Press Conferences

23. 7. 2008 13:43

Press Conference after the Meeting of the Government, Held on Wednesday 23rd July 2008

Jana Bartošová, Government spokesperson: Good afternoon, ladies and gentlemen, let me welcome you to the press conference after the meeting of the government. I welcome the Prime Minister, Mr. Mirek Topolánek, the Minister of Finance, Mr. Miroslav Kalousek, the Minister of Agriculture, Mr. Petr Gandalovič, the Minister of Culture, Mr. Václav Jehlička and the Minister of Justice, Mr. Petr Pospíšil. I ask the Prime Minister for his introductory speech.

Mirek Topolánek, Prime Minister of the Czech Republic: Thank you. At the last meeting of the government before the governmental holiday, we debated altogether one hundred points. It indicates very extensive agenda. I would like to apologize, as at two o'clock I will leave to visit the Ministry of Environment and therefore I will try to be brief and my colleagues will inform you in details on debated legal norms. So, I will skip legal norms of the Minister of Justice and the Minister of Agriculture. We approved the amendment to the Act on Addictive Substances. These were just details. There were great number of deputies´ and senatorial proposals. As they were mostly proposals submitted for certain purpose and because, rather surprisingly, there are usually lots of question regarding them, I will try to describe them in the most possible detailed manner. The proposal which concerns energy was refused. The proposal which concerned the motorway R35 was refused as it was absolutely nonsensical. It does not mean that the government does not was to speed up the construction of the communication R-35. To the proposal of Karel Šplíchal which concerned travel expenses compensation for public officials, the government took a neutral stand. We are of the opinion that it is necessary to extend the list of state officials not only by those who were stated in the proposal of Karel Šplíchal. Such proposals are repeated before every election; nevertheless the stand of the government is neutral. We took the neutral stand to the senatorial proposal on elections and different composition of the Council of the Czech Television, the Council of the Czech Radio and the Council of the Czech News Agency. This proposal is neutral in fact, as it does not solve the basic problems of those institutions; it solves only composition of those councils. My opinion on those councils is widely known; I would dissolve them; nevertheless our stand to this proposal is neutral. We refuse and take a negative stand to the proposal, which concerns radio and television broadcasting and broadcasters and the prolongation of the transition from the analogue to the digital broadcasting not because we would not think that broadcasters will have a problem, but the main reason is that this proposal is absolutely badly written, it would not enable correct function, it is nonsensical and we want to propose such a solution which will satisfy broadcasters. We want to submit it either during the debate in the Chamber of Deputies or, if it is not passed, we will submit our own government proposal. We approved the senate bill on compensation for certain victims of the occupation of Czechoslovakia by military forces of the Warsaw Pact. We approved two audit conclusions; the first one, which had been suspended, concerned radio and television broadcasting, and the second one concerned the state property and state budget financial means allocated to state anti-aircraft defence. After long debate and following the session of the National Security Council, the government approved the Military Strategy of the Czech Republic and the Long-term vision of the Ministry of Defence. Great number of materials was of less important character. We approved the Analysis of options available to include nuclear fuel into the state material reserve system. The minister of Culture will inform you on his issues. The material that was announced yesterday at the press conference, concerns the issue of spectator violence. It is the first analytical material that describes tools for solution of this problem which has been escalating recently. We approved the Implementing document to the Concept of State Policy on Tourism in the Czech Republic. We approved the Report on the Completion of Negotiations on Operational Programmes. We evaluated the operation of the anti-corruption line 199. We approved the change of documentation for the Masaryk University in Brno and the development of the material and technical basis, and lots of other points which I leave to my colleagues. That one which will not be commented by them, concerns the decontamination of dump of the company of Diamo, so called lagoon. Finally, we approved that material. We approved the procedure relating to the refund of the amount to the European Commission in connection with the Debit Note. We approved the preparation of the security measures for the Czech presidency without debate, and we took a neutral stand to the deputies´ proposal that concerned the real estate transfer tax. The stand was neutral because we would submit our own proposal which would solve the issue in an applicable way. The solution would enable municipalities to independently decide on the real estate transfer tax and farmland tax. That is all from my side, I have a feeling that the remaining information will be given by my colleagues.

Jana Bartošová, Government spokesperson: I thank the Prime Minister and now the Minister of Finance, Mr. Miroslav Kalousek has the floor.

