THE government yesterday accused the opposition of trying to sideline it with proposed amendments to the hydrocarbon law that the state says would effectively wrest decision-making authority away from the minister and put it in the hands of technocrats.
Trade and Industry Minister Praxoulla Antoniadou warned lawmakers that this could also create uncertainty among potential investors days before Cyprus officially announces its second hydrocarbon exploration and development licensing round.
“The decision to transfer authority from politicians to technocrats — when its politicians who are accountable to the people – on matters of the utmost importance to the future of this country is not a responsible act,” Antoniadou said after a discussion before the House Commerce Committee.
The amendment has been tabled by main opposition DISY deputy chairman Averof Neophytou and provides for an advisory committee to also get executive powers.
Lawmakers heard that the final decision would still belong to the cabinet, but the minister said the role of the cabinet would be a mere formality.
“It would simply have the role of ratifying the experts’ decision,” Antoniadou said. “It is a proposal that effectively abolishes the government.”
Neophytou’s proposal provides for a committee headed by the trade ministry permanent secretary and made up of the head of the energy service, Solon Kassinis, representatives from the treasury and auditor-general’s office and the geological survey department. It also calls for two more technocrats that will be appointed by the permanent secretary. They will evaluate applications and negotiate with the bidders – something currently done by the minister.
Antoniadou was censured by deputies at the House Commerce Committee late last year when she removed decision-making powers from Kassinis. Feeling badly treated, yesterday was the first day she returned to a meeting after smoothing things over with the House President.
Antoniadou warned deputies that changing the legal framework now could negatively affect the second licensing round, expected to be officially announced next week, by creating uncertainty among potential investors.
The minister also questioned the timing of the proposal – some four years after the law was first approved.
“MPs unanimously approved the law in 2007 providing for an advisory committee made up of technocrats to advise the minister; I think it was a wise decision,” Antoniadou said, adding that it would not be easy for a politician to distance themselves from expert advice anyway.
“And that is maybe why MPs approved the law in 2007. So I wonder why many now express surprise over its provisions, which everyone approved without questions,” Antoniadou said.
The minister also voiced the government’s objection to a law proposal submitted by DIKO MP Angelos Votsis, expanding the powers of DEFA, the public utility dealing with natural gas.
A clause in the proposal also prohibits the government from replacing the current board before its term expires in 2015.
Founded in November 2007, DEFA’s purpose, according to its constitution, is to “purchase, import, acquire, possess, use, exploit, store, transfer, provide, distribute, sell, supply and trade natural gas, to make use of the natural gas terminal, to regasify liquefied natural gas (LNG), as well as manage the distribution and supply network of natural gas.”
This however only covers liquefied natural gas that will be processed at a terminal belonging to the electricity authority.
With his proposal, Votsis is trying to expand DEFA’s authority to cover natural gas finds in Cyprus’ exclusive economic zone.
The minister said monopolies, state or otherwise, cannot be legally secured in a country that wants to call itself European.
“We cannot consent to law proposals that secure state monopolies,” she added.
Ruling AKEL has also submitted a proposal to liberalise the natural gas market in Cyprus, which was shut down four years ago.
In December of 2007, parliament approved legislation stripping the Cyprus Energy Regulatory Authority (CERA) of the ability to issue licensing for private companies to trade in LNG.
The legislation was the first step in declaring the Cypriot market “emerging”, a status which allowed the island to control supplies through the creation of a public utility company, or a preferred supplier — DEFA.
