Cyprus Mail: News Articles in English, 99-06-27

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

June 27, 1999

CONTENTS

[01] Pilots go back to work after damaging strike

[02] Free interest rates, urges EU task force chiefBy Charlie CharalambousCYPRUS is on track for EU accession, but to proceed on course it must deregulate fixed interest rates and increase VAT in line with member states.That was the advice yesterday from the European Commission's task force chief for Cyprus, Leopold Maurer, at a press conference in Nicosia."One of the two issues before us is the abolition of the interest rate ceiling, something which is very rare and anachronistic and not found in other countries of the world," Maurer said.The interest rate ceiling in Cyprus is set at nine per cent, but there is a bill currently before the House of Representatives that would abolish this system and liberalise interesting rates.The bill has been languishing at committee stage for some months because of some deputies� concerns that freeing interest rates could hit low income groups if they rise sharply.Nevertheless, the bill is expected to be approved before the summer recess next month."Hopefully, the MPs understand that this very important problem needs to be solved as soon as possible," the EU delegation head said.Maurer, who was heading the biggest ever EU delegation to the island, said the liberalising of interest rates was part of the free movement of capital chapter and ensured European monetary union."These are the pillars on which the EU is founded," Maurer said.He said the island's other looming financial problem was the harmonisation of its VAT rate from its current eight per cent to the EU average of 15 per cent by 2003.The government has prepared a draft bill which proposes to increase the rate of VAT by two per cent.However, the EU still has no clear political decision on direct taxation which would affect the island's flourishing offshore sector (of more than 30,000 units) which benefits from very competitive tax incentives.Maurer made it clear the EU would like to see Cyprus' direct taxation system reflect that of member states, and not discriminate against them by attracting foreign firms with lower taxes (below five per cent)."Our position is that we do not have harmful tax measures in Cyprus," the island's chief EU negotiator George Vassiliou told yesterday's press conference.He described Maurer's four-day visit as "successful" and the Austrian said he "received a lot of promises that everything would be done".He said that two thirds of the chapters were already on the table and the last ten of the thirty would be up for negotiation by the end of the year."By 2000 we should know what the most important problems are for Cyprus and the other candidate countries. And hopefully final negotiations will be during 2001," Maurer said.

[03] Bar Brits busted in midnight raid

[04] Security Council expected to endorse G8 callTHE United Nations Security Council is expected to endorse the recent statements by the G8 countries on Cyprus by Tuesday, adopting resolutions relating to the Secretary-general�s mission of good offices and the mandate of the UN peacekeeping force on the island.The Cyprus News Agency (CNA) reports New York sources as saying the Security Council is also expected to ask UN Secretary-general Kofi Annan to invite the leaders of both sides on Cyprus to negotiations this Autumn.The ten-paragraph draft resolution on the mission of good offices calls on the two leaders to give their full support to restarting negotiations along the guidelines set out by the G8 statements.At their recent meeting in Cologne, G8 leaders called for both sides to return to the negotiating table with no preconditions. The government has welcomed the statements, but the Turkish side has rejected them, warning the G8 to stay out of Cyprus� business.Meanwhile, the fifteen- paragraph draft resolution relating to Unficyp, the UN peacekeeping force on the island, reaffirms the UN position that a Cyprus settlement must be based on a bizonal, bi-communal federation. It also notes that the government has agreed to the necessity of Unficyp remaining beyond its current mandate which runs until the end of this month. As such, a new mandate will be granted, running until December 15.The CNA also reported that the �big five� countries are also expected to reiterate their concern over the level of militarisation on the island, and to call for this to be reduced as a first step towards the complete withdrawal of all non-Cypriot forces.

[05] Prodromos hit by �hail the size of walnuts�PRODROMOS villagers counting the cost of a violent hailstorm yesterday morning say their fruit crops have been decimated by the hail.The storm hit the mountain village just before midday. Villagers told CyBC radio the hailstones were the size of walnuts and that when the storm passed there was a three-inch layer of hailstones on the ground.Much of the season�s fruit crop has been destroyed, they said.Grey skies, thunder and heavy rain hit the capital Nicosia later in the day, with equally gloomy weather forecast for the rest of the weekend.

