Press Conferences

13. 4. 20078:49

Press conference of the Prime Minister of the Czech Republic, Mirek Topolánek, held after the meeting of the government on Wednesday, 11th April, 2007

Martin Schmarcz, Head of the Press Department of the Office of the Government: Good afternoon, ladies and gentlemen, welcome to the press conference after the meeting of the Czech government. I welcome the Prime Minister Mirek Topolánek and the Minister of Agriculture Petr Gandalovič. As an introduction, the Prime Minister Mirek Topolánek will briefly inform you of the agenda of the meeting. You have the floor, please.
Mirek Topolánek, Prime Minister of the Czech Republic: Thank you. I will try to choose those parts of today's meeting, which you might be interested in. I think that the approval of the financial provisions for reinforcement of staff of central bodies in the context of preparation of the Czech Republic's EU Council Presidency is an interesting matter. Of course, number of laws was amended, which are related to the accession of the Czech Republic to the Schengen area. All the amendments that concerned the Schengen area were submitted to the government within the only one Act. I think that they will be approved based on the pilot operation of the project, just on the turn of 2007 and 2008; it is one of priorities of this government. Also the Asylum Act was amended and the Act on Residence of Foreign Nationals in the Czech Republic, which is connected with the same issue, of course. The Commercial Code was amended as a result of a transposition of the Directive no. 13, and it was approved today. The Minister of Agriculture submitted further laws and they will be presented by him. The Order of the Government was amended, which changes the sphere of housing support. We debated number of deputies´ proposals and mostly negative stands were adopted to them, as they were not correct in both in the legislative and matter-of-factly views. Large debate was held, but rather a formal debate, on the National Plan for the Euro Introduction. I would make some brief comments on this issue. We set certain deadline for the euro introduction with the Governor of the Czech National Bank and we agreed that we would specify the deadline for the euro introduction during this summer and it would be a result of deep analyses. Nevertheless, the National Plan is being approved and if the introduction of the euro would be scheduled for 2012, then only the last three years before accession to the Euro-zone would be crucial. It means that we have updated the plan rather in a formal way. We agreed that it is necessary to use experiences of Slovenia and especially Slovakia, which follow the adaptation systemRM2. I think that also price information from the point of view of inflation rate in Slovenia and factual adaptation from the point of view of fixed rate of exchange of Slovakian crown must be assessed in the framework of the next national plan. We were also given a regular Report on Preparedness of the Czech Republic for Transposition of the Schengen Acquis. We were debating, and it was very detailed debate, on implementation of the Romany Inclusion Decade and a long discussion was held on using structural funds, especially in the framework of the SROP Programme. I think that the most interesting point, in the sense of impacts, rather negative impacts, concerned the arbitration with Eastern Sugar and so I give the floor to the Minister of Agriculture.
Martin Schmarcz, Head of the Press Department of the Office of the Government: You have the floor, minister.
Petr Gandalovič, Minister of Agriculture: Thank you. Ladies and gentlemen, I will start with the bad news. As the public was informed, the Czech Republic failed in the arbitration proceedings against the company Eastern Sugar. The arbitration concerned three orders of the government of 2000 – 2003. I want to put emphasise again that it was not this government, of course, that it was the government that governed in 2000 – 2003. Those three orders of the government regulated and determined conditions for so called sugar quotas allocation. The Czech Republic was in the arbitration procedure against the Eastern Sugar. It is possible to say that it won the action in the part A, it means the part that concerned the order of the government no. 1 and no. 2. In the third part, which concerned the third order of the government, and which decreased, in fact, the sugar quota of Eastern Sugar by more than 20%, in this part the Czech Republic failed. Therefore, it will have to pay about 25,5 million euro and the government decided today that it would be done without delay because it took into consideration the decision of the court and the fact that the order of the government was not correct. Instead of some appeal attempts, which would be probably unsuccessful, as we suppose, we decided to pay the arbitration penalty. Concurrently, I was asked, together with the Minister of Finance, to submit to the government relatively very detailed information on preparation of the order, on persons who had prepared it, on materials which formed basis for the preparation and on persons ho submitted it to the government, because it is clear enough that the position of the arbitration court was very easy and number of lawyers were of the opinion that the Czech Republic would fail in the third part.
