Cyprus Mail: News Articles in English, 99-06-13

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

June 13, 1999

CONTENTS

[01] Pay cuts loom as CoLA index set to fall

[02] Lu importers threaten to sue over Dioxin listBy Anthony O. MillerIACOVOS Photiades Ltd, Cyprus importer of Lu biscuits, said yesterday he wanted the Health Ministry publicly to apologise for including the biscuits on a list of 104 products suspected of dioxin-poisoning, or he would sue the Republic.The Health Ministry on Friday published the brand- names of 104 food items and four animal feeds from Belgium and other EU countries suspected of contamination by dioxin, a highly toxic compound that causes cancer.Health Minister Christos Solomis acted in the public interest after consulting Attorney-general Alecos Markides on what liability, if any, the Republic ran in publishing the list.Solomis issued the list amid reports that traders were threatening to sue the government if the list unfairly named products in their inventories. He was said to have put public safety ahead of any concerns about possible litigation."We believe they have created a problem for us for no reason," Photiades told The Sunday Mailyesterday. By including Lu biscuits on the list, the Health Ministry "has involved products of ours that are not affected by dioxin," he said."This has created confusion," Photiades said, adding: "We are now talking with our lawyers to see if we can correct this." He said his quest for a correction or damages "has no set amount.""From our side -- and I believe it is the reaction of every businessman," said Photiades, "it is the harm that they do to the reputation of the product and the company.""Obviously I do not talk in terms of money -- life is more important than any amount of money -- but on the other hand, it was easy for them to identify those products which are affected," he said.Photiades said the crux of his complaint was that the EU warning said products manufactured between January 15 and June 1 in Belgium ran the greatest risk of dioxin contamination, but the government's list neglected to mention these dates.The government knew about the critical dates, he said, because "I have in front of me the June 7 announcement of the Director of the Ministry of Health" referring to those dates."Not only that, but after we have received this letter and we heard about the problem, we got in immediate touch with the Ministry of Health," Photiades said."We told them what we imported from Belgium, that we import only four items. We named the products. We proved to them that those products... have a production date of October 1998," Photiades said."They reassured us and instructed their health inspectors not to touch these biscuits because they are safe," he said. "Now they came up with this. This is creating confusion.""What we would be happy to hear is for the Minister, or someone from the ministry at least, to come up soon -- not after a long time, but very soon -- and declare that Lu products have nothing to do with this, that it was a mistake," Photiades said.He said Health Services Head Sophocles Anthousis yesterday "promised that Monday he will fix it. I will be waiting to hear what they say on Monday."When asked if the government was immune to being sued for publishing the list, Attorney-general Markides said: "It is not prohibited for the government to issue a list (of dioxin-suspect brand- names)."He added that, "Any action by anybody against the Republic for damages for a serious wrong will be tried in accordance with the law in force in Cyprus today, and at the time of the trial."Meanwhile, a representative of the Leonidas Belgian chocolate outlet on Nikis Street in Nicosia said publication of the Leonidas brand name on the government's list did not mean his chocolates contained dioxin.He said Anthousis told him the list was merely all-inclusive of all Belgian products imported to Cyprus, subject to future testing. "They listed all chocolates. They covered everything," the man said, requesting anonymity.He noted his Leonidas outlet in Nicosia was displaying letters from the Belgian Government, in French and English, attesting to the safety of the Leonidas Chocolates.The Health Ministry was closed, and Anthousis was unavailable to comment on either claim.Cyprus has outlawed the import of Belgian-produced animal feeds, raw food and processed food products, and impounded tons of feed and food products already imported from Belgium.It has also banned the sale of any of the 108 products on the Health Ministry's list, pending testing for dioxin. Merchants failing to withdraw the banned items face their confiscation and fines.The Cyprus Chamber of Commerce & Industry (KEVE) yesterday urged all Cyprus importers to inform the Health Ministry of what stocks they have from Belgium, and assured them that any items not found to have been produced between the critical dates of January 15 to June 1 would be put back in the pipeline for sale.The Foodstuffs Importers Association, a KEVE affiliate, yesterday said it fully supported the government's interdiction of Belgian food and feed products.

