Portimão council prioritises payment of staff wages

Portimão council ‘anticipates’ paying its workers' wages for June and their holiday bonuses without deductions after the Constitutional Court said the taxation of bonus payments was unconstitutional, according to the mayor.

With a 2014 budget of around €38 million, Portimão has a wages bill of €15 million and the staff always have been paid on the dot, unlike suppliers to the council which have had to wait an average of 2 years 6 months for settlement of their invoices making Portimão council the worst payer in the country.

According to mayor Isilda Gomes, despite the council’s financial problems, the municipality has secured enough money for the payment of June salaries and holiday bonuses.

"We will make every effort to ensure that the full payment is made without any deductions," said Gomes, adding that the administration "has as its first concern the salaries of the council’s workers." Good news for the workers but not such good news for the hundreds of suppliers that also have families to feed and mortgages to pay.

With a debt of around €150 million, Portimão applied to the Programme to Support the Local Economy for a bailout of €133 million but was refused as the council clearly was and is insolvent, so did not qualify.

Next onj the list is the Municipal Support Fund which Gomes believes will stump up the necessary cash for the benefit of her workforce, and the council’s suppliers, in that order.

"We believe that we can overcome this difficult situation by accessing the Municipal Support Fund which has already been approved by the Government," said Gomes, adding that she believed the money needed to pay Portimão’s debts "will be available soon."

According to the mayor, the current council management has been balancing payments to creditors with the needs of employees (it appears the employees are winning) who “have to manage their homes and to support families with financial problems.”

The mayor said that she is "confident that the financial problems of the city will be over in the short term, because the Government has shown an openness to help overcome the situation."

"The discussion in parliament for the signing off of the Municipal Support Fund is scheduled for June 18th, which means that we are confident in finding a quick answer for Portimão," said Gomes.

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