LOWER HOUSE DEBATES PRIVATISATION OF CRO TELECOMMUNICATIONS

ZAGREB, May 27 (Hina) - Opposition criticism of the bill on the privatisation of the Croatian Telecommunications (HT) is what marked Thursday's debate on the bill at the Croatian National Sabor's House of Representatives. The MPs did not question the need to privatise one of the most profitable companies, but they opposed the idea of adopting the privatisation model and the privatisation itself at present. A representative of the Croatian Democratic Union (HDZ) bench, Djuro Njavro, believes the privatisation is justified whereas its postponement for a year or two would mean a lower price for HT shares. The MPs also requested an increase in the percentage of shares intended for former HT and Croatian Post (HP) employees and war veterans. The Committee for economy, development and reconstruction does not support the current model which envisages the privatisation of more than 50 per cent of HT shares. The only way to protect state interests is for the state to keep a maximum of 51 per cent of shares, to have a majority in both the management and the supervisory board and to be able to veto any business decision which would be detrimental to the HT or Croatian citizens. The Committee also supported a clearer definition of how citizens can exercise their privileged right to buy shares and requested better protection for small share-holders. These views were supported by numerous Opposition representatives, including Bozo Kovacevic of the Liberal Party (LS) bench. Kovacevic recalled earlier promises that no strategic investor would be involved and that it would be able to buy HT shares on the stock exchange once they are placed on the market. The law, Kovacevic believes, will enable the investor to buy up to 60 per cent of shares. A number of MPs, including Stjepan Radic of the Croatian Peasants' Party (HSS), wanted to know whether it was morally right for the Lower House, which is to work for four more months, to decide about the sale of the largest material asset. Perhaps there is no moment like the present for the privatisation, as far as the HDZ is concerned, but that is no case with the citizens, claims Marin Jurjevic (Social Democratic Party, SDP). If privatisation is necessary to "patch up holes in the budget", then people should be told so, said Damir Kajin of the Istrian Democratic Assembly (IDS). He added one should also say that those who caused the current situation in Croatia should resign. Josko Kontic (Croatian Social-Liberal Party, HSLS) also believes that those involved in the process of privatisation of the HT cannot be trusted. No party interest can be above national interests, Kontic added. HDZ's Njavro, however, believes that the present time was well chosen, because to postpone privatisation now that the telecommunications market was being liberalised would mean a lower price of the company. Finance Minister Borislav Skegro said the presence of the strategic investor would be a guarantee for a good start of the second privatisation phase in the year 2000 - placing HT shares on the stock exchange, which is a stage Skegro believes to be crucial. We want to create such conditions which will make HT shares attractive to as many buyers as possible, once they are placed on the stock market, he added. (hina) jn rml