Filenews 19 December 2021 - by Vassos Vassiliou
When on 29.5.2014 the then Minister of Interior Socrates Hasikos stated, after a wide-ranging meeting, that "the goal was for the legislation for the reform of Local Self-Government to be voted by the House of Representatives by the end of 2014", obviously no one expected that we would arrive at the end of 2021 and still discuss the issue.
At that time, the minister had in his hands the studies of British, Italian and Greek experts and they all converged that the model of Local Government that was in force in Cyprus erased its cycle and essentially fell into a dead end at the expense of local authorities and citizens as citizens but also as taxpayers. As citizens they did not have the services expected in an EU state, while as taxpayers they paid much more fees than they would pay if local government were modernized while reducing the number of Local Authorities, some of which functioned as small kingdoms.
In particular, the interim study of the British, on which the Ministry of Interior was based for the preparation of the bills pending before the Parliament, provided for the creation of five municipalities throughout Cyprus or the creation of ten metropolitan municipalities nationwide, one of which will result from the union of municipalities per district and the other from the union of all communities per district. Of course, Socrates Hasikos knew because of his involvement in politics that the parties, the actors and agents, the interests (local and personal) were not easy to overcome, but perhaps he did not know that some MPs would undertake to overturn "at all costs" the reform in order not to lose the parliamentary seat which they "occupied" with the help of certain local community actors with several votes. They reacted because they believed that mergers would absorb their communities into the new schemes and lose whatever power or influence they had.
Perhaps he also did not know that on the chessboard of the division of municipalities there would be so many reactions as to which party would settle on the basis of the mergers that would then be proposed. Precisely in order for all the parties (or even the largest ones) to have their take from the sharing, the five municipalities that the British experts suggested should be created, became ten (what five, what ten) after 14, then 17 and in the end the game was played between 20-22 out of the 30 that are today (not counting nine occupied municipalities).
Former Interior Minister Konstantinos Petrides was no less optimistic even though the years went by. He had expressed the belief that "there is the political will for 2019 to be the year of the reform of local government", while he had said that his goal was, as in late January-beginning of February, to lead the relevant bill to the Legal Service for legislative technical control, and immediately afterwards to be discussed and voted for by the Parliament, without further ado. Under this scenario, the reform would be implemented with the upcoming (then) municipal elections, in December 2021, that is, at the time we are now. Of course, the bills were tabled in the House in March 2020, and the fact that Parliament was ready to pass the bills even this month, if not all were overturned, is considered quite positive.
Yes, but the municipalities are positive
The need to reform local government was also recognized by the mayors themselves, although some of them, in the event that the reform was an omelette, would be satisfied provided that only the eggs of others would be broken for its preparation, in the sense that they or their municipalities would not be affected.
In 2014, after a meeting under Socrates Hasikos, the then president of the Union of Municipalities, Alexis Galanos, described as "useful" the study of British experts (which was discussed) to add that "there are various views in the Union of Municipalities." We have 39 municipalities, there is not a specific view, what everyone agrees is that improvements need to be made," he said to add something that then went unnoticed but was (and is) decisive for the reform in terms of the number of municipalities that will emerge: "The parties will see the issue, because the vast majority of mayors belong to parties."
The map was formulated and no party wanted to lose either its influence or its local rulers who, to a large part, also promoted the interests of the parties to which they belonged.
However, it is not the fault of the parties or it is not only the parties that are to blame for the fact that the model of Local Government as we know it until today has closed its circle and has no future. The responsibility also lies with the municipalities and mayors themselves, who are now reacting to mergers because their municipalities are merging into the larger schemes and will disappear, and with them themselves as mayors. One of their responsibilities is that they are comfortable with the situation that prevailed and have not sought, or have not pursued, as far as they should have done, the creation of common services, which in turn would bring about savings which would limit the pressure of reform, at least from an economic point of view, which is one of the most fundamental aspects of the reform; since according to the scenarios examined, savings of up to €50 million will be generated. Annually. The example cited by some, with the rubbish, is typical. That is, to pass the garbage truck from the same road and collect the garbage on one side because there separates the boundaries of the two municipalities. At the same time, the services of municipalities, in addition to not being merged or intertwined, were constantly growing in terms of the number of their employees and not only that, but they copied the bad side of the public sector, turning into small public services instead of working as a private company works.
