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Portimão in last ditch funding talks with government

portimaocamaraPortimão council has joined the three other worst run councils in the country in emergency talks with the government.

Portimão, Aveiro, Nazaré and Vila Nova de Poiares are desperate to access money held in the Municipal Support Fund, money that currently they are denied as they are unable to run at least at break even.

Those above are the four councils in the poorest fiscal position in Portugal but there are many more that technically are bankrupt and in need of funds to enable a full financial restructuring to be undertaken and thus given a shot at redemption.

Without the additional money and certain legal powers that comes with acceptance by the Municipal Support Fund's management, these councils are doomed to fail as currently interest payments swallow up much of their income.

The Municipal Support Fund will total €650 million when complete, 50% chipped in by the taxpayer and 50% from well run councils in a decision that has angered many including Rui Andre's Monchique council which objects to bailing out its basket case neighbour Portimão.

The Union of Civil Servants has appealed to these councils to move heavan and earth to gain access to the Municipal Support Fund, but only to safeguard jobs and workers' rights, "The financial rebalancing of municipalities and the use of the Municipal Support Fund must not be an excuse to lower wages or to reduce the number of workers. Some councils that want to access the fund already are struggling with staff shortages due to government constraints on the admission of new workers."

Council's in the rescue scheme will be obliged to cut overtime payments to staff, accelerate staff redundancy schemes and raise local property rates, Imposto Municipal sobre Imóveis (IMI), to the maximum permissible level.

Manuel Machado, president of the National Association of Municipalities, said that there are six municipalities in severe financial difficulties which need an emergency loan from the Government while their applications to the Municipal Support Fund are being written and submitted before the November deadline.

If Passos Coelho, through the Secretary of State for Local Government, António Leitão, continues to deny these bankrupt councils access to the support fund set up to help them out, the black list councils will have little option but to cease paying suppliers and wages thus compounding the many problems they face.

Many councils are under new management since last year’s local elections and their situation is too dire for Coelho to deny them at least a chance by using money already set aside to help them out.

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Comments  

0 #6 Ed. 2014-08-28 06:53
Quoting Enid:
Many councils are under new management since last year’s local elections .....

This is a bit misleading, Ed !

Given that the political parties in Portugal are indistinguishable (how else could the elite stay in power so long after Salazar?); were there any seismic shifts in any municipals ?

As the one or two 'good' councils have shown - and is the norm in the developed north europe - there is no need to be in debt at all. This is just squandering public funds to get votes and line the pockets of friends and family and has gone on since Portugal joined the EU.

All the old municipal presidents should also be held liable - so dig them out (from the ground if necessary) !!! :cry:

Among the 26 councils that, in late 2013, could access the Support Fund Municipal, 21 changed president in the last municipal election. Luckily for the old ones, the laws that limit penalties kick in soon.
Ed.
+1 #5 Geoff Talbot 2014-08-27 11:04
Not sure which interpretation of Aesops' The Ant and the Grasshopper, Snr Pedro is meaning. There are several ...

http://en.wikipedia.org/wiki/The_Ant_and_the_Grasshopper

Most interpretations suggest that the prudent Municipals - the ants - do not help the party giving Municipals - the grasshoppers. Until, in one version, the north European Bee - also known as Troika the Bee - comes along and helps both through the winter.

It is also a very painful subject for the thousands of hard working British 'ants' who brought their life savings into Portugal since 1986 - intending to live like both ants and grasshoppers. And who have lost most or all to some very dishonest 'Cicada like trickery'.

Or in another version ... for Cicada read - Dung Beetle. :cry:
+3 #4 Peter Booker 2014-08-27 09:29
Enid is correct. There is always somebody who is responsible for the wild expenditure, and if they are not held to account, how will behaviour ever change? Câmara leaders will understand that they will always be bailed out by their more prudent colleagues. Aesop wrote a fable about exactly this concept, and called it The Ant and the Grasshopper.
+6 #3 Atlasfrog 2014-08-26 18:56
We cannot completely blame the cameras. Central government allowed unqualified politicians to do an important management job which normally would have requiring managerial experience and integrity.The appointed politicians were totally unprepared for such responsibility. However they knew how to protect and feather their own nests.The tax payers deserve to see an audit of where all the past money has gone.Here in Portimao huge sums were squandered on stupid projects (race track,airport etc.)and lots of money vanished!! Central government should show some integrity and oblige the legal process to fully investigate where all the money leaked out.
+5 #2 Ric 2014-08-26 18:44
'Many councils are under new management since last year’s local elections .....'

They are indeed, and the first thing Loule council did was to employ 8 new senior directors all of whom had ties/friendships with the new Councillors.
This was widely seen as a thank you.
(Source: I have a neighbour who does a lot of work for Loule council).
These 8 new councillors were an addition (not replacement) to existing council 'elites' who openly admit to sitting at desks all day with little if nothing to do.
It's jobs for the boys. Nothing changes.
+5 #1 Enid 2014-08-26 17:36
Many councils are under new management since last year’s local elections .....

This is a bit misleading, Ed !

Given that the political parties in Portugal are indistinguishable (how else could the elite stay in power so long after Salazar?); were there any seismic shifts in any municipals ?

As the one or two 'good' councils have shown - and is the norm in the developed north europe - there is no need to be in debt at all. This is just squandering public funds to get votes and line the pockets of friends and family and has gone on since Portugal joined the EU.

All the old municipal presidents should also be held liable - so dig them out (from the ground if necessary) !!! :cry:

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