Cyprus Mail: News Articles in English, 03-07-02

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

Wednesday, July 2, 2003

CONTENTS

[01] SBA hands disused land back

[02] UN: no threat to Strovilia power supply

[03] TC measures set for vote

[04] Cypriots paying up to 87% more for cars than EU

[05] Criminal element heading south

[06] Committee lashes out at EAC billing system

[07] EDY spat enters third week

[08] Illegal immigrants arrested

[09] Lawyers ‘demanding a cut of ECHR winnings’

[10] Power usage may peak this week

[11] War of word breaks out over refinery

[01] SBA hands disused land back

LAND USED by British Bases as a bombing range before 1974 was handed back to the government yesterday.

The land was returned at a ceremony held at the Foreign Ministry, attended by Foreign Minister George Iacovou and British High Commissioner Lyn Parker.

The old bombing range is situated eight kilometres south of Larnaca airport and comprises an area of 8.5 hectares and two other satellite sites, each measuring 130 square metres, which used to accommodate observation towers. A 202-hectare Danger Area surrounds the target area and extends to the sea. The site ceased to be used in 1974, following the opening of Larnaca Airport.

In a joint statement the two men said the area - known as B8 - had been returned to Cyprus under the Treaty of Establishment.

Iacovou said the land was restored to the Cyprus Republic, noting that the UK was responsible for security in the area, except in the case where a high-rise structure was built on the land, and foundations of more than four metres deep were required. The area has been cleaned six times since 1985, and Iacovou stressed that no shells had been found up to that depth.

Parker expressed his pleasure at the hand-over, saying “we have wanted to hand back the Larnaca shooting range for many years now”.

Iacovou said there were already plans by the local municipality and Cyprus Tourist Organisation (CTO) for full use of the site, noting that the government would decide how the area would be used.

In 1960 there were 40 areas belonging to the British, of which 27 have been returned to Cyprus. There are ten remaining sites still in use by Britain, as well as three separate sites in the Turkish-occupied north of Cyprus, which are disused.

The remaining areas will be returned when the British government no longer uses them.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[02] UN: no threat to Strovilia power supply

THE U.N. has assured the government that authorities in the occupied north have no intention of cutting the power supply to Strovilia residents, Foreign Minister George Iacovou said yesterday.

The news comes nearly a month after reports that Greek Cypriot residents in the checkpoint village would have their electricity cut. Residents were allegedly requested to submit applications to the occupying regime for the resumption of their power supply - in violation of the status quo.

Iacovou told the Cyprus News Agency (CNA) yesterday that Strovilia residents had received electricity ‘bills’ in the mail warning that power would be cut off if the bills went unpaid. He noted that the government had contacted the UN over the matter, and been assured by the organisation that occupying forces did not plan to cut electricity.

The foreign minister said he also brought up the Strovilia question in a meeting with British High Commissioner Lyn Parker yesterday. Iacovou said Parker had been reassured by occupying authorities that “there is no question of any electricity cuts. It’s a routine matter and that no one intended to cut the power supply.”

Responding to claims the government was powerless to counter Turkish violations in Strovilia, Iacovou said: “We pressure those who are able to pressure or persuade the occupying authorities to return the area to the status quo.”

He added that the US had recognised violations were taking place in the village, and were urging the breakaway regime to restore the status quo.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[03] TC measures set for vote

PARLIAMENT will vote on measures to promote internal trade with Turkish Cypriots tomorrow, after the vote was postponed last week. Head of the House Communications Committee, Nicos Pittocopides, said yesterday that AKEL and DIKO were prepared to vote for the measures, while DISY, who postponed the vote, and KISOS were still undecided.

Government proposals on internal trade include the crossing of heavy trucks from the occupied north through the Ayios Dometios checkpoint. Head of the Transport Department, Tassos Kyriakides assured the House committee that licenses would only be given to Turkish Cypriot trucks after they had passed technical inspections.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[04] Cypriots paying up to 87% more for cars than EU

THE GOVERNMENT yesterday announced a study into the feasibility of altering import taxes on cars after press reports revealed Cypriots pay much more for their cars compared to the rest of Europe.

A survey recently carried out by Politis newspaper found that Cypriots pay 42 per cent above the EU average, or 62 per cent if you apply the purchasing-power parity (PPP) method. In all car categories - above and below 1600cc - Cyprus was the most expensive (or second, trailing Denmark), in absolute terms. Luxembourg had the best deals, with car prices there exponentially lower than Cyprus.

To get a hint of how much Cypriots must fork out, an Audi A6 (2.4 lt.) here costs 87 per cent more than the EU average, while a Toyota Avensis (1.6 lt.) is 35 per cent more expensive.

The EU aims to gradually reduce consumer taxes in member countries to achieve pricing convergence. But current disparities among European countries - expected to grow further with the bloc’s upcoming enlargement - may mean this goal will take some time in achieving.

