PRIME MINISTER RACAN COMMENTS ON DISSATISFACTION WITH SALARIES

ZAGREB, June 21 (Hina) - Croatian Prime Minister said on Thursday he understood dissatisfaction with salaries in the state administration and public services but believed most citizens would support "our joint effort to not hurt our long-term interests and make some short-term sacrifices." Speaking at the beginning of today's government session, Racan said he understood the dissatisfaction of those whose salaries had been reduced, but that move had to be made. For the time being, we have to make solidarity cut-backs in salaries to ensure that Croatia's prospects are not jeopardised, he said. However, the government cannot accept the dissatisfaction of those who had privileged salaries, often augmented by unacceptable bonuses. We cannot accept that the same amount of work is paid with different salaries in different parts of the state administration and public services so we had to make some order, Racan said. The government is aware mistakes were possible in "such a broad intervention," which is why it has already announced that it is willing to reconsider the wage policy and concrete solutions and to correct mistakes. We have said that we will do it within three months, he recalled. He also reminded that the seven-percent decrease of the basic salary was a temporary measure. I deeply believe that, depending on economic developments, we will be able to restore the basic salary to the old level or even increase it by the end of this year of the beginning of 2002, he said. (hina) rml