Miroslav Kalousek, Minister of Finance: Thank you for the floor. Let me inform you of the position of the Czech Republic to the budget of the European Union for the first half of the year. It is relatively very positive report. Our net balance is plus 26,2 billion crowns. We delivered 18,2 billion crowns and we drew 44,4 billion crowns. It is the best result since 2004, when we began to draw means from the EU. The detailed press release, including the structure of the drawing, will be published by the Ministry of Finance on its web-sites after this press conference. Furthermore, allow me to inform you of the fact that the government approved the memorandum, which I signed at night from 9th to 10th July with the Vice-President of Arcelor Mittal, and the government assigned me with the task to sign the relevant agreements. The basic framework of the agreement is the commitment of the Mittal to withdraw its claims against the Czech Republic amounting to 26,2 billion crowns, including accessions. There again, a package of its shares, nearly 11%, will be sold for a price higher than it is the market price. With regard to certain speculations in media, I point out that the price of the package was evaluated according to the yield method by an expert from the "big four". The state will sell one share of stock for 5000 crowns, which is higher price than the price fixed by the expert. Thus that complicated problem is closed, which have been inherited by the Topolánek´s cabinet in connection with the privatization of steelworks in Ostrava. I regard it as an extraordinary success. There was a threat for the Czech Republic that it would have to pay arbitrary payment amounted to more than 40 billion crowns. Finally, we reach the agreement based on which we would sell our shares for 6,8 billion crowns, for higher price than market price. One more remark to those speculations regarding that price which I read in media; I had to smile when I was reading them. When we conducted an arbitrary proceedings at the Chamber of Commerce, where we were successful and won the case, the company of Mittal required compensation amounted to 5,6 billion crowns for % of shares. I repeat again, for 14% package of shares which we could not sell they required price amounted to 5,6 billion crowns. Now, we sell 11% for 6,8 billion crowns. But the most important matter is that the Czech Republic will not have to pay a single crown in the framework of this suit. I highly value this agreement with Mittal and I regard it as very generous for the Czech Republic and as extraordinary advantageous. Thank you.

Jana Bartošová, Government spokesperson: I thank the Minister of Finance and now the Minister of Agriculture, Mr. Petr Gandalovič has the floor.

Petr Gandalovič, Minister of Agriculture: Ladies and gentlemen, I submitted to the government today the Report on the State of Agriculture in 2007. The report is relatively positive. It is necessary to emphasize that the profit in the sphere of agriculture nearly doubled between 2006 and 2007 up to 13,7 billion crowns. It is necessary to say that plant production was more successful than animal farming, which is widely-known. The foreign trade in the agricultural sector has improved its balance, as well. It means that the deficit dropped from the original 34 billion crowns to not only 20 billion crowns. It is also necessary to say that the increase of wages in agriculture was the third highest increases of all twenty-seven member states of the EU. It is obvious that wages have been low for a long time, the average was low and therefore that increase by 20% is not any revolutionary news; nevertheless, it is and conditions which must be observed in relation to the environment, in relation to land, which they use. I would like to say that this amendment is very progressive towards higher protection of environment. It is good news and it is necessary for the Czech public to be informed of it. The second matter I would like to mention here, concerns the approval of the amendment to the Act on Agriculture. The Act on Agriculture is something like the Trade Act for farmers. It stipulates basic conditions for their activities and also conditions which must be observed in relation to the environment. It is good to remind you the fact that the sphere of agriculture should not be view as something that cause damage to the environment. We stipulate rather strict conditions in this amendment which would be possible to the system of points on roads. It means that if a farmer constantly breaks his duties, for example regarding the environment, he not only be penalized, but also direct payments, it means subsidies, will be reduced. We also create conditions in the act for motivation of farmers to return landscape element to the countryside – small alleys, groves, small streams and such like. Perhaps it might seems to you like a remote issue, but I am of the opinion that the Czech countryside is something that it is part of our treasure and it deserves to be managed and to be returned to the state which had been before the forced collectivization, and that consolidation of land. We do not want to make some hobby farming from the agriculture, but we want to change the Czech countryside in something which will retain water and to provide great number of other functions in the future. I regard this law as one of the most important laws. Thank you.

Jana Bartošová, Government spokesperson: I thank the Minister of Agriculture, now the Minister of Culture, Mr. Václav Jehlička has the floor.

