GOVT DEBATES AREAS OF SPECIAL STATE CONCERN AT KNIN SESSION

KNIN, March 29 (Hina) - The Croatian government formulated at its Thursday session in Knin a set of measures aimed at stimulating development and employment in the areas of special state concern. The government is aware of the difficult working and living conditions in the areas of special state concern, Prime Minister Ivica Racan said hoping the measures formulated today would be the necessary turnaround in the resolution of those problems. The government today also adopted a special social programme for the areas of special state concern, which will be implemented in the period between April 1 and the end of this year. The programme includes help in the form of food, subsidised utility fees and additional money grants. A total of 56.7 million kuna will have to be set aside by the end of this year for monthly food packages for some 125,000 persons whereas another five million kuna will have to be secured for the payment of additional money grants. To solve the problem of some 144,000 unemployed persons, the government will adopt a programme of active employment policy measures, with emphasis on public works. This year, 5,635 persons would be able to find employment this way, which, according to some estimates, would cost some 125 million kuna. Only unemployed persons without previous working experience as well as middle-aged people and Homeland War victims will be included in the programme. Economy should be stimulated through investments by public companies, privatisation measures and special crediting conditions through the Croatian Bank for Reconstruction and Development (HBOR). Ten ministries and four public companies will this year invest more than 2.8 billion kuna in the areas of special state concern. The government has envisaged special economy measures, including the linking of local companies with more successful companies from other parts of Croatia, for the town of Knin. This decision has already yielded first results: the animal fodder factory 'Agroprerada' from Knin has started production with the help of the Zagreb-based food concern 'Agrokor'. The government has been paying special attention to Vukovar as well, one of its efforts to help the town being a bill on its reconstruction and development. Reconstruction Minister Radimir Cacic says the government has envisaged the cancellation of customs duties for restarting production and the establishment of a separate development fund for Vukovar and student grants. The government has extended its list of municipalities and towns which will be granted incentives as stipulated by the Law on the Areas of Special State Concern. The list includes 62 municipalities and towns which have been assessed as undeveloped. The government was today informed that 270,000 refugees had returned to their homes in Croatia since the start of the process. In order to speed up reconstruction and return, the government has decided that all those in possession of reconstruction certificates issued by May 1 this year should enter an extended programme of reconstruction, which should be completed by the end of next year. This, it was said, would definitely resolve the problem of accommodation for some 30,000 people. The government is ready to assist the return of Bosnian Croat refugees to their homes. Bosnian Croats have submitted 6,457 return requests and will be helped with 500 sets of construction material, Cacic said. (hina) rml