ZAGREB, March 1 (Hina) - The Croatian parliament ended this week's sitting with a debate on a bill on the privatisation of the Croatian Power Industry (HEP), which party benches described as unfinished and imprecise. The bill will
probably cause a rise in unemployment so its adoption should not be rushed, said Zeljko Glavan of the Croatian Social Liberal Party (HSLS). The bill should be thoroughly amended to include a list of HEP's entire property and not only its systems for electricity production, transport and supply. Tonci Tadic (Croatian Party of Rights/Croatian Christian Democratic Union, HSP/HKDU) said HEP's privatisation was not necessary, it was exclusively a commitment the government took over by signing the stand-by arrangement with the International Monetary Fund (IMF). HEP's efficacy will not be achieved by privatising the company, but by ensuring more efficient and better management,
ZAGREB, March 1 (Hina) - The Croatian parliament ended this week's
sitting with a debate on a bill on the privatisation of the Croatian
Power Industry (HEP), which party benches described as unfinished
and imprecise.
The bill will probably cause a rise in unemployment so its adoption
should not be rushed, said Zeljko Glavan of the Croatian Social
Liberal Party (HSLS). The bill should be thoroughly amended to
include a list of HEP's entire property and not only its systems for
electricity production, transport and supply.
Tonci Tadic (Croatian Party of Rights/Croatian Christian
Democratic Union, HSP/HKDU) said HEP's privatisation was not
necessary, it was exclusively a commitment the government took over
by signing the stand-by arrangement with the International
Monetary Fund (IMF). HEP's efficacy will not be achieved by
privatising the company, but by ensuring more efficient and better
management, Tadic said.
He opposed the model of open market of power products, advocating a
single buyer system, which he claims is the only one that can
guarantee the stability of electricity prices.
Milan Kovac (Croatian Democratic Union, HDZ) asked how the process
of privatisation would affect HEP's investments in the Bosnian
power industry.
Economy Minister Goranko Fizulic said HEP's investments in Bosnia
could not be included in the company's overall property. The issue
of HEP's investments in other former Yugoslav republics will be
regulated in the process of succession, except in the case of the
nuclear power plant Krsko, as Croatia has been given back its share
in the plant as its co-owner.
Speaking about the single buyer model, Fizulic said the model had
been abandoned by all countries, except for Italy, and partly
France, which has been privatising part of its power system.
The privatisation of INA and HEP is the only way to make those
companies create a capital market in Croatia, which will make it
possible, for example, for money from pension funds to remain in the
country, Fizulic said, calling on the parliament to reach a
consensus on the privatisation of the two state companies.
The parliament today did not vote about the discussed bills due to
lack of quorum, so the vote was postponed for next Wednesday, when
the session resumes.
(hina) sb rml