Immunology Institute to become state institution

The Immunology Institute will become a state health institution, the government decided on Thursday, with Prime Minister Zoran Milanovic stating that this was the only way to save this company, which is of strategic interest to Croatia.

Pursuant to the government's decision, the Immunology Institute (IZ) will be reshaped from a joint stock company into a health institution owned by the government or rather the Health Ministry. The company's restructure will be conducted by the Health Ministry and the State Property Management Office (DUUDI). Within 90 days they are obliged to prepare a regulation which will specify the amount required to be secured in next year's budget to facilitate the Institute's operations.

"After several months of tension and seeking a solution, we believe this is it," said Milanovic, adding that this problem had been inherited by his government following "years of neglect."

"And in the end, this is the solution - to return the institute to the state. This is not the most fortunate solution but it is the only way to salvage the company and give it a fresh kick start and we will see what will happen. We hope for the best," he said.

The case with the Institute, he added, once again is evidence that this government takes its problems seriously, even those it did not cause.

The government's decision stipulates that the employees, all assets, rights and obligations of the existing joint stock company be transferred to the new Immunology Institute within the Health Ministry.

"In that way, in addition to saving jobs, the government will create conditions for the existence and sustainability of the production of vaccines and blood derivatives as a strategically important production to preserve the health of the Croatian population," Health Minister Sinisa Varga underscored.

The decision to reshape the Immunology Institute comes after an unsuccessful attempt to privatise the company when the government in July rejected the only valid offer by the Visia Croatica group to purchase the government's portfolio in the institute.

The matter of four outstanding wages for workers at the Institute will be part of the reshaping procedure and after the government session Minister Varga told reporters that the money would be secured in cooperation with the Finance Ministry.

He added that in order for the Institute to relaunch production it will cooperate with the Transfusion Medicine Institute and pharmaceutical companies as external associates.

"Naturally, all under the auspices of the Agency for Medical Products and Medical Devices of Croatia (HALMED). At first we will use the production capacities in Rockfeller Street but will try to construct a new plant," he said.

Estimates are that around HRK 100 million are required for this, which was the amount set for the initial tender to find a strategic partner for the institute. 

(Text and Photo: Hina)

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