Cyprus Mail: News Articles in English, 99-06-25

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From: The Cyprus Mail at <http://www.cynews.com/>

Friday, June 25, 1999

CONTENTS

[01] Cabinet gives green light for deregulation

[02] Cyprus Airways flies out passengers despite strike

[03] House gives conditional backing for defence budget

[04] Parties hit back at Rubin comments on Kyprianou row

[05] Paphos MP lashes out at Black Sea 'ghetto'

[06] Court to decide today on admissibility of key statement

[07] Cyprus backs greater role for Dame Ann

[08] Market in third successive record close

[09] Tough times ahead on EU tax harmonisation

[10] More products removed from dioxin list

[01] Cabinet gives green light for deregulation

THE CABINET yesterday gave its full backing to a proposal by the Communications and Works Minister to extend air deregulation if Cyprus Airways (CY) pilots continue their industrial action.

On Wednesday, the Ministry announced that the skies over Cyprus would be deregulated for as long as the pilots' strike continued.

The strike, over promotions, is due to end at midnight tonight.

Speaking after the cabinet meeting, Minister Leondios Ierodiaconou said some "specific decisions" had been taken on CY, but that they would not be publicised for the moment.

"What I can tell you is that the Council of Ministers believes the pilots' strike is illegal and an action which shows total indifference towards the public," he said.

Ierodiaconou said the deregulation decision was still valid but its course would depend on the stance of the pilots.

Asked if that meant the 48-hour liberalisation decision announced on Wednesday would be made indefinite, the Minister replied: "I didn't announce it was for 48 hours. I simply announced that there was a liberalisation of flights. Whether or not this decision is extended depends on developments," he said.

Partial air liberalisation already exists in Cyprus, but CY's most profitable routes -- in particular London, Athens and Tel Aviv -- are still protected.

Full liberalisation had not been expected to come about until Cyprus' target date to join the EU in 2003.

Ierodiaconou said the government would still be willing to protect the three routes for a time, depending on the pilots.

"It's our policy to protect CY's flights, but if the pilots continue their stance, this could change," he warned.

Vassos Pyrgos, Permanent Secretary of the Communications and Works Ministry, said yesterday that air liberalisation over a limited period would have no real effect because airlines had no time to schedule flights.

"There is now a decision in principle to extend this measure," he said. "As of Friday night, if the pilots return to work, there will probably be no decision to extend the liberalisation."

CY spokesman Tassos Angelis said Cyprus Airways would be in serious trouble if liberalisation went ahead.

"Staff are concerned about the future of the company and upset with the pilots for putting their livelihoods in danger," he said.

This was obvious in the response from Costas Demetriou, president of Cynika, CY's biggest staff union.

"We are totally against liberalisation. We will fight it," he said. "This is a very serious issue. The government has no right to victimise 1,700 people for the sake of 100 people," he said, referring to the members of Pasipy.

But Pasipy remained unrepentant yesterday.

"They (the government) are confused about what they are doing," said spokesman George Charalambous.

"Let them go ahead and have no jobs. Others will be able to fly in and out as they wish, but CY can't take advantage because we are not yet in the EU."

Charalambous said if CY was unable to compete, there would be serious problems. "Cyprus Airways should have been ready for this. It has not done its homework," he said.

Iacovos Papadopoulos, Director of Civil Aviation, confirmed yesterday there had been no applications for licences by foreign airlines and there were none pending from before, although he said: "in the past there was quite a bit of interest."

British Airways (BA) manager in Cyprus, Peter Louca, said yesterday their aircraft were already full. "There is no additional capacity, he said. There is no demand to justify the extra flights."

George Souroulas, from Amathus Navigation, the agents of Air2000, said he had no information on additional flights to Cyprus because of the strike. "Obviously an airline cannot move into new or existing markets all of a sudden," he said.

Yiannis Kapodistrias, marketing manager of the low-cost easyJet airline owned by Greek Cypriot tycoon Stelios Haji-Ioannou, said a temporary deregulation would not be an incentive for them. "I believe their decision is not a call towards us but to the charter market," he said.

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Friday, June 25, 1999

[02] Cyprus Airways flies out passengers despite strike

CYPRUS Airways (CY) said yesterday it managed to fly 5,000 passengers, despite a strike by the majority of its pilots.

