The policy committee of the Social Democrat Party (PSD) in Olhão has justified rejecting the 2014 budget as it members were "trying to avoid increasing the council’s debt by more than €8.5 million."
Socialists Party (PS) members in Olhão accused the Social Democrats of being "two faced" after two of the ruling Social Democrat councilors abstained, which left the budget in tatters amid claims of "total outrage."
In fact the 2014 budget, for which the mayor claimed a consensus, only had the approval of three councilors of the seven that make up the council’s executive.
In the municipal assembly the budget was voted out with the help of all the opposition members who voted against its adoption.
The Social Democrats stressed today that "the economic situation in the county is too serious for basing a budget on a supposition, as we may be unable to sell off the assets mentioned for debt reduction."
The Social Democrats said that the mayor tried to get approval for a 2014 budget which had an €8.5 million deficit, representing 25% of income.
Hence the Social Democrats voted against increasing the debt burden, and rejected the document that was “merely a plan of good intentions authored by Mr. Mayor who is responsible for financial matters. He could not justify the millions that it intended to add to the overall deficit."
The Social Democrats in Olhão claim that the budget should be restructured, giving priority to economic development to promote job creation in the county, and simultaneously control public debt.
"Another key goal will be more effective and rigorous management of public spaces, as well as cutting subsidies to the municipal company Fesnima*" a Social Democrat spokesman added.
Finally the Social Democrats require the mayor, António Pina, to "retract public statements made in recent days which demonstrated a lack of institutional loyalty and a total disregard for democracy and the elected representatives of the opposition, who legitimately rejected the budget."
While this bickering goes on the council is rudderless, financially embarassed and politically at loggerheads. Consensus and leadership appear to be missing in equal measure.
* Fesnima was set up to promote Olhão through 'cultural, gastronomic, sports and recreational activities' and undertalkes a large amount of what the council should be doing anyway. It is a company operating from the council offices and suspicion surrounds it finances.