Mirek Topolánek, Prime Minister of the Czech Republic: I will just add information. I think that I will be able to be more concrete. I charged the Minister of Finance and the Minister of Agriculture to prepare materials for submitting this matter to the organs in charge of criminal proceedings. The reason is that this issue was known then, it was interpellated then and it was clear then that it was not quite correct procedure; and the arbitration proceedings demonstrated this fact without doubt. And I think that it is good to know who is on the blame that the Czech Republic will have to pay 800 million crowns for a fault of the government, which fact was quite evident then.
Martin Schmarcz, Head of the Press Department of the Office of the Government: I thank the Prime Minister and the Minister.
Petr Gandalovič, Minister of Agriculture: I would like to briefly comment also further materials. The government approved the order of the government that concerns payments for so called agrienvironmental measures. In other words, if a farmer decides to take care of the countryside in compliance with the principles of good protection of environment, he/she would have claim for certain amount of subsidies. I think it is good news for all those who are engaged in bio-agriculture. The government also approved the order of the government, which will grant subsidy at the amount of 45 euro per one hectare for those who will grow crops for bio-energy industry; it means not only for those who produce bio-alcohol and bio-fuel from these crops, but also for those who will provide these crops heating plants or for other energy use. Such producers will be able to lay claim for subsidy at the amount of 45 euro per hectare based on the order of the government approved. Furthermore, the government expressed negative stands to two proposals of deputies, which concerned the sphere of agriculture and which are frequently discussed. One of them was the deputies´ proposal for amendment of the Act on Competition Protection. It is a proposal, which had been passed in the Chamber of Deputies in the past but the President vetoed it and the proposal was not returned to the Chamber of Deputies, in fact. We identified ourselves with the original reservations; it means that it is not possible to try to change performance of store chains by further regulative measures. The performance can be changed either by using the existing legislation or through activities of Czech consumers, who could favour rather the quality and assurance of the origin of a product to the price label. The second deputies´ initiative, which was rejected by the government, was the effort to change the original subsidies from viniculture fund that are returnable, to nonreturnable ones. In spite of the fact that we understand those arguments of wine growers, that they need more money, we inclined of course to the opinion that it would be further injustice, which would concern the individual groups of wine growers, because there were some wine growers, who had decided for state subsidies and therefore stricter conditions were applied to them. Those who decided for nonreturnable subsidies used better conditions, which were valid at those times. In case we change them and introduce nonreturnable subsidies ex-post, we would introduce certain injustice between those groups of wine growers.
Martin Schmarcz, Head of the Press Department of the Office of the Government: I thank you. I nearly prevent the Minister from informing you on good news. Now, there is time for your questions. The TV Prime has a question.
Helena Šulcová, TV Prima: Good afternoon. Prime Minister, I would like to ask about an issue that does not quite concern today's meeting of the government. Members of the KDU-CSL stood up for their chairman yesterday and they did not like him to leave the cabinet. I wonder what steps you are going to take in this sense, if any.
Mirek Topolánek, Prime Minister of the Czech Republic: I will negotiate with the Green Party and the KDU-CSL.
Helena Šulcová, TV Prima: That answer is not quite enough for me.
Mirek Topolánek, Prime Minister of the Czech Republic: But it is quite detailed from my side. I am not going to say anything about it.
Helena Šulcová, TV Prima: Is it realistic now for you to propose removal of Mr. Čunek from his function?.
Mirek Topolánek, Prime Minister of the Czech Republic: I will negotiate with the Green Party and the KDU-CSL.
Martin Schmarcz, Head of the Press Department of the Office of the Government: I think that the Prime Minister has answered the question. Further question, please. Jan Pulkrábek, Bloomberg News: Prime Minister, I would like to ask if you can specify when you will, together with the Governor of the Czech National Bank, specify the date of introduction of Euro, or that objective. Will you incline to the deadline of 2012?
