A proposal to create a national fund compensating owners for the loss of use of properties in the north, was discussed on Tuesday at the House refugee committee.

Current legislation channels 0.4 per cent from each real estate transaction into the fund, generating €20-€25 million annually.

Based on this, for four out of ten property owners benefits would only be €2 per month.

Committee chairman Nikos Kettiros questioned whether the compensation process had sufficient substance.

“We talk about this amount for so many hours when we meet, and I wonder whether the salaries of the guests who take part in the Committee meetings are worth the amounts we are discussing,”.

The committee also debated whether the loss of use should be calculated from the Turkish invasion of 1974 or from the bill’s approval date, with the prevailing view favouring 1974 as the starting point.

Officials discussed whether compensation should extend beyond natural persons to companies or other organisations that owned property in the north.

The interior ministry’s Yiannos Sophocleous confirmed that draft regulations must pass the board of directors and legal review before finalisation.

“There are differences, especially in interpretations and definitions. We have started the process,” he said, signalling further deliberation before the fund can be fully operational.

The committee is now attempting to finalise the legislation before parliament dissolves ahead of the May elections.

According to Kettiros, the finance ministry favours implementing compensation through the Agency for Equal Distribution of Burdens rather than the proposed loss of use fund.

“Ways must be found so that this fund can be strengthened, otherwise it has no substance,” he said.

MPs also raised questions about how compensation would be calculated, including whether payments would depend on the type of property whose use was lost.

Kettiros pointed out that differences in land use could complicate the formula.

“If a hotel occupied 1,000 square metres, would it be compensated the same as an orchard of the same size?” he asked, remarking that such issues remained unclear in the draft law.

The committee also examined whether legal entities, including companies and the church, which owns significant land in the north, should be eligible for compensation.

Kettiros said excluding such entities could increase the amount available to individuals.

Disy MP Giorgos Karoulas said the goal was to establish a comprehensive framework before the current parliament completes its term.

“The aim is to give dignity and justice to the displaced,” he said, while acknowledging that the current funding model based solely on the property transaction levy amounted to “crumbs” and could not provide meaningful financial support.

Karoulas said the intention is to eventually expand the resources available to the scheme without harming the wider economy.

“We are not aiming to derail the economy, but through savings from state budgets and prudent financial management we can speak about financial support for the loss of use,” he said.