The cabinet did not discuss the draft amendment to the law on support for the establishment of industrial parks on Wednesday. Minister of Construction and Regional Development Laszlo Gyurovszky expressed comments to the proposal to transfer the decision on granting the aid from the government directly to the Ministry of Economy. Economy Minister Pavol Rusko stated after the cabinet’s session that he hopes that the agreement in this issue would be reached by next week. Ministry of Economy proposes to transfer the power to decide on providing the support for industrial parks from the government to the Ministry of Economy in order to simplify the process of providing the financial aid for setting up parks.

According to the draft, the obligatory share of local administrations in co-financing of establishment of industrial parks should be reduced from the present 30 percent to 10 percent. At the same time, the government’s share will increase to 90 percent. Local administration will also be able to establish an industrial park for a single businessperson. The amendment will enable the establishment of industrial parks in those local administrations that will conclude an agreement for this purpose. According to the amendment the interested parties would not have to submit their requests to the cabinet but they would be approved directly by the Economy Ministry. The amendment should come into force on September 1, 2004.

The amendment will enable to businessmen in industrial park to buy plots and technical infrastructure in industrial parks from local governments for their market price. The process of deciding whether the aid will be granted should be simplified and speeded up from the current four to five months to maximally ten weeks. In order to prevent abusing of the possibility to establish industrial park only for one businessman the amount of aid for the establishment of the park cannot exceed 50 percent of the value of investment by the businessman in the industrial park. The amendment to the law will also specify additional necessary points of the contract or the contract on signing of a future contract. They will have to consists of the obligation of the businessmen to create new jobs in their plants, which will be established in the industrial park and which cannot be cancelled in the period of the first five years. On the other hand, the municipality will have to officialy promise that plots and technical infrastructure will be rented to the investor for 20 years.

The main aim of the amendment stems from an analysis of knowledge and experience gained during the implementation of the present law in practice and from the National Strategy for Investments Support, approved by the government. For this year the Economy Ministry has earmarked SKK 300 million for the establishment and support of industrial parks.