Mirek Topolánek, Prime Minister of the Czech Republic: You know well that any date, which would be presented here, would become a speculative date and not only unreliable but also reliable entrepreneurs and businessmen on the financial market would take this date into consideration. I am not going to tell you any date and you know well why. We were talking about the fact that in the end of June an analysis of the Czech National Bank would be prepared, based on which discussion with the Ministry of Finance would be started. After the Convergence Programme is approved, a deadline will be submitted to the government. But it depends on whether reforms, which we present, are feasible or not. Therefore, even if we presented any deadline in June, and I do not think that it is probable, we would have to wait for approval of reforms and even after that we would present a deadline. Only after that it is possible to expect fulfilment of convergence criteria and only after that we could have an outlook of introduction of euro. The discussion is groundless without adoption of reforms.
Martin Schmarcz, Head of the Press Department of the Office of the Government: Is there any further question, please. Česká televize.
Jana Čermáková, ČT: Good afternoon, Prime Minister. I would use your presence to asking a question that does not concern directly today's meeting of the government. Can you remark on the demonstration in front of the Office of the Government, where people are protesting against Jiří Čunek? Thank you.
Mirek Topolánek, Prime Minister of the Czech Republic: I am always fascinated by the fact that you ask me for some comments despite knowing that I never make comments. I provide news, not commented comments. Therefore I have no comments on it. I think that Jiří Čunek showed certain courage and walked among Roman activists or demonstrators, if you like, and he is debating with them. Also Džamila Stehlíková was there and I have no information. I suppose that the demonstration is based rather on misinterpreted statements of Jiří Čunek in popular press. I suppose that both Romans and Jiří Čunek will explain this issue to each other.
Martin Schmarcz, Head of the Press Department of the Office of the Government: Thank you. Further question, please?
Martin Kratochvíl, TV Nova: Prime Minister, I apologize myself, the question has certainly been asked, are you going g to remove Jiří Čunek or a coalition meeting will be held today? Will you remove Jiří Čunek, or a debate will be held on this issue?
Martin Schmarcz, Head of the Press Department of the Office of the Government: The Prime Minister will give you the same answer as he gave to Česká televize, so that you can record it.
Mirek Topolánek, Prime Minister of the Czech Republic: I do not know anything about a coalition meeting, you are talking about. Perhaps you have better information than I have, but it is always like this. It means that I will negotiate with the Green Party and with the KDU-CSL.
Martin Schmarcz, Head of the Press Department of the Office of the Government: I thank the Prime Minister. Is there any further question? I just inform you on the fact that you will not get further information about Mr. Čunek.
Helena Šulcová, TV Prima: I would have one more question to the Prime Minister. Austrians block frontiers because of Temelín nuclear power station. They say that the Czech side does not provide any information on what is happening in Temelín and they say that they are ready to be stricter. I wonder if you will negotiate with the Austrian side and if you will make it clear.
Mirek Topolánek, Prime Minister of the Czech Republic: I have no information on the fact that those blockades are supported by the Austrian government. If it was so, we would have to take certain steps, because we regard these blockades as unjustified. Those demonstrations are held based on approval of local or regional organs and the Austrian government permanently expresses its disapproval. In this sense, we do not have to respond to these demonstrations. It means to formulate a complaint to the European Commission because of breach of the free movement of persons and goods, or to contest fulfilment of the Melk Treaty or Brussels Treaty from the side of Austrian organs. Because it is not so, for the present, we do not feel need to take some steps. Otherwise, I exclude that we do not inform on the nuclear power station in Temelín. The information is given to the Austrian side and especially to the Austrian government regularly based on the Brussels Treaty and the Melk Process. An interparliamentary commission will be established in this sense, which should decide, let us hope, on termination of the Melk process and approval of information agreement, which would be based on the international law, unlike the previous agreements.
Martin Schmarcz, Head of the Press Department of the Office of the Government: Český rozhlas, please.
Journalist, Radiožurnál: Good afternoon. I would like to ask, Prime Minister, whether you approved the agreement with the Russia Federation regarding modernization of our army's helicopters. Thank you.
Mirek Topolánek, Prime Minister of the Czech Republic: Both these agreements, i.e. point no. 20 and 21 were suspended by the next week. We want to be sure that these agreements do not violate our sovereignty and that they are standard agreements and that those purchase contracts, based on which we purchased those army technologies, are not enough.
Martin Schmarcz, Head of the Press Department of the Office of the Government: Further question, please. If there are not any, I thank you, ladies and gentlemen.
Mirek Topolánek, Prime Minister of the Czech Republic: I wish you to have a nice day.