SABOR'S UPPER HOUSE REJECTS GOVT'S STRATEGY FOR 'HZ' MODERNISATION

ZAGREB, Oct 24 (Hina) - Following an intense debate, the Croatian national parliament's House of Counties on Tuesday refused the Government's proposal for a strategy in the restructuring and modernisation of the Croatian Railways (HZ). PMs suggested that there should be no haste with the beginning of a job of restructuring of the HZ and that a decision on the termination of the use of some railway lines should ensue after thorough analyses considering all the pros and cons for such a step. According to the Government's strategy, the HZ should be reconstructed in the coming five years to reach the European standard, and this move requires four billion kuna (approximately one billion German marks). However, there are plans for earmarking 2.5 billion kuna owing to the current economic circumstances. The Government proposes that the number of employees with the HZ should fall from the current 19,000 to 13,000 and that the length of railway lines should be shortened and the issue of unprofitable railroads settled. Under the strategy, budgetary means which will be given to the HZ should be lessened, while the company should raise the income form the passenger traffic. (hina) jn ms