GOVERNMENT ON IMPLEMENTATION OF ECONOMIC PROGRAM

ZAGREB, Feb 2 (Hina) - Croatian Prime Minister Nikica Valentic today told a Government session that retail prices increased by 0.7 percent from December. But the prices of services, such as kindergartens, garbage disposal and technical inspection of vehicles, increased by 1.9 percent. "In a situation of zero inflation, no one should up the prices of services and certainly not by 40 to 50 percent," Valentic admonished. He instructed all ministers to have an analysis of the prices in their sector made by next week. "Without a steady privatisation process, we won't be able to realise our economic programme," Valentic said, adding that some results had been achieved but the privatisation process was still lagging behind. Finance Minister Bozo Prka reported on the results of a joint financial and customs police campaign to fight tax evasion. "We shut down 70 catering and vending facilities and nailed a ring of smugglers," Frka enthused. (hina) jn as sd 021502 MET feb 95