LOWER HOUSE DISCUSSES TRANSFORMATION AND PRIVATISATION

ZAGREB, Dec 10 (Hina) - Most of the Opposition party benches in the Croatian National Sabor's House of Representatives on Thursday supported the Social Democratic Party's (SDP) bill on control and auditing of the process of ownership transformation and privatisation. During a heated discussion, Opposition party benches warned of a series of negative effects of ownership transformation and privatisation, such as the illegal acquisition of shares, increasing unemployment, "tycoonisation" etc. Croatian Democratic Union's (HDZ) had a completely different opinion of the bill. The bench opposed the bill, saying it was contradictory and represented a dangerous precedent for investment security in Croatia. The HDZ said it believed that abuse of privatisation and ownership transformation processes should be resolved by competent institutions through a better implementation of laws and a more efficient judicial system. Initiatives like the SDP's one lead to economic isolation, and the mere mention of audits has resulted in foreign investors giving up their investment plans, the HDZ claimed. Although critical towards the ownership transformation and privatisation processes, the Croatian Party of Rights (HSP) bench opposed the SDP's bill. The party was most critical about the initiative for the establishment of a state commission for control and auditing. Such a commission would have the powers equal to those of the Government, which would pave the way to collapse of the state of law, flight of the capital, etc. HSP representatives added they were committed to the respect of law, auditing in accordance with the law, as well as the rule of law. The most critical opinions came from the Croatian People's Party (HNS)/Istrian Democratic Forum (IDF) bench, which claimed that the economy was facing a collapse because of the consequences of ownership transformation and privatisation. The bench warned of many irregularities, granting of privileges in the privatisation process and the problem of recapitalisation. Not one of the basic privatisation goals have been achieved - the process was not fair, the state did not get money by selling shares and private enterprise failed to develop. The Istrian Democratic Assembly (IDS) believes that the process of privatisation resulted in the plundering of national wealth. All those who acquired their property in a fair way, have nothing to fear, because the control should establish how some managed to pay their shares during the period of war and general impoverishment, the IDS says. The Croatian Peasants' Party (HSS) believes that the transformation process had been well planned, but was followed by an "untidy" privatisation. The Croatian Social-Liberal Party (HSLS) warned of wrong assessments of the equity of socially-owned companies, disappearance of small shareholders and etatisation of the economy, as well as of political clientelism in the privatisation process. A series of concrete cases were mentioned during the discussion. The Liberal Party (LS), for example, asked why the Government had never answered enquiries concerning the transformation and privatisation of the newspaper publishing house "Slobodna Dalmacija", the newspaper distributor "Tisak" etc. If the Government and the ruling party do not believe that control and auditing are necessary, the SDP suggests a referendum with only one question - whether citizens support the auditing of the privatisation process or not. (hina) jn rml