Filenews 18 January 2022
The resolution of the short-term problems faced by industrial areas and industrial zones, such as the burning issue of rents and recoveries of government plots, until the completion of the relevant study that will propose solutions to all issues, argued the Minister of Energy, Trade and Industry, Natasa Pilidou, with the Parliamentary Committee on Commerce giving a three-month deadline in order to have developments in the issue.
In the Parliamentary Committee on Commerce, which discussed the need to establish a single policy on the management of industrial areas and zones, complaints were heard that the Department of Lands is sending multiple retroactive charges to businesses, on the basis of a review of rents.
As mentioned in the session, in the context of the industrial policy 2030, a study has been announced, which will map all the issues related to industrial policy, such as the needs for expansion or creation of new industrial zones and areas and all issues in general. The study that will take into account all those involved is expected to be completed by the end of the year.
"In the meantime we have to look at the issue of rents, the issue of the recovery and re-proclamation of plots that have a problem," Said Ms. Pilidou, speaking before the Committee, explaining there are issues that will be solved based on the recommendations of the study. He also said that the industry's contribution to GDP is 8%.
The chairman of the committee, Kyriakos Hatzigiannis, stressed that we cannot wait a year (for the completion of the study) and we should move faster.
It gave three months until a new session on the issue was convened.
"All industries, all craft industries, are losing opportunities, although there is no framework for the management of industries and craft areas and zones. We have all diagnosed that the situation is unbearably dysfunctional and no one comes out of the media," Mr Hatzigiannis said in his statements.
As mentioned in the Committee, the responsibility for industrial policy lies with both the Ministry of Commerce and the Ministry of Interior, while in some matters there are also responsibilities in municipalities.
Speaking before the committee, Ms. Pilidou said that the Ministry has no objection to taking over the policy of industrial areas and rationalizing the policy, but pointed out that the Ministry cannot undertake the collection of rents from the use of state plots, a competence that has the Land Registry. He said if this is done there will be an impact on the speed with which applications will be examined or policies are set.
The General Director of the Ministry of Interior, Konstantinos Constantinou, explained that the industrial areas are structured developments made by the state, while the industrial zones were defined in the framework of urban plans for specific developments and in them there may be state land or private land.
He advocated the subordination of industrial policy issues to the Ministry of Commerce.
As he said, among other things, in the context of the study that has been announced, the existing infrastructure will be evaluated, the existing funding policy will be evaluated and new needs will be defined.
He referred to the distortion that exists regarding the determination of rents of state plots, saying that in 2010 the yield of the plots was 5-7% while in 2012 by decision of the Council of Ministers the margin froze to 3%, while then it was reduced to 2.5%. He added that in mountainous areas the yield was limited to 1%.
He explained, however, that in industrial zones, where there are state and private plots, which are leased under the terms of the free market, this also raises the issue of state aid.
Mr. Constantinou also said that the issue of rent diversification will be addressed by ending the lease of plots in industrial zones and the concession of available plots in industrial areas.
Moreover, in response to a question, Mr. Constantinou said that in the context of the preparation of the 2022 budget, the Ministry of Interior submitted to the Ministry of Interior proposals for the expansion of two existing industrial areas in Kiti and Xylotymbou, but for procedural reasons the Ministry of Finance rejected it because it considered it as a new policy.
He said that after consultation with the Ministry of Finance, the Ministry of Interior will submit a proposal to the Council of Ministers for its approval and inclusion in the next budget.
AKEL MP Yiannakis Gavriel complained that companies that lease state land and pay their rents normally, without any notice, received additional charges of thousands from the Cadastre on the basis of the review. He said a plot for which the rent was €500 euros per year was revised to €2,000, resulting in thousands of additional charges for the company and court summonses have been served.
In response, the DG of the Ministry of Interior said that there is no legal obligation for the Land Registry to send notices of the change in charges, but acknowledged that there is an issue in relation to this issue, which will be examined.
Speaking to the committee, DISY MP Nikos Sykas said that decisions must be taken and we cannot wait for the study to be completed, while Onoufrios Koullas pointed out the risk of issues arising due to state aid.
AKEL MP Andreas Pasiourtidis pointed out as very important the issue of the expansion of the industrial zones of Kition and Xylotymbos, saying that 88 young craftsmen and professionals can be able to operate and be housed, thus contributing to the economy of the country and the local communities.
Moreover, the MP of DIPA - Cooperation, Michalis Giakoumis, expressed the position of the faction that both industrial and industrial and industrial areas could be exclusively under the control and management of the Local Authorities, as is the position of the Union of Municipalities.
A CCCI spokesperson said it would be ideal for there to be a unified management of the issue. He noted that since the new estimates were made in 2010, rents have skyrocketed, adding that despite improvements rents remain significantly higher.
He noted that industrial areas are an important tool for industry and a proper policy needs to be found.
A representative of the OEB described the issue as very complex and added that as a matter of principle management should be uniform. He referred to industrial zones, where the way rents are calculated is high, and noted that the charge should be made on its basis and not on the basis of market value.
The SG of POVEK Stefanos Koursaris said that it is not easy to adopt a single policy and added that the artisanal areas should be considered as a separate part, because they have distinct peculiarities.