It is an open secret that even people whose services were not needed were hired, simply to accommodate ourselves according to the power relations in each municipality, without excluding the sharing of positions by the method, "one of you, one of mine".
The map of Local Government
In Cyprus until 1986 there were the large municipalities (Nicosia, Limassol, Larnaca and Paphos) and other small municipalities such as Lefkara.
On February 23, 1986, referenda were held through which 11 new municipalities were declared (Agios Athanasios, Agios Dometios, Aglantzia, Aradippou, Engomi, Kato Polemidia, Lakatamia, Latsia, Mesa Geitonia, Paralimni and Strovolos).
In 1994, 5 more municipalities were created (Municipality of Ayia Napa, Municipality of Germasogeia, Municipality of Geroskipou, Municipality of Deryneia, Municipality of Pegeia). In 1996 the Municipality of Idalion was created.
On 19.10.2011 in the Official Gazette of the Republic, the areas of the Community Councils of Yeri, Tseri, Livadia, Ypsonas, Sotira and Dromolaxia-Meneou were declared in municipalities.
Where municipalities stood financially
But what was the financial and operational situation of the municipalities just two years ago, based on a report by the Audit Office published in 2018? In a comment concerning the increase in the number of municipalities, it was mentioned that this "entails increased sponsorship by the state and increased expenses for these municipalities, since organic and other positions provided for in the Law will have to be filled, such as, for example, municipal secretary, municipal engineer, municipal treasurer, etc., and new Departments, e.g. Technical Service, should be created and staffed". The Auditor General also indicated that increased expenses will also arise for the remuneration, representation expenses and other allowances of the mayor and compensation, representation expenses and other allowances of the municipal councillors, as well as for pension benefits of the mayor and employees.
In 2016, the remuneration of the 30 mayors of the free areas amounted to €1,590,000, for the aldermen to €71,133 for the municipal councillors to €2,762,197, for the pensions to €573,000. If the cost of remuneration of the mayors of the occupied municipalities is calculated, the total cost of remuneration amounted to €1,867,454 and the total amount for the municipal councillors to €3,217,167, while pensions amounted to €801,185.
In summary, the Auditor General indicated that in total for mayors, municipal councillors and retired mayors the amount for 2016 amounted to €4,996,822 and the amount was increased to €5,956,939 when the occupied municipalities were counted. High-low, €6 million.
The Auditor General suggested that "most municipalities continue to face serious financial problems and problems related to their liquidity, which would be more acute if the state sponsorship did not reach many times up to 40% of the revenues of municipalities, thus being unable to meet their current obligations.
Due to the accumulated debts, the Council of Ministers decided, on 19.7.2017, to approve the repayment (by the State) of the annual instalment of the loans guaranteed by it of municipalities and communities, which was estimated at around €11.3 million.
Based on data, the total balance of the guaranteed loans due, for which the instalment is paid by the municipalities, amounted to €174.6 million at 31.3.2017. and the total annual instalment payable for these loans at approximately €10.7 million. So much for guaranteed loans.
Nikos Nouris - now is the time of the parties
After a decade of discussions and a quarter of intensive consultations, we are closer than ever to giving citizens what they anxiously expect. A reform that modernises local authorities, that relieves them of chronic pathologies with administrative autonomy and that I hope will ultimately make them economically viable.
The route was difficult. There have been assumptions, compromises and concessions have been made, but in the end we will all be judged by the final result.
Throughout this journey the government has never had a hidden agenda. We have never hidden and at no time have we been involved in political or party politics. Our positions have always been guided by the rationally technocratic criteria that we ourselves set for ourselves from the very beginning.
Now is the time for the parliamentary parties. Evasive vassals do not fit for anyone. The guide in the decisions to be taken can only be the well-understood public interest.