Minister of Communications and Works Kikis Kazamias confirmed to the Cyprus Mail that his ministry was conducting a study on all parameters relating to automobiles: market price, fuel price and road tax fees.

While he conceded that public perception was that car prices were too high, Kazamias was quick to add that other factors should also be taken into account when comparing with other countries.

Petrol costs less in Cyprus than anywhere else in Europe, both in absolute and PPP terms. Fuel prices are largely subsidised, a practice not tolerated by EU policy. The government has said this will have to change, meaning fuel prices will go up.

Kazamias did not comment on whether lower-capacity cars would be made cheaper, as widely reported in the press; but he said whatever “losses” the government might incur in lowering taxes in one area, it would make up for in another. An estimated £70 million goes into government coffers every year.

From now on road tax will be calculated on the basis of horsepower, not car weight, in a bid to introduce a fairer and controllable system. The press has been speculating that road tax fees will be lowered for 16-18cc cars, as an incentive to consumers to buy environment-friendly vehicles.

Kazamias said the ministry’s study should be completed in the next few weeks. He explained the study would result in a recommendation being made to the Finance Ministry, which would be responsible for drafting a salient bill.

The new law would have to be passed and implemented by January 1, 2004, the deadline set by EU directives.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[05] Criminal element heading south

AN INCREASING number of people connected to the criminal world were crossing to the occupied north, either to buy drugs or visit casinos and cabarets, according to Assistant Chief of Police, Soteris Charalambous.

Speaking after a House Crime Committee meeting yesterday, Charalambous told reporters that he had informed deputies of the “very big problem” created by the lack of control on people coming to the government-controlled areas from the Pergamos and Strovilia checkpoints.

“We cannot check those that are coming from the occupied north because they come through British Bases territory, which makes intervention on our part impossible,” said Charalambous.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[06] Committee lashes out at EAC billing system

THE ELECTRICITY Authority (EAC) billing system is confusing, problematic, and unfair to low- income groups, the House Trade Committee heard yesterday.

AKEL deputy Stavros Evagorou said pensioners were the hardest hit by the system since sometimes they had to pay a big chunk of their paltry pension on the electricity bill.

“They have problems surviving six months every year; this creates a serious social problem,” Evagorou said.

He added that some pensioners were asked to pay £90 or £100 on their electricity bills when their pension was just £140 a month.

The EAC currently applies the much-criticised estimated billing system where the actual electricity consumption is measured every four months.

In between, consumers receive an estimate, which can often be very high.

Any difference is adjusted two months later by the bill with the actual measurement.

The EAC argues that the current system is similar to those used all over Europe and reading the meters every four months saves both time and money.

But the committee yesterday censured the authority for its apparent unwillingness to hire around 15 employees at a cost of £150,000 a year that would solve the problem of overblown estimates with more frequent meter readings.

Evagorou said apart from creating problems to pensioners and low-income groups, the system threw off any effort to calculate a household budget. He added the EAC got to hold a substantial amount of short-term cash from VAT whose interest was very profitable for the authority.

Customs and Excise Department Director Zeta Emilianidou said the EAC submitted its VAT declaration 40 days after the end of a four-month period.

According to Evagorou, the EAC paid £15 million in VAT to the government for 2002.

From that he estimated the authority made around £500,000 from interest alone.

EAC Customer Services Director Costas Charalambous told the committee the authority understood the peoples’ concerns but increases in fuel prices, VAT and the readjustment of electricity bills gave people the impression over-billing was taking place and that this was wrong.

Charalambous said the EAC was looking into various ways of changing its system - one being a new scheme of fixed instalments based on annual consumption.

The EAC official revealed the authority was also looking into replacing all the meters with new ones that would enable direct measurement of the readings through computers.

He said the system was already in place at several large clients and in two weeks the EAC was planning to invite tenders for a pilot scheme involving households.

The scheme would run from six to nine months and next year the EAC will decide on whether to proceed with the investment, which is expected to cost around £40 million.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[07] EDY spat enters third week

OPPOSITION D.I.S.Y. and the government yesterday continued slugging it out over the appointment of a new Civil Service Commission (EDY), focusing on the selection of a prominent DISY figure to the body.

Sophocles Hadjiyiannis, a former party vice-chairman and deputy, was on Monday appointed to sit on the five-member commission; yesterday Hadjiyiannis tendered his resignation from the party, triggering a bitter row between the main opposition party and the government.

Hadjiyiannis’ explanation for resigning was that he wished to carry out his duties in an objective fashion, not swayed by party affiliations. EDY is an apparatus that wields considerable power, controlling appointments and promotions in the civil service.

In a laconic statement issued yesterday, the former DISY deputy said that his resignation did not mean he was “forsaking” his party.

