Press conference after the meeting of the government on Wednesday, 20th December 2006

Radim Ochvat, secretary of the Prime Minister: Good afternoon, ladies and gentlemen, welcome to the press conference after the meeting of the government. I welcome today the Deputy Prime Minister and the Minister of Labour and Social Affairs, Petr Nečas and I give him the floor.

Petr Nečas, Deputy Prime Minister and Minister of Labour and Social Affairs: Good afternoon, ladies and gentlemen, allow me to inform you about some of issues that the government of the CR debated today. Among those important issues, which I regard as necessary to be mentioned, is the approval of the proposal of the Minister of Labour and Social Affairs, based on which the government withdrew the amendment of the Labour Code concerning postponement of the effect of the new Labour Code. With regard to the fact that the Chamber of Deputies, which had been blocked by votes of social democrats and communists, did not approve shortening of deadline necessary for adoption of the law by the end of this year, the debate on it after 1st January would have no sense; it means that the government withdrew this proposal for postponement of the effect of the Labour Code by one year, so as to avoid the state of legal uncertainty. Regarding the other important issues, which I regard as necessary to be mentioned, the government approved the intention to merge the authorities of tax and custom administration and gradually merge systems of levies of tax and public law premium; i.e. to gradually establish one collection point, to which citizens, and especially entrepreneurial subjects, would aim their taxes and other levies. Further important issue was the approval of the intention of the Czech Republic to take command in the provincial reconstruction team in one of province of Afghanistan starting from October 2007. Based on this we would become so called leading nation after Hungary and it would also mean taking greater responsibility in the framework of the Afghanistan mission. These were three issues, which we regard as important and we are certainly ready to answer your questions.

Radim Ochvat, secretary of the Prime Minister: Now your questions, please. Are there any, or not? I can see one.

Journalist Kňourek, ČTK: Good afternoon. I would like to ask whether the government will increase financial means for reducing impacts of coal mining for the Kladno region. Thank you.

Petr Nečas, Deputy Prime Minister and Minister of Labour and Social Affairs: Yes, the government came to the conclusion that with regard to the fact that the order prepared is higher than financial means earmarked, the government increased financial means by 250 million crowns, which would serve for reducing impacts of coal mining in Kladno region and especially for removal of environmental problems and afforestation of spoil heaps; it means an increase by the necessary amount. It became apparent that these measures cost more than it had been expected, than it had been earmarked and therefore further quarter of a billion crowns was provided.

Radim Ochvat, secretary of the Prime Minister: Thank you, further question. The ČTK, Mr. Vavrušák.

Jan Vavrušák, ČTK: Minister, I would like to know what the standpoint of the government was regarding the point no. 3, it was the draft government order concerning municipalities and housing allowances for soldiers and then on the proposal of deputies concerning veterans of war. Thank you.

Petr Nečas, Deputy Prime Minister and Minister of Labour and Social Affairs: The government approved the draft government order, i.e. in order to observe existing volume of housing allowances it reduced those coefficients, because certain modest increase of nominal minimum wages occurred. So, this draft government order was approved and the government agreed it is necessary to change this system; i.e. not to link housing allowance to any amount, which is valorized, e.g. to minimum wage, but to link it to the actual price map of the individual garrisons and to actual prices. It means necessity of a legal system change. Now the government just responded to modest increase of the minimum wage by modification of those coefficients, so that increase of mandatory expenditures would be averted. Another question of yours concerned veterans of war. It concerned the proposal of deputies and the purpose of this proposal was to enable provision of allowances for cure at a spa for veterans of war. They have been entitled to use these allowances up to now, but it was not included in the new Act on Social Services thanks to the way of its preparation by the previous government, and this is what I want to point out. We support this proposal of deputies, of course, we recommended its approval. Nevertheless, the fact is that owing to the date of submission of the proposal, it is not possible for the law to be in effect starting from 1st January. It means that certain legal gap will occur until the proposal of deputies is approved.

Radim Ochvat, secretary of the Prime Minister: Thank you, further question, please. If there are no other questions, thank you and have a nice day.

Petr Nečas, Deputy Prime Minister and Minister of Labour and Social Affairs: As there are no other questions, I would like to wish you, ladies and gentlemen, nice Christmas and I wish you and your families to be successful in the next year. Good-bye.