Cyprus Mail: News Articles in English, 00-04-08

Cyprus Mail: News Articles in English Directory - Previous Article - Next Article

From: The Cyprus Mail at <http://www.cyprus-mail.com/>

Saturday, April 8, 2000

CONTENTS

[01] 'Water cuts worse than last year, all will suffer'

[02] Market up again as investors regain confidence

[03] Diko sets terms for backing VAT rise

[04] IMC says government lost planning permission file

[05] Travel industry takeover battle ‘will not affect local representatives’

[06] Oil prices force airfares up three per cent

[07] Turkish Cypriots channelling lethal firecrackers into the south

[08] Police officer suspended after corruption claim

[09] Kemal’s father denies donor has been found

[10] Cyprus urges EU to reiterate backing for federal solution

[01] 'Water cuts worse than last year, all will suffer'

WATER cutbacks will be worse this summer than last as the island enters its fifth straight year of drought and the sixth driest year of the century, Water Development Department (WDD) Acting Director Christos Marcoullis said yesterday.

That was the verdict after a several-hour crisis meeting chaired yesterday by Agriculture Minister Costas Themistocleous and attended by top WDD officials, heads of city water boards, district officers and mayors of cities without water boards.

No one emerging from the meeting, whom the Cyprus Mail was able to contact gave any estimate of just how severe the imminent cutbacks would be. "I don't have a percentage, I don't have a best guess," said Marcoullis. But he said that consumers would get "less than last year's supply" and the cuts would soon be felt by all.

The crisis has been compounded in recent months by government red-tape, foot-dragging and indecision, combined with populist political pandering that has buried plans for two desalination plants at Zakaki and Ayios Theodoros that would each have produced 20,000 cubic metres of water daily each.

Their 40,000 cubic metres of desalted water would have equalled the maximum output of the Caramondani desalination plant in Dhekelia, the only one in Cyprus, and gone a long way to relieving the effects of the drought until the Larnaca desalination plant can be brought on-line.

With rainfall only 61 per cent of normal, reservoirs are nearly 85 per cent empty, holding a mere 42 million cubic metres of water. This compares to the 68 million cubic metres they held last April 7 after winter rains, at 93 per cent of normal, had left them 75 per cent empty.

Themistocleous said this would be the last year Cyprus would have to ration water because the Larnaca desalination plant would begin operation this December. Its output will equal the Dhekelia plant's 40,000 daily cubic metres of water.

He said he was talking with Caramondani about increasing production at Dhekelia by a daily 1,000 cubic metres. But Marcoullis said Caramondani had refused to install the equipment for that amount of extra water since it would be more efficient and cheaper to expand the plant's output by another 20 million litres per day, versus a mere one million litres.

Themistocleous said that plans for the Paralimni de-salting plant -- put forward after the Zakaki and Ayios Theodoros plants were halted -- were proceeding apace, so it would start pumping in 20 months. Its capacity will equal the Larnaca and Dhekelia plants' output.

"Even though the situation is tragic," Themistocleous told the mayors yesterday, "all the necessary measures are being put into effect so that this summer public inconvenience and problems for our tourism can be kept to a minimum."

These measures include increasing pumping from government boreholes to bring up more water from the island's already dangerously depleted groundwater reserves, buying water from private boreholes and commandeering others.

Themistocleous said there remained the possibility of importing water from Greece, which has offered it free of charge if Cyprus pays the shipping costs. Marcoullis said the WDD was "still working on" this possibility.

Saturday, April 8, 2000

[02] Market up again as investors regain confidence

THE STOCK exchange climbed a further 2.88 per cent yesterday with buyers pushing traded volumes up to pre-correction levels and investors shifting back to blue-chip stocks.

Staging a strong opening, which was up by some 15 points from Thursday's close, the all-share index oscillated between a high of 519.40 points and a low of 508.38 before settling at 518.39, climbing 14.53 points.

The seesaw to the index did underpin some lingering caution among investors recently burnt when the market slumped.

Dealers said that the Greek elections tomorrow were expected to have a decisive impact on the market next week, with the Cyprus bourse probably taking its cue from Athens, which has been treading cautiously for weeks.

"Irrespective of who wins, the Greek elections being over will be enough to drive the Athens market higher again. Its affiliation to Cyprus through the Bank of Cyprus’ expected listing will also have an effect here," said trader Theodoulos Charalambides of Axxia-Plus.

Companies in the ‘other’ category led advancers with a 4.28 per cent jump and were followed by a 2.88 per cent climb for banking stocks, where activity picked up in the second half of this week after a subdued start. Combined, both sectors absorbed more than half of the market's total traded volume of £39.17 million pounds, up almost ten million pounds from Thursday.

