CRO GOVT TO CONSIDER BUSINESS RESULTS OF 12 STATE-RUN COMPANIES

ZAGREB, June 24 (Hina) - On Monday the Croatian government is going to discuss results of business activities of 12 companies which are owned by the state. The Ivica Racan cabinet will consider business results from the last year and first three months of this year achieved by those firms which are absolutely owned by the government or in which the government is a majority owner. This refers to Croatian Railways (HZ), Croatian Power Industry (HEP), Croatian Forestry, Jadrolinija, Croatian Post Office, the official gazette 'Narodne Novine', Croatian Radio Television (HRT), Croatian Telekom (HT), INA (Oil Company), Plovput, Croatia Airlines and Croatia Osiguranje (insurance company). Last year, they realised the total earnings of 39.4 billion kuna, whereas their net profit rose by 19 percent to 1.016 billion kuna as against 1999. The highest profit was made by the HT with 919 million kuna. In 2000, five of those companies registered losses of 1.8 billion kuna, which was by 16 percent lower as against 1999. The biggest 'loser' is HEP with 690 million kuna, and is followed by INA with 428 million kuna and HZ (394 million-loss). The said 12 companies employ 87,000 workers whose average monthly salaries were 3,938 kuna in 2000. The wages last year rose by three percent in comparison to 1999. They, however fell by seven percent in the first three months of 2001 in comparison to the same period in 2000. In 2000 the government supported those firms with 1.4 billion kuna through different subsidies and grants. The biggest beneficiary of the state subvention was the HZ with 1.1 billion kuna. On the other hand, the revenue which the government collects from them is actually small considering the assets they possess and their monopoly on the market. (hina) ms