LOWER HOUSE SUPPORTS INCREASE OF GOVT'S FARM PRICE SUPPORT

ZAGREB, April 19 (Hina) - A Croatian government's bill on incentives for agriculture was approved by parliament's House of Representatives during Wednesday's debate. Lower House MPs however also pointed to the numerous problems besieging Croatian agriculture, which they said the government should resolve to prevent Croatia's access to the World Trade Organisation (WTO) from damaging domestic agriculture. Croatia's impending access to the WTO will reduce tariff protection, which will sharpen competition in the entire economy. Since domestic agriculture could face the highest pressure, the government has proposed a significant increase in farm price support to assist domestic agriculture adapt to new market conditions, Agriculture and Forestry Minister Bozidar Pankretic said in explanation of a final bill of amendments to the Law on Monetary Incentives and Compensation in Agriculture and Fishing. MPs expressed satisfaction with the 80 percent (1.65 billion kuna) increase in the government's farm price support. Their views on what should be stimulated however were somewhat different than the government's. Lower House MPs believe it would be better to stimulate cattle breeding, and that incentives for the manufacturing of lavender, lavender oil, and grapes on islands should not be reduced. According to the Istrian Democratic Assembly, the government should make a radical turnabout in its policy towards agriculture, and apply urgent measures for its rehabilitation. Lower House MPs believe the biggest problem in the agriculture incentives system is the fact that the farmer, the direct producer, gets little, whereas various mediating companies and manufacturers get more. (hina) ha jn