Airline spokesman Tassos Angelis said management's contingency plan had gone ahead "with very little inconvenience".

"We carried 5,000 passengers to and from their destinations and we will do the same for 4,500 on Friday (today)," he said.

Members of the pilots union Pasipy called a 48-hour strike after a dispute with management over captain promotions in CY's charter firm Eurocypria which they covet.

The new strike action, due to end at midnight tonight, came only a day after a 24-hour strike grounded 11 flights and caused delays to 3,000 passengers on Tuesday.

"Today, everything went okay, there were no problems," Angelis said. He said seven flights went out early in the morning as originally planned using CY pilots who are members of the airline's biggest union Cynika. A further seven flights left with a minimum of delays, with aircraft leased from abroad, Angelis said.

During Tuesday's strike, Cynika pilots failed to show up for work after threats from Pasipy members to report them to the International Pilots Union. This threw CY's plans into chaos leading it to make two contingency plans for the current strike.

The only glitch yesterday with reports of tension as the Cynika pilots tried to cross the picket line at Larnaca Airport early yesterday morning. Riot police had been stationed at the scene to keep the peace.

Cynika president Costas Demetriou said the members of his union had reported for work as usual yesterday.

He said he didn't want to discuss reports of a fracas. "It was a picket line but it was controlled well by the police," he said. Demetriou accused Pasipy of exerting "psychological pressure" and "blackmail" on his members by circulating a leaflet to Cynika pilots urging them to "think again".

He said Pasipy members had also called the Cynika pilots by telephone to make their point.

"We live in a democracy. Everyone has a right to claim what he wants, but the other side has the right to have a different opinion," he said "It's not correct to strike for something you don't believe in."

A Pasipy spokesman, Andreas Matheou, condemned Cynika pilots for breaking the strike. "We have been in direct contact with international organisations about it," he said.

"We also condemn the presence of riot police at a picket line. It constituted tremendous psychological pressure."

He denied reports that Pasipy members had behaved badly. "There was no conflict," he said.

Matheou also criticised Cyprus Airways for leasing planes to carry stranded passengers -- who included Defence Minister Yinnakis Chrysostomis.

"I don't know what kind of planes they are using," he said.

"We are looking into this." He added the company was jeopardising the good name of the airline by its actions.

Angelis categorically denied allegations that aircraft leased were not up to standard. "The planes chartered belong to European and American companies which comply with international regulations and have air safety standard certificates," he said.

"It seems the pilots are over-concerned about the safety of re-arranged flights when these are the passengers they were trying to keep hostage in Cyprus by preventing them from reaching their destinations."

Pasipy spokesman George Charlambous told the Cyprus Mailyesterday afternoon that no decision had been taken on the next step. "We will wait and assess the situation," he said.

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Friday, June 25, 1999

[03] House gives conditional backing for defence budget

THE HOUSE of Representatives plenum finally approved the 1999 defence budget yesterday, six months after it was first submitted to parliament.

The plenum also approved a compromise six-month extension to defence levy increases.

The government had to amend defence budget provisions for the purchase of advanced weapons systems -- making them subject to parliamentary scrutiny -- before opposition deputies would support the bill.

Even so, the 15 attending deputies of main opposition party Akel abstained from the vote on the £168 million budget. Party parliamentary spokesman Andreas Christou explained that Akel did not support the government amendment and would have liked to have been able to vote for the whole budget, with the exception of the £40 million designated for weapons systems.

The Akel stance does not bode well for the government when it comes round to seeking House approval for purchase of the Aspide missiles and attack helicopters that the National Guard is said to covet.

Many deputies fear any weapons systems the government tries to buy will meet with the same fate as the Russian S-300 missiles. The government had to redirect the ground-to-air missiles to Crete under the pressure of Turkish threats and opposition to the order from the UN, US and EU.

House defence committee chairman Takis Hadjidemetriou of Edek called on the government to make greater effort to consult with parties before submitting future defence budgets.

"Defence demands harmony in society and political relations. If there are divisions, defence is hit," he said.