[03] Police step up coastal patrols after immigrant warning

[04] Britain calls on Turkey to honour Loizidou ruling

[05] Kurds protest for Ocalan

[06] Young couple killed in crash

[07] Akel car torched

[08] Clerides back from China today

[01] Pay cuts loom as CoLA index set to fall

TREAT IT as a small price to pay for low inflation, or just chill and accept it as an "in health and in sickness" sort of scenario.

The value of CoLA, that generous government bi-annual handout that put money in the pocket of every employee on the island to compensate for price hikes, will probably fall in the six months starting in July.

Its index, which tracks price increases in the previous six months, is likely to register negative growth for the period January 1-June 30 this year. As a result, salaries will be cut in the final six months of 1999.

"Everyone, employees and the unions, will have to live with this, because when it went up everyone got more money," said a source at the Finance Ministry's Department of Research and Statistics, which compiles the index of the Cost of Living Allowance, known by its acronym, CoLA.

Of the island's 310,000-strong workforce, perhaps more than 200,000 salaried men and women would be affected. It happened before, exactly four years ago when salaries were slightly cut when the CoLA index fell to 173.01 from 173.15 in the previous six months.

The CoLA index reflects the fortunes of the Consumer Price Index, but includes indirect taxation such as value added tax in its calculations. How much it nets employees depends on the size of their salaries and the percentage by which the index has risen, i.e. inflation rates.

CoLA is a key part of the economic and social cultures of modern Cyprus. Its origins go as far back as the days of British colonial rule. After years of being applicable only to civil servants, it became universal in 1959. It continued in the post-colonial days and was only interrupted in the years of economic chaos that followed the 1974 Turkish invasion and the resultant rise of inflation to double-digit figures.

The Price Consumer Index, on which the CoLA index is based, stood at 123.96 at the end of May, making the average for the January-May period 122.92.

If the figures for June are unchanged, the average for the January-June period would be 123.10, signalling a decline from the average of the July 1- December 31, 1998 of 124.08.

"There is, however, going to be an increase in the index because of the 15- cent rise slapped on cigarettes. But even that will not change the picture dramatically and the index will still show a slight decline," said the source at the Department of Research and Statistics.

A sharp decline in the price of clothing and footwear in January and February may have been largely responsible for the decline in the Price Consumer Index. The sector's sub-index stood at 130.93 in January and 106.32 in February, compared to 136.85 in December 1998.

In all its years of existence, CoLA has shielded salaried Cypriots from the effects of inflation. Economists say its continuation has a great deal to do with the fact that inflation on the island has always been under check. It currently stands at just under two per cent.

But the economists say the government is searching for ways to amend the CoLA system by paying employees cost of living allowances on a yearly basis and to take out indirect taxation from the basket of services and goods on which it is calculated.