Investment shares underperformed the broader market by falling a fractional 0.2 per cent as the sector has recently been maligned by the disappointing debut of new shares.

Commercial shares also trailed most advancers with a mere 0.8 per cent rise.

On a weekly basis, the market has shown returns of 9.02 per cent, compared to a 1.1 per cent climb in the week ending March 31. The average daily turnover has also taken a boost, levelling at £25.1 million this week, about 27 per cent higher than last.

The market started out the week on a subdued footing with investors pouring money into cheap penny stocks, but by Thursday that trend had been reversed and people were back into blue chips.

Bank of Cyprus took a 24 cent lurch to £8.40 yesterday on a turnover of 336,095 shares, while Laiki climbed 14 cents to £12.74. Hellenic Bank were up nine cents to £3.22, whileUniversal Savings Bank closed at £6.40, up 19 cents. Traders cautioned against expectations that the upsurge of the past two sessions could signal a return to the days where the market was clambering up five per cent daily.

"People are more confident in investing right now and there is some euphoria," said Yiannos Athienitis of Severis and Athienitis Financial Services.

"I expect a correction upwards from now on. It might start off a bit nervously but I see it increasing," he told reporters.

Other brokers however cautioned against the market going into overkill with incessant rallies without pausing for breath. "I would prefer to see the market go up, but gradually. It cushions the risk of a downside," another floor trader said.

Saturday, April 8, 2000

[03] Diko sets terms for backing VAT rise

With the government not enjoying a parliamentary majority, Diko is confident its terms will be accepted. The support of Diko's nine deputies would be decisive when the VAT hike bill goes before the House of Representatives plenum later this month.

After a meeting of the party executive committee and parliamentary team yesterday morning, Diko Spokesman Nicos Cleanthous detailed a whole series of tax-relief measures Diko wanted the government to adopt to counterbalance any VAT hike.

The conditions include higher pensions, greater tax relief for refugees earning up to £10,000 a year, the abolition of inheritance tax and a raising of the tax-free bracket from the current £5,000 to £6,000.

Diko is also proposing the levy for the CyBC be abolished and that the state broadcaster instead be subsidised by receiving a 0.33 per cent cut of the proposed two per cent VAT increase.

Cleanthous said the Diko conditions were "non-negotiable."

Finance Minister Takis Klerides has been working hard to secure party support for his proposal. Klerides says the VAT rise is necessary to bring Cyprus closer to EU norms and to help cut the public deficit.

Saturday, April 8, 2000

[04] IMC says government lost planning permission file

THE CHAIRMAN of the International Merchandising Centre (IMC) yesterday hit back at the town-planning department, accusing it of having lost a planning permission application for a contested third floor to the building.

IMC chairman and owner Andreas Kaisis and his deputy George Syrimis called a news conference yesterday to answer accusations that the IMC had added an extra floor when they were the building the complex six years ago, for which they did not have planning permission.

The accusations followed a proposal mooted last year to house the lands and survey department at the IMC. The town-planning department said at the time that the IMC could only in fact have two floors, according to the rules of the zone it is built in.

The issue has now re-emerged with plans to move the Stock Exchange into the IMC building later this month. Critics charge that not only does the building have an illegal floor, but it is not licensed to house the stock market, as it is located in an industrial area where office developments are not allowed.

Kaisis said yesterday the IMC had applied to town planning for permission to build the extra floor, but was told that the file had been lost and had never received an official response to the application.

The IMC chief said then minister of the Interior Dinos Michaelides unofficially favoured the plans for the construction and had told IMC officials that the town-planning department had approved the application and that he had given his permission for the construction to go ahead.

He added that Michaelides had told him not to worry when the accusations first emerged against the IMC, since he had given the go-ahead for the construction.

"During the investigation which followed the accusations, it was clear that for reasons no one had explained to us, the procedures for issuing a permission were not completed," Kaisis said. "However, even if our case file did get lost, resulting in our failure to obtain official permission for the construction, it is unfair for a company to get into such trouble after six years, especially having invested millions of pounds following the government's wish to boost the island's economy.

"Kaisis stressed he did not intend to file a second application for the construction of an extra floor as an application already existed since 1993, still pending because what he said was the government's mishandling.

"Therefore, we have turned to the Minister of the Interior to take care of the problem," he said.

IMC deputy head George Syrimis spoke in the same vein: "It is embarrassing for the government and the town-planning department not to apologise for a mistake which they have made, and instead to fire accusations against us."

