We receive information, with data laid out on the table, about tenders for certain works that start at X and end at Y, where Y can be much higher than X. As long as the value does not reach Y, no one bids. This is extremely unusual and warrants close attention from those with a duty to investigate these matters. Either someone does not know how to budget for tenders, or the profits on the works are exorbitant. We are well aware that wars are ongoing. But the truth is that the world has always been at war. And it will continue to be, for that matter.

The price of public works is reaching limits that until recently were the stuff of imagination. And in a scenario of abundant public works at inflated or merely high prices, the public budget—which is all of our money—suffers, as do private individuals, who pay what they have and what they don’t have for small works that are often urgent. Prices are rising across the board—and jumping to levels that are far beyond the meager budgets of those who earn the wages paid in the Azores. Just yesterday, a citizen came to us who had been presented with outrageous estimates to repair a bathroom that really needs repair.

The solutions to this are classic and may be of interest to the Azores at the current moment in public finances. First of all, halting public works for a certain period could help stabilize prices for everyone, including both the public and private sectors. Of course, we are involved in the PRR (Recovery and Resilience Plan), and it could be said that stopping work is equivalent to not returning or not taking advantage of money, etc. (The consequences of continuing will be assessed in the not-too-distant future…). The other option would be to maintain the works or even increase the pace, but to encourage competition by introducing international companies into the market, even if it means resorting to certain incentives, fiscal or otherwise, such as work packages specific to these entities. This is another possibility that could have positive consequences.

Indeed, construction prices (from labor, regardless of what is actually paid to the worker, to basic construction materials and others) have skyrocketed. However, it is equally true that prices are skyrocketing among us, reaching levels that are unaffordable for the average citizen. This means that something is going wrong, and, in our view, fundamental political measures are necessary.

The new São Jorge slaughterhouse started at 7.5 million in the tender. Nothing done. Then 10.5 million. Same thing. Finally, 12.3 million. Then, yes, some wanted it. All of this is very abnormal.

Editorial Board of the newspaper Diário Insular

NOVIDADES will feature occasional opinion pieces from various leading thinkers and writers in the Azores, providing the diaspora and those interested in the current state of the Azores with insight into the diverse opinions on some of the archipelago’s key issues