The government on Monday unveiled to MPs legislation establishing three under-secretariats, or sub-ministries, with opposition deputies doubting whether the move will trim operational costs as the administration claims.
Via the bills, the government aims to set up three under-secretariats: for tourism, maritime affairs, and growth and economic development.
Undersecretary to the President and Reform Commissioner Constantinos Petrides said the three sub-ministries would not lead to an expanding of the bureaucratic machine, but rather would streamline the state’s operation.
The new entities are to be created in the sectors where Cyprus has a competitive advantage, but where there is considerable scope for improvement.
He said Cyprus has the least civilian personnel compared to the other EU countries, while at the same time it has the highest number of boards of directors in the broader public sector.
The three under-secretaries would be appointed directly by, and be answerable to, the president and would have sole responsibility over their respective portfolios.
The sub-ministries, he added, would be administratively autonomous. The under-secretaries will take part in cabinet meetings and submit policy proposals, however they will not be able to submit legislation, as full ministers can.
According to Petrides, no “substantial” additional fiscal burden is anticipated, since the sub-ministries will be created using existing infrastructures and with staff secondments of people already employed in the public sector.
The under-secretariat for tourism would emerge from a “transformation” of the Cyprus Tourism Organisation – a semi-governmental organisation – and the scrapping of its board of directors.
The government says its goal is to cut red tape, by doing away with overlapping jurisdictions.
For example, the portfolios for energy, commerce, industry and tourism, currently come under a single ministry.
The proposal to revamp the tourism portfolio seemed to garner support from the majority of private-sector stakeholders, including the hoteliers’ association and the association of travel agents.
The left-leaning Sidikek-PEO trade union said it disagreed with what amounted to a disbanding of the Cyprus Tourism Organisation.
On the under-secretariat for growth and economic development, Petrides said it would be a locus for guidance for private businesses.
He also unveiled the government’s intention to soon bring to parliament an “investment law” relating to the licensing of major investment projects.
During the discussion at the House finance committee, main opposition Akel said they were unconvinced that the creation of the mooted sub-ministries is constitutional.
This despite assurances from the attorney-general’s office.
Akel also sought more information showing that the new entities would improve efficiency and be subject to transparency.
MPs submitted numerous questions to the Reform Commissioner, who promised to respond in writing before the committee next convenes to continue discussion on the under-secretariats.
