MP'S DEBATE ABOUT SECOND AND THIRD COLUMN PENSION REFORMS

( Editorial: --> 7125 ) ZAGREB Oct 9 Hina) - In the current economic situation while problems concerning pensions have not been solved, there is no need to speed up any pension reforms or introduce compulsory or voluntary individual elderly savings accounts. This statement was given by representatives of the joint opposition party bench during today's session of the House of Representatives in the Croatian National Sabor (Parliament). The agenda in the House of Representatives today is the defining of the bill between compulsory and volunteer pension funds. The Croatian Democratic Union (HDZ) bench considers the proposed bill to be an important step towards the future and considers that the third column volunteer savings plan should start as soon as possible because in that way individual and national savings can be encouraged, said Duro Njavro speaking on behalf of the HDZ bench. The Croatian Peasants' Party (HSS)is against such pension reforms and considers them to be a mere manipulation of pensioners, announced HSS representative Petar Zitnik. He added that there is a need to fight for objective and realistic standards of all current pensioners and therefore the government must provide a strategic development program. HSS considers that in the current situation there are no appropriate conditions to change the pension constitution. Zitnik further warned that the system of volunteer elderly savings could turn into various financial engineering scams. Social Democratic Party (SDP)representative Snjezana Biga- Frigovic said that pension reforms must correspond with economic development. She added that it is important to gain trust, especially concerning the supervision of the management of the pension funds, which the proposed bill has not solved. Liberal Party's (LS) Ante Tukic considers the law to be premature. He said that reforms should only take place when current pensions have been indexed correctly. He added that emphasis should be put on bills concerning pension insurance associations. Hrvoje Kraljevic representing the Croatian Social Liberal Party (HSLS) said that regardless of the criticism, his party would support the first reading of the proposed bill. Kraljevic added that certain regulations need to be added before the second reading. It is necessary to entice independent savings, edit the liscencing and supervision in pension funds and the government should absolutely guarantee deposits with minimal interests rates. Srecko Bijelic representing the Croatian National Party and the Istrian Democratic Forum said that the all social partners must talk about the proposed bill and if no agreement can be met each standpoint must be confronted in parliament. He also warned against the possibility of financial engineering. Government Vice-President Ljerka Mintas-Hodak replied that the bill would be discussed by the social partners in the Economic- Social Council however, the Association of Pensioners would not be part of the talks as the law concerning the pension scheme in the second and third column does not concern them. (Hina) ab rml/sp 091537 MET oct 98