On 22.6.09 we have invited the Minister of the Interior to introduce our annual (4th yearly) report, on the Building Industry. Because of the problems that the industry is facing and because of many other factors (new large scale projects coming up etc) the conference room was packed and out of the declared 90 would be attendants, approximately 145 people turned up including the press, various associations, business people, bankers, MPs, Mayors and individuals.

The conference included the exchange of ideas on how to correct as soon as possible this unhealthy situation in the building industry with special regard to the title issue delays, permit issues etc. The Minister of Interior Mr N. Sylikiotis put forward the Government’s ideas (not being humble most of them were ours submitted periodically over the period of the last 15 years) but from which we questioned a number of them as to their effectiveness. The gist of the subject and based on the information given by Mr Sylikiotis is this:

• Cyprus has a problem, but in order to address, it the Ministry must record first where the problem comes from, so that it can prepare the required new legislation. This has started and it is under way.

• The cooperation of everybody is needed and for this reason the Minister made an appeal to the House, that these new proposed laws do not get entangled in small politics adding that top speed is needed.

• The Minister admitted that he has met partial non cooperation by the civil servants on his own ideas (did you see Yes Mr Minister t.v. program?).

• He is thinking of introducing “name and shame” list of developers who either do not bother with titles issue or are in difficulty.

• He is introducing a package of laws (5) with the main aim to protect the buyers and not the developers. This means setting out time limits and procedures, insurance guarantees etc. The legislation has been prepared as a form of “white paper” and it will soon be sent to the Attorney General for the legal preparation and then to interested parties to comment, as well as to the House.

• He admitted that there are problems with some developers and he is trying to address a difficult situation, in order to get a solution between developers/Banks/buyers interest. The new measures he added will cover mainly the new sales.

• He added that there is satisfactory (to an extent) laws to protect the buyers, provided the buyers are aware of the law and enter into a correct sales contract. The requirement of a mortgage release, the deposit of a sales contract with the Lands Office, the law dealing with the non-issue of titles, etc are all there, but buyers choose not to use them, turning now the Government to help them out.

• He has admitted that the Government in addition to the civil servants attitude, has staff and other problems and he gave examples and the difficulty that he is facing of getting new staff on board from other departments.

• He pointed out that there are approximately 25.000 titles already issued, but for which either the developers/or the buyers do not bother to have them transferred.

• He referred to added new measures which the Minister will soon introduce:
    - Social low cost housing
    - Revitalization of the old city centers
    - Increasing building density in the city centers
    - Taxation of undeveloped development land so that excess land comes into the
      market, reducing or at least keeping stable land prices.
    - Taxation of rezoned properties which benefit from it.
    - Etc etc

Regrettably, what we have read in some English speaking papers (mainly) in Cyprus, is that “the Minister does not care if some developers go under”. We were there, we have recorded the whole function in video and nothing like this was said. On the contrary the Minister reported over and over again, that whatever measures are to be introduced, should have in mind the buyers interest as a priority. He appealed again and again to MPS to discuss and approve speedily his proposals, which must not form part of the political differences of the local parties in this country.

On our side we expressed our reservation on some of the Minister’s proposals, insisting that what is needed is the clearing of the old cases (say for those buildings which had a building permit issued up to 31.12.07) using a new practical (as opposed to the last) building amnesty law, our proposal on the temporary titles issue, the appointment of an assistance with full powers in order to speed the matter up etc etc. The Minister replied by saying that the building amnesty is under review, on a new practical basis, whereas the appointment of 2 assistants who will handle the matter of titles is on the way. He was not keen to listen favorably on our proposal for using private architects for the titles/certificate issue etc etc – We will keep trying.

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