Escorxador i Serveis Càrnics Palma S.L. has asked Mercapalma for an annual rent reduction of 150,000 euros, after warning that meat supplies could stop at the end of this month.
The proposal was presented to the Mercapalma Board of Directors on Monday, who will now decide whether to accept it or not.
The company that manages the slaughterhouse will have to produce its 2019 accounts and justify any losses.
Last week, the Palma Mayor, José Hila, said the proposal could be a good solution to ensure the continuity of the slaughterhouse, after the Consistory stopped providing a grant of 150,000, based on an agreement that expired in 2017.
The rental contract which the company signed in 2012 for 185,000 euros, ends in 2024. That’s the same amount that was paid by Carn Illa, the company managed by the Balearic Government and the Palmesan Consistory, which was dissolved amid huge economic losses.
Escorxador i Serveis Càrnics of Palma was the only company that came forward when a 355,000 euro annual subsidy was offered by Cort and the Government to reduce losses at the slaughterhouse, which absorbs almost 90% of the livestock production in Majorca.