But speculation was rife that Hadjiyiannis’ appointment was related to the fact he supported the candidacy of former Attorney-general Alecos Markides in the recent presidential elections, going against the official party line. At the time, Hadjiyiannis’ choice had provoked friction with the DISY leadership.

Pundits suggested that the government appointed Hadjiyiannis precisely because he was considered a DISY dissident. They said the fact DISY failed to acknowledge one of their own now sat on the commission may have been the last straw for Hadjiyiannis.

For its part, the government argued that Hadjiyiannis’ appointment was proof it was implementing meritocracy in the civil service. Government spokesman Kypros Chrysostomides yesterday told journalists none of the members of EDY were also party officers. He added that Hadjiyiannis was chosen because of his prior experience as a deputy and because he is lawyer by profession.

The spat over appointments to EDY and the boards of semi-government organizations has been brewing for the past couple of weeks. The President has repeatedly rejected DISY’s demand that appointments be based on proportional representation reflecting the parties’ electoral power.

As the main opposition party accused the government of arrogance, the administration countered that DISY was trying to strong-arm it by hyping up the issue in the media.

Another gripe was the absence of women on the commission. Androulla Vasiliou, a United Democrats deputy, expressed disappointment over the omission. The government spokesman said the omission was due purely to technical reasons.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[08] Illegal immigrants arrested

EIGHT SYRIAN, Palestinian and Iraqi immigrants were arrested in Kato Pyrgos and Mansoura yesterday for illegally entering the country. The men came from Lebanon by boat late Monday night, arriving on the coastline between the two villages.

Police were alerted when a local villager came across a number of immigrants asking for food and water. Two Syrians were first arrested and another six were round up by the evening. A police official from Kato Pyrgos police station said last night that, apart from the boat crew, all the immigrants on board had been arrested.

On Monday thirty eight illegal immigrants, who were arrested after being located off the coast of Protaras on two small fishing boats were deported the same evening, police said yesterday.

A police spokesman told CNA yesterday that the 38 migrants, all men from Syria, were taken to Larnaca Airport at 11pm and placed on a chartered flight to Syria.

The Syrians were spotted at around noon off the coast of Protaras in the Famagusta district by locals. Authorities were notified and responded by scrambling a police helicopter and two patrol boats in the area.

The fishing boats were towed to the Paralimni fishing shelter at 3.30pm where they were met by a large police force contingent.

The immigrants appealed to be released to return to the country they had sailed from on Saturday, headed for an undisclosed European country. The men did not carry any travel documents and initially refused to reveal their nationality.

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[09] Lawyers ‘demanding a cut of ECHR winnings’

D.I.S.Y. DEPUTY and lawyer Christodoulos Taramountas yesterday charged that a number of unscrupulous lawyers-including an officer at the Attorney- general’s office - were demanding a cut of compensation fees awarded Greek Cypriot refugees from the north by the European Court of Human Rights (ECHR).

In a letter sent to Attorney-general Solon Nikitas on Saturday, Taramountas accused lawyers of behaving immorally and urged Nikitas to investigate the matter.

“I had information that some colleagues of mine were asking clients for a 10-15 per cent remuneration for compensation they will get from the ECHR if the court decides in their favour,” he said. “In my view this is illegal and immoral.”

Taramountas also pointed the finger at an unnamed officer at the legal service, who he said was “involved”.

“I gave any information to the Attorney-general and his assistant about the names involved. I ask the Attorney-general to order an investigation into the matter and also to make an announcement regarding the rights of clients.”

Asked how the alleged profiteering had come to his attention, Taramountas said: “These facts have come to my knowledge - I know from my clients and so on.”

But President of the Cyprus Bar Association Nicos Papaefstathiou stressed yesterday no investigation could be launched until a complaint was filed by Taramountas.

“I have not yet received any official complaints or accusations against these members of the Bar,” he said. “I have asked Mr Taramountas to submit to the Association any particular facts he has in his possession - he has not yet submitted any complaints.

“But if any official complaint is launched we will look into it,” he added.

Assistant Attorney-general Petros Clerides said in a statement issued yesterday that as Head of the Legal Service and President of the Disciplinary Committee, Nikitas agreed with Taramountas that the accusations should be investigated.

“The Attorney-general of the Republic assures that, if any such violations against individuals are proved, the appropriate measures will be taken.”

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[10] Power usage may peak this week

ELECTRICITY usage is expected to peak this week, according to Electricity Authority spokesman Costas Gabrielides, but he brushed aside fears of power cuts.

Speaking to the Cyprus Mail yesterday, Gabrielides said the EAC was concerned over the high usage expected to be recorded this week saying the authority was ready to deal with any minor problems within the hour.

“Last year we recorded 775 megawatts of usage in July, while the highest usage we reached this year was 724 megawatts and this was recorded on a Monday,” Gabrielides said.

