Tuesday 24 July 2012

Scandalous Privatization in Train Station

On July 24, about 150 traders and some workers protested in Warsaw against the scandalous privatization situation they are facing. The traders have small shops in the underground passages around Warsaw's Central Railway station. They had contracts with the city to rent the shops and some have been there for over 20 years. Many of the shopkeepers are small family businesses or run by women.

Before the Euro 2012, the station was renovated and the shops had to close for some time. Now the traders found that their shops are locked and a private firm has taken over. The private firm, MPP, has raised rent by up to 500%.


This means that rents are up to more than 180 euros per meter around the station! Of this, the city receives less than 10 euros and the private company the rest. The company, MPP, is run by the same people who used to administer the city property.

The obscenity of this can be scene when you see these are about the highest rents in Poland. At the luxury Golden Terraces shopping mall behind the station, shops can be rented for about 75 euros a meter.

This is clearly a way for this company to drive these shops out of business. Currently in the station there is hardly anywhere to buy anything, except for a few very expensive cafes.

About 700 people are about to become unemployed because of MPP's actions.

The traders protested, demanding a stop to the situation. Amongst their many complaints was that this commercial space was privatized. This means that less than 10 euros per meter, a small fraction of what can be fairly earned, goes into the city budget. Many of the traders complained that the city is draining their own budget in favour of a few cronies. Instead they demanded the city run the property and spent the income on other social needs to benefit other Varsovians. They mentioned the drastic situation of kindergartens and other social services which are terribly underfunded.

Several activists of the Tenants Defense Committee and ZSP supported the protest in light of the social consequences of the issue.


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