NEWS

Prime Minister’s press conference following the Government’s 130th regular session

At its 130th regular session today, the Government of the Republic of Slovenia, along with other resolutions, adopted the law on the performance of services of general interest and took note of the report on the project of constructing Unit 6 at the Šoštanj Thermal Power Plant (TEŠ) and the report of the interministerial working group on the protection and development of the real estate market in the Karst region and other relevant border areas.  The responsible ministers presented the adopted resolutions and laws, and the Prime Minister answered journalists’ questions on topical issues.

   

The adopted proposal of the law on the performance of services of general interest is aimed at achieving greater clarity and eliminating the shortcomings of the present arrangements noticed in the past 20 years by founders, as well as those who perform and use welfare state services. In view of the established difficulties and inconsistencies, and the fact that regulations now in force are not adjusted to development, changes are first required in the overall regulatory framework and subsequently in the regulation of individual services. The scope of the proposed law is therefore much broader than the scope of the existing Institutes Act. The most important solutions proposed refer to the regulatory framework of services of general interest; a uniform general framework of norms for and provisions on the performance and supervision of these services; the definition of different statuses of institutes; designation of managerial, administrative and supervisory bodies, their powers and relationship with founders; and the procedure for granting concessions.

   

Ministers also took note of the report on the construction of the TEŠ Unit 6. Considering the state-of-play of this project, the Government asked the company Holding Slovenske elektrarne (HSE) to appoint a special auditor in accordance with Article 318 of the Companies Act to examine in detail the management of individual transactions conducted by TEŠ, and to initiate all relevant investigations by authorities responsible for detecting violations. Because of the high risks associated with this project and the exposed position of the state as the owner of HSE in the construction of Unit 6, the Government is prepared to assume an additional risk by providing a state guarantee for the project in the amount of EUR 440 million under the condition that, in the new investment programme covering all project costs, the investor substantiates the return on investment in compliance with the energy policy on the basis of a thorough analysis of the possibility of the price of coal reaching EUR 2.25 per GJ, and an in-depth analysis of other input parameters of the investment.

   

The Government was today also briefed on the report of the interministerial working group on the protection and development of the real estate market in the Karst region and other relevant border areas. On the basis of the report, the Government concluded that the current situation is not as difficult as during the “critical years” of 2007 and 2008, but the possibility of experiencing another excarbated situation, in particular in areas exposed to risks, cannot be ruled out. Therefore, the Government should have protective measures at its disposal in order to mitigate potential consequences of unfavourable trends on the real estate market. These are national measures that are not discriminatory in their nature and do not require the approval of the European Commission. They apply to sensitive areas in terms of protection against market disturbances, prohibited activities affecting the physical environment, and uncoordinated national and local policies on spatial planning. The Government has thus adopted 13 protective measures providing effective control mechanisms, efficient spatial planning and supervised trade in real estate.

   

With respect to the potential legal action by the state against the Finnish company Patria, Prime Minister Pahor said that nothing would be gained by going to court to have the contract declared null and void. The Government would still have to meet contractual obligations in their entirety. In the case of a final judgement that proves corruption in the purchase of armoured modular vehicles 8x8, the contract becomes null and void by law. Until then, the Government must refrain from making decisions imposing the burden of compensation on tax payers while remaining empty-handed. “I would not like you to get the impression that with its decisions the Government has in any way supported the expectations of Sistemska tehnika in relation to the state” stressed the Prime Minister. In this regard, he highlighted the importance of the Government's fourth resolution which stipulates that the Ministry of Defence must examine the possibilities of revising the contract.

   

In response to the question on the pension reform, the Prime Minister called upon the trade unions to reconsider their decision to submit signatures in support of a referendum on the pension reform. “Maybe the architects of this decision will reflect again on whether this is the most beneficial course of action,” added the Prime Minister and reiterated that a pension reform is inevitable and, if postponed, even more difficult to approve, since a new law could introduce solutions even less favourable to the trade uinions. Saying ‘no’ to the pension reform will send a signal to financial markets that Slovenia is incapable of implementing reforms.

    

In the words of the Prime Minister, the Governemnt's resolution to continue with the investment in the TEŠ Unit 6 under the condition that it is managed with due dilligence and in a transparent manner, is a good decision. “I believe this is a wise decision considering that under the national energy programme Slovenia must decide on its future sources of electricity.” The plan for one third of renewables, one third of thermal energy and one third of nuclear energy, is good but in the future we must increase the share of renewables. “Also due to the catastrophe in Japan, the general public is likely to be reluctant in endorsing further investment in nuclear energy. Hence, I believe it is even more important to reduce our energy dependency by building a thermal power plant. But such a plant must be economical,” emphasised the Prime Minister.