Sea

Vidmantas Matutis

2011-12-14, 16:01

Gap between port and city to increase

Gap between port and city to increase
© Vidmantas Matutis photo

Already now, there are misunderstandings between city and port. It is difficulto for townspeople to understand why they have to endure smells and noise pollution, without receiving a retribution.

What is the use of port?

The Government‘s decision to take money, about 50 million LTL, from the Klaipeda State Sea Port Authority, in order to cover budget deficits, sounds like a contradiction. The decision angers the inhabitants of Klaipeda. A person living in the outskirts of port hopes that part of the money earned in the port should go to improve their environment and city. This is how it works in the rest of the world. Seaports are the freest, most beautiful cities because the shipping industry has always provided them with an additional income. It is enough to cast a look at such port cities as Riga, Tallinn, Ventspils or Gdansk. Even Liepaja, whose operations are tenfold lower, in some respects, looks more attractive than the only Lithuanian port city. The fact that the number of cruise ships tourists felt in Klaipeda says a lot. The number grew elsewhere. Klaipeda is one of the poorest-looking seaports in the region with its abandoned buildings, lifeless old town, smashed streets, shabby roads, gray living houses with their car lots packed with cars.

Considerable profits

The Port Authority has prepared a plan of 2012 and submitted it on 1 December, but it will need to re-adjust it. It is unclear how this year‘s profit will be divided and how much of it will be transferred to the state budget because of emergency decision by the Seimas‘s adopted law in early December. So far, the Port Authority did not pay their profits to the state. For the funds received, the port was developed. The opinion was held that the cargo handled in the Lithuanian port creates tremendous added value for our economy. Therefore, the development of port was held a stimulus tool for Lithuanian economy. Now, when the state budget has huge deficits, it seems there is no need to stimulate economy. All they need is to get more money to fill in deficit holes. The profits of Port Authority are not low. It comes from ship charges, land rents, minus the money spent on managing and operating costs of organization. This year, 83 million LTL profit was planned. In reality, it will be even higher. As stated by the Klaipeda State Sea Port Authority Economic and Financial Director Martynas Armonaitis, the profits of 11 months were 134 million LTL. It was 19 per cent more than planned, meaning that profits this year will increase in 15-20 per cent.

City‘s projects to suffer

The CEO of Klaipeda State Sea Port Authority Eugenijus Gentvilas spoke about the fact that the money distribution will change within the organization and it will have to prioritize. The funds for projects connected with city and its well-being, citizens and marine culture will be cut down.

“Port Authority is implementing a number of social functions. While the Government did not require taxes, they could impose social projects on us. Now, this view is due to change. If the Government takes tax money from us, they will have to implement social programs,” – claimed Mr. Gentvilas.

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