Guadalquivir hopes that before the end of June the Government will arbitrate a series of regulatory changes that will allow the consistories to receive loans and long-term advances with a view to paying back payrolls of the workers and debts contracted with small and medium-sized suppliers.
The municipalities that made up the dissolved Municipal Association of the Lower Guadalquivir hope that before the end of June the Government will arbitrate a series of regulatory changes that will allow the consistories to receive loans and long-term advances with a view to paying back payrolls of the workers and debts contracted with small and medium-sized suppliers.
The vice president of the Board and counselor of Local Administration and Institutional Relations, Diego Valderas, has met with the liquidation commission and the municipalities of the Commonwealth of the Lower Guadalquivir, where he has underlined the good understanding between the administrations involved, that is, Central Government, autonomic, councils and municipalities, to resolve “in the shortest possible time” the outstanding debt of 42 million euros with workers, suppliers and other plaintiffs of defaults of the entity.
The president of the liquidating commission and mayor of Lebrija, María José Fernández, explained that of the 52 million owed initially, the Board has already assumed ten million euros for the sealing of the landfill that served Lebrija, Utrera, El Cuervo and the Heads, so that, according to Valderas highlights “the Board has been the first administration that has provided resources to save the situation.”
In this way, the current debt of the extinct commonwealth
comprised of 11 municipalities, seven in Seville, namely Los Palacios y Villafranca, El Cuervo, Lebrija, Las Cabezas, El Coronil, Los Molares and Utrera; and four from Cádiz, that is, Sanlúcar de Barrameda, Rota, Chipiona and Trebujena- is 42 million, of which 8.5 million euros is debt and payroll arrears with workers, another 17 million euros is the debt with suppliers, while the rest is the debt with the Social Security and the Treasury or the reimbursements to programs not executed or not adequately justified, or debts with the banking entities.
In this regard, he commented that there is a good understanding, a “cordial entente”, between the central and regional governments to solve some regulatory changes that are necessary and that will facilitate, through the councils, the necessary advances to meet the payments.
He also explained that the Junta de Andalucía will grant to these municipalities, immediately, refundable advances charged to their participation in the State Income (PIE) and the Taxes of the Autonomous Community (Patrica), to face the pending payment with workers and suppliers and guaranteeing public services and the stability of these municipalities, until the state regulations are modified, according to the Government’s commitment.
This modification of the state regulations would allow them to carry out long-term credit operations for current expenses – they could only be granted, up to the moment, credits for investments-, with the endorsement of the taxes through the provincial councils, paying the debts contracted in a term of 20 years and in the best conditions “and without putting at risk the more than 270,000 citizens who represent these 11 municipalities or risk the basic services provided by these municipalities, nor the public employment involved in these consistories, with more than 4,000 workers among the 11 municipalities. ”
For its part, the president of the liquidating commission of the Lower
Guadalquivir Commonwealth and Mayor of Lebrija, María José Fernández Muñoz, thanked the Board that is next to the municipalities and has said that the liquidation is a “complex issue, difficult and worrying, “but has justified that” there was no other alternative to the financial situation. ”
He recalled the budget reduction recorded in this extinct local entity and the “impossibility” of the municipalities to finance, so that “given the circumstances that each session had, there was no alternative but the dissolution.”
Fernandez added that the 11 city councils jointly assume the obligations with workers and small suppliers and thanked the “sensitivity” of the Government and Junta de Andalucía that will help us to assume the priority payments we have, in terms of compensation, payroll not paid and debts contracted with those who have served in these 20 years of commonwealth. ”
He added that the commonwealth had a total of 450 employees, most of the students and recipients of programs with an end date but to whom the payroll of the last months is due. Of those, 60 were stable and indefinite employees. However, these 450 employees are owed compensation, scholarships, and payrolls for 8.5 million euros.
Fernandez has informed that the settlement agreement establishes a period of 60 days to assume the priority payments to workers and suppliers that have been working in the region for more than 20 years, and has specified that, thanks to the agreements that are being reached with The Board and the Ministry will be able to face this commitment with an advance of the PIE and the Patrica, while modifying the state regulations and allowing them to carry out long-term credit operations.
In the meeting on Monday were present affected municipalities and members of the ministries of the Presidency, Finance and the Department of Local Administration of the Vice Presidency, in addition to the councils of Seville and Cádiz, and it has worked on a plan of financing so that the municipalities have “financial oxygen” to be able to address the commitments with creditors and workers.
Valderas hopes to be able to give an answer before the end of next June
in no more than 35 or 40 days”, for which he expects agreement between the administrations to “facilitate the credits and loans and the adequate and necessary financing that makes possible to the municipalities to address this liquidation and overcome the problems. ”
The vice president of the Board insists that “workers and small and medium creditors are a priority” and hopes that “good mood” between the Junta and the central government and the councils of the commonwealth “will come to fruition in the coming days.”
Valderas explained that the idea is to incorporate in the Law of Rationalization that is currently processed and that is in the Senate can be incorporated that amendment by authorizing these municipalities the formalization of long-term credits for current expenses, something they expect to be carried out before the summer.