Filenews 1 September 2021 - byEleftheria Paizanos
Savings of €30 to €50 million is the estimate that competent government sources say the state will have each year with the reform of local government. There will be savings due to the reduction of municipalities to about 20 and the creation of larger entities through mergers, as well as due to the merger of services.
Pending in parliament is pending the bill amending the law on Communities, the bill introducing a new law on municipalities and the bill for the enactment of a law on Provincial Clusters. For the first two, the Republic has committed to the Commission that they will be approved by the Cypriot Parliament by the end of the year. The issue is expected to be discussed on the 9th of the month in the parliamentary Committee on the Interior, in the presence of the competent minister Nikos Nouris.
From the information so far, it seems that the adoption of the three bills later this year is a rather remote possibility, as in the context of Mr. Nouris' contacts with party officials last week it was made clear by some parties that there are issues on which they are seeking new consultation, in order to agree changes to existing articles of the bills. The Minister is said to understand the need to extend the debate for a while in order to achieve the maximum possible consensus. What looks set to garner interest at the September 9th session is the government's proposal to postpone the local government elections, scheduled for December.
Government sources told "F" that from the studies carried out by the Ministry of Interior in relation to the economic benefits that will result from the reform, he found that by changing the way municipalities are financed (while abolishing the current state sponsorship) and by savings that will result, resources to local government will be increased by €60 to €80 million in the medium term. At the same time, the creation of fewer and larger municipalities will significantly change the total cost of remuneration of mayors, aldermen and members of municipal councils. It is estimated that the net annual savings from remuneration will be approximately €3.2 million. In addition, with the reform the total number of elected representatives will be reduced by 45%, i.e. from 602 to 272. Moreover, with the approval of the legislative package for the reform, the new schemes that will be created will transfer the competences that are currently exercised by the District Administrations and Ministries. For example, the new municipalities to be established will be responsible for the licensing and control of leisure centres, for the licensing of alcohol and for the licensing of sound-enhancing instruments. In addition, a municipal police will operate in each municipality.
Single budget and removing inequalities
The budget of each municipality will be uniform for all municipal districts. Each year, the municipal council, by its decision, will determine the maximum amount of the expenditure budget for the following year of each of the municipal districts. In fact, each new municipality, by decision of the municipal council, will commit the available resources, except for its operating expenses, for the execution of municipal district projects, in proportion to their population and needs. A government source said that with the changes that will occur it is certain that the new municipalities that will be created will be robust and economically viable.
As the current situation in local government stands, there are inequalities. For example, a large municipality today spends €245 per year for each resident to provide services, while a small municipality spends €1,143 per year on the same services and with fewer employees for each resident. Also, the quality of services is generally better in large municipalities. A competent source told "F" that these are inequalities that cannot continue to exist.
