Interior Minister Constantinos Ioannou visited the Larnaca district self-governance organisation (Eoa) on Friday to assess any current issues.
According to an announcement, Ioannou was given a tour of the premises by the head of Larnaca Eoa, Angelos Hadjicharalambous.
Ioannou noted that despite minor initial problems, “everything is running smoothly, which is a good thing.”
He added that the first week was focused on acclimating the staff at the Eoa, with expectations to find their “work rhythm” in the following weeks.
Ioannou also commented on revenue to Eoas from planning and building permits.
He was asked if there is any thought by the ministry to give 60 per cent of this revenue to the municipalities.
The minister clarified that 60 per cent of the revenue from licencing is already granted to the municipalities through legislation.
He added, however, a problem arises in the Eoa because the Eoa by giving 60 per cent back to the municipalities creates a “huge deficit” in the Eoa.
The licencing revenue is, more or less, as much as the expenses. So by attributing 60 per cent, “we estimate that there is a deficit of €12 million”.
The minister stated that while the issue is under discussion, any solution would not involve increasing fees for planning and building permits.
Instead, the state would likely need to provide additional funding to these organisations. Further discussions to resolve the deficit are scheduled for September.
