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With criticism against the government's agreement for the purchase of the Metropolitan building, which will house the Ministry of Labor and Social Insurance, the Plenary of the House of Representatives approved the supplementary state budget amounting to €361 million.
This is the second supplementary budget this year, following the approval of the first supplementary budget of €75 million, which was enacted into law in early April. The supplementary budget was passed by 45 Members of Parliament, with three abstentions.
The financial burden amounts to 0.85% of GDP, as €116 million represents intra-governmental transactions.
Among the major expenses, including €60 million for the payment of Guaranteed Minimum Income in the second half of 2023, €60 million for the implementation of co-financed Projects/Grant Schemes, €59 million for water purchase due to the increased cost of desalinated water mainly due to the increase in electricity prices, €56 million for government grant to the University of Cyprus for the implementation of development projects (€42.6 million) as well as coverage of operational expenses (€13.4 million), €25.4 million for the purchase of the "Metropolitan" building, where the Ministry of Labor and Social Insurance will be housed.
Additionally, €18.2 million is allocated for the extension of the electricity consumption subsidy measure, €15.8 million for a state grant to TEPAK for the construction of student residences, and €15.6 million for the hosting of displaced persons from Ukraine and unaccompanied minors.
However, during the session, as well as during the session of the House Committee on Finance that examined the supplementary budget, criticism was raised regarding the lack of parking spaces for a Ministry with 260 employees located in the center of Nicosia.
Harris Georgiades, a Member of Parliament from DISY, noted that it was not possible to secure a building with the required number of parking spaces in Nicosia. "We have been convinced by the explanations of the current government, which are the same as those of the previous government," he said, adding that DISY will support the supplementary budget.
He stated that he is not concerned about the increase in expenses, as "the short-term picture is good, with good surpluses being recorded." "Our concern is for the medium-term and long-term course of public finances," he said, adding that commitments undertaken today will not be reflected in the public finances this year. He suggested that the House closely monitors and exercises control over the medium-term and long-term horizon.
Christos Christodoulides, a Member of Parliament from AKEL, described the agreement to purchase the Metropolitan building as "scandalous" and referred to the remarks of the Auditor General.
He mentioned the lack of adequate parking spaces, adding that the House is in a difficult position, as there is a contractual obligation of the Republic of Cyprus. "We will vote in favor of the item, but this does not negate the fact that it is an unacceptable and scandalous purchase," he emphasized.
Christiana Erotokritou, Deputy President of DIKO, reminded that the party was negative in the initial discussion of the agreement for the purchase of the building in the winter of 2022 but questioned the cost of the current choice.
"We, with great soul-searching, acknowledge that if the item is not approved, we will lose multiples of the cost of the agreement that was agreed upon in 2022," she said.
She also criticized the fact that the supplementary budget includes an item of €18 million for medicines and vaccines that will not be utilized. "I hope this is the last time that the taxpayer will pay €18 million for medicines that will be thrown away," she said.
Furthermore, Chrysostomos Pantelides, a Member of Parliament from DIKO, said that the cost of the Guaranteed Minimum Income due to the agreement of the Minister of Labor and Social Partners will be €15 million, while the remaining amount concerns the coverage of the inflationary increase, which the Ministry of Finance could not predict.
Marinos Sizopoulos, President of EDEK, said that he has been informed by the Ministry of Transport that the issue of parking spaces will be resolved, and he noted that the purchase price of the building is "low," considering that the price corresponds to €2,250 per square meter, while the current construction cost is €2,220 without the land value.
On behalf of DIKO, Alekos Tryfonides said that they support the agreement for the purchase of the building to ensure the safety of the Ministry's employees due to concerns about the stability of the existing building. Regarding the lack of adequate parking spaces, he said that the state will have to pay due to the negligence of the services.
Additionally, Charalambos Theopemptou, President of the Greens, said that millions will be allocated for the issue of waste management plants in Koshi and Pentakomo. He expressed concern about the unacceptable situation regarding waste, which is now accepted by all. He also criticized the increased funding for desalination, while the leaking pipes are not being fixed, resulting in water losses. Furthermore, Stavros Papadouris, a Member of Parliament from the Movement, referred to the issue of the Metropolitan purchase, stating that "today the House is called upon to manage negligence, mismanagement of state finances."
Christos Orphanides, a Member of Parliament from DIKO, also spoke about the problems recorded in waste management facilities and criticized the fact that contracts do not include conditions for the observance of necessary specifications.
[This article was translated from its Greek original]
