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GOVT. CONSIDERS MEASURES FOR SOME SECTORS' DEVELOPMENT

ZAGREB, Feb 22 (Hina) - Over 11.5 billion kuna (1.36 billion US dollars) will be ensured for investment in companies owned by the government, a Deputy Prime Minister, Slavko Linic, said at the Croatian Government's session on Thursday. Leading managers of INA (oil company), HT (Croatian Telecom) and the HZ (Croatian Railways) acquainted the government with investment programmes. Ivica Racan's Cabinet today considered decisions in relation to the development and restructuring of some economic fields. Last year most state-owned companies registered negative trends, and competent ministries and the firms' management suggested measures aimed at reforms, intensified investments and important organisational and financial rehabilitation. A wage policy should contribute to a economic recovery programme. Negotiations on this policy (envisaged to be in effect until 2003), are going very well and nearing completion,
ZAGREB, Feb 22 (Hina) - Over 11.5 billion kuna (1.36 billion US dollars) will be ensured for investment in companies owned by the government, a Deputy Prime Minister, Slavko Linic, said at the Croatian Government's session on Thursday. Leading managers of INA (oil company), HT (Croatian Telecom) and the HZ (Croatian Railways) acquainted the government with investment programmes. Ivica Racan's Cabinet today considered decisions in relation to the development and restructuring of some economic fields. Last year most state-owned companies registered negative trends, and competent ministries and the firms' management suggested measures aimed at reforms, intensified investments and important organisational and financial rehabilitation. A wage policy should contribute to a economic recovery programme. Negotiations on this policy (envisaged to be in effect until 2003), are going very well and nearing completion, First Deputy Prime Minister Goran Granic said. He added that partners had shown understanding for the salary policy as a part of the entire stabilisation policy. We have agreed on the limitation in respect to the entire mass to be allocated for wages. The salaries will be limited by a growth in the Gross Domestic Product. Thus, salaries in the public sectors will rise by 75 percent of the GDP real growth and salaries for employees with state-owned companies by 50 percent. This makes it possible for parties in concern to hold collective negotiations, Granic explained. Salaries in the public sector are defined in the state budget, while wages in state-run companies will be based on the salary policy defined by the Government as the owner of those firms. (hina) ms

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