GOVT GIVES UP REDUCING RIGHTS OF PERSONS WITH LESS THAN 50% DISABILITY

ZAGREB, Aug 30 (Hina) - The Croatian government formulated at its session on Thursday the starting positions of its social policy for this and next year and gave up its initial proposal for the cancellation of the social rights of persons with less than 50% disability. All categories of disabled persons will keep their social rights (including those with 20, 30 and 40% disability), but the amount of their disability allowances will be adjusted to the average salary from the year 2000 (3,326 kuna), increased by the disability percentage, says Labour and Welfare Minister Davorko Vidovic. The new element in the government's proposal in relation to last week's version, which social partners have voiced their opinion about as well, is that the limit on cumulative incomes amounting to three monthly salaries does not apply to war veterans with the highest degree of disability (there are about 800 such persons). This means, says Vidovic, that war veterans with the highest degree of disability could receive allowances higher than the limit of some 11,000 kuna. Social restrictions also refer to privileged pensions, the new element being that the basis for the calculation of such pensions is two highest pensions determined in line with general regulations for 40 years of service. Vidovic says the highest gross privileged pension would amount to 12,400 kuna, which is a net pension of some 9,300 kuna. This means that neither the president of the republic nor anyone else could receive a pension higher than this amount, says the minister. Changes in the system of privileged pensions would be applied retroactively and go in force on October 1. Namely, the government should forward to the parliament all legal proposals aimed at precisely defining social restrictions as early as next week. Most of these proposals would be forwarded into urgent procedure and the parliament should discuss them already at its first autumn session in mid-September. Restrictions in the system of social care refer also to health insurance and childbirth and child allowances. Under the government's draft, participation fees would not be paid by children under the age of 18, the most serious invalids and persons whose income does not exceed the property census for admission in the system of social care. The government sticks by its proposal that childbirth allowances for employed women remain unchanged (1,600 kuna), while those for unemployed mothers would be reduced to 900 kuna and be given only during the first six months. This year no changes would be made to the system of child allowances and the parliament would adopt a law on child allowances in regular procedure. However, the government intends to define a property census for child allowances and tie the amount of these allowances to it, as well as cancel bonuses for the third and every next child. This way, some 1.7 billion kuna of budgetary funds should be saved for child allowances (this year's needs for child allowances amount to almost 2.5 billion kuna). The changes in the social sphere were necessary because the system inherited from the old government was morally unsustainable, non- transparent, obsolete and socially unjust, says Vidovic. Social spending in Croatia is below the level of countries in transition, says Vidovic, supporting his claim with the fact that social spending in Croatia accounts for 26% of the GDP or 33-34% of the GDP if salaries in the social sector are added to it. Prime Minister Ivica Racan says the government's task is to secure transparency and prevent abuse in the social sphere. The draft social measures are aimed at retaining the necessary level of social care while simultaneously enabling economic development, Racan said, adding the government would soon discuss new development and employment incentives. (hina) sb rml