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GOVERNMENT DEBATES NEW BILLS

ZAGREB, April 19 (Hina) - The prices of some 80 percent of medicines in Croatia could drop by 5-20 percent in the near future after the introduction of a reference price system envisaged by a set of amendments to the Law on Medicines and Medical Products, which were endorsed by the government on Thursday. The reference price system takes the prices of medicines abroad as the basis for determining Croatian prices. This would put an end to bidding in price-setting for medicines, while ensuring saving and rationalisation. A special agency for medicines and medical products will be established in the autumn to share the work done by the Health Ministry and the Croatian Health Insurance Institute, said Deputy Health Minister Rajko Ostojic. The government today also okayed a model of subsidised house-building which should enable people to buy their first flat under much more favourable conditions, provide more work for the house-build
ZAGREB, April 19 (Hina) - The prices of some 80 percent of medicines in Croatia could drop by 5-20 percent in the near future after the introduction of a reference price system envisaged by a set of amendments to the Law on Medicines and Medical Products, which were endorsed by the government on Thursday. The reference price system takes the prices of medicines abroad as the basis for determining Croatian prices. This would put an end to bidding in price-setting for medicines, while ensuring saving and rationalisation. A special agency for medicines and medical products will be established in the autumn to share the work done by the Health Ministry and the Croatian Health Insurance Institute, said Deputy Health Minister Rajko Ostojic. The government today also okayed a model of subsidised house- building which should enable people to buy their first flat under much more favourable conditions, provide more work for the house- building industry, and increase employment. Under this model, which is well-established in developed countries, Croatian citizens could buy a flat with a time of repayment extending up to 31 years and an average annual interest rate of four percent. The government, local units and banks would join in the model through subsidies. Croatia has earmarked 90 million kuna ($10.5 million) in this year's budget for this type of house-building. This provides for the building of some 1,500 50-square-metre flats for 5,000-7,000 people. War Veterans' Minister Ivica Pancic submitted a report on the implementation of a veterans' rights law in 2000. The budgetary funds intended for its implementation were spent legitimately and rationally, and this was the biggest step forward as against the past, he said. Presenting the figures, Pancic said 2.42 billion ($281 million) of the earmarked 2.49 billion kuna had been spent, including 1.3 billion ($151 million) for disability and family pensions. According to Pension Institute data, 1.8 billion kuna was spent for that purpose in 2000. Last year 11,272 veterans found employment, while about 34,000 are still without a job, which is on the level of past years, said Pancic. He added they were allocated 646 houses and flats. The government today also formulated the text of a bill on cultural councils whose aim is to decentralise decision-making and increase autonomy in culture, Culture Minister Antun Vujic said. The bill envisages the establishment of seven councils at the ministry, ranging from film to the media. The government gave its permission to Croatian Telecom to incur a 192 million kuna ($22.3 million) debt with the Siemens company, on a three-year period and an eight-percent annual interest rate. (hina) ha sb

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