Acting House president Nicos Anastassiades respectfully asked Defence Minister Yiannakis Chrisostomis -- who watched the debate -- to take note of Hadjidemetriou's point.

The other contentious bill up for consideration yesterday was an extension of the defence levy increase. The government again had to concede ground before the bill was approved.

It had sought a three-and-a-half year extension of the levy increase, but had to settle for a compromise six months.

The initial defence levy hike last August from two to three per cent was eventually passed by a majority of one on the proviso it was reviewed every six months.

In December 1998, the blanket levy was passed for a further six months in which certain individuals and organisations were put into a higher four per cent bracket.

Akel's Christou, whose party voted against yesterday, said the government was trying to pull the wool over people's eyes.

"We would agree if this was the first time the government had suggested a six-month extension, but it is the third time," he protested. He said government promises for consultation before the levy came up for renewal again would prove empty.

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Friday, June 25, 1999

[04] Parties hit back at Rubin comments on Kyprianou row

DIKO and Akel yesterday lashed out at new American criticisms of their stance on Yugoslavia, this time made by US State Department spokesman James Rubin.

Responding to a question on the row between House President and Diko leader Spyros Kyprianou and US ambassador Kenneth Brill, Rubin told his daily briefing in Washington on Wednesday that "We fully support Ambassador Brill's very active efforts to carry out US policy on Kosovo. He has worked very hard and creatively to counter the misinformation that has appeared in much of the Greek Cypriot press about (Yugoslav President Slobodan Milosevic's) criminal activities and the brutalities committed against Kosovar Albanians."

It took less than 24 hours for Kyprianou to hit back, telling reporters that the US and Great Britain always saw those who did not agree with them as the enemy.

But Kyprianou also said that Rubin had confused the issue of the dispute, focusing on Cypriot feelings over Yugoslavia, when the crux of the dispute lay in Brill's refusal to meet him in his capacity as acting President.

"He could have at least telephoned, but he did not even call," Kyprianou complained.

Rubin said on Wednesday that the ambassador had assured President Clerides that he had not meant to offend Kyprianou, either personally or in his capacity as acting President.

With President Clerides away in China, Kyprianou had sought a meeting with Brill to complain that letters sent by the embassy to Diko and Akel constituted interference in the island's domestic affairs.

Rubin said on Wednesday the letters had dealt exclusively with the situation in Kosovo "and the inaccurate and irresponsible statements made by party officials during and after a June 7 anti-Nato rally in Nicosia."

"It is the job of an American ambassador to explain and articulate and represent the views of the United States," Rubin added. "It would be appropriate for our ambassadors to try to counter some of the propaganda coming out of Belgrade and other places."

He said it would be interesting to see what those who had believed this propaganda would say "now that they're uncovering mass grave sites regularly and frequently in Kosovo. Maybe some of those people who said it wasn't true should respond now."

Kyprianou yesterday defended himself on that count too, saying Rubin had been mistaken in implying Diko and Akel denied that Milosevic was a war criminal.

"As I wrote in my letter to the ambassador, this was not my concern, my point was that even if there were war crimes -- and we are not the right ones to judge or uncover this -- it is the job of the appointed organs of the international bodies involved. But even if we suppose that they (crimes) did happen, our concern was that Nato took advantage of this, and as a result the US completely destroyed Yugoslavia."

Kyprianou said Rubin had implied that Cyprus was on Milosevic's side: "We are on the side of the Serbian people, whom we have always supported, but we are not against the ethnic Albanians. We never said that their human rights should be violated."

Meanwhile, a statement issued by Akel yesterday called Rubin's statements "wholly unacceptable".

The party said his comments had "once again expressed the arrogance of the rulers of the planet," and that no one had to right to censor parties from expressing their opinions freely.

"Beyond interfering in Cyprus' domestic politics, (Rubin's comments) are an unprovoked attack on the Cypriot mass media for having had the courage to resist the one-sided propaganda and misleading information that Nato and Washington projected worldwide during their attacks against Yugoslavia."

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Friday, June 25, 1999

[05] Paphos MP lashes out at Black Sea 'ghetto'

DIKO Deputy Nicos Pittokopitis yesterday urged the Greek Embassy to help break a ring he said was issuing fake Greek passports to people falsely claiming to be Black Sea Greeks, and settling in what he said was "a dangerous ghetto" in Paphos.

