During a session of the Parliamentary Committee on Energy, Commerce, Industry, and Tourism, the Ministers of Interior and Energy, Commerce and Industry, Konstantinos Ioannou and George Papastasiou respectively, discussed the urgent need for the establishment of a Central Unified Authority responsible for managing industrial areas and industrial zones. Both Ministers requested additional time until October to thoroughly examine the issue and propose a differentiated approach to the functioning of industrial zones, industrial areas, and craft zones.

The Minister of Commerce stated that "there is confusion surrounding industrial zones, areas, and craft zones, and it is crucial to bring order to these spaces." The Committee discussed general and specific problems in each industrial and craft area in Cyprus, as well as possible solutions.

"We have land pieces that have been rented for many years, others that have been more recently leased, some entering a formula determined by the Ministry of Industry, and others suggested by the Auditor General to be based on market value," he added.

Regarding the observed rental increases, Mr. Papastasiou referred to the state-owned land where the rent calculation is based on the market value, leading to "problems and reactions." He further highlighted that "industries, upon the expiration of their contracts, have been asked to pay rent ten times higher."

"There is disorder in the entire matter, industrial areas, industrial zones, different rents," he emphasized before entering the Committee session, expressing that some areas may have rents ten times higher than others.

Mr. Ioannou referred to a study conducted by the Department of Urban Planning and Housing, which demonstrated the necessity of establishing a unified body for the implementation and management of industrial areas.

"The current management of industrial zones and areas is undeniably characterized by an inequality in the management approach, particularly concerning rent determination and other operational issues," the Minister of Interior stated. He requested that political parties and relevant stakeholders submit their proposals on the matter, which will be examined by the interministerial committee. The goal is to present a specific plan by the end of September or early October.

"We are committed, together with the Minister of Commerce, to submit a proposal for differentiation in operation by the end of September or early October," Mr. Ioannou underlined after the session. He further explained that the proposal entails the establishment of a unified management body overseeing the operation of industrial areas and industrial zones.

From his perspective, the Minister of Commerce emphasized the need for a unified Authority that would oversee various areas related to Cyprus’ industry. He stressed the significance of certain regions, closely linked to industries vital to the country, including smaller craft zones and other zones. “Establishing order in these areas is crucial for fair management and administration,” the Minister explained.

Mr. Papastasiou acknowledged that he had taken into consideration the formal opinions of the competent Authorities and concurred with the Committee's view that a unified Authority is not only necessary but also imperative. He announced the intention to develop a comprehensive proposal by October, ensuring public consultation to establish a well-organized framework.

Regarding concerns raised by the competent authorities about escalating rental costs, Mr. Papastasiou assured that the Ministry of Commerce is committed to supporting the industry. “While we exercise great caution in any matter that might burden industrial enterprises financially, we also recognize the importance of equitable contributions to the state's revenue. Our objective is to minimize costs for the industries, fostering their survival and productivity," Mr. Papanastasiou emphasized.

The Director of the Land Registry, Elias Elikkos, provided insight into the whole process. He mentioned that the Land Registry maintains records of industrial leases and that currently, with guidance from the Ministry of Interior, the Land Registry is reassessing the rent calculation methodology. Collaborative efforts are underway, involving private appraisers and the Technical Chamber of Cyprus (ETEK), in order to achieve an optimal outcome.