried out in Cyprus by Transparency Cyprus on corruption and transparency in the public sector and was carried out in cooperation with students of the Cyprus University of Technology (TEPAK).

Come clean on cutback figures, warns the opposition

2011-12-10

JUST days before the scheduled vote in parliament of fresh austerity measures, opposition lawmakers suggested yesterday they were still tax-heavy and threatened not to approve them.

Following an agreement with the opposition last Friday, the government pledged that spending cutbacks would outpace an increase in revenue at a ratio of 2 to 1.

The government said a couple of days ago that the ratio was in fact 3:1.

But both main opposition DISY and DIKO disputed the figures yesterday, saying the measures fell short of the target.

“Even with their figures, an additional €100 million is needed to achieve the ratio,” said DIKO vice chairman Nicolas Papadopoulos. “With our calculations … €260 million is needed.”

Central Bank slashes 2012 growth forecast to zero

2011-12-10

THE Central Bank yesterday slashed its growth forecast for the island’s economy next year to zero, saying fiscal consolidation and possible deleveraging by banks exposed to Greece would dampen economic activity.

The island should see a return to modest growth of 1.3 per cent in 2013, the Central Bank said in a bi-annual macroeconomic survey.

The bank forecasts 0.3 per cent growth this year and had previously forecast the economy would grow 2.1 per cent in 2012.

It said a blast which destroyed the island’s largest power station in July curtailed business activity, with sentiment further dampened by the debt crisis in the eurozone and a tapering in of investment activity.

Under-fire minister angers MPs by missing meeting

2011-12-10

TRADE and Industry Minister Praxoulla Antoniadou angered lawmakers yesterday after she refused to show up at a committee meeting, demanding an apology for the way she had been treated previously.

House Trade Committee chairman Lefteris Christoforou said Antoniadou said she would not attend “if MPs do not apologise in writing for the behaviour they displayed in a previous meeting”.

Christoforou described the minister’s action as “provocative and insulting” and did not rule out forcing Antoniadou to attend should she continue to insist.

DIKO MP Angelos Votsis said the committee did not think it had insulted the minister in any way and would look into how it would force the minister to attend when serious issues concerning her ministry are discussed.

Tourist arrivals have increased by over 10 per cent since October

2011-12-10

Tourist arrivals have increased by over 10 per cent since October, with revenue from tourism getting a 13.6 per cent boost along the way, according to Commerce Minister Praxoulla Antoniadou.

Antoniadou was addressing the 29th General Assembly of the Cyprus Hotel Manager’s Association (PASYDIXE) yesterday.

“Despite the ongoing economic crisis worldwide, this positive picture of Cypriot tourism will continue throughout 2012, too,” said Antoniadou.

According to the Commerce minister, the main arrivals to the island are from countries such as Russia, Germany and other Central European markets, with Cyprus’ biggest market – the UK – becoming stable in the influx of tourists after a few “difficult years”.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.