June 13, 1999

[02] Lu importers threaten to sue over Dioxin listBy Anthony O. MillerIACOVOS Photiades Ltd, Cyprus importer of Lu biscuits, said yesterday he wanted the Health Ministry publicly to apologise for including the biscuits on a list of 104 products suspected of dioxin-poisoning, or he would sue the Republic.The Health Ministry on Friday published the brand- names of 104 food items and four animal feeds from Belgium and other EU countries suspected of contamination by dioxin, a highly toxic compound that causes cancer.Health Minister Christos Solomis acted in the public interest after consulting Attorney-general Alecos Markides on what liability, if any, the Republic ran in publishing the list.Solomis issued the list amid reports that traders were threatening to sue the government if the list unfairly named products in their inventories. He was said to have put public safety ahead of any concerns about possible litigation."We believe they have created a problem for us for no reason," Photiades told The Sunday Mailyesterday. By including Lu biscuits on the list, the Health Ministry "has involved products of ours that are not affected by dioxin," he said."This has created confusion," Photiades said, adding: "We are now talking with our lawyers to see if we can correct this." He said his quest for a correction or damages "has no set amount.""From our side -- and I believe it is the reaction of every businessman," said Photiades, "it is the harm that they do to the reputation of the product and the company.""Obviously I do not talk in terms of money -- life is more important than any amount of money -- but on the other hand, it was easy for them to identify those products which are affected," he said.Photiades said the crux of his complaint was that the EU warning said products manufactured between January 15 and June 1 in Belgium ran the greatest risk of dioxin contamination, but the government's list neglected to mention these dates.The government knew about the critical dates, he said, because "I have in front of me the June 7 announcement of the Director of the Ministry of Health" referring to those dates."Not only that, but after we have received this letter and we heard about the problem, we got in immediate touch with the Ministry of Health," Photiades said."We told them what we imported from Belgium, that we import only four items. We named the products. We proved to them that those products... have a production date of October 1998," Photiades said."They reassured us and instructed their health inspectors not to touch these biscuits because they are safe," he said. "Now they came up with this. This is creating confusion.""What we would be happy to hear is for the Minister, or someone from the ministry at least, to come up soon -- not after a long time, but very soon -- and declare that Lu products have nothing to do with this, that it was a mistake," Photiades said.He said Health Services Head Sophocles Anthousis yesterday "promised that Monday he will fix it. I will be waiting to hear what they say on Monday."When asked if the government was immune to being sued for publishing the list, Attorney-general Markides said: "It is not prohibited for the government to issue a list (of dioxin-suspect brand-names)."He added that, "Any action by anybody against the Republic for damages for a serious wrong will be tried in accordance with the law in force in Cyprus today, and at the time of the trial."Meanwhile, a representative of the Leonidas Belgian chocolate outlet on Nikis Street in Nicosia said publication of the Leonidas brand name on the government's list did not mean his chocolates contained dioxin.He said Anthousis told him the list was merely all-inclusive of all Belgian products imported to Cyprus, subject to future testing. "They listed all chocolates. They covered everything," the man said, requesting anonymity.He noted his Leonidas outlet in Nicosia was displaying letters from the Belgian Government, in French and English, attesting to the safety of the Leonidas Chocolates.The Health Ministry was closed, and Anthousis was unavailable to comment on either claim.Cyprus has outlawed the import of Belgian-produced animal feeds, raw food and processed food products, and impounded tons of feed and food products already imported from Belgium.It has also banned the sale of any of the 108 products on the Health Ministry's list, pending testing for dioxin. Merchants failing to withdraw the banned items face their confiscation and fines.The Cyprus Chamber of Commerce & Industry (KEVE) yesterday urged all Cyprus importers to inform the Health Ministry of what stocks they have from Belgium, and assured them that any items not found to have been produced between the critical dates of January 15 to June 1 would be put back in the pipeline for sale.The Foodstuffs Importers Association, a KEVE affiliate, yesterday said it fully supported the government's interdiction of Belgian food and feed products.

June 13, 1999

[03] Police step up coastal patrols after immigrant warning

LIMASSOL harbour police yesterday confirmed that they had stepped up their coastal patrols after rumours that two boats carrying illegal immigrants were on their way to the island.

A police representative told The Sunday Mailthat extensive searches had been carried out on Friday night and into the early hours of yesterday but that nothing had been found.

Harbour police commander Theodoros Stylianou said yesterday that they had received information that two boats carrying illegal immigrants had set sail from Tripoli in northern Lebanon with an unknown destination.

Cyprus has in recent months become a target for unscrupulous boat captains dumping their passengers in Cyprus while telling them they have reached Greece or Italy.

Illegal immigrants often pay thousands of pounds for the chance of a better life in the West.

Agreements with Lebanon and Syria have given Cyprus the authority to return such boat people as soon as they land on the island.

Eighty-nine boat people were recent sent straight back to Lebanon thanks to the January 1999 agreement.

