SDKU-DS Deputy Accuses Government of Misusing Investment Incentives

Deputy of the strongest opposition party, the Slovak Democratic and Christian Union -- Democratic Party (SDKU-DS) Jozef Mikus pointed out that the government of Robert Fico managed to give investment incentives of SKK 9.75 billion during the last three sessions in December of last year to friendly businessmen. In order to hide its real aim, the government first intentionally modified rules on incentive provision and renamed regional aid to state aid. At that time, the government supported forty-five projects financially, and over 60 percent was being directed at the more developed western Slovakia.
Mr. Mikus points out that the government intends to continue supporting its businessmen-friends this year. He stressed that the government approved further state aid of SKK 1.15 billion last week for Korean carmaker