Palma.— Economy and Tax Councillor Julio Martinez said yesterday at City Hall that 1.7 million euros has been calculated to reassure Central Government that the management of the future conference centre and hotel will be financially independent.

The Councillor said that if the management pay this amount each year, it will total 68 million over the 40 year contract period, half the cost of construction.

He added that if the private annual income of the management company “Palau de Congressos S.A.” doesn't exceed 50 percent of its expenditure, it will be considered as an organisation in administration and would have to ask Central Government for permission to ask for lines of credit. Martinez said that this prerequisite further complicates the future running of the Congress Palace but “does not rule out its success”. “It's possible,” said Martinez, “that Central Government would back the venture even if it were seen to be struggling initially because it could view the infrastructure as a key means to help tackle the economic crisis.”


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