Ruling Disy leader and presidential candidate, Averof Neophytou, on Sunday called for subsidies for producers with the highest costs as part of the support package being formulated by the government in the coming week.

Speaking in Pissouri as part of his tour of rural communities, Neophytou said the subsidies and support should not only be directed to compensating producers for losses but to ensure they increase production due to rising inflation and expected food shortages.

“I have a clear position that the state, based on its financial capabilities, should support the sectors that have the highest costs and have suffered the greatest damage due to the huge increases we are experiencing, and the livestock sector is one of them,” he said.

“Any measures the government will announce for support based on its capabilities must be based on production. Do we want more milk? We should not just subsidise. The subsidy should be based on production and the more milk one produces, the more support [they should get].”

He also made reference to layoffs in the banking sector and the closure of more branches. Pissouri is one example where the local Bank of Cyprus branch will close in July.

Neophytou said depositors, shareholders, holders of securities, and all of Cyprus’ taxpayers made sacrifices so that the banks could survive.

“Banks have been supported by the taxpayers and those I have mentioned, and by the state so they have a very heavy social responsibility that they should not ignore in decisions they make,” he said.

“We respect the independence of each organisation but we also know there are ways to protect social cohesion.”

The cabinet is expected to announce a series of support measures on the economy on Friday next.