ZAGREB, April 19 (Hina) - The House of Representatives on Wednesday unanimously adopted a Law on Changes to the Law on Incentives and Benefits in Agriculture and Fishing, increasing the state's assistance to agriculture by 80 percent
- to 1.65 billion kuna. However, MPs warned about numerous problems in agriculture, which the government should resolve to avoid damage Croatia's admission to the World Trade Organisation (WTO) could inflict on domestic agriculture. Less subsidies than in other countries, obsolete technology, fragmented farms, and lack of a regulated market are the main reasons for lack of competitiveness of domestic agricultural production, MPs said. A radical turnaround in agriculture is necessary, as well as its rehabilitation, because about one million people in Croatia live directly or indirectly off agriculture, it was said during the debate. A number of MPs requested that incentive
ZAGREB, April 19 (Hina) - The House of Representatives on Wednesday
unanimously adopted a Law on Changes to the Law on Incentives and
Benefits in Agriculture and Fishing, increasing the state's
assistance to agriculture by 80 percent - to 1.65 billion kuna.
However, MPs warned about numerous problems in agriculture, which
the government should resolve to avoid damage Croatia's admission
to the World Trade Organisation (WTO) could inflict on domestic
agriculture.
Less subsidies than in other countries, obsolete technology,
fragmented farms, and lack of a regulated market are the main
reasons for lack of competitiveness of domestic agricultural
production, MPs said.
A radical turnaround in agriculture is necessary, as well as its
rehabilitation, because about one million people in Croatia live
directly or indirectly off agriculture, it was said during the
debate.
A number of MPs requested that incentives for lavender, lavender
oil, and grape production on islands and the Peljesac peninsula not
be reduced, given that the current situation does not allow any
decrease of incentives in any segment of agriculture.
The Government accepted this proposal, agreeing to leave the
subsidies for lavender and grape at their current level.
However, it did not accept a number of amendments proposing that
some municipalities be categorised as strategic areas in which
agricultural production should be additionally stimulated.
Criteria for entering one of the three categories which include
those strategic areas were completely objective and cannot be
changed, Agriculture and Forestry Minister Bozidar Pankretic said.
He added, though, the government would have in mind all proposals
given by MPs during preparations for the Law on Agriculture.
(hina) mm rml