PRIME MINISTER MATESA PRESENTS NATIONAL EMPLOYMENT POLICY

( Editorial: --> 3083 ) ZAGREB, Feb 19 (Hina) - Croatian Prime Minister Zlatko Matesa presented the Government's employment policy on the second day of the February sitting of the House of Representatives on Thursday. "In conditions of economic stability, economic growth alone can bring about an increase in employment," the Prime Minister said, stressing the importance of direct foreign investments in encouraging new business ventures and job creation. He went on to say the implementation of the new policy would start as soon as the programme was adopted by the House. "This means that the Government will immediately adopt a package of measures designed to clear up the situation in the labour market," Matesa said. Under the new scheme, only serious job-seekers would apply to the Labour Exchange. Arrangements would be made for those who were not looking for a job but were on the dole merely to obtain certain benefits, such as health insurance or child benefits, to resolve their problems through other avenues. Several mandatory contributions from salaries, as well as those paid by employers on behalf of their employees (such as the child benefit contribution and the water resources contribution) would be eliminated in a bid to decrease the fiscal burden on the business sector. The upcoming reform of the pension system would be another step in this direction, Matesa announced. According to Labour and Welfare Minister Joso Skara, the package would also include measures for dealing with redundancies and promoting labour mobility, particularly in the areas of special Government care. Particular attention would also be paid to the employment of demobilised Croatian soldiers. "Our employment policy will give high priority to defenders," said the Minister of Croatian Homeland War Veterans, Juraj Njavro. According to Njavro, 43,000 unemployed defenders accounted for 16.3 percent of Croatia's jobless. (hina) mm as mb 191302 MET feb 98