Pittokopitis told reporters that crime was out of control in the Paphos 'ghetto', home to several thousand Black Sea or Pontian Greeks, and accused the authorities of "doing nothing about it".

The Paphos deputy said the "general problem" of illegal foreign workers in Cyprus paled beside the problems caused by "Russian Pontians, Greek Pontians, Ukranian Pontians, Pontians of every race, creed and religion."

"We have nothing against those of Greek descent," Pittokopitis insisted following a meeting of the House of Representatives Labour Committee, "but if someone has a passport, does that mean he is of Greek descent?"

"A lot of these foreigners were criminals or agents of foreign countries," he said. "We call on the Greek embassy, we call on the Greek ambassador to carry out an investigation and to gather all those facts that prove these passports have actually been properly given."

"I want to make it clear," Pittokopitis said, "that I am not and never have been a racist. But you cannot have the various wings that are active in Cyprus and Greece and in these countries from where they come buying up and handing out passports with no controls with the result that the structure of Cyprus' society is being destroyed."

"They have left the Cypriots without work. They have helped robberies, rapes, drugs, and every kind of crime become a permanent institution here," he declared.

"When the police and the (Justice) Minister, himself, admit that in Paphos we have a ghetto... is it right for us to accept this and keep quiet, when in the heart of the Paphos tourist area there is an ghetto and there are people the mentality from 1908 or 1915?" he asked.

Minister of Justice and Public Order Nicos Koshis, also speaking at the House, backed Pittokopitis' claims that there was indeed a Black Sea ghetto in Paphos, adding the police were doing all they could to control crime emanating from there, but that they really could do little to solve the problem.

Koshis otherwise steered clear of much of Pittokopitis' remarks as "another matter". However, he said what while "these people come here with Greek passports, we do not want to challenge their Greekness.

"We have some contact with the Greek embassy," he added, promising further enquiries would clarify the matter.

Late on Wednesday, the ministers of Interior, Justice met with representatives of the Commerce Ministry and the police and other ministries at a meeting presided over by Interior Minister Christodoulos Christodoulou to discuss the overall problem of illegal foreign workers in Cyprus.

Christodoulou said the ministers "reconfirmed the decision that foreign workers... (in industry, labouring jobs and the like) should not be allowed to stay for more than four years."

He said the ministerial committee's decision allowed for exceptions "in the cases where there are contracts with companies for the completion of a specific project, and if this project has not already been completed." But he said, "the extensions cannot be given for more than one year."

Noting that some "15 illegal workers per day are arrested and deported or not allowed entry to Cyprus," Christodoulou said the committee had also discussed the issue of ethnic Greeks from Albania, adding that some 160 of them now worked in Cyprus.

"It was decided to give them the opportunity to stay and work, but for the present any others that want to come to Cyprus will receive the same treatment as other foreigners until the whole issue is investigated thoroughly," he said.

Christodoulou said the ministerial committee also decided to meet "in the next 15 days ... to discuss the issued of the Russian Greeks and cabaret artistes" and the serious problems they pose.

To address these issues, he said the ministers want "a systematic investigation by all the (relevant) services, because employers have a responsibility to respect the law."

"I am optimistic," he said, "that with the approach we made... and the attempts that will be made, the results will surely be much better" than the current situation. "There is political will that the issue be faced as far as possible."

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Friday, June 25, 1999

[06] Court to decide today on admissibility of key statement

THE CRIMINAL court will decide today on whether a crucial statement by a murder suspect in the Hambis Aeroporos trial should be admissible as prosecution evidence.

Prosecution and defence lawyers yesterday gave their closing arguments on the issue of whether the police statement given by a former special constable was lawfully obtained.

Nicos Clerides, defence lawyer for murder suspect Savvas Ioannou, alias Kinezos, claims his client was tricked into making a statement because police failed to inform him that he was a suspect in the Aeroporos murder case.

"The prosecution has tried to prove that the accused made a voluntary statement; it was not voluntary but taken under psychological duress and deceit," Clerides said during his closing argument in yesterday's trial within a trial over the admissibility of the statement.

