PREMIER MATESA SUPPORTS AGRICULTURE MINISTER DOMINIKOVIC

( Editorial: --> 4739 ) ZAGREB, Feb 26 (Hina) - The Croatian Parliament's House of Representatives continued its session on Thursday with a discussion on a proposal for a no confidence vote in Agriculture and Forestry Minister Zlatko Dominikovic. The vote was proposed by Croatian Peasants' Party (HSS) representatives, and 20 MPs supported the HSS request with their signatures. The situation in agriculture will continue deteriorating if the current disinterested, bureaucratic attitude towards agriculture goes on and if the realisation of the Strategy (adopted in 1995) fails to start, HSS MP Luka Trconic said. Trconic supported his estimations with data on the record negative foreign trade balance on agricultural products which in 1997 amounted to US$465 million, which was 18.61 per cent more than in 1996. Imports increased to more than one billion dollars, Trconic said. Speaking about imports and exports, Premier Zlatko Matesa said that with the current level of protection and protective customs tariffs Croatia could not become a member of the World Trade Organisation (WTO) nor did it have any theoretical chance of entering the European Union. "We will have to decide whether we want to close the Croatian market and be aware that this comes at a cost, or we must accept that our strategy is to enter the WTO and the EU and that this has its real price," said the Premier. The Strategy of Agricultural Development is being implemented to a large extent, Matesa said and gave his full support to Minister Dominikovic. Vladimir Seks of the Croatian Democratic Union (HDZ) bench described most of the claims and arguments presented in the HSS proposal as unfounded, arbitrary and falsely addressed. Supporting the proposal, representatives of opposition parties said that "the Croatian peasant lives in more difficult conditions than earlier" (Ivan Jakovcic of the Istrian Democratic Party, IDS), and that "the last 50 years have not seen a worse situation than the present" (Marko Miljevic, HSS). Dragica Zgrebec of the Social Democratic Party (SDP) said the criteria for the allocation of loans had not been set and that peasants had been given a high value added tax rate. Bolta Jalsovec of the Croatian Social-Liberal Party (HSLS) also stressed the continuous reduction of funds available for the granting of loans. Compared to Europe where subsidies make up between 30 and even 70 per cent of the selling price, in Croatia subsidies make up only 1.5 per cent of the selling price, said Zlatko Tomcic of the HSS. Tomcic said subsidies and incentives were a solution to the reduction of tariff protection, which is one of the conditions for entering international integration processes. In an extensive reply, the Agriculture Minister said Croatia had enough bread grain and other grains. If the programmes aimed at revitalising the farming fund are implemented, there will be enough meat as well, he said. There is no threat of famine, he told his critics. Dominikovic went on to explain in detail measures for balancing production in the agriculture and food industry, and for the renewal of agricultural machinery and farming production. He also announced new incentives in agriculture. Out of a total of 550,000 family-owned farms, we have introduced incentives in more than 300,000 farms, Dominikovic said. (hina) jn rm 261709 MET feb 98