Kaisis said the Stock Market could legally be housed in the IMC as the area where the centre was built had been upgraded to an economic activities area. "The Shacolas offices are in this area, as well as the Super Home Centre, one of the biggest retail stores in Cyprus," he said.

The chairman of the IMC added the centre would be ready to house the Cyprus Stock Market on April 20.

Saturday, April 8, 2000

[05] Travel industry takeover battle ‘will not affect local representatives’

A POSSIBLE takeover of UK tour giants Thomson by a leading German operator is not likely to affect their main Cypriot tourism partners.

The takeover, if it goes ahead, will see half the UK's package tour industry owned by German firms.

Thomson has 24 per cent of the British market and Thomas Cook, also owned by a German company, has 22 per cent share. Over a million British tourists are expected to visit Cyprus this year.

Reports were rife yesterday that the takeover of Thomson by German firm C&N Touristic would affect two local firms, Salamis and Louis.

Salamis are the main local handlers for C&N while Louis act for Thomson, and the suggestion was that Louis would be adversely affected by the move if the takeover came about.

But Louis hit back at the reports in Politis newspaper, saying the facts had been misrepresented as being bad for the company and good for Salamis.

Louis marketing manager George Michaelides told the Cyprus Mail that reports about negotiations between C&N and Thomson were true. "They are saying Louis will be affected, but on the contrary if (the takeover) happens, it will not affect us," Michaelides said.

"We are already co-operating on a daily basis with C&N. Out of our 23 hotels we are working with C&N tourists in 15 of them."

Michaelides said Louis did not foresee any problems from the takeover, because in similar cases in the past the new owners had not changed their local representatives.

In any case, he said a large firm like Louis, which also has a huge operation in Greece, could not be ignored.

"Usually new owners do not change. If it involves a small agency they might but we are already co-operating with C&N," he said.

Loukia Hadjitheodosiou, Incoming Manager for Salamis said it was too early to say what the implications of a C&N-Thomson deal might be for their Cypriot partners.

She said the takeover rumours and reports had been going on for about two years. "There is no final decision and we don't know how the market would react to it. It's too early," she said.

Hadjitheodosiou said C&N was the second biggest German operator after TUI. The company brings around 100,000 Germans to Cyprus every year in co-operation with Salamis.

On Wednesday, the German firm said it would consider increasing its proposed £1.3 billion sterling offer for Thomson, which was established in 1965.

The previous day, C&N had said it would offer 130p a share for Thomson, which Thomson rejects as "wholly inadequate".

C&N says it is willing to meet Thomson executives to discuss why the British company believes it is worth more.

Saturday, April 8, 2000

[06] Oil prices force airfares up three per cent

Airline spokesman Tassos Angelis said yesterday the company had planned to impose a £5.00 levy on all tickets to compensate for the fuel increase but this would now be abandoned.

"This increase does not only apply to Cyprus Airways," Angelis said. He said the increase was being imposed by the International Air Transport Association (IATA) of which CY is a member.

Commenting on separate reports yesterday that a flight to Paris had been delayed for nine hours on Thursday because two pilots had fallen ill, Angelis said the incident was not considered suspicious.

He said a lot of different factors had contributed to the delay in the flight, not only the illness of two pilots.

Last year during several flare-ups with the company, pilots called in sick, resulting in serious delays to flights and inconvenience to hundreds of passengers.

Saturday, April 8, 2000

[07] Turkish Cypriots channelling lethal firecrackers into the south

Speaking at a news conference yesterday, Larnaca Police Chief Dimitrakis Georgiades suggested there a plot had been hatched by Turkish Cypriot shopkeepers in the mixed village of Pyla near Larnaca to channel firecrackers into the free areas.

Some of these firecrackers contained shrapnel which could seriously hurt or even kill anyone within their range, he said.

"We have noticed that most firecrackers originate from Pyla. Turkish shop- owners take our money, send us the crackers, and our youths are maimed and the results are known," Georgiades added.

Police found the Turkish-made firecrackers on two youths who claimed they had bought them from Turkish Cypriots in Pyla.

Georgiades urged parents and teachers to take all necessary measures to stop the dangerous habit of letting off firecrackers at Easter, threatening the lives of innocent churchgoers.

Meanwhile in a separate case, an 18-year-old builder from Tsiakkilero near Larnaca was remanded in custody for three days accused of possession and sale of firecrackers.

The court heard police had testimony that the youth and a 15-year-old friend had bought around 500 crackers from Pyla and allegedly sold 117 to two 12-year-olds.

Saturday, April 8, 2000

[08] Police officer suspended after corruption claim

Reports said the officer, who has been suspended pending investigation, had admitted to his superiors his alleged involvement in the extortion of a foreign worker.

Police said the officer had been implicated by a Syrian man currently in police custody in connection with the same case.

The matter was reported by an Egyptian man legally employed in Cyprus, who told police that two officers had asked to check his residence and work permits.

The man told them his employer had submitted his documents to the immigration department for renewal.

The two policemen were accompanied by the Syrian, who allegedly asked the worker for £100 to ‘arrange things’.

The Egyptian duly gave him £70 and agreed to pay the rest the next day.

Meanwhile, he informed his boss, who in turn told the police.

When the Syrian called on the Egyptian to collect the ‘debt’ he was caught red- handed by police who had been expecting him.

The police officer suspected of collaborating with the Syrian allegedly confessed his involvement to his colleagues and admitted to taking a £40 cut from the £70.

The second officer has been cleared and police are now investigating whether the same scam had been pulled on other foreigners.

Saturday, April 8, 2000

[09] Kemal’s father denies donor has been found

Suhar Saracoglu told London Greek Radio yesterday that reports that a suitable bone marrow donor had been found for his son Kemal were false.

Reports had on Thursday quoted Turkish Cypriot ‘Health Minister’ Gulsen Bozkurtas as saying a compatible donor had been found.

Twelve-year-old Kemal is being treated at the Royal Free hospital in London. His plight came to public attention in the wake of the publicity surrounding fellow leukaemia victim, six-year-old Greek Cypriot Andreas Vassiliou.

Andreas is currently undergoing a four-week course of intensive chemotherapy in preparation for a donor being found.

He will be spending the next two months at the Anderson Centre in Houston, Texas undergoing treatment.

Experts have said that if a suitable donor is not found for Andreas soon, a revolutionary new technique will have to be used.

The technique involves the implant of cells from the umbilical cord or placenta, a method judged more effective than a marrow transplant from an only partly compatible donor.

Thousands of Greek and Turkish Cypriots have joined to donate blood samples in the hope of finding a suitable donor for both boys.

[10] Cyprus urges EU to reiterate backing for federal solution

WHILE the EU re-stated its desire to see a Cyprus settlement before the island's accession, Nicosia yesterday urged the 15-nation block to reiterate its support for a federal solution.

In Washington, Gunter Verheugen, the EU Commissioner responsible for enlargement, said it would be "much better" to have a political settlement prior to accession. Verheugen also again made clear the EU position that Cyprus could join the block while still divided.

But he also made it plain the EU wanted to see progress towards a settlement before accession. "Of course the member states will consider the relevant factors," he said, adding that one of these factors would be "how the political process developed."

Verheugen was speaking after a meeting with US Secretary of State Madeleine Albright.

In Nicosia, both Acting President Spyros Kyprianou and Foreign Minister Yiannakis Cassoulides called on the EU to mention UN Cyprus resolutions in an anticipated statement on EU-Turkey relations.

EU-Turkey relations are expected to be on the agenda for a forthcoming EU Summit.

Cassoulides said the Turkish side needed to be reminded of UN resolutions calling for a federal, bicommunal settlement.

"Otherwise, she (Turkey) might get the wrong impression, which would reinforce (Turkish Cypriot leader Rauf) Denktash's intransigence and block prospects for success of efforts to solve the Cyprus problem," The Foreign Minister said.

He said both Athens and Nicosia were working hard behind the scenes to have UN resolutions mentioned in any EU statement to come out of the upcoming summit.

The statements come at a time when the Turkish side is pushing hard for a confederal solution with recognition of Denktash's breakaway occupation regime.

Kyprianou echoed and reinforced what Cassoulides said.

He said it was vital for the EU again to voice support for a federal solution because the Greek Cypriot side could accept nothing less.

"Of course we will insist, because if we again start to abandon positions there will be no end," Kyprianou said, suggesting the government had already made too many concessions to the Turkish side.

The acting President, who is leader of opposition party Diko, also said he was preparing some "suggestions" on "alternative" ways of handling Cyprus problem developments.

President Clerides yesterday again warned there would be no progress in the proximity settlement talks unless Denktash abandoned his demand for recognition.

Clerides' statement came during a talk he gave in New York, where, on May 23, he and the Turkish Cypriot leader are due to begin a third round of UN- led peace talks.

On Monday, on his way back from his current US visit, Clerides is scheduled to meet with British Prime Minister Tony Blair in London to discuss the proximity talks.

© Copyright Cyprus Mail 2000

Cyprus Mail: News Articles in English Directory - Previous Article - Next Article