Cyprus Mail: Press Review in English, 98-10-21

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

Wednesday, October 21, 1998

Tax hikes inevitable

FINANCE Minister Christodoulos Christodoulou' comments at a House committee meeting were given wide coverage as was the Official Receiver's decision to file five law suits against the Bishop of Limassol over the Amiandos asbestos mine.

Alithia highlighted Christodoulou's evaluation that the black economy of Cyprus was in the region 15 to 20 per cent over the GDP. He said uncollected taxes for 1998 amounted to 174 million pounds, which was 12 million down on the previous year.

While the growth rate and unemployment rate for 1998 - 4.7 per cent and 3.4 per cent - were satisfactory, other economic indicators such as the public debt and fiscal deficit would not meet Maastricht targets next year. This was why tax increases would be necessary, Christodoulou said.

Haravghi said that Christodoulou showed that the Clerides government was sticking to its "neo-liberal conservative socio-economic policies", despite the participation of the socialists of Edek in the government.

The paper was shocked with Christodoulou's reply to the question whether his policies had the full support of the President Clerides and Edek. He said that as Minister of Finance he had submitted the 1999 budgets to the Council of Ministers, which had the power to modify them. Once they are approved all ministers should accept responsibility for them. Those who opposed them should resign, said Christodoulou.

Simerini said that the Official Receiver was awaiting the green light from the government to file charges against Bishop of Limassol Chrysanthos with regard to the Amiandos Asbestos mines. The receiver had been waiting for the go-ahead to take action against Chrysanthos since 1991.

With the law-suits, the Receiver would be asking for the return of money owed by the company Asbestos Mines to its creditors and the state. The company owed £2.5 million to the state and £500,000 to creditors. The Bishop will also be charged with keeping revenue from asbestos sales, amounting to £5 million, in a bank account abroad.

Machi said that four of the suits are against the bishop, who had been director of Asbestos Mines, while the fifth is against the Limassol Bishopric.

The paper reported that the Attorney-general at the time, Michalakis Triantafyllides, had suspended prosecution procedures against the company because he had received assurances from the company that the money kept abroad had been brought to Cyprus.

Phileleftheros said the government was undecided over whether to amend the bill regarding the capital statements of government officials and politicians so that the information is made public.

An opinion poll carried out by the paper found that 68 per cent of the population favoured the publicising of the capital statements.

© Copyright Cyprus Mail 1998

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