[06] Free wine: here�s the billBy Andrew AdamidesANYONE over the limit after tasting the free samples at the Cyprus Wine Festival, held yesterday and today at London�s Alexandra palace, could feel the long arm of the law sooner than they think -- for in among the wine stalls is a Metropolitan Police stand.But it�s not really part of a crackdown on drinking: this is a recruiting stand manned by members of the Metropolitan Police Service Greek Staff Association (GSA), and is aimed at attracting more Greeks and Greek Cypriots into the force.The GSA was formed through the Met�s Positive Action Team, as part of the British Home Secretary�s drive to increase the number of ethnic minority officers in the force. It came about after a number of officers of Hellenic origin met the Commissioner to discuss ways to boost the number of recruits from London�s 200,000-strong Greek community.Naturally, the GSA has been welcomed by those already on the force."All of the fifty Greek and Cypriot officers in the Met have been trying to promote recruitment for years. Now we can do more to persuade the community that the police service is a worthwhile career, and we have a focus for Hellenic issues for all the police and civilian staff who are from the Greek and Greek Cypriot communities," says Peter Savvas, a Constable in the Central Area Training Unit and GSA Secretary.The GSA has certainly started off on the right foot: Detective Constable Pheidias Soteriou, the first Cypriot to join the Met, was made an MBE in the Queen�s Birthday Honours for services to the police and the Greek Cypriot community.

[07] Road works at DhekeliaAS OF tomorrow, drivers are warned that repair work being carried out by the British bases will be causing disruption to the Xylophagou-Dhekelia road through the bases area.The work is taking place between the Ormidhia junction and Xylophagou Police Station, and it will continue until Wednesday.

[01] Pilots go back to work after damaging strike

AFTER A WEEK of damaging strike action, Cyprus Airways pilots went back to work yesterday in seeking a more amicable solution to their grievances.

The airline�s management welcomed Friday night's decision by pilots� union Pasipy to enter a dialogue over promotions rather than escalate action when its 48-hour strike ended at midnight.

Thursday's 48-hour strike followed Tuesday's 24-hour stoppage.

"We will enter into a dialogue with good faith, and expect the company to show the same good faith," Pasipy spokesman George Charalambous said yesterday.

The decision to return to work followed government threats that it would deregulate the skies.

This would effectively allow an uncompetitive Cyprus Airways to go the wall because of the cheaper competition vying to attract tourists.

"Differences cannot be settled through strike measures but with goodwill shown during a dialogue," CY spokesman Tassos Angelis said yesterday.

He described the pilots� about-turn as a "positive move", and said it was time for staff and management to search for a solution agreeable to everyone.

How the government will treat the pilots� demands over vacancies at the airline�s charter arm Eurocypria is not clear, but in view of public opinion it will want to remain tough on the promotions issue.

Pasipy pilots are among the highest paid professionals on the island, and the public have not taken too kindly to them striking over what are in effect better-paid positions as captains at Eurocypria -- especially when those demands resulted in a strike which inconvenienced around 15,000 people and cost the taxpayer more than �300,000.

Nevertheless, the airline said its "successful" contingency plans ensured inconvenience to passengers was kept at a minimum.

Not surprisingly, the striking pilots said their industrial action was a "total triumph" and had the backing of other CY staff.

But Pasipy said its change of heart was to give the government time to implement an initiative in appointing a bi-ministerial committee to investigate the promotions dispute.

The union will now seek urgent talks with Finance Minister Takis Clerides and Communications Minister Leontios Ierodiaconou on the issue.

However, Charalambous said the time period which the pilots would allow the company to find a solution was "not indefinite".

(See also page 7)

June 27, 1999

[02] Free interest rates, urges EU task force chiefBy Charlie CharalambousCYPRUS is on track for EU accession, but to proceed on course it must deregulate fixed interest rates and increase VAT in line with member states.That was the advice yesterday from the European Commission's task force chief for Cyprus, Leopold Maurer, at a press conference in Nicosia."One of the two issues before us is the abolition of the interest rate ceiling, something which is very rare and anachronistic and not found in other countries of the world," Maurer said.The interest rate ceiling in Cyprus is set at nine per cent, but there is a bill currently before the House of Representatives that would abolish this system and liberalise interesting rates.The bill has been languishing at committee stage for some months because of some deputies� concerns that freeing interest rates could hit low income groups if they rise sharply.Nevertheless, the bill is expected to be approved before the summer recess next month."Hopefully, the MPs understand that this very important problem needs to be solved as soon as possible," the EU delegation head said.Maurer, who was heading the biggest ever EU delegation to the island, said the liberalising of interest rates was part of the free movement of capital chapter and ensured European monetary union."These are the pillars on which the EU is founded," Maurer said.He said the island's other looming financial problem was the harmonisation of its VAT rate from its current eight per cent to the EU average of 15 per cent by 2003.The government has prepared a draft bill which proposes to increase the rate of VAT by two per cent.However, the EU still has no clear political decision on direct taxation which would affect the island's flourishing offshore sector (of more than 30,000 units) which benefits from very competitive tax incentives.Maurer made it clear the EU would like to see Cyprus' direct taxation system reflect that of member states, and not discriminate against them by attracting foreign firms with lower taxes (below five per cent)."Our position is that we do not have harmful tax measures in Cyprus," the island's chief EU negotiator George Vassiliou told yesterday's press conference.He described Maurer's four-day visit as "successful" and the Austrian said he "received a lot of promises that everything would be done".He said that two thirds of the chapters were already on the table and the last ten of the thirty would be up for negotiation by the end of the year."By 2000 we should know what the most important problems are for Cyprus and the other candidate countries. And hopefully final negotiations will be during 2001," Maurer said.

