16.09.11. 08:40:00 NEWS-H9160451
BRIEF NEWS BULLETIN NO. 7997
OPPOSITION COALITION SAYS ECONOMIC RECOVERY, EMPLOYMENT ITS PRIORITIES
ZAGREB, Sept 15 (Hina) - The leaders of the SDP-HNS-HSU-IDS opposition coalition on Thursday presented their programme for a parliamentary election later this year called "Platform for a Better Croatia", comprising 21 items, but did not go into detail, saying they would do so in open dialogue with voters.
Economic recovery and the re-employment of those who lost their jobs because of the economic crisis are the key priorities of the economic policy on which the SDP-HNS-IDS-HSU opposition coalition bases its election platform, whose goal is a five-per cent economic growth rate at the end of its four-year term.
Aside from stabilising economic growth and boosting competitiveness, the Alliance for Change coalition intends to provide room for new industrial processes with the end goal to increase output, GDP, exports and employment.
The coalition is firmly committed to renewing industry, increasing industrial output's share in GDP and directing at least 50 per cent towards export and using as much as possible the opportunities Croatia will have upon entering the common European market, Radimir Cacic, president of the Croatian People's Party (HNS), said at the presentation of the election platform.
"Industrialisation is the path for Croatia, that's Croatia's tradition and legacy," said Zoran Milanovic, president of the Social Democratic Party (SDP), stressing that the coalition's entire platform focused on strong and sustainable economic growth and sensible spending of state funds, without which, he added, Croatia would not be successful in the European Union.
"Croatia's biggest chance is openness to ideas and readiness to play the game," he said.
Cacic said the essence of the coalition's economic model comprised investment, industry, exports, innovation, and integration. He announced a reduction of illiquidity, saying that the state, as the biggest creditor, should take a more active role in that, even by entering the ownership structure of companies facing liquidation.
Cacic announced the development of modern industrial sectors, while retaining traditional industries, as well as tax relief and other ways of reducing the economy's costs, while increasing its competitiveness.
Cacic announced a greater investment potential and a radical removal of barriers to new investment. He said investments should focus on tourism - by building hotels along the entire coast; on energy - by building hydroelectric power plants, including four on the Sava, as well as gas storage spaces and pipelines, and by exploiting renewables; on infrastructure - corridors Vb and X; and on irrigation and environmental protection.
Cacic said about HRK 15 billion was planned for those investments, the majority of which would be used by the end of the coalition's term of office.
"Those four development investment pillars are enough for increasing GDP by 2-4 per cent annually and the money will come from private donations, EU funds, our own and other sources as well as from public-private partnerships," Cacic said, stressing that it was also necessary to use the "currently dead" HRK 40 billion in the pension funds.
Asked by the press how the coalition intended to effect those investments, since it did not envisage major cuts or economies in public spending, Milanovic said the money was there, in pension funds, EU funds, public-private partnerships and other sources.
Milanovic said tourism offered a big chance and a lot of room for progress, especially by enabling people to live off tourism as a primary and no longer as an additional activity. He added that environmental protection would also be a priority but not by "choking" entrepreneurship.
Speaking of state incentives, Cacic said national interests would no longer be subordinated to particular ones, announcing a public administration reform through a mandatory evaluation of the performance curve of its employees.
Milanovic said the public administration reform would not mean "purges and revenge-seeking" but transforming it into a service for the citizens.
"People will have to work more and those who can't... We certainly won't be coming with brooms," said Cacic.
He announced a balanced tax system, a balanced distribution of the income and profit tax burden in relation to the capital which, he said, did not mean higher taxes.
The Alliance for Change coalition said it did not intend to privatise state companies of strategic importance. "Energy, power supply, forests and waters management and railways will remain state-owned. We will optimise the ownership portfolio, even allowing for the influence of private capital, but the state will remain the owner," said Cacic.
The coalition's leaders announced the revocation of privileged pensions for MPs, government members and Constitutional Court judges.
Croatian Pensioners Party (HSU) president Silvano Hrelja said the coalition, when it came to power, would do its utmost to bring the amount of the average pension close to that of the average salary by the end of its term and to finally index pensions to price growth. He announced the abolishment of a three-per cent tax on pensions exceeding HRK 5,000 as well as of penalisation for early retirement.
Milanovic pledged education affordable to everyone and open dialogue with the academic community about relations at universities, autonomy of their schools and the appointment of deans.
He pledged open dialogue with war veterans as well, "a fair treatment of the people who risked their lives for Croatia," saying that their entitlements would not be diminished. He added, however, that he did not want "intolerable mediation" but direct and open contact with as many veterans as possible.
The judiciary will be rid of any political influence, Milanovic said, stressing that the state's objective was not fighting corruption but a corruption-free society.
All four coalition leaders were agreed that their programme guaranteed a better Croatia, that it was not a magic wand and that there were no magical solutions, and that these were solutions their parties had been talking about for years.
"This is an election for faith and trust. There will be many similar ideas during the campaign, but the key is in the fight for citizens' trust and we believe that we are the ones who will win their trust," said Milanovic, adding that their coalition "symbolises a dawn, an awakening, a new beginning."
"We will build a happier and better home, I'm convinced of that. There will be mistakes, but I'm sure than in four years this country will look different, better and happier," said Istrian Democratic Party (IDS) vice president Damir Kajin.
PM SAYS OPPOSITION'S PLATFORM DEVOID OF ANYTHING CONCRETE
ZAGREB, Sept 15 (Hina) - Prime Minister Jadranka Kosor on Thursday criticised the platform presented earlier in the day by four major Opposition parties, saying that it was actually "a programme devoid of a programme".
