The state has reached an “amicable settlement” with contractor Cyfield through the legal service, following the termination of its contract for the first phase of road works in Akamas.

The environment department’s permanent secretary, Costas Konstantinou, provided the update to the House finance committee, which was examining the Agriculture Ministry’s annual budget.

He said a disciplinary investigation into the extensive breaches of legally binding environmental conditions remains with the legal service, whose officer is leading it.

No conclusion has been reached, and the cabinet, which has the competence, cannot yet act; he offered no terms for the settlement.

Agriculture Minister Christos Senekis presented a budget of €532 million for next year, up €18.7 million or 4 per cent from €513.2 million this year.

Water accounts for €230 million, or 43 per cent, compared with €200 million, or 39 per cent, this year.

Spending in the water market rises by €26 million, or 18 per cent, because of new mobile desalination units and purchases of recycled water.

Senekis said planning for four permanent desalination units, which will cover more than 100 per cent of daily water needs, will be completed around 2030 to 2031.

He said the budget reflects priorities of “water sufficiency” and support for the primary sector.

On foot-and-mouth disease, Senekis said the priority is to restart affected livestock farms as quickly as possible because of the effect on public finances, though no date has been set.

Veterinary Services director Christodoulos Pipis said some farmers had delayed matters by failing to disinfect their units despite fines, to the detriment of those ready to restart.

Compensation for lost income will be paid 50 per cent when animals are ordered and 50 per cent when they are installed.

Cyprus, Greece, Bulgaria and Romania have started an initiative to relax EU restrictions during outbreaks of disease, which will be stepped up during Greece’s presidency of the EU Council in the second half of 2027.

On halloumi, the ministry is mediating talks among cheesemakers, cattle farmers and sheep and goat farmers on the PDO quota.

European experts have found that by June 1, 2029, there will not be enough sheep and goat milk to meet the 51 per cent requirement.

The ministry has two schemes worth €2.4 million for higher fertiliser and agricultural oil costs, and €4.6 million of EU money for the 2025 drought.

Both will be paid by February 2027, though Senekis conceded they do not cover the problem in full.

Landfilling of waste stands at 63.5 per cent, against a 10 per cent target for 2035.