Newsroom
According to Kathimerini's Pavlos Neophytou, the implementation of Local Government Reform in Cyprus faces critical staffing and operational challenges, especially in development licensing within Provincial Local Authorities (PLAs). To meet reform goals, the system relies on a temporary workforce—primarily seconded employees and short-term hires from departments like the Town and Country Planning, Municipalities, and Provincial Administrations—who are struggling to keep pace with high application volumes for planning and building permits. Persistent understaffing has affected permit processing speeds, leaving the reform’s success contingent on filling newly budgeted permanent positions.
Efforts to Secure Permanent Staffing
To address shortages, the government is pushing for budget approvals that include 500 new permanent positions across provincial agencies, with priority given to Larnaca and Nicosia. Once these positions are filled, existing staff will have opportunities to apply, which officials hope will stabilize operations. However, even with additional funding, officials predict delays as hiring, staff training, and organizational adjustments are expected to take months.
Challenges with Temporary Staff and Salaries
Temporary staff, especially technical engineers, are leaving due to low pay rates (A5 pay scale) of roughly €1,400 per month. The reform planning overlooked the unattractive compensation for qualified engineers, resulting in about 20% of temporary recruits already departing for better opportunities. Recognizing this, the government plans to upgrade pay scales in future permanent positions, replacing outdated A5 tiers with higher A9-11-12 scales, in hopes of attracting and retaining skilled employees.
Discrepancies in Efficiency and Experience Among Staff
Seconded staff from various municipalities bring mixed levels of expertise, with notable variations in efficiency. Some municipal employees complete ten permits daily, while others process significantly fewer due to prior municipal routines. Ministry of Interior officials anticipate that some of these lower-performing employees may opt to return to municipalities by the end of their 18-month assignments. Yet, with local authorities financially strained and development roles shifted to PLAs, it’s unclear how returning staff will be absorbed.
Technical and Operational Setbacks
In addition to staffing problems, PLAs are challenged by the Hippodamus software, lack of centralized coordination, and privacy concerns delaying data management. Efforts are underway to streamline planning and permit processes, which the Interior Ministry and Planning Department hope will alleviate workflow backlogs.
Union Concerns Over Pay Scale Changes
There is frustration within local authorities about a lack of central oversight to manage the reform’s many moving parts. Some officials, such as Nicosia PLA President Constantinos Yiorkatzis, argue that the Ministry of Finance’s recent decision to use a lower pay scale (A2-A5-A7) for recruiting staff will limit flexibility, particularly when compared with the higher public service scales. Lower-paid positions may continue to see turnover, risking further staffing instability.
External Pressures and Reform Outlook
Beyond internal issues, delays are compounded by procedural and regulatory barriers. Privacy policies, inconsistent software coordination, and sporadic state directives add to the pressure on PLAs. Local authorities express cautious optimism that upcoming reforms and budget approvals will ultimately improve service delivery. However, they warn that a failure to address the system’s deep-rooted staffing and structural issues may undercut the effectiveness of Local Government Reform in the long term.
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