Last June 113 illegal immigrants, including women and children, were rescued from a leaking boat off the coats of Cyprus. Most have since been deported or gone home voluntarily.

June 13, 1999

[04] Britain calls on Turkey to honour Loizidou ruling

The European Court of Human Rights last year ordered Turkey to compensate Loizidou for depriving her of her right to enjoy her property in Turkish- occupied Kyrenia, which Turkey has occupied since it invaded Cyprus in 1974.

Turkey has so far refused to pay Loizidou, despite several deadlines and extensions, claiming it is not liable for the occupation of Northern Cyprus.

Quin told the house of Commons that Britain and its EU partners "continue to make clear to Turkey to need to respect the Court's judgment in this case, including in the Council of Europe's Committee of Ministers' Deputies."

She noted that, at its last meeting on May 27, the Committee of Ministers' Deputies "agreed that its Chair would write to Turkey, asking for clarification of Turkey's intentions" regarding paying Loizidou.

"We will continue to discuss with EU partners, as with other members of the Council of Europe, how to achieve Turkish implementation of the Court's judgment," Quin told the House of Commons in a written answer.

June 13, 1999

[05] Kurds protest for Ocalan

Police said there were no incidents and no arrests.

Previous demonstrations in Cyprus by Kurdish supporters of the PKK have ended in tragedy, with some of the demonstrators setting themselves on fire in protest at the plight of Turkey's Kurdish minority.

The PKK has been waging a bloody 15-year armed rebellion against the Turkish state in an attempt to secure an independent Kurdistan.

Ocalan is on trial in Turkey for leading the PKK's rebellion, and faces execution if convicted on charges of treason and murder.

The Turkish army's brutal suppression of the Kurdish rebellion has been singled out by Western countries as a blot on Ankara's human rights record and one of the reasons it was denied an invitation in 1997 to join the European Union along with Cyprus.

June 13, 1999

[06] Young couple killed in crash

Michael Nicos Achilleos, 21, of Liopetri, and his fiancée, Andri Ioannou Yiallouri, 15, of Xylofagou, were pronounced dead on arrival at Paralimni hospital early yesterday after being cut from their car by the Fire Service.

Police said the accident occurred at 11.20pm on Friday when the car being driven by Archilleos went out of control and careered into a cement bridge.

Anyone with information on the accident is asked to contact the nearest police station.

The couple became engaged eight months ago. It was not certain if a wedding date had been set.

Yiallouri is survived by her parents and four brothers. Archilleos is survived by his parents, two brothers and a sister.

In a separate case, Stelios Efstathiou, 72, of Limassol, died yesterday in Nicosia General Hospital of injuries sustained in a car accident on June 6.

June 13, 1999

[07] Akel car torched

The car was parked outside the Limassol home of party employee Savvas Vassiliou, when the fire broke out at around 3am.

The Volkswagen Golf was completely destroyed by the time the fire brigade put out the flames.

A representative from the communist party's Limassol office yesterday told The Sunday Mailhe did not believe the fire had been set for political reasons: "We believe it must have been personal."

June 13, 1999

[08] Clerides back from China today

During the state visit, Clerides met with China's president Jiang Zemin and other high-ranking officials.

Jiang officially received Clerides last Monday in Peking's People's Hall during a ceremony that included a 21-gun salute in the President's honour.

Accompanying Clerides to China were Foreign, Finance and Commerce Ministers, Yiannakis Cassoulides, Takis Clerides and Nicos Rolandis.

The Ministers met with their Chinese counterparts to discuss collaboration between the two countries on relevant issues.

According to a government statement released at the start of the visit last Sunday, the trip was focused on "further developing friendly and co- operative relations between Cyprus and China."

Clerides was also accompanied by his wife Lila-Irene, government spokesman Costas Serezis, director of the President's office Nicos Panayiotou, the directors of several government departments, Central Bank representatives and several Cypriot businessmen.

The President's plane is expected to touch down at Larnaca at 10am.

© Copyright Cyprus Mail 1999

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