Clerides said Ioannou had not been warned that he was a murder suspect and could therefore incriminate himself by making any statement.

The defence dismissed CID testimony that Ioannou was not in fact considered a prime suspect when he was called in for questioning, which was why he was not informed as such.

Clerides was also unhappy that his client spent five hours at police HQ when he was questioned.

Ioannou, 33, was arrested on December 16, the day of the murder, for illegal possession of ammunition and an air gun that were found at his home.

He was then arrested a second time the next day, this time in connection with the killing and questioned at Nicosia police HQ.

The police statement concerned Ioannou's movements on the day of the murder and phone calls made to his mobile phone and to a mobile phone found in the hit-men's car, which was abandoned at the scene of the crime outside Limassol.

Police also discovered that Ioannou was in constant phone contact with fellow accused policeman Christos Symeonides, 35, on December 16.

State prosecutor Petros Clerides yesterday refuted defence arguments, saying all the proper procedures had been followed and Ioannou had the right to remain silent.

"As a former policeman the accused knew his rights and they were not violated," said Petros Clerides.

"It is not possible that the accused would not be asked about the phone, just as a process of elimination seeing he knew the person to whom the calls were made," Clerides explained.

The mobile found at the scene had Ioannou's number logged in the memory.

"What else could police do other than eliminate those who were linked to the phone's memory," the prosecutor said.

Three other accused, waiter Prokopis Prokopi, 35, cabaret owner Sotiris Athinis, 43, and his 51-year-old sister and hospital cleaner Zoe Alexandrou have pleaded not guilty to charges of involvement in the killing.

The trial continues today.

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Friday, June 25, 1999

[07] Cyprus backs greater role for Dame Ann

In Wednesday's mission of good offices in Cyprus report, Kofi Annan announced his "intention" to give Hercus a more high-profile job description as of July 1.

"The government has already accepted through a formal response her appointment to the post of the UN's Secretary-general's special representative for Cyprus," government spokesman Costas Serezis said yesterday.

Hercus' appointment fills the gap left by the resignation in April of Diego Cordovez from the post of Special advisor to the Secretary-general on Cyprus.

Serezis also said the government had requested the "active participation of the UN Secretary-general in any talks."

This comes in the wake of Annan announcing he was ready to invite the Greek Cypriot and Turkish Cypriot sides for comprehensive peace talks "without preconditions".

CyBC has suggested the venue for talks might be West Point, New York and the date October 10.

Nevertheless, President Clerides will play a wait and see approach before he replies to Annan's invitation, Serezis said yesterday.

He said Clerides would make "no public comment" until after the National Council -- the top advisory body to the president on the Cyprus issue -- meets next Wednesday.

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Friday, June 25, 1999

[08] Market in third successive record close

SHARE PRICES continued to rewrite the record books yesterday, hitting their third record close in as many days on a decent volume worth £12.59 million.

The official all-share index stood at 158.98, 1.36 per cent up on Thursday's close. The rise took the market's Monday-to-Thursday gains to 2.50 per cent.

As in previous days, Nicos Shacolas' CTC and Woolworth had a field day yesterday, while strike-plagued Cyprus Airways saw its shares persist with their mysterious appreciation despite the company's deepening woes.

The banks did not do too badly either, with Hellenic Bank up by an awesome 18.50 cents to close at £4.40.

Shacolas' CTC rose by 17.50 cents to close at £2.06 in trade worth £1.17 million. Luck began to smile on the share when Shacolas announced this week that the company planned a two-for-one split and that profits were up by 72 per cent in 1998. Turnover, he said, was expected to increase to £70 million in 1999 from last year's £66 million.

Shares of Woolworth, the flagship of Shacolas' retailing empire, went up 5.5. cents yesterday. The stock closed at £0.93 with 1.32 million changing hands at a value of £1.24 million.

Cyprus Airways shares, which often slump into long spells of hibernation, yesterday notched up half a cent to close at 0.67, a new year-high. The share has appreciated by more than 35 per cent over the past week, prompting many brokers to suspect that pilots of the powerful Pasipy union are mopping up shares from the market.

