FIZULIC: REDUCING GROSS LABOUR COST - GOVT'S MOST IMPORTANT DECISION

ZAGREB, May 19 (Hina) - "I believe the Government yesterday made probably the most important decision in the first hundred days of its work by suggesting that gross labour costs be decreased by 3.3 percent on the average, thus giving major impetus to employment and intensifying the possibility of development in Croatia," Economy Minister Goranko Fizulic told reporters following a presentation on investments in Croatia. Commenting on a proposal on increasing excise taxes, especially on petrol and diesel, Fizulic said it should not cause an increase in other prices. "Even transport organisations, those transporting people and goods, should not come with new requests on increasing their prices because they did not decrease their prices the last time Ina (Croatian oil industry) decreased the price of oil," Fizulic said. "Excise taxes on final products, such as tobacco, alcohol and similar, have nothing to do with inflation," Fizulic believes. Petrol is mostly used in final consumption and it is only excise taxes on diesel that could be problematic. Given though that the price of diesel was decreased several weeks ago by about eight percent, this should not cause an increase in other prices, Fizulic said. (hina) jn rml