Rebel MPs booted out of government

RIGA - Four members of Latvia's New Party were expelled from the governing coalition this week after voting with the opposition on a bill to exempt traditional religions from property taxes.

A spokeswoman for Prime Minister Andris Berzins denied accusations made by Lutheran Archbishop Janis Vanags that the government had broken its election promises on the issue. The row couldn't have come at a worse time for the government as tension mounts over the privatization of the Latvian Shipping Company and as campaigning for local elections in March gets into full swing.

Aija Matule, a senior adviser to Latvia's Way - the prime minister's - party, said the MPs had mocked Berzins by their actions.

"At an emergency meeting of the coalition council the New Party said they were split on the issue. The prime minister demanded their support, but 20 minutes later all of them voted for the opposition. You can't say one thing in the council and then do something else."

But Vanags says struggling parishes have been betrayed by the government.

"Under the previous Parliament all church estates were exempt from taxation," he said. "Before the election all the parties except For Human Rights in a United Latvia said they would leave those laws intact. With the exception of the People's Party the parties even went further and said they'd exempt the church from the VAT it pays when it restores buildings and provides social care. Now, when the Social Democratic Workers' Party challenges the government to keep its promises, it very clearly says no. It treats election campaigns as a kind of performance art. Not fulfilling election promises is a kind of forgery."

Vanags rejects Matule's claim that only property used for commercial purposes is subject to taxation.

"My understanding is that only estates used for business are to be taxed, but the definitions are unclear. Some MPs think property used for Sunday school is exempt, and some don't."

Matule admits a mistake was made when the church sent out questionnaires to parties standing at the last election, but she denies that the government has broken its promises.

"The person who filled out the form has now left his post," she said. "The government never promised anyone anything. The questionnaire allowed only yes or no answers. For complicated propositions there was space to write only one sentence. It was not a proper discussion. Things change. You can't predict the needs of the state and the tax system two or five years in advance.

"Taxing properties used for commercial purposes is only fair. It's normal to create equal competition between property owners."

The rules allow municipalities to grant tax exemption to commercial properties, said Matule.

She defended the decision not to expel MPs from the more influential For Fatherland and Freedom party who also voted against the government.

"For Fatherland and Freedom swung the vote in our favor," she said. "They were going to allow a free vote but then promised us 80 percent support, with others abstaining and only a couple voting for the bill. They did all they could to help."

None of which satisfies Vanags.

"Why does the prime minister choose these MPs? What's the calculation here? We have to maintain these monuments of architecture and art, and the state expects us to help deal with drunks and drug addicts, but if our buildings collapse we'll get the blame."

The Latvian media reacted with bemusement on learning that a group of MPs who recently parted company with the rebel New Party group voted with the government. Having named themselves the New Christian Party they might have been expected to stand up for the Lutheran Church.