The pilots, who staged a 24-hour strike on Tuesday and began a 48-hour stoppage yesterday over promotions, have publicly stated their wish to acquire 12 per cent of the carrier to earn seats on the airline's board of directors.

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Friday, June 25, 1999

[09] Tough times ahead on EU tax harmonisation

But Austrian Leopold Maurer also warned of some testing times to come as Cyprus moved to harmonise with Europe on taxation and the free movement of capital.

"These are two very important issues, very complicated ones, because, in the taxation field, for example, you have to change your whole system," Maurer told journalists after a morning meeting with the House Foreign and European affairs committee.

"In the EU the minimum VAT is 15 per cent, you have 8 per cent. To bring together the two rates is a very difficult task and we have to be very careful," Maurer said.

Maurer arrived with a team of EU officials for a three-day official visit on Wednesday evening. His remit is to review Cyprus's progress towards EU harmonisation.

Restrictions in the movement of capital, and especially restrictions on interest rates, had to be lifted, Maurer said. There was much to do by the 2003 accession deadline, he said, so efforts had to begin now.

Committee chairman Tassos Papadopoulos said he was satisfied with the meeting with the EU official, and echoed Maurer's call for a redoubling of efforts towards accession.

He denied suggestion's Maurer was turning the screw on Cyprus: "There is no pressure, he just explained that you cannot act at the last minute."

[10] More products removed from dioxin list

THE GOVERNMENT yesterday again whittled down its list of Belgian imports suspected of containing the cancer-causing poison dioxin.

It was at least the fifth such Health Ministry scratch of products from its June 11 list of 104 suspect Belgian food imports and four kinds of animal feeds.

Several varieties of Belgian-made Woodies-brand chocolates were taken off the list in the latest cut. These included its Chocolate Stick with Hazelnut Wafer, and its Orange Flavoured chocolates. Both have expiry dates of September 15, 1999.

Also cut from the June 11 list were four varieties of Cavalier-brand sugar- free chocolates. Among them were its Praline Hazelnutcremes, Praline Hazelnutcremes Avec Noisettes and Nuts, Lait Milk and Mocca Coffee chocolates. All have expiry dates of September and October 15, 1999.

Different varieties of Guylian-brand and Limar chocolates, Reddy margarine and Reddy mayonnaise of Belgian origin were also scratched from the list this week.

The Guylian chocolates included its Cafina variety (bag) with an expiry date of June 11, 2000; and its Destrooper Florentine, La Trufilina, Opus (box), La Perlina, Canasta, Opus (tin) and Opus chocolates. The Guylian's chocolates had expiry dates ranging from August through September of 1999.

Limar raw industrial raw chocolate flavouring, with six different batch numbers and expiry dates, was also removed from the suspect list. Batch numbers and dates can be obtained from the Health Ministry.

Reddy Mayonnaise (470grams), with expiry dates of March and April 2000, and Reddy Margarine (500-grams and 100 grams) with expiry of March 24, 2000, were also removed from the list.

The Health Ministry earlier removed half-a-dozen varieties of Jacques-brand cookies, various batches of Barry Callebaut industrial raw chocolate and Lu brand's Choco Prince and Pim's biscuits from the list.

Cyprus has impounded tons of Belgian export foods and animal feeds, and ordered shops to strip shelves of all Belgian foods on the June 11 list, and hold them for possible destruction.

The owner of a fats reprocessing plant in Belgium has been arrested following discovery that he allegedly mixed motor oil containing dioxin and PCBs, with the animal fat his firm shipped to the Verkest fats and oils company, of Ghent, Belgium, according to news reports.

Verkest, once a prime suspect in the potentially lethal scandal, apparently unwittingly supplied the dioxin-poisoned fats to animal feed producers in Belgium, Holland and France. Those companies then supplied feed to poultry, pig and cattle farms in their own countries, and Germany and Spain.

The contamination sparked an EU ban on the sale or transfer of Belgian animal feeds, raw food and processed food products.

Dioxin can kill some species of newborn mammals and fish at levels of 5 parts per trillion.

It causes grotesque birth deformities, since it is passed down from generation to generation. Children are at grave risk, since dioxin is transmitted in human breast milk and cow's milk.

© Copyright Cyprus Mail 1999

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