GOVERNMENT TO ASSIST TLM AND SIBENIK ECONOMY

SIBENIK, March 1 (Hina) - The Government and the Economy Ministry will do everything to reduce the damage caused by a fire which caught the Sibenik light metals plant TLM on February 26 and destroyed the chief rolling machine worth DM20 million, Economy Minister Goranko Fizulic said in Sibenik Wednesday. The Government will take on commitments for TLM's DM13 million debt to be paid off in June and December. Should additional assistance be needed, the Government will relieve the company from taxes and salary contributions, Fizulic said after a closed-door meeting with the TLM management and unions. The investigation into the fire has not been completed yet, and the cause of the fire and damage remain unknown, as does the time period during which the TLM will remain without production, Fizulic said. He added the direct fire damage will probably be paid by Croatia Insurance and the management should complete investments and prepare the company for privatisation. In reply to reporters' questions Fizulic said the TLM was a strategic company because it exports 80 per cent of its products. Despite this, last year's losses were in excess of 70million kuna (about US$8.75 million) due to low prices, so the management must improve business and prepare for privatisation so the company could function as all private companies world-wide, Fizulic said. Asked whether the Government would provide direct financial assistance to the Sibenik-Knin County, whose economy is the most challenged in Croatia, Fizulic said "the Government in principle opposes financial assistance as it proved as unsuccessful in the past ten years". He announced the Government would set aside 100 million kuna (about US$12.5 million) for stimulation at the Craftsmanship, Small- and Middle-Scale Entrepreneurship. Fizulic also said the Defence Ministry and the Interior Ministry would repair all vessels and weapons at the Sibenik overhaul shipyard. The Sibenik-Knin County economy will also be relieved through Government measures applied in the whole of Croatia, such as tax reductions and relief in labour costs, Fizulic said. After talks at the TLM, he talked with workers on strike due to unpaid salaries for January and February. Fizulic informed the workers the Defence Ministry and the Jadrolinija shipping company had just repaid some two million kuna (about US$250,000) of debt to the shipyard, which would be sufficient for salaries. (hina) lml jn