GOVERNMENT ADOPTS STIMULATING MEASURES FOR DEVELOPMENT OF SMALL SCALE BUSINESS

SAMOBOR, June 14 (Hina) - The Croatian government today adopted a programme of stimulating measures and a legal frame for a faster development of small-scale business, within which around 133,000 new jobs could be created in the next four years. At a theme session today, the government adopted a small-scale business development programme for the period 2001-2004, a bill on the development of small-scale business and amendments to the law on crafts and the law on associations. Small-scale business participates in the Croatian gross domestic product with 55 percent, but in the last two years has shown negative results and comprehensive stimulating measures are necessary for its development, Crafts, Small and Middle-Scale Business Minister Zeljko Pecek said. The government's small-scale business development programme stipulates that within the next four years about 17.2 billion kuna should be invested into the development of crafts and small and middle-scale businesses. The founds would be secured from several sources -- state and local government budgets, World Bank loans, Croatian Bank for Reconstruction and Development, and especially through the use of unused state and local unit property. Government members particularly discussed the possibility of employment in the small business area. Entrepreneurs could receive government support of up to 15,000 kuna for every person employed. The government also adopted amendments to the Crafts Law which would facilitate the opening of crafts business and enable season work of up to six months a year. The parliament was forwarded amendments to the Law on Associations with which it would become the chief law for all associations, notwithstanding their field of interest and work. The amendments should also contribute to the development of the co-operative system which has been in a stalemate for several years. (hina) lml sb