Václav Jehlička, Minister of Culture: Thank you. Ladies and gentlemen, I submitted today to the government the updated Programme of Conservation of National Cultural Treasures. I would like to remind you what the programme concerns. The programme concerns the revitalization and development of several significant national cultural institutions – the National Museum, the National Library, the National Technical Museum, the National Film Archives and the Arts and Crafts Museum. We do not usually speak about what is operating well - like it is in case of the preparation for the reconstruction and development of the National Museum, where I am very content and I praise the director, as well as in case of the National Technical Museum, where a new director was appointed last year and his performance is very good. The National Technical Museum will become a significant cultural institution again in a very short time. However the greatest problem concerns the National Library. The entire public knows that the "Octopus" will not be built in Letná district because the project was not prepared well and it was a kind of adventure. Now, our attention should be focused on the revitalization of the Klementinum building. We must correctly assess the usage of the Klementinum building in the light of the new context, so that the Klementinum remain the centre of learning, so that we would not transfer it to a periphery, so that it would remain a centre of the academic life and so that it would not become a commercial congress or other centre. So, there is a lot of work ahead of us and I would like to say that I will not tolerate to begin an investment action in the sphere of my ministry which would not be confronted with an expert opinions. In case of Klementinum, such expert opinions have been formulated at the Academy of Arts, where professors and students assessed the potential of the Klementinum and we would like to cooperate with such experts, so that the case of the National Library would not repeated. I would also like to say that all these projects which have connection with the national cultural treasury are directed to Prague. You will get from my young colleagues CDs with information on what the government renders to regions. No government has rendered such financial means from our programmes for conservation of historical monuments, for support of live culture as this government; and we are also preparing to use European financial means from the integrated operational programme, so that in every region would arise one or two significant cultural centre. We are doing all that in coordination with regional and municipal local governments, with universities and with civic public. We established joint commissions in every region which are to coordinate cooperation of the state, regions, municipalities and non-profit organizations.

Jana Bartošová, Government spokesperson: I thank the Minister of Culture, and now the Minister of Justice, Mr. Jiří Pospíšil has the floor.

Jiří Pospíšil, Minister of Justice: Good afternoon, once more. Ladies and gentlemen, I will briefly inform you on the amendment to the Code of Criminal Procedure, which was approved by the government today, and which form a part of the reform of justice. It is a part of the package of criminal laws, which have been prepared by the government. You know that we are debating in the Parliament the new Criminal Code, this is a new Code of Criminal Proceedings and the material intention of the entirely new Code of Criminal Proceedings will be debated by the government by the end of the year. I would like to state that the amendment which was adopted today introduces a revolutionary institute, an agreement on the kind of punishment and on the term of imprisonment. Thus the situation would be solved in the Czech Republic in case of criminal offences which are not very serious; for the present such situations are solved through diversion of criminal proceedings. We would like those small cases to be solved in the trial. In other words, an agreement on the kind of punishment and the term of imprisonment will be possible in case of criminal offences which have the maximum sentence up to five years. If the accused admits his/her guilt, it will be possible to propose an adequate punishment, to make an agreement with a prosecuting attorney and to submit such a proposal to a judge. If the judge confirms that the punishment is adequate and that the case is suitable to be solved in the summary proceedings, he/she will approve such an agreement. I would like to state that the Czech Republic introduces through this proposal something what is common in most countries of the European Union; it is not anything what would be extraordinary in the European legal context. We are taking over a system which is common in the Anglo-Saxony law system and we expect that it will enable investigative, prosecuting and adjudicating bodies and courts to concentrate on complicated and serious crimes, and that it will enable to solve those small cases, as there are thousands of them, very quickly. For example, if somebody drives a car without a driving licence, it is a typical case when an agreement on the kind of punishment and the term of imprisonment could be applied. The last information for you – I would like to state that the Czech justice awarded in the last year by 10% more judgements than in preceding years; in other words, number of criminal cases is growing as well as number of cases in civil proceedings, and that is why we must to respond to it through the simplification of proceedings in case of small crimes, so that courts could solve serious and complicated cases. Thank you.

Jana Bartošová, Government spokesperson: I thank the Minister of Justice and now excuse my and the Prime Minister's absence, as we are leaving to visit the Ministry of Environment. It will be Jakub Stadler who will stand in for me. And one more piece of information – if you want to take part in the press conference at the Ministry of Environment, a minibus is prepared for you. Thank you. Good-bye.

Jakub Stadler, Press Unit of the Office of the Government: Well, ladies and gentlemen, we will continue. There is time for your questions now. The TV Prima.

