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Debt challenge for City Council

Palma.—The new Partido Popular Economy and Tax Councillor Julio Martinez said yesterday that the state of finances left by the previous Socialist coalition council is similar to a “Gruyere cheese.” “We have now got the responsibility,” said Martinez “of converting this fluid situation into a firm Minorcan cheese, without any holes in at all.” The debt consists of 37 million euros of loans provided by banks (36 million of them to the previous council), and 5.6 million in back payments to goods and services providers.

Martinez added after a Council meeting yesterday, that the senior Councillors in Palma aren't going to be paid this month until all other council workers have had their salaries, but it possible that there will be a delay.

However, it would seem there are some subsidies that the Council is agreeing to because Residents' Associations in Palma are going to receive funds to liven up their neighbourhoods with cultural activities and to spruce up all-purpose centres that have seen better days. The funding is nevertheless late in being provided because the previous Mayor, Aina Calvo (pictured left) had reportedly told the Residents' Associations that they could bring in subcontractors to do whatever work was necessary, but this arrangement was officially not permitted under the agreement with the Council.

Meanwhile, the municipal cleaning company Emaya is having to extend its services to other municipalities on Majorca if it is to avoid redundancies in its present staff.

The company's President, Andres Garau said yesterday that he is adopting austerity measures which have saved the organisation 1.5 million euros.

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