LOWER HOUSE DISCUSSES DIVISION OF CRO POST & TELECOMMUNICATIONS

( Editorial: --> 6888 ) ZAGREB, July 10 (Hina) - Croatian Post and Telecommunications (HPT) would be divided into two separate companies as of 1 January 1999 if Parliament adopts the bill on the division of the HPT as proposed by the Government. The bill provides only for dividing the HPT into two companies (Croatian Post and Croatian Telecommunications) and their privatisation will be carried out later in line with special laws, said Transport and Communications Minister Zeljko Luzavec at Friday's session of the House of Representatives. Privatisation of the HPT, especially of its telecommunications sector, has for quite some time been the object of political discussions in Croatia. In the first reading a majority of MPs, regardless of their party membership, were very critical towards the text of the Government's bill. The Government was mainly criticised for having agreed to privatisation because of various international pressures. The MPs stressed that telecommunications, unlike postal services, were very profitable and attractive to foreign capital. Should the HPT be privatised, the majority owner in both sectors will be the Croatian state and the state interest will be protected, Minister Luzavec told a lower house session yesterday. The need for dividing the postal service and telecommunications is a world-wide trend, Luzavec explained. Luzavec also informed MPs about a Government amendment enabling the Transport Minister to issue a regulation on compulsory performance of necessary tasks in case of a workers' strike. Following suggestions from the International Labour Organisation Committee, it was agreed that the Minister should consult unions before adopting such a decision. The Legislation Committee supported the bill but also proposed for the shares of both the postal service and telecommunications not to be used until the privatisation is over. Nikola Obuljen of the Croatian Democratic Union (HDZ) bench supported the adoption of the bill adding it was important for further development. There will be no laying-off of workers (a total of 23,000) - on the contrary new jobs will be created, Obuljen said. Damir Kajin of the Istrian Democratic Assembly (IDS) said he believed that the HPT should first be restructured and then privatised. He proposed a conclusion banning the laying-off of HPT workers in the next three years. Zeljko Pavlic of the Croatian Social-Liberal Party (HSLS) proposed that a five-year moratorium be put on privatisation and that shares be given to employees and pension funds. The Social Democratic Party (SDP) will not vote for the bill because of economic, social and legal reasons, Mato Arlovic said. He added that the bill envisaged two joint stock companies without shares which, in his opinion, was a nonsense. (hina) jn rml /mbr 101558 MET jul 98