We have made it clear that we are not dogmatic about the number of new entities, but at the same time this cannot exceed a maximum of 17 since beyond this number, economic viability and not only are at stake.
At the same time, faithful to what we have always supported, we will additionally declare our satisfaction if this number is further reduced since in such an eventuality the benefits multiply and the new entities are strengthened.
We hope that this reasoning and this way of thinking will prevail among the parties as well. Our common party must be the citizens. I hope we do not disappoint them.
Aristos Damianou, chairman of the parliamentary committee on the Interior, points out in a statement to "F":
"Based on a unanimous decision of the parties in the Interior Committee and after consultation with the Speaker of the House, on December 20, the Reform of Local Government was to be voted by the House. As a result of the hard effort of everyone in the Interior Committee, in cooperation with the Union of Municipalities, the Union of Communities and the Ministry of Interior itself, a huge amount of work had been covered and it became possible to bridge differences and find convergences. It has been known that there have been contentious issues – always – such as referendums, the way in which aldermen are elected, the number of municipalities, the content of the mergers and clusters. However, democratically we would vote and what the Plenum of the House would vote by a majority would become law.
Unfortunately, power games in the ruling party have been placed above the criterion and the need for an effective, sustainable and citizen-friendly Local Government. The reform itself will become the fatal victim of their plans unless those who want to block the reform backstage change course. Reform for which as AKEL we are leading the way, for which the Parliament postponed elections, for those who understand the gravity of the decisions we have taken. We have postponed elections to complete this reform, not another one.
The fiasco for the five metropolitan municipalities, which at the time and the dissy themselves rejected, is characteristic of the methods used by the leadership of DISY and unfortunately the competent Minister. And I am referring to the rulers' perception of democracy. Either you vote for what we have brought as a Government or we are blocking the reform.
We will remain serious and responsible. We will continue the effort to complete it. Even if we live in the theatre of the absurd, since the opposition is backing down and promoting reform, but the ruling party is causing problems, counting electors and turbulent about more.
There is a lot of talk about the number of municipalities. It has its value. But it's not the big picture. The most important thing is to create the institutional conditions for local government to be transformed into what in advanced states is literally called local government. In other words, through financial and administrative autonomy and autonomy, it must be able to govern at local level and address the needs of citizens. This is difficult to impossible today. The current model is obsolete and outdated by the stakes and needs of a modern society. Both in municipalities and in communities, especially in communities.
That is why we are insisting on this reform. We, too, have reservations about specific aspects but also concerns about the applicability. However, we must do the right thing at legislative level and from then on we will closely monitor the procedures and timetables that we have already set. In May 2024, the new structure of Local Government should be fully implemented. A difficult task which, as long as the reform is delayed, will become more difficult. And I wonder whether this is what some people are inwardly seeking, namely to block the reform itself or, through obstruction, to prove that it is practically unworkable. You see, there are a lot of pressure from some chairmen.
83% of citizens will be affected
According to what the former Minister of Interior Konstantinos Petrides had stated, based on the proposal of the 17 municipalities that will succeed the 30 existing municipalities (absorbing about 50 communities), the population of the municipal areas increases by 100,000 reaching 700,000 inhabitants, which is equivalent to about 83% of the population from the current 71%.
The aim of the reform project is the administrative and financial independence of municipalities and the financial viability of the new Local Authorities. At the same time, by expanding their role and responsibilities, they should be able, according to the Ministry of Interior, to offer more and more quality services to the citizen, while actively participating in economic, social and cultural development.
Based on the proposed legislation, five District Local Government Organizations are created, which will manage the Water Supply Councils, the Sewerage Boards as well as the Exploitation Boards of Areas for the Disposal or Utilization of Household Waste.
Moreover, in each district there will be an organization that will deal with the issues of development licensing (planning and building permits).
The new municipalities, along with the savings that will result, will receive an annual dowry of €117 million. But also the citizen, in addition to the better and cheaper provision of services, will be able to take note of what the local rulers decide, since all the decisions of each municipality will be published on the Internet.