Ahead of a conference on Bosnian Croats which was to be held in a Zagreb hotel, Kosor told reporters that there was a discrepancy between what had been announced about the platform and what was presented earlier in the day.
She said that parts of the Opposition's platform were taken from the programme of her government, notably relating to the energy sector.
Kosor said that she had not managed yet to look at the programme but that she had seen comments in the media on what Zoran Milanovic, leader of the Social Democratic Party (SDP) had spoken about at presentations, and she held that the platform of the Alliance for Change "offered nothing encouraging" and that it contained nothing concrete "to be analysed at this moment".
Asked by reporters whether the ruling coalition would now hurry up with its platform, Kosor said that their platform was ready and that "we will present it when it suits us".
The programme will be comprehensive and broad, "covering all topics and segments of life in Croatia we deem to be of interest to the citizens," she said.
2011 FIRST IN SEVERAL YEARS WITHOUT BUDGET REVISION
ZAGREB, Sept 15 (Hina) - The state budget revenues in the first six months of 2011 came to HRK 51.3 billion, the total expenditures were HRK 59.9 billion, and all relevant figures indicate that the state budget will be executed by the end of this year as planned and that, after a dozen years with revised budgets, this will be the first year without a revision of the state budget, it was said at the Croatian government's meeting on Thursday.
The expenditures are being conducted at a slower pace than planned, which confirms that the budget will not need any revision for the first time after several years with revised budgets, Finance Minister Martina Dalic said at a government meeting from which the cabinet of Prime Minister Jadranka Kosor sent to the parliament a report on the implementation of the state budget in H1 2011.
PM Kosor highlighted the fact that the budget would not be changed this year which is an election year.
She recalled that state spending was frozen to last year's level and that the law on fiscal responsibility had been adopted.
Minister Dalic said that the H1 2011 revenues, in the amount of HRK 51.3 billion, were lower by 1.4% than in H1 2010.
Commenting on the lower revenues in H1 2011, she recalled that the so-called crisis tax had been abolished in the meantime and that in 2010, effects were produced by the one-off payment of INA's debt and higher income tax rates.
According to the minister, the collection of revenues in the first half of this year compensated for those differences and trends in revenues collection signal economic recovery.
Although lower tax rates are now in effect, revenues from the income tax increased 5.4% in the first half of this year as against H1 2010. Revenues from VAT went up 1.8% and revenues from profit tax were higher by 15.5%.
Expenditures in H1 2011 totalled HRK 59.9 billion, making up 49% of the plan for state spending for the entire year.
As a result, the state budget gap in H1 2011 was HRK 8.7 billion, which Dalic ascribed to the abolished taxes and to the collection of revenues in the first half of the year, which is usually weaker than in the second half.
GOV'T ON RELOCATION OF IVANJA REKA TOLL BOOTHS, PENSIONERS' COMPENSATION
ZAGREB, Sept 15 (Hina) - The Croatian government on Thursday gave its consent to the state-owned motorway operator HAC for the transfer of the Ivanja Reka toll booths on the A3 Bregana-Zagreb-Lipovac motorway four kilometres eastward, and for the construction of a new junction at Ivanja Reka, with the Swedish Ikea furniture producer co-financing a part of work on the latter project.
Transport and Infrastructure Minister Bozidar Kalmeta said that it was necessary to relocate the toll booths at Ivanja Reka four kilometres eastward and that the investment would cost HRK 110 million. This project will be entirely financed by HAC.
The related project is the construction of a new junction facilitating access to the A3 motorway, which is in the interest of Ikea which will build a shopping centre in the nearby town of Rugvica.
The construction of the HRK 125 million junction has been agreed by HAC and Ikea, with the Swedish group providing 80% of the funds. The rest will be secured by the national motorway operator, according to the minister.
Kalmeta said this project was approved by all relevant state agencies. Ikea's investment in Rugvica is estimated at EUR 300 million.
The government today also proposed to the Croatian Pension Insurance Institute (HZMO) to make a decision on the payment of a one-off bonus to pensioners this year and decided on the transfer of 29% of shares of the Croatia Osiguranje insurance company and 10.66% of shares of the Janaf oil pipeline operator to the Pensioners' Fund in order to secure the payment of the remaining installments of the government's debt to pensioners who should be compensated for the non-indexation of their pensions in the past.
As for the HZMO decision on the bonus to be paid to pensioners from the accrued profit of companies set up by the said institute, Labour and Economy Minister Djuro Popijac expressed hope that the decision would be prepared for the next meeting of the government.
Popijac said that the accrued profit of those companies was approximately HRK 125 million.
The government did not determine the amount of the one-off bonus to be paid by the end of this year, but the media speculate that the extra payment added to the pension may be HRK 100. The media have also reported that the amount could vary according to the amount of an individual monthly pension.
The government also decided to transfer 91,741 shares of the Croatia Osiguranje insurer, the market value of which is HRK 458.7 million, and 107,427 shares of Janaf, the market value of which is HRK 271.9 million, to the Pensioners' Fund.
The transfer of those interests, estimated at HRK 730 million, from the two companies to the fund is related to the payment of this year's installment of the government's debt to pensioners, which was caused by the non-indexation of pensions.
According to Popijac, the Pensioners' Fund will strengthen its financial potential in this way.
Prime Minister Jadranka Kosor said that the installment would be paid to 141,000 pensioners in Croatia.
Kosor said that the total amount of the compensation had been HRK 10.2 billion, and so far HRK 8.4 billion had been paid to pensioners.
In 2012, the amount for compensation installments is estimated at HRK 820 million, and an additional HRK 120 million in 2013.