GOVT. DISCUSSES ENTREPRENEURIAL ZONES

RIJEKA, April 23 (Hina) - Entrepreneurs in peace-time Croatia must be what soldiers were for Croatia during the war, Vice Premier Andrija Hebrang said at a session of the government, which met in Rijeka on Friday to define a programme of development of entrepreneurial zones until 2007.#L# Goals defined in the programme include an increase in the number of entrepreneurial zones to an average of 20 in each county as well as an increase in incentives for new zones from the current 84 million kuna to 300 million annually. The government believes that entrepreneurial zones should promote small and medium-sized entrepreneurship and that the number of employees in new zones should be increased from 3,000 to 10,000 annually. In setting up the zones, the government counts on cooperation from local government units and is ready to provide financial assistance. The programme also envisages tax benefits for entrepreneurs operating in entrepreneurial zones, including exemption from the payment of profit tax in the first three years. Economy Minister Branko Vukelic said the project was not directed against big entrepreneurs. Government officials also announced that vocational schools would this year be allocated 4.3 million kuna of budgetary funds to improve the quality of their curricula. They called on the private sector to cooperate with the government in development projects, and PM Ivo Sanader dismissed claims that the partnership between the private and public sectors would stop the privatisation process. The government today also agreed to launch procedure to sign an agreement with the World Bank on a project for protection against water pollution in the coastal area, totalling 85 million euros. The Bank is to grant Croatia a loan of 40.4 million euros for the project. (Hina) rml