State loses over €5m as mooring areas remain unused

The state has lost more than €5 million in fees from six pleasure boat mooring areas that have remained unused since they were granted to private companies in 2018, the audit office told MPs on Thursday. The companies were given permission to develop the sites and were supposed to pay the state annual fees ranging from €75,000 to €262,000. However, they asked for the payments to be suspended until they obtained the permits needed to build and operate the mooring areas. Eight years later, none of the six sites is operational and the state has not collected any fees. The audit office said the situation had resulted from bureaucratic delays in changing the law and a failure to properly monitor whether the companies were meeting their obligations. The six sites were granted by a cabinet decision in 2018 in Peyia, Alaminos, Ha Potami, Pachyammos and Softades.

They are smaller than marinas and are intended to provide berthing for up to 150 pleasure boats. The companies were required to obtain planning and environmental permits before they could begin operating. The legal service advised in 2021 that the companies would not have to pay the fees until the necessary permits had been obtained. It also said the existing system for charging the fees was unconstitutional and that the law should be changed. The audit office later asked for the issue to be reconsidered and received the same legal opinion, with the fee system described as “burdensome and unconstitutional”. The audit office has now recommended that the law be changed so companies pay a lower annual fee while their sites remain reserved. The fee would be based on the value of the area and would encourage companies to obtain their permits and proceed with the projects. It also wants authorities to be able to cancel…