Tomáš Drahoňovský, TV Prima: Good afternoon, I have a question to the Minister Kalousek. I would like to know what the procedure will be like. Where will you get the money and what were other proposals like at the meeting of the government?

Miroslav Kalousek, Minister of Finance: Well, we will be considering some measures, so that we would not lose the money; nevertheless, there is a compulsory order to pay here and we have the budgetary reserve for such cases.

Tomáš Drahoňovský, TV Prima: And how about the discussion at the meeting of the government? Was it consensual?

Miroslav Kalousek, Minister of Finance: We debated the individual variants at the meeting of the government. I think that the only one way we have, is to pay and to continue in negotiations or to consider an arbitrary proceedings. I should say again that it is a problem which we inherited; we did not cause it.

Jakub Stadler, Press Unit of the Office of the Government: Thank you. Is there any further question? There at the back. I do not know, we did not understand.

Journalist: inarticulate question

Miroslav Kalousek, Minister of Finance: That was a senatorial bill. The government approved it.

Jakub Stadler, Press Unit of the Office of the Government: The second question concerned the library at Letná district, if I am not mistaken. It was a question to Mr. Jehlička.

Václav Jehlička, Minister of Culture: As to the project for construction of the library, I should say that it does not mean that there is a necessity to build a new library; there is nothing like that mentioned in the Programme of Conservation of Conservation of National Cultural Treasures. The Ministry of Culture must ensure proper function of the National library and take all the factors into consideration. I mean financial and territorial factors. There was no expert discussion held and everything was transferred into that black-and-white dispute whether to build the Library at Letná or not. For example, it has not been assessed whether the Klementinum, after the removal of the National technical Library in the next year, has potential enough to serve as the National Library, in case a new depositary is build. . I regard the attitudes as very irresponsible from the very beginning.

Jakub Stadler, Press Unit of the Office of the Government: Thank you. Further question, please.

Czech TV: inarticulate question

Jiří Pospíšil, Minister of Justice: I will answer it briefly. The report will be debated at the next meeting of the government.

Jakub Stadler, Press Unit of the Office of the Government: Than you, further question, please. One more question of the TV Prima.

Tomáš Drahoňovský, TV Prima: I have one more question to Mr. Kalousek. Is it possible to predict ... inarticulate ... is there any evidence on it? Is there a chance, God willing, that we would not have to pay anything? And the third question - is the matter completely settled or is there any possibility which threatens concerning another payment?

Miroslav Kalousek, Minister of Finance: The purpose of the material was not to detect responsible person. The matter, as you certainly know, is a subject of criminal proceedings. This material was not prepared to identify who was responsible and who was to blame. We have investigative, prosecuting and adjudicating bodies for that purpose. The material was worked out because the European Commission called on us to return the money. It concerned the financial means, according to the actual current of exchange, at the amount of 168 million crowns. The government decided what resources would be used for that payment. It will be from the government's budgetary reserve and the payment will be paid by me. Nevertheless, we will seek possibilities, so that we would not have to pay anything, but I do not think that the chance is great.

Tomáš Drahoňovský, TV Prima: And the second part of my question – whether there is a threat of another payment. For example to the company CPV, which had in fact ...

Miroslav Kalousek, Minister of Finance: I do not have such information.

Jakub Stadler, Press Unit of the Office of the Government: Thank you, further question, please. You at the back, please.

Journalist: I would like to ask the Minister of Culture ... inarticulate

Jakub Stadler, Press Unit of the Office of the Government: So, the first answer – Mr. Minister Jehlička.

Václav Jehlička, Minister of Culture: Well, the library at Letná cannot be built because there is no land available and in the financial context, there is no money for that. So, it would be unrealistic to build that library and we, as the Ministry of Culture, as a superior organ to the national Library, must ensure proper function of the library.

Jakub Stadler, Press Unit of the Office of the Government: Thank you. Who was the second question to? To all the ministers? Well, Mr. Minister Kalousek can start.

Miroslav Kalousek, Minister of Finance: Perhaps you remember that in 2005 I submitted relatively extensive proposal for reduction of deputies´ duplicities, and one of those duplicities was free of charge usage of transport. The proposal won 25 voices in the Chamber of Deputies. Deputy Šplíchal was not among those 25 courageous people. So, if he decided now, as one of those who caused the then refusal of this law, if he decided now to raise the flag, I can just speculate on his motives, but I will not change my opinion and I will support it, of course.

