Economy minister outlines plan to boost worker hostels to enhance labour mobility
The government, as part of its aim to promote labour mobility by boosting housing opportunities in areas with labour shortages, has reopened applications for the construction of workers’ hostels and renovation of buildings to be used as hostels, Economy Minister Mihály Varga said on Friday.
The government plans to disburse 5 billion forints (EUR 16.2m) in funds among local councils and the companies they own for the construction or development of hostels with a capacity for at least 80 labourers, Varga told MTI.
The local councils and companies bidding for the funds must commit to operating the hostels for a period of at least ten years.
The funding, which may be a combination of grant money and credit, can cover up to 60 percent of the cost of hostel investments.
Last year, more than 1.5 billion forints of the funding was awarded, creating 634 places for workers in six hostels in the capital and other cities around the country, the minister said.
Local councils have until the end of March to apply for the latest round of funding.
Source: MTI
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