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GOVERNMENT FORWARDS NEW BILLS INTO PARLIAMENTARY PROCEDURE

ZAGREB, Aug 29 (Hina) - The Croatian government on Thursday forwarded a package of bills aimed at motivating investments into parliamentary procedure.
ZAGREB, Aug 29 (Hina) - The Croatian government on Thursday forwarded a package of bills aimed at motivating investments into parliamentary procedure. #L# Without the vote of four ministers from the Croatian Peasant Party (HSS), the government formulated a bill on the stimulation of investments which aims to motivate domestic businessmen to invest more and establish a competitive environment for foreign investors. The Minister of Trades, Small and Medium Businesses, Zeljko Pecek of the HSS, opposed the bill, claiming the inducements could not be used by tradesmen and co-operatives, but only companies. According to the bill, incentives would refer to investments into long-term assets for amounts greater than 272,000 euros. These incentives foresee decreases in the basic level of profit taxes, exemption from customs tariffs, special incentive measures in exceptionally justified cases, as well as leasing real estate and other infrastructure complexes owned by the state. The government also formulated a bill on free zones and free warehouses. The government adopted a decree on the founding of the Agency for the Promotion of Export and Investments which should commence work before the end of 2002. The Agency would, amongst else, educate exporters as to conditions of exporting to foreign markets, report on new business methods in international trade, and support exporters by subsidising special projects. The government formulated a bill on asylum which is the first time that a complete system of regulations relating to asylum will exist in Croatia. Applications for asylum would be submitted to the police while approval would be decided at the Interior Ministry. Interior Minister Sime Lucin pointed out that the actual application of the law required about one million euros to cover the costs of the increased number of personnel required, as well as ensuring of a collection centre for asylum seekers. The Interior Ministry will be granted a former barracks in Trstenik near Zagreb for this purpose, with a capacity for 200 asylum seekers. Also formulated was a bill on the protection of persons and property, which deletes a provision that until now did not allow foreigners to conducted security activities in Croatia. The government approved the opening of six border crossings for local border traffic between Croatia and Slovenia pursuant to an agreement on transborder traffic and co-operation. The border crossings should be opened before the end of the year. After approving price increases for gas last week, the government was presented with plans for the development of a gas transport system until 2011. The total value of the project is estimated at US$460 million and it encompasses plans to construct a gas pipeline from Pula to Karlovac (192-kilometres long) and another from Pula to Umag (78 km) which will require an investment of about US$130 million. The project also foresees a gas supply system for Dalmatia (worth about US$155 million) and a project to upgrade the gas network in central and eastern Croatia (worth US$175 million). (hina) sp/ha sb

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