Jakub Stadler, Press Unit of the Office of the Government: Then the other ministers.

Petr Gandalovič, Minister of Agriculture: As to me, I can say that I support this matter. I am not sure, of course, if it should be done based on the proposal of deputy Šplíchal. I think that such an issue that concerns deputies should be solved by a committee as for example the committee of groups of deputies, and such like. The Chamber of Deputies should try to find a broader consensus. Nevertheless, I support this issue definitely.

Václav Jehlička, Minister of Culture: I will briefly express my opinion. I support it, of course. I used the free of charge transport only several times during my twelve-year senatorial mandate it was in Prague traffic. I do not use means of public transport, but I agree with my previous speaker that this matter should be assessed in a complex way.

Jiří Pospíšil, Minister of Justice: I cannot see any problem in that proposal either, but, as it has been already said, that proposal in not a complex one, it is not related to state officials generally – and it should be related to them, if we accept such an idea. Therefore, I will wait for the debate at the group of deputies and at the Chamber of Deputies.

Jakub Stadler, Press Unit of the Office of the Government: Further question, please.

Czech News Agency: Good afternoon, I have a question to Mr. Minister of Finance, whether he has any problem with compensation of victims of 1968, whether he has means.

Miroslav Kalousek, Minister of Finance: We estimate up to 15 million crowns in the first year and thirty million crowns in the second year. It is just an estimate, of course.

Jakub Stadler, Press Unit of the Office of the Government: Thank you, further question, please.

Czech TV: ... inarticulate ...

Miroslav Kalousek, Minister of Finance: It is simple, the Ministry of Defence has medium-term means approved and it is within competence of the Ministry of Defence and the General Staff to set investment priorities. It means that if it is a priority new purchase will be realized. But the government did not consider any increase of means beyond the framework of approved expenditure limits.

Jakub Stadler, Press Unit of the Office of the Government: Thank you, further question, please.

Press Agency Mediafax: I have several questions for all members. The first question – did the government debate the change of working hours of railway workers, so that they would be in compliance with European directives? And the rest of my questions concern the situation in the company Siemens Kolejová vozidla. Did you debate the situation, because the plan was to dismiss 1100 people? A decision was made that Siemens will leave the plant at Zličín and the intention is to dismiss those workers. And I also learnt from CzechInvest that Siemens got financial incentive for construction of a technological centre, it got 72,5 million crowns and one of those conditions was to create 155 new jobs and to maintain these jobs for five years. This offer was made in 2004, and therefore they would have to return money. I would like to know if the government will succeed in getting the money. Thank you.

Jakub Stadler, Press Unit of the Office of the Government: It is rather specific question, you had better to ask the Minister of Industry and Trade; ministers agree with me, do not they?

Press Agency Mediafax: I know but I had several question, and so, could ministers answer the first one, at least? Our agency and our public will welcome their opinions.

Miroslav Kalousek, Minister of Finance: Well, you are right, of course. So, the fact that the company Siemens Kolejová vozidla will close the plant with 1100 employees is not good news. But if I take the current unemployment rate into consideration, do not see any principal problem with those 1100 workers, in spite of the fact, and I emphasize it, that it is not good news. It is fully within the competence of the owner. The government does not have any tools to stop him to doing it. You mentioned a premise on a return of the investment incentive. I cannot afford to do so. Anyway, if we state breach of agreements in the sphere of investment incentives, we have tools through the tax offices how to gain these means. But I repeat strongly, I cannot accept you premise concerning breach of investment incentives. I will have to make sure of it first.

Jakub Stadler, Press Unit of the Office of the Government: Thank you. The last question, please, Lidové noviny.

Lidové noviny: Good afternoon, I would like to ask a question Mr. Minister Jehlička. As that proposal of the radio section, was not allegedly prepared well, will the government's proposal, about which the Prime Minister was speaking, prepared by your ministry or in cooperation with the Ministry of Industry and Trade, as it was in case of the bill on digitalization?

Václav Jehlička, Minister of Culture: I think it will be prepared in cooperation of more ministers, but perhaps it will be only a matter of Mr. Minister Říman.

Lidové noviny: ... inarticulate ...

Václav Jehlička, Minister of Culture: I think we could start working on it this year.

Jakub Stadler, Press Unit of the Office of the Government: I thank ministers and I thank you, as well. Have a nice day, good-bye.

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