LOWER HOUSE ENDORSES LAW ON PENSION INSURANCE CONTRIBUTIONS

ZAGREB, Dec 8 (Hina) - The Croatian parliament's House of Representatives on Friday endorsed a law on the payment of pension insurance contributions for 2001 and the law on theatres. In line with the law on the payment of pension insurance contributions, in the next year the contribution rate will amount to 19.5 percent (10.75 percent form wages and 8.75 percent to wages) During a discussion in the parliament, the opposition pointed to a difficult situation in the pension fund. Croatian Labour and Social Welfare Minister Davorko Vidovic said the contribution rate would not cover all expenses of the pension fund, adding its deficit would be covered with funds from the budget and a greater discipline in the payment of contributions. On the other hand, the price of labour is decreased by the reduction of contributions, which should have a positive impact on the economy, Vidovic said. The House of counties also endorsed the law on theatres, in line with which heads of public theatres would no longer be appointed by the Culture Minister. The Lower House continued its session by a discussion on a report on the work of the commission for bonds. (hina) it