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Sanader criticises Rajic for failing to consult gov't about Dukat sale

ZAGREB, March 27 (Hina) - Following the acquisition of leading Croatian dairy company Dukat by France's Lactalis, Prime Minister Ivo Sanader said on Tuesday that his government would ensure that all milk was purchased from domestic producers.
ZAGREB, March 27 (Hina) - Following the acquisition of leading Croatian dairy company Dukat by France's Lactalis, Prime Minister Ivo Sanader said on Tuesday that his government would ensure that all milk was purchased from domestic producers.

After meeting managers of another major dairy company, Vindija from Varazdin, Sanader told a news conference in Zagreb that milk from Croatian farms would be purchased and that this was an independent decision of his cabinet that did not depend on Vindija's potential for purchasing milk.

Commenting on the government's position on a recent decision by former Dukat owner, Luka Rajic, to sell over 90 percent of shares to Lactalis, Sanader said that his cabinet and his party - the Croatian Democratic Union (HDZ) - supported entrepreneurship and entrepreneurs as well as domestic and foreign investors.

Every arrival of investors, both domestic and foreign ones, who create more jobs and raise GDP is welcome if this is in compliance with national and European rules, Sanader said.

Sanader criticised Rajic for his failure to consult before the Dukat sale those who invested the most in the Croatian dairy sector, notably the government, which provided incentives, and producers. In this context, Sanader said that milk production had increased 20 percent over the last two years.

It is logical that the government is interested in the stability of the dairy sector, the premier explained.

Sanader declined to comment on a move by the Konzum store chain not to sell Dukat products due to the latest developments around Dukat, adding that it was up to the Croatian Competition Agency to decide on the issue.

The premier announced meetings of government officials with Luka Rajic and Lactalis managers in the coming days.

Asked whether the Dukat case had prompted the government to consider measures to define institutionalised mechanisms to protect Croatia's strategic industries, Sanader said the government had been making efforts in this regard for some time.

In this context he mentioned the government's decision to keep its stakes in food maker Podravka and electric power utility HEP and not to sell state-owned land and control of water resources.

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