- June 3, 2008 at 6:43 am #54023
Another of the consequences of the dramatic slowdown in the real estate and construction markets is the loss of income for local town halls….(and the mayors’ pockets 🙁 ).
Many local councils are looking for new sources of income in the real estate slowdown……let’s see if they’re as good at it as the local councils in the UK (bin taxes, fines for dropping half a sausage roll etc.).
“According to estimates from the FAMP, The Andalucian Federation of Municipalities and Provinces, the income from local taxes related to real estate has fallen over the last few months by between 40 and 60%. It comes as the local ayuntamientos have given an ultimatum to central government in demand for a new financial system.
Meanwhile the temptation for many local administrations is to sell off municipal land to compensate for the reduction in income, but the climate means that chance of sale here is also reduced”.
(Typically Spanish website)
- June 3, 2008 at 6:54 am #83457
I have read that in Gran Alacant the council are trying to offload responsibility for the streets in the urbanisations. I guess this is to cut the cost of road sweeping, street lighting etc. I wonder what will happen when the Ayuntamiento is bankrupted. Will schools close?
- June 3, 2008 at 7:08 am #83459
“It comes as the local ayuntamientos have given an ultimatum to central government in demand for a new financial system”.
In several documentaries I’ve seen re. the corruption, many involved in the ‘property world’ – from developers’ associations to councillors – stated that it is the underfunding from central government that has ‘forced’ this need for under-the-table goings-on and therefore is the cause for all the corruption.
The fact that all this brown-envelope ‘extra-funding’ seemed to find it’s way into councillors’/mayors’ pockets appears to be a small irrelevance.
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