PARLIAMENT ENDORSES RAILWAY BILL IN ITS FIRST READING

ZAGREB, May 8 (Hina) - Despite much criticism, all party benches in the Croatian parliament on Thursday adopted a government-sponsored bill on railways in its first reading. They assessed that the transformation of the Croatian Railways company (HZ) was necessary because it was technically and technologically lagging behind EU countries. #L# Most party benches disapproved putting local self-governments in charge of railway maintenance as, they said, considering the current budgetary funds being set aside for this, regions would not be able to attend to railways adequately. Some benches, such as the Croatian Party of Rights/Croatian Christian Democratic Union (HSP/HKDU), for example, voiced their reserve towards the envisaged division of HZ into transport and infrastructure. They also pointed to the out-of-date infrastructure and rolling stock. Presenting to MPs the HZ's business plan for 2003-2007, Maritime Affairs, Transport and Communications Minister Roland Zuvanic said about 15.3 billion kuna (approx. EUR2 billion) needed to be invested into the HZ in said period. Croatia's interest area in cargo transport is Central and South- Eastern Europe, especially the former Yugoslavia, as well as orientation towards harbours. In passenger transport, Croatia's interest is orientation towards markets which gravitate towards tourist destinations. Speaking about the proposed programme of financing and managing local railways, Zuvanic warned that if the mentioned goals were not accomplished, the government would have to close some local railways and cease passenger traffic. Around 750 million kuna (EUR99 million) need to be invested into local railways in the next five years, in which counties should participate with ten percent of the funds, Zuvanic believes. (hina) lml sb