DAMAGE CAUSED BY BAD WEATHER AMOUNTS TO DM 8.5 MILLION - GOVT

( Editorial: --> 6447 ) ZAGREB, 22 Jan (Hina) - Strong wind and snowstorms in some parts of Croatia have caused material damage, mainly to transmission lines, amounting to some DM 8.5 million, Economy Minister Nenad Porges told a Government session, which was held in Zagreb Thursday. Twenty-one power plants are endangered and some 15 transmission lines have been damaged, Porges said, adding that two transmission lines in Slavonia were damaged the most. Some 100,000 users are left without power from time to time due to this, Porges said, stressing that temporary measures were being taken and that power was being imported from Hungary. Porges said he hoped the situation would normalise by Saturday. Part of today's session was also dedicated to pension reform. Labour and Social Welfare Minister Joso Skara said pension reform was one of the Government's most difficult tasks. The reform is being prepared thoroughly, Skara said, adding the aim was to reach a basic national consensus on the reform. The reform will not change the status of current pensioners but conditions are being created for the improvement of their status, he said. The new law on pension insurance will be aimed at changing and rationalising the current system, Skara said, adding the World Bank had offered Croatia a model of reform. The final draft of the pension insurance law will be discussed in parliament in February, he said. Pension Fund Director Damir Zoric said the reform had to be based on stable sources of financing. Zoric said that DM 400 million had to be secured for pension allowances every month. The Government has appointed Vice-Premier Ljerka Mintas-Hodak coordinator of the pension reform. The Government has sent the House of Representatives a negative response to a bill on changes to the Law on Value Added Tax (VAT), proposed by the Croatian Peasants' Party (HSS). HSS proposed that more VAT rates be introduced, instead of the current rate of 22 per cent, but Finance Minister Borislav Skegro said some DM 1.5 billion would be lost from the state budget if the bill was to be accepted. (hina) jn rm 221824 MET jan 98