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Home News Cyprus

Many questions about new support plans

Despina by Despina
19/06/2020
in Cyprus, Economy
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Although new plans to support businesses and employers were announced the day before yesterday by the Ministry of Labor, there are still many questions to be asked. The announcement of the plans by the minister concerned the axes and the philosophy of the measures, while most of the details will be given with the publication of the decrees.

Yesterday, there was a disturbance to the entrepreneurs who addressed the employers' associations OEB-KEVE to find out if they fall under the new plans. The first two plans concerning the hotel and tourism industry are clearer, while the clarifications that are expected concern mainly the third plan for businesses of certain economic activities. In the next period, the Minister of Labor Zeta Aimilianidou will issue the decrees, which will include the details. Ministry of Labor officials will be asked in the coming days to answer questions from the public, while a list of excluded economic activities (with their codes) will be published on the ministry's website so that companies can find out if they fall into the plans or not.

However, since 2008 there has been a European classification of economic activities. Every employer knows from the number they have in social security the sector in which their company falls from the last four digits. The ministry is trying to post the list of exceptions as soon as possible. Therefore, as the Minister of Labor continued yesterday, all other companies will receive support. The main sector that is expected to benefit from this plan is the manufacturing industry, printing houses, advertising agencies, photo studios, provided that they have a 40% reduction in turnover.

However, there is a general confusion about which companies fall under the third plan. There are many subdivisions for wholesale trade, and the peculiarities of business are many. For example, a company supplies goods to both supermarkets and hotels (HORECA industry). Will the plans cover the employees who fall there? Of course, the second plan refers to businesses that depend on tourism. If the external accountant of each company proves that the turnover depends on 40% of tourism and has a turnover reduction of 55% then it will benefit the plan. However, entrepreneurs are wondering if there will be coverage only for employees who fall into that particular part of the job. Also, the question arises: how will one prove that one falls into the plan with tourism. With what certificates? Employers will expect to learn the process to advise their members.

Another question employers ask is whether a company that operates nationwide and meets the requirements in a province (but not as a whole) can join the plans?

However, the minister stressed yesterday that there will be no exceptions for companies related to tourism. A company located in free Famagusta can join the second project provided that 40% of its turnover depends on tourism. Even a pharmacy in free Famagusta that depends on tourism will be able to get support.

However, the big thorn remains the hotel employees. A large portion of employees are released every year in November and re-hired in April (this is a common phenomenon and concerns violations of the agreements, as the minister stressed in her statements yesterday). Ms. Emilianidou appealed to hire this group of people as a priority because they are receiving a special bonus of € 360 at the moment, which will stop next month.

Satisfied but…
In general, hoteliers assessed the measures as positive, but expressed their concerns. Speaking to Active, STEK General Manager Chrysaimili Psilogeni commented that they are not satisfied with the hotel support rates from August onwards. "There is no incentive to open a hotel, but an incentive to stay closed," he said. On the part of PASYXE, Filokipyros Rousounidis commented that many hotels will be supported in domestic tourism, while the decisions for the exploitation of the incentive provided by the new measures for reopening of hotels will be taken when the expected flow of foreign tourists is clarified. One of the clarifications requested by the hoteliers is whether a unit that will join the project for the months of July and August will be able to suspend its work and apply for state support at 80% if it does not have any reservations in September.

or October.

Representatives from the retail and leisure industries were visibly complaining yesterday. The secretary general of PASYLIE Marios Antoniou stressed to Active that he does not know of any store that has not been affected by tourism, expressing the hope that only the stores located in tourist areas will not be included in the plans.

Finally, the restaurants of the free Famagusta also expressed their complaint, commenting that "it is questionable that the support for our industry and the thousands of employees in it will end in August, while in another industry related to tourism will continue. until mid-October. Our view is that tourism companies should join a single project, which will take into account the specifics of each industry. "

Source: The Liberal

Tags: dissatisfactionmeasures to support the economyHotels
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