LETTER TO PRESIDENT FELIZ

by VICENTE QUINTANA Mr. Adán Martín: After reading your statements yesterday in Brussels, regarding the Canary Islands Investment Reserve (RIC) in the new REF renewal framework, in ...

January 17 2006 (18:12 WET)

by VICENTE QUINTANA

Mr. Adán Martín:

After reading your statements yesterday in Brussels, regarding the Canary Islands Investment Reserve (RIC) in the new REF renewal framework, in which you say that you will include "the possibility of financing the creation of stable employment with RIC allocations", I would like to remind you that the main objectives when creating the RIC incentives are fundamentally the following:

• Promoting productive investment in the Canary Islands.

• The stability and economic and social development of the Canary Islands.

• Maintaining and creating stable employment.

The economic and social reality of the Canary Islands indicates that, despite the "good" intentions of the legislator, the statistical data of the ISTAC and the INE (it would be desirable for them to agree), reveal how perverse this fiscal incentive is.

The advance of the population census of the Canary Islands to 01/01/2005 amounts to 1,962,193 inhabitants. And we have that:

• 24.1% of the population is below the poverty line... 472,888 citizens.

• Approximately 130,000 citizens registered on the unemployment lists... 13.82% of the employed population.

• Approximately 267,020 citizens with temporary contracts... 32.56% of the employed population.

• The salaries of the Canarians are 17.4% lower than the state average.

• Canarians pay more for personal income tax. Since 1995, the tax burden has increased proportionally more than in the Spanish State and in Europe.

Let's add to all this the situation of agriculture, industry, health and education.

Let's add that first the construction of new tourist accommodations is incentivized with the RIC allocations, and later an attempt is made to redirect the oversupply with the tourist moratorium.

The materializations of the RIC in soil and cement have had a pernicious effect on the price of a scarce commodity in our islands, such as land, and a tourist oversupply that has significantly unbalanced the market of the current Canarian monoculture.

In this aspect, the institutional bodies have promoted real estate speculation for the benefit of certain developers, increasing the price of housing in the Canary Islands in the period 1996/2004 by 104%, while salaries have grown by 1.6%, discounting inflation.

To all this, allow me, Mr. President, the clumsiness of an average citizen, resident in this "happy world" that you have described on several occasions. I have a small mess: if after having affected almost 15,000 million euros in the RIC in the period 1994/2004, and having reached the end of this period with 130,000 unemployed and the greatest job insecurity in the Spanish State, what are you asking us, is that the citizens of the Canary Islands continue to endure the situation described? That, in addition, with the fruit of our labor, capital continues to accumulate? And that with public money (the untaxed taxes of the RIC) we pay our salaries?

Mr. President, with all the respect you may deserve, I recommend the calm reading of one of the most brilliant Canarian authors: Alonso Quesada.

The reference text is titled "Canarias Warehouse" (popularly known as Banana Republic).

From the "Islands of Happiness", a citizen who, despite his "government", is happy, greets you attentively.

(*) Vicente Quintana is the Organization Secretary of UNIDAD DEL PUEBLO

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