Prov funds forced to buy Cyprus bonds, says opposition

* Launches reform and growth plan for 2013 election campaign *

Opposition Democratic Party leader Nicos Anastassiades said that staff provident funds at public service organization were being forced to buy government bonds to help support a bankrupt state.
Speaking to an audience of business leaders in Nicosia on Monday, Anastassiades said that despite inheriting a healthy economy in 2008, the current administration “has exhausted all its limits and has reached a stalemate.”
He said that there needs to be a better balance between pension contributions and the retirement age and a proper review of the national health scheme.
In presenting his policies as part of his election platform for February 2013, the DISY leader was referring to the government’s demand that the public telecoms operator, Cyta, lend 101 mln euros to the government in the form of bonds, to plus as gaping financial hole in the public sector.
Anastassiades said that instead of hiking taxes to pay for the public debt, he proposes tax incentives in the areas of first properties and for SMEs to access cheap capital. His plan includes a gradual reduction of the civil service and increase in online services, the appointment of 6-7 deputy ministers to help the cabinet implement policy decision faster, and better utilization of state assets.
“We spend 23 mln euros a year in rent paid to unwanted government offices,” Anastassiades said, adding that he wants to see better regulation and audit of public spending from within each ministry and not just a central audit bureau.
Other areas where he wants to see more efficiency or investments include shipping, real estate, tourism, company and financial services, and the establishment of a National Council for the Economy to advise the president on all issues related to international competition, innovation, information and communication technologies.
Finally, the veteran politician suggested improvements in the legal system and better access to European development funds.