José Manuel Bolieiro calls for "critical reflection" on future of the Local Finance Act - Communication

Presidência do Governo Regional

The President of the Regional Government, José Manuel Bolieiro, called on Thursday in Praia da Vitória for "critical reflection" on the Local Finance Act at a time when the National Government has already shown its willingness to present a new law on the matter.

"It is only right that local authorities and self-government bodies should reflect critically on the future of the Local Finance Law. As it stands, it has a detrimental effect on Portuguese municipalities and parishes due to insufficient resources for the distribution of national wealth, and it also penalises autonomy," he said.

José Manuel Bolieiro spoke at the ceremony marking the 43rd anniversary of the elevation of Praia da Vitória to city status.

For the President of the Government, a financial system that is "fair to the autonomous regions and complies with the constitutional references to their revenues" is required.

The current law, he said, deprives the Autonomous Region of the Azores and Madeira of their revenue "with the creation and indexation of the variable Personal Income Tax or tourist VAT rates, two examples of revenue deprivation" for both archipelagos.

And he insisted: "Today I am shouting out in defence of autonomy as regards the financial stranglehold imposed by the Local Finance Act on the financial system of the Autonomous Regions."

At the session in Praia da Vitória, José Manuel Bolieiro praised the initiative, which is "municipal in its scope" but "ennobles" the entire Region.

"Local power is a benchmark for doing good and the democratic value of the power closest to the people," José Manuel Bolieiro also defended.

"I am delighted to pay tribute to the people of Praia and to all the mayors who have created this legacy of progress," he said.