UPPER HOUSE ENDORSES BILL ON TELECOMMUNICATIONS PRIVATISATION

ZAGREB, May 25 (Hina) - The majority of representatives at the Croatian parliament House of Counties on Tuesday endorsed a bill on the privatisation of the Croatian Telecommunications (HT) company. During the discussion, almost nobody brought into question the necessity of privatising the company, but opposition MPs opposed the motioned model, pointing out there was no need to rush the privatisation. The Social Democratic Party bench said the present moment was not the right one, adding there was enough time until 2003, when a market liberalisation should take place according to the World Trade Organisation. Most countries in transition are privatising their telecommunications at present, which makes it difficult to set a good price, the party's MPs said. The estimation of HT's value was also brought up several times during discussion. In his introduction, Finance Minister Borislav Skegro said the estimate was "more an art than a science", and that it could not be made according to book-keeping methods. There are however estimates that the HT is worth between US$2 billion and US$3.5 billion. The Croatian Peasants' Party bench demanded the law should clearly formulate the benefits under which HT employees could purchase the company's shares. The bench believes the envisaged five percent of shares to be allocated to Croatian veterans is too low, to which the bench of the ruling Croatian Democratic Union and of the Croatian Party of Rights agreed. The bench of the Croatian Social Liberal Party believes the deposits Croatian citizens have made into the telecommunications infrastructure to date should be considered in the privatisation process. A series of remarks was made with regard to the envisaged 25 percent plus one share intended for the strategic investor. This would provide the investor with major administrative rights, the MPs believe. They also demanded a clearer protection of national interests. (hina) ha jn