HSS SEEKS EXTENSION OF RIGHT TO USE OF 'BLUE OIL'

ZAGREB, May 2 (Hina) - Wrapping up Wednesday's session, deputies in the Croatian parliament differently assessed a proposal by the Croatian Peasants' Party (HSS) that all physical and legal persons working in agriculture and fishery be allowed to buy the so-called "blue oil". The sponsor of the bill, the HSS, has suggested that the "blue oil" for agricultural machinery be used in the cultivation of all categories of land and not only those which are included in the system of state incentives. Despite the government's negative opinion, HSS deputies strongly defended the proposal. The situation in agriculture is bordering on a disaster, said HSS's Ivan Kolar, who claims that assistance to the farming sector is still only a promise. The negative stand of the government and the parliament committee on finances proves this, he said. Kolar objected that the Social Democratic Party (SDP) bench did not support HSS's proposal. Josip Golubic (HSS) said that the price of petrol had increased between 60 and 70 percent over the past year while the prices of agricultural products had been stagnating. Deputy Finance Minister Damir Kustrak dismissed Golubic's claim saying that the price of one litre of diesel last year cost 5.70 kuna whereas its current price was 5.28 kuna. Kustrak said the government had refused HSS's proposal because it did not contain the criterion according to which it would be possible to establish if someone was actually living on farming and because the extension of this right would affect budgetary funds and jeopardise the execution of the budget. The proposal, which is part of a bill on changes to the Law on Oil Products, was endorsed by the Croatian Democratic Union (HDZ). The Croatian Social Liberal Party (HSLS) said the HSS proposal was on the right path but it should be discussed in regular rather than urgent procedure during a debate on incentives and budget, scheduled to take place late this year. (hina) rml