Jan 13 - GSD Says Unpaid Rent Up By 20%
The GSD Opposition says that Government rent arrears have, in the time the GSLP have been in administration, increased from £4million to almost £5million. In answers to Parliament, Minister Paul Balban confirmed that as of end of November 2013, unpaid rents stood at £4,881.807.
This figure, says the Opposition, represents an overall percentage increase of over 20% of the arrears left owing by a 16-year GSD administration, in only two years of the GSLP taking office.
Furthermore, according to the Opposition, as at 21st November 2013, nearly £1 million Government arrears from rents, rates, import duty and electricity has been paid to the Government from loans provided Credit Finance Company Limited. In other words, explains the GSD, individuals who owe the Government arrears are having those arrears paid by Credit Finance Company Limited which then takes over the debt. This, as the GSD says it has pointed out in the past, increases Government revenue whilst any potential bad debt is parked in Credit Finance Company Limited. The GSD believes that this “clearly distorts” the public finances of Gibraltar by increasing revenue for the Government and placing any debt on the books of a Government owned company whose accounts are “not scrutinized” by Parliament and in respect of which the Government has “consistently refused” to answer meaningful questions.
A spokesman for the party said: “The significant increase in Government rent arrears in such a short period of time is very worrying. It is also a matter of concern to us that Credit Finance is patching up government-related arrears with monies that ultimately derive from debenture savers and are underwritten by government. The Government is “taking from Peter to pay Paul” which creates a distorted picture of our public finances. It presents a wholly worrying reality with regards to the management of our finances.”