June 27, 1999

[03] Bar Brits busted in midnight raid

SIXTEEN British nationals were in custody yesterday following a massive police swoop of Ayia Napa's bars and discos.

Police said the 16, aged mainly between 18-23 (the oldest was 34), were among 20 arrested in the raids. They include a 17-year-

old Canadian, an 18-year-old Yugoslav, and two teenage Cypriots who were charged and released.

The arrested foreigners were still being questioned by police yesterday. They are suspected of working illegally and harassing tourists by aggressively touting for business in Ayia Napa's main square where the pubs and clubs are situated.

Scores of Cypriot police took part in Friday's midnight raid on the bustling holiday resort which entertains up to a million tourists a year, most of them British or Scandinavian.

Scores of officers from the drug squad, immigration police and the elite MMAD mobile rapid response unit were involved in the swoop.

The authorities are highly sensitive about the issue of illegal foreign workers after recent reports estimated that 15 illegal immigrants are entering the tiny island every day.

June 27, 1999

[04] Security Council expected to endorse G8 callTHE United Nations Security Council is expected to endorse the recent statements by the G8 countries on Cyprus by Tuesday, adopting resolutions relating to the Secretary-general�s mission of good offices and the mandate of the UN peacekeeping force on the island.The Cyprus News Agency (CNA) reports New York sources as saying the Security Council is also expected to ask UN Secretary-general Kofi Annan to invite the leaders of both sides on Cyprus to negotiations this Autumn.The ten-paragraph draft resolution on the mission of good offices calls on the two leaders to give their full support to restarting negotiations along the guidelines set out by the G8 statements.At their recent meeting in Cologne, G8 leaders called for both sides to return to the negotiating table with no preconditions. The government has welcomed the statements, but the Turkish side has rejected them, warning the G8 to stay out of Cyprus� business.Meanwhile, the fifteen- paragraph draft resolution relating to Unficyp, the UN peacekeeping force on the island, reaffirms the UN position that a Cyprus settlement must be based on a bizonal, bi-communal federation. It also notes that the government has agreed to the necessity of Unficyp remaining beyond its current mandate which runs until the end of this month. As such, a new mandate will be granted, running until December 15.The CNA also reported that the �big five� countries are also expected to reiterate their concern over the level of militarisation on the island, and to call for this to be reduced as a first step towards the complete withdrawal of all non-Cypriot forces.

June 27, 1999

[05] Prodromos hit by �hail the size of walnuts�PRODROMOS villagers counting the cost of a violent hailstorm yesterday morning say their fruit crops have been decimated by the hail.The storm hit the mountain village just before midday. Villagers told CyBC radio the hailstones were the size of walnuts and that when the storm passed there was a three-inch layer of hailstones on the ground.Much of the season�s fruit crop has been destroyed, they said.Grey skies, thunder and heavy rain hit the capital Nicosia later in the day, with equally gloomy weather forecast for the rest of the weekend.

June 27, 1999

[06] Free wine: here�s the billBy Andrew AdamidesANYONE over the limit after tasting the free samples at the Cyprus Wine Festival, held yesterday and today at London�s Alexandra palace, could feel the long arm of the law sooner than they think -- for in among the wine stalls is a Metropolitan Police stand.But it�s not really part of a crackdown on drinking: this is a recruiting stand manned by members of the Metropolitan Police Service Greek Staff Association (GSA), and is aimed at attracting more Greeks and Greek Cypriots into the force.The GSA was formed through the Met�s Positive Action Team, as part of the British Home Secretary�s drive to increase the number of ethnic minority officers in the force. It came about after a number of officers of Hellenic origin met the Commissioner to discuss ways to boost the number of recruits from London�s 200,000-strong Greek community.Naturally, the GSA has been welcomed by those already on the force."All of the fifty Greek and Cypriot officers in the Met have been trying to promote recruitment for years. Now we can do more to persuade the community that the police service is a worthwhile career, and we have a focus for Hellenic issues for all the police and civilian staff who are from the Greek and Greek Cypriot communities," says Peter Savvas, a Constable in the Central Area Training Unit and GSA Secretary.The GSA has certainly started off on the right foot: Detective Constable Pheidias Soteriou, the first Cypriot to join the Met, was made an MBE in the Queen�s Birthday Honours for services to the police and the Greek Cypriot community.

June 27, 1999

[07] Road works at DhekeliaAS OF tomorrow, drivers are warned that repair work being carried out by the British bases will be causing disruption to the Xylophagou-Dhekelia road through the bases area.The work is taking place between the Ormidhia junction and Xylophagou Police Station, and it will continue until Wednesday.

© Copyright Cyprus Mail 1999

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