MicAtCyp wrote:Please stop it Alexandre. You obviously don't know the costs involved or the fact that "property" does not involve just a house. For every house each GC or TC refugee owns on the average an additional 10 donums of land, plus a part of bussiness premises. The total value of GC properties in the occupied areas is estimated in the range of a trillion+ pounds. "Compensating" just a tiny fraction (one every thousand) of Refugees will cost a billion. And we are talking for a state that currently can juuust survive on a 2 billion pound budget !! Where will it find hundreds of billions to compensate the people?
MicAtCyp,
I was not referring to the Annan Plan (the property provisions of which are utterly unworkable). I was referring to my own proposal, at the first page of this thread. According to this proposal, original owners get all their property except that which will be exchanged by refugees and also that which has been heavily invested on. The outrageous "one-third" clause, in other words, which caused the major difficulties, has been removed (as well as various other sub-clauses).
Most GC refugees, in other words, would get a home in the north
and some donums of agricultural land.
Now, as for the issue of compensation, what we would end up having is a drastically scaled down version of the property board, which could just about become viable in the following way:
- All owners of "significant improvements" will have to "buy" the value of the original property and give that money to the property board, which Property Board will pass it on as compensation to the original owner. If current occupants are unwilling to "pay up", then the property reverts to the original owner, who will not be obliged to pay for the cost of the "significant improvement". The only problem I see here is how current occupants will find the money to buy the original property (this is a problem for GCs as well, you know, since many GC refugees will want to keep their house built in refugee camps on TC land). But really, it is just a question of paying up for what is not rightfully yours. Perhaps we might need help here from the international community, in the form of low interest long term loans for those individuals (GCs or TCs) who will wish to buy the land on which their "significantly improved" residence has been built. Do you see a problem here which I do not see, Economics-wise?
All refugees who wish to exchange their original property for their currently used property, will cede to the Property Board their original property and keep their current residence without a monetary transaction. Then the property board would have to either give equivalent property form its holdings to the original owner (again no monetary transaction) or pay compensation to the original owner, in which case to raise the funds for this compensation it would have to sell property in the free market. As we both know, this could be problematic if large volumes of property are involved, as it would disrupt the property market and by extension the economy. However, if it is limited only to this type of property issue, then the volumes would be much more limited. One way to limit it even further, would be to insist that property will only be exchanged for property (ie, no monetary compensation). The refugee will be able to choose another property anywhere in Cyprus, and that will be the end of it - this way, again we avoid compensation. Or, we opt for the "new home provision" which I suggested, which could be financed by international donors the same way that the relocation of TCs will be financed by international donors - but such donations have to be guaranteed in advance of the solution, perhaps with the money being pre-deposited in a reconstruction account, pending their release the day after two succesful referenda.
- Other than the above two categories, no other properties will be given over to the Property Board gratuitously, just so that "GCs don't own too much property in the north". Yes, refugee current occupants (of both sides) and heavily invested properties (in both sides) will be protected, but that's it: Everything else goes back to original owners.
MicAtCyp, I know you have studied these issues in depth, and I also know that you very much want to see a viable solution happening, so long as the compromises involved are tolerable - so I look forward to hear your thoughts.