We Want Our Money Back: Town halls have to repay

Let's say you are the head of a major European country which unfortunately finds its economy being held together by a flimsy piece of string and short of a Roberto or two. What do you do? Raise taxes? Yep, can do. Cut investment? Sure, why not? How about asking for your money back? Sounds a bit of a wheeze. And who should you ask for your money back? There are a few targets. Why not go for local authorities? What a splendid idea.

Mr. Bean's bean-counters in Madrid have come up with a cracking scheme to trawl back some badly needed moolah to fund the central government's drinks cabinet. That money we gave you, you now being a local authority; that money we gave you in 2008. Well, we want you to hand it back. Not all of it. That would be greedy. Just some of it. For example, that which you failed to collect in taxes. Yes, we know there's a recession on and that you might yourselves be turning out pockets of old coats and jackets in the town hall wardrobe in the hope of uncovering the odd euro or thousands, but we're brassic as well, and we're bigger than you.

The local authorities of Mallorca are none too impressed with this latest initiative. It might demonstrate initiative on behalf of an improvising central administration, but mayors are not about to applaud. And it's not just the mayors. Oh no. The Council of Mallorca. Them as well.

The funding in 2008, as with any funding, is meant to be partially balanced by what the local authorities drag in. The government, you might be surprised to learn, doesn't just hand the cash over willy-nilly. Nevertheless, the town halls find the demands for repayment slightly lacking in logic. While on the one hand the government has doshed up for projects under its so-called Plan E system, and made a song and dance about how wonderful this all is, on the other it's taking money back.

One has some sympathy for the mayors who say that all manner of projects will have to be stopped in order to boost central coffers. However, sympathy can be stretched. Take, for instance, Inca town hall. Under this payback scheme, it's liable to have to fork out a touch over 600,000 euros. Strange. Haven't we heard about 600k before when it comes to Inca? Oh yes, so we have. The 600 grand over-spend on the local swimming pool. The government doesn't presumably just pluck figures out of the air. Of course not. It might, though, take a cursory glance at the books and work out that there might just have been some inefficiency when it comes to the spending of its money. Take also the Council of Mallorca. It's in for a little under five million. Sounds reasonable if one takes account of what it has managed to fritter away or had "borrowed" by certain politicians. Remember, for example, the four hundred grand on a Catalan campaign. Yep, that was the Council's money. Or maybe it wasn't.

No, to be honest, I don't know that I do have much sympathy. Not all local authorities are staffed by wastrels and crooks, but if the Zapatero drive is a control and responsibility initiative dressed up as a financing one, then maybe it should indeed be applauded.


Any comments to andrew@thealcudiaguide.com please.