Filenews 27 January 2021 - Vasos Vassiliou
Where the House had found itself with a gun to its head, under the government's push to approve the three bills concerning the reform of local government, otherwise €980m in funding would be lost. from the EU, the climate has returned and the Government has found itself in the corner following the decision of the Parliamentary Committee to adopt referendums before the reform is implemented.
The Government must now act towards the adoption of the reform, so that, on the one hand, funding is not lost and, on the other hand, an important step forward for local government, even if it is not ideal. At the same time, however publicly stated that "everyone contributed to the reform", the Government will be credited with having done so during its days.
As for the claim that the reform is 'going up in the air' because of the increase in municipalities from 17 to 20, this is already being challenged by Members, since there is a view that savings will simply be reduced and not to a large extent.
One of the municipalities added is the Municipality of Strovolos, which due to its size and population is considered to be able to survive. The other additional municipality is created in Famagusta. Instead of bringing together in one form the municipalities of Paralimni, Ayia Napa and Deryneia and another shape the communities of free Famagusta, three municipalities will be created. They will have the main trunk of the Municipalities of Paralimni, Ayia Napa and Deryneia. A small number of communities will be integrated into the Municipalities of Ayia Napa and Deryneia (which will be autonomous). The third additional municipality of the Parliament's proposal is the Municipality of Geroskipou, in which communities will be integrated.
Based on data for the 17 municipalities, which did not differ greatly after increasing to 20, the new schemes will come from the associations of 80 existing local authorities, 30 municipalities and 50 municipalities. The population of the municipal areas is increasing by about 100,000 inhabitants, around 700,000, which is equivalent to 83% of the population instead of the 71% that it is today.
The positives highlighted by the Government from the reform concern:
- Ensuring administrative and economic autonomy and autonomy.
- Transfer of new responsibilities that make municipalities the pillar of local development.
- New mechanisms for control, transparency and accountability.
- Empowerment with new resources.
What we pay staff today
The elements prepared in the context of the reform show the following:
On average each municipality has a total annual revenue of €660 per inhabitant. The vast majority of municipalities are within striking distance of the average. At its height is the Municipality of Ayia Napa with revenues of €5,018 per inhabitant, mainly due to tourism.
From state sponsorship to municipalities, on average, they account for €244 per voter. Of these, Ano Lefkara, Polis Chrysochous, Pegia, Atheinou and Ipsos receive more because 1/3 of the state sponsorship is granted without population criteria, when the fact that they do not have many residents favors them. At the limit of the average are the Municipalities of Nicosia, Paralimni, Geroskipou Sotiras, Tseri and Germasogeia. All other municipalities fall well short of the average, with Lakatamia first with just €128.4 per voter, Larnaca with €167.4, Agios Dometios with €165.3 and Paphos with €170.4.
The analysis of the own revenue of each municipality per inhabitant had highlighted the significant potential for improvement that can result from the creation of larger municipalities. In particular, on average municipalities receive €475.2 per inhabitant. However, the largest number of them (24) fall well short of the average with the exception of Ayia Napa and Paralimn, which are favoured by tourism. All other municipalities with the exception of Paphos, Geroskipou and Pegia which move marginally above average, the rest are well below average. Based on the studies carried out by Strovolos municipalities, Limassol, Larnaca, Mesa Neighbourhood, Germasogeia, Ipsos, Kato Polemidia, Agios Athanasios, Livadia, Lakatamia, Tseri, Geri, Latsia, Idalion, Aglantzias, Agoomis, Agios Dometios, Deryneia, Sotiras and Ano Lefkara will significantly improve their economic viability with population growth resulting from the creation of larger municipalities.
The savings under the plan for the 17 municipalities
With regard to the economic aspect to which the Government places great weight by relying on the survival of the same reform, based on the 17 municipalities (including savings of €30 million - €50 million) the data, as derived from a study by its own expert, are as follows and anyone can draw their own conclusions:
Nicosia
- The consolidation of the Municipalities of Nicosia (Nicosia, Strovolos, Agios Dometios, Egomi, Aglantzia) would bring savings of €17.2 million.
- From the creation of the Municipality of Lakatamia (Lakatamia, Cherry and Anthoupolis Settlement) there would be savings of €1.7 million.
- From the union of Latsia, Geriou would result in savings of €2 million.
- From the creation of the Municipality of South Nicosia – Idalia (Municipality of Idalia with the communities of Alhambra, Lympia, Island, Pera Cholio, Potamia) there would be savings of €300,000.
Larnaca
- From the creation of the Municipality of Larnaca (Larnaca, Aradippou, Livadia, Oroklini) there would be savings of €8 million.
- From the creation of the Municipality of Meneou-Dromolaxia (Dromolaxia – Menou, Kiti, Pervolia, Tersefanou) there would be savings of €300,000.
- From the creation of the Municipality of Lefkara (Lefkara, Vavla, Delikipou, Kato Dry, Kato Lefkara, Kornos) there would be savings of €300,000.
- Since the creation of the Municipality of Athens (Athens, Avdelero) there does not seem to have been any savings.
Limassol
- The creation of the Limassol Municipality (Limassol, Mesa Neighbourhood, Cherkez Tsiftlik) would result in savings of €5.3 million.
- From the creation of the Municipality of Eastern Limassol (Agios Athanasios, Germasogia, and the communities of Agios Tychoas, Moudayakas, Akrontas, Finicari, Armenian village) there would be savings of €2.5 million.
- From the creation of the Municipality of Polemidia (Upper and Lower Polemidia) there would be savings of €200,000.
- From the creation of the Municipality of Western Limassol (Ipson, Asomatos, Sotiras, Erimis, Colossi, Trachonio and Akrotiri, Episkopi, Kantou) there would be savings of €443,000
Paphos
- From the creation of the Municipality of Paphos (Paphos, Geroskipou, Ahelia, Timi, Konia) there would be savings of €1.25 million.
- The creation of the Municipality of West Paphos (Pegia, Emba, Leba, Kissonerga and Chloraka) would result in savings of €2.5 million.
- From the creation of the Municipality of Chrysochous Town (Polis Chrysochous Argaka, Makouda, Chrysochous, Goudi, Pelathousa, Kinousa and Peristeron) there would be savings of €700,000.
- From the creation of the Municipality of Ayia Napa - Protaras (Paralimn, Deryneia, Ayia Napa, Sotira) there would be savings of €7 million.
- From the creation of the Municipality of Kokkinochoria (Avgorou, Liopetri, Frenaros, Acheritou and Achna) there would be savings of €300,000.
