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GOVT NOT RESPONSIBLE FOR DELAY OF BENETTON PRODUCTION IN OSIJEK BUT WILLING TO HELP

ZAGREB, Nov 8 (Hina) - Croatia's Government on Wednesday said the commencement of the production in Benetton's plant in the eastern city of Osijek had fallen behind schedule owing to local officials' abuse of office, and the Racan Cabinet added it would assist in efforts aimed at settling the issue. The Government has already notified the company's owner Luciano Benetton of its intention to help resolve the situation. According to a Government's statement, "some incorrect information" has appeared in the public about causes of the delay in the operation of the Benetton plant in Osijek. Former local authorities, whose irresponsibility led to this situation, are now trying to shift the liability to the Government, the statement read. "The Government will initiate an additional procedure to compensate what local power-wielders had failed to do, of which Deputy Prime Minister Slavko Linic has
ZAGREB, Nov 8 (Hina) - Croatia's Government on Wednesday said the commencement of the production in Benetton's plant in the eastern city of Osijek had fallen behind schedule owing to local officials' abuse of office, and the Racan Cabinet added it would assist in efforts aimed at settling the issue. The Government has already notified the company's owner Luciano Benetton of its intention to help resolve the situation. According to a Government's statement, "some incorrect information" has appeared in the public about causes of the delay in the operation of the Benetton plant in Osijek. Former local authorities, whose irresponsibility led to this situation, are now trying to shift the liability to the Government, the statement read. "The Government will initiate an additional procedure to compensate what local power-wielders had failed to do, of which Deputy Prime Minister Slavko Linic has notified the company's owner Luciano Benetton, and this was confirmed at yesterday's session of the Government's economy coordination body." Promoting foreign investments is a priority issue for the Government and "the Government has adopted a series of laws which can enable, facilitate and attract foreign investments in Croatia." The act on investment stimulation provides for a cut in the profit tax rate depending on the volume of investment and the number of new jobs, reduction in employers' contribution for employees' health and pension insurance and the prolongation of the deadline for the payment of the Value Added Tax until the last day in a month. The Government has envisaged protective interest rates on the capital and decreased duties within a tax reform it is conducting, read the statement. (hina) jn ms

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