Prime Minister says public companies backbone of development

Public companies must be the backbone of development and the state must be able to take pride in them, Croatian Prime Minister Zoran Milanovic said at a government conference called "Operations, Restructuring and Investments of Public Companies in 2014".
 

Milanovic said Croatia must make adjustments in both the budgetary expenditure and the revenues, as shown by the experiences of other countries of central and eastern Europe that have gone through the Excessive Deficit Procedure.

Milanovic, however, said that fighting the excessive deficit and indebtedness was pointless without growth and hiring, underscoring that the role of public companies was very important and irreplaceable in that process, notably in the realisation of their investment potential.

The PM underlined that the process of restructuring and technological and managerial modernisation must be accelerated in all public companies.

He announced the continuation of rationalisation and downsizing personnel by 2,000 in public companies this year.

Milanovic said some were refraining from reforms, adding that the government could no longer tolerate such behaviour and failure to meet the set objectives and investment plans.

"I expect full commitment to reforms and increased efficiency while maintaining the quality of public services which public companies provide to citizens," Milanovic said.

This is difficult, but not impossible, he said, adding that the government would not be indulgent towards management boards.

Milanovic said that in the two years that his government had been in office, public companies had recorded certain progress, as their revenues were increasing and expenses were being reduced, adding that the plan for this year was to cut the number of all personnel to below 50,000.

He announced intensified privatisation of state property in 2014, including public companies, saying that only those companies that were of vital interest for the state and the nation would remain state-owned.

Deputy Prime Minister Branko Grcic presented the business results of the 20 biggest public companies, according to which their revenues in 2013 rose by 3.1% on the year, reaching approximately HRK 30 billion, while expenses were cut from HRK 31.9 billion to HRK 30.7 billion.

Ten state-owned companies made profit in 2012 and 12 in 2013, while their overall profit in 2013 covered nearly all losses generated in 2012 (HRK 1.5 billion), Grcic said.

Overall investments made by public companies in 2013 should be the same as in 2012, namely HRK 9.2 billion, while investments in 2014 are projected at HRK 12.4 billion.

(Hina)
 

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