RACAN: STRATEGIC GOALS MUST BE SET, PUBLIC RELATIONS IMPROVED (PT.2)

... CONTINUED ... Commenting on media reports from Thursday's Government session, Prime Minister Ivica Racan stressed that besides the fact that the price of electricity for households has increased by 25 per cent, it was also a fact that the price of electricity had been decreased for the poorest citizens. But this fact had not been given fair treatment in the reports, Racan stressed. Asked whether he expected great dissatisfaction from the public due to the increase in the price of electricity, Racan said there certainly would be dissatisfaction. However, he added, this measure was essential, otherwise the Croatian power supply company HEP's great losses would have to be paid out from the budget. Racan reiterated that when the decision was made to increase the price of electricity, the solvency of the poorest section of the society had been considered. The Government did not initiate a bankruptcy campaign, as some media have reported, but had decided to salvage companies for which this is possible to do through a rationalisation of business. These are specific measures for every one company, Racan explained. According to him, the relations between the Government and the public must be reviewed so the public would be informed with more accuracy. Explaining the significance of Friday's Government working meeting, the Prime Minister said decisions would not be reached at the session, but conclusions would be made operation at following Government sessions. Asked to comment on claims made by President Stipe Mesic that certain ministers were more obedient to the presidents of their parties that to the prime minister, Racan said it was working meeting like this which are aimed at removing such and similar problems. He assessed that there had been no major problems in cooperation, and would be none in the future. (hina) lml