He said usage this summer is expected to reach 880 megawatts, slightly higher than what was recorded last year.

“We still have not peaked when it comes to usage,” he said.

“We predict that we will reach 780 megawatts this week, but this is just a prediction.”

Gabrielides said consumers could use their air conditioners without the fear of causing a blackout unless otherwise advised by the EAC adding that the EAC was ready to deal with any possible problems through its emergency schemes.

“We are not expecting any problems,” he said.

“There are three systems that could be affected: the production system, the transfer system and the distribution system.

“This year, we are not expecting any problems at the production system and we are not expecting any problems at the transfer system either.

“However, I cannot predict that there will not be any problems in the distribution system, it is only normal that problems arise since there are hundreds kilometres of underground cables and overhead power lines,” he added.

Gabrielides said the EAC’s emergency plans meant power could be restored within the hour.

“We have emergency schemes in order to be able to restore electricity to those affected as soon as possible,” Gabrielides said.

“Such schemes were used during last weekend’s power cut and we were able to restore power in an hour. So people should carry on using their air conditioners without any fear.”

Copyright Cyprus Mail 2003

Wednesday, July 2, 2003

[11] War of word breaks out over refinery

TRADE, Industry and Tourism Minister George Lillikas yesterday unleashed a scathing attack against his predecessor concerning his handling of the controversial Larnaca refinery upgrade that the government recently decided to scrap after it transpired that it would save taxpayers around $86 million.

Former trade and industry minister Nicos Rolandis however rubbished the claims arguing that the upgrade would have fetched $60 million.

The government has decided to turn the refinery into a temporary fuel terminal for imports until an energy centre was constructed on the coast of Vassiliko.

But Lillikas came out with all guns blazing yesterday during a session of the House Trade Committee, which discussed the issue.

His outburst was prompted by a longwinded speech - 24 minutes and 16 seconds according to AKEL deputy Stavros Evagorou - by committee chairman, DISY deputy Lefteris Christoforou, who disputed the government’s decision to scrap the refinery upgrade, arguing it looked like it was only made to overturn the previous administration’s decision.

Christoforou added that the study that led to the decision was also suspicious since it was conducted in a very short time span and it contradicted three other studies done by the previous government.

Lillikas defended his ministry’s study, arguing that it had the input of all involved parties including the refinery.

He said previous studies never looked into the issue from the same angle. He added it was not a very complicated study to conduct, hence the short time needed to carry it out.

The minister said the current government’s studies were done with the utmost transparency and challenged anyone to speak out if they were influenced in any way to favour the fuel terminal option.

Lillikas charged Rolandis of trying to avoid scrutiny from the House by not asking for government guarantees on a loan to upgrade the refinery. The government has to go through the House for approval every time they wanted to guarantee a loan.

“Why did Rolandis want a loan without guarantees and why did he avoid the House?” Lillikas said.

The minister also charged the cabinet had been misled when taking the decision to upgrade the refinery. And he questioned the conditions of the loan to pay for the upgrade - 1.25 per cent flat interest on around €54 million - when the Central Bank secured one in 24 hours for 0.45 per cent.

“Why was the Central Bank bypassed,” Lillikas said.

He went on to say everyone apart from Rolandis doubted the viability of the refinery.

Lillikas claimed the previous government broke the law when it signed the contract with an Iranian company to upgrade the refinery, but would not disclose further detail on the matter.

“From the day the study was published, no one has spoken in favour of upgrade apart from Mr. Rolandis,” Lillikas said.

Rolandis rejected the accusations, arguing that the cabinet had been fully aware of what was going on.

“The cabinet was fully informed about the upgrade when it took its decision and all studies of Cypriot and foreign experts indicated that the upgrade would have given benefits in the region of $60 million,” Rolandis said.

He counter charged that the study done by the current government was haphazard and contained “many mistakes, omissions, unfounded assumptions and admissions and constitutes a very damaging option”.

Concerning the loan, Rolandis said his ministry had nothing to do with its conditions, pointing out it was the job of the finance ministry to handle such matters.

“This concerns the finance ministry exclusively and this is provided for in the cabinet decision,” the former minister told the Cyprus Mail.

Rolandis said at that stage there was no government guarantee but only a letter of comfort.

“When you go to bank to get a loan and you only give a letter of comfort, the interest is always higher.

“When you give government guarantee the interest is lower,” Rolandis said.

He said that the guarantee issue did not concern his ministry and it was the finance minister who had been authorised by the cabinet to sign the guarantee and submit the bill to the House.

“Anything having to do with the loan, government guarantee and letter of comfort concerns the finance minister,” Rolandis said.

He said the decision to upgrade to refinery was taken eight years ago - before he was minister -- but the reason for the delay was the Larnaca municipality’s refusal to allow it to go ahead.

Copyright Cyprus Mail 2003

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