Prime Minister of the Federation of BiH Nermin Nikšić in a conversation for Biznisinfo.ba He spoke about key economic and political issues that currently shape the life of citizens and the economy of the Federation of BiH.
Topics were a reduction in contributions, blockades in the construction of Corridor 5C, problems in the purpose industry, as well as the situation in strategic companies such as Igman and coke.
Niksic pointed out that the government must balance between populist pressures and real fiscal opportunities, and stressed the importance of stable development and investment in industry that can be an economic growth.
The second phase of reducing contributions in the Federation is prepared, with the aim of relieving the economy, salary increase and the creation of space for new investments. What concrete effects do you expect to bring?
– The first phase began on 1st. July, but the employers failed to convey the benefits of reducing contributions to workers through higher salaries.
In the past two months, we record about 40 million KM less income per month for pension insurance, which are currently compensated from the budget. This shows us that we cannot go to the second phase without quality preparation.
The key precondition is the adoption of the Law on Fiscalizing Financial Transactions, which should soon be sent to the parliament, which should lead to increased budget revenues. When we see the first results of its application – through at least one or two quarters – only then we can enter the second round of contribution reduction.
In addition, we enter the election year when they grow populist pressures – all requirements of pensions and additional social benefits, but someone must also provide the budget support.
Examples works, the new Law on the PIO will cost by a more favorable variant of the additional 500 million KM, and the Law on Treasure Appendix about 230 million KM. That is why it is better to make studious preparation than to make laws that we cannot comply financially.
Political decisions of the Presidency of BiH stopped the construction of highway shares near Mostar, especially the MOSTAR JUG – Tunnel Kvanj. What can the FBiH government do here and when can we expect the beginning of work?
– The problem is related to the decision to ban traffic to state property, although it is not here about classical traffic. It is just 400 square meters of non-despecial military property for which the Ministry of Defense has already given the consent. Somehow cannot be abducted impress that in action is more political blockade due to party interests (SDA and DF).
In the meantime, we have agreed with the Defense Ministry, a temporary decision that we have granted the transition over that part of the land, and which would allow us to perform work on other shares until this blockade is resolved.
It is important to emphasize that the blockade of state property does not only stop the construction of Corridor 5C, but also the development of local communities. The Federation of BiH does not have a problem that the land remains state-owned, we are just looking for the possibility of use to build public projects.
We do not see why the highway, as a public good, would not go through state land without changing title, the team before the route of the Presidency of BiH, the Council of Ministers and the State Parliament.
Igman Konjic recently was in the focus of the public because of the problem of supplying raw materials from Serbia. Although production continued, how do you plan to solve the problem of supplying raw materials permanently?
– Igman procures a gunpowder from the same supplier, because sometimes in the former state planned the process of production. Of course, this is a warning that is not good to depend on a source, which is why it is necessary to seek alternative suppliers. There are companies primarily in Turkey and Czech Republic, but decisions on suppliers should be left to the company’s management.
The goal is not to depend only from one supplier, and to use what is the best and most favorable in the given time, and that is currently a gunpowder from Serbia. I used to say before we planned and initiated certain activities in order to build our own gunpowder in the Federation of BiH. This, of course, requires additional funds for investment.
The dedicated industry is one of the key branches of our economy, a development generator and a driver that can withdraw other accompanying industries. As important as they know the best of the local communities that have such companies, such as cavalry, bugojno, new Travnik, Goražde … when workers work and regularly receive salaries, the entire local economy advances.
The Government of the Federation of BiH is firmly committed to support the purpose industry, monitors its development and creates an ambience for further investment. We planned to open one drive in Cazin in order to further deploy the production by different regions. If this model is shown successful, we will also think about another location in Herzegovina. Our goal is to stabilize companies that have already recovered, and those that still have problems back on the right path.
It is very important that, with GINEX and Igman – who has achieved significant profits before recent problems – and companies such as binas and BNTs now also record serious income. The return of interest in Pretis, which has products very requested in the market, is especially encouraging, although still bearing the burden of problems from the previous period.
What is the situation with air, which in the last few days was there a lot of speech?
– The air is trying to get out of bankruptcy. Unfortunately, the bankruptcy procedure is launched by the tacit agreement of the previous government – they did not officially approve the opening of bankruptcy, but did not even respond within the legal deadline, which is considered consent. That status burdens both employees and the government, because it is difficult to attract investors and open new jobs while the company hangs the bankruptcy proceedings.
However, the most important thing is that the air still works, concludes contracts and survives. I believe that in the period ahead of us will gradually return to pre-war positions, because the air is a key partner of BNT – especially when it comes to nišan devices – and these two companies complement each other.
How important would be the restarting of production in the vitezit that also mentioned as an alternative to the supply of Igman barut?
– The vitezit is in a complex situation due to court disputes around privatization and bankruptcy. We can only follow the situation right now because it is all under the jurisdiction of the Court. It is important to emphasize that, as recently shown, the Bands of Vitezites is not compatible with the needs of Igman.
The production of production would definitely strengthen the complete purpose industry, their explosives are especially interesting to mines, but it is a long-term and uncertain issue.
Does the FBiH government follow the situation in Coksar, which is in front of bankruptcy, and can it be involved in resolving problems in the company’s stake?
– We follow the situation, although GIKIL is under the jurisdiction of the Government of the Tuzla Canton, which has implemented privatization. In the past, we mediated when Arcelormittal closed his coke. Then we had a meeting and they agreed that Mittal turned off his coke and to use the coke from Lukavac.
We are now following and sell Mittal and events in Gikil. Our focus is the protection of workers and preserving production, of course, within the legal competencies and the possibilities of the Federal Government.
According to the Federal Bureau of Statistics, the number of employees is lower by about three thousand compared to the same period last year. It has occurred in the manufacturing industry. What are the causes and how are you planning to stop falling?
– The decline in employment is not dramatic until it moves within 0.5 percent of the total number of jobs. Data are partially caused by seasonal movements in the education sector that is specific and in which people are working on determined.
When it comes to the manufacturing industry, it is leaning on Lohn jobs and foreign economies. When they slow down, the order occurs logically.
But the minimum salary, despite the claims of certain “experts”, did not lead to mass releases. On the contrary, she proved to be justified because we thought part of profit a company that last year was just over 4.3 billion – should be focused with workers who created that profit.
The government monitors the situation on a daily basis and works on creating conditions for the creation of new jobs through incentives, investment and strengthening the economy.
