Improvement of the state owned public companies business affairs

Serbian Finance Minister, Mr. Bozidar Djelic, invited yesterday the management bodies of all major state owned public companies, to present by September 15, their new and more credible versions of development plans for the next three years.
During the seminar on improvement of the state owned public companies affairs, which took place in the “Hyatt” Hotel Belgrade, Mr. Djelic said that the government will, on the other side, and from its perspective, provide for economical prices for public companies products and services, and will also provide for the necessary credit arrangements.

– Public Companies are very important, since they represent 11 percent of the working population in Serbia, 20 percent of all income, 27 percent of losses, and have in their possession 38,3 percent of basic resources of the state economy, declared Djelic – who also added that these companies are among the biggest losses and debts generators in our country.
There is no doubt that we won’t have any sustainable development, if at least 10 to 15 billion dollars are not invested in our infrastructure, in the following ten years, affirmed Djelic. These resources will be partially provided by the public companies themselves, but also from the budget of the Republic of Serbia for the year 2002 – from which, after the necessary rebalancing, more than 8 billion dinars are allocated for ZTP, almost 5 billion dinars for EPS, or RTS 1,6 billion dinars – and from other sources as well.

Regarding the deficit overcoming, it will be necessary to apply the most harmful price for the citizens – the raise of the public services prices, affirmed Djelic. According to some criteria, 10 to 25 billion dinars should be invested in the infrastructure through the public companies in the following decade, which represents a great opportunity for them, added Djelic.

He also explained that it is necessary to take a sharp look over the overall activity and productivity of each of these companies, then initiate «healing of the heart and organs of that organism», and only having that all done, go into new or secondary business.

Overlooking the Serbian Government Decree on public companies salaries freezing, Mr. Djelic said that it only permitted the lesser growth of salaries in these companies in comparison to the rest of the economy, but, on the other hand, the number of employees did not change in the past two years. «The Government will help you to resolve the problem of extra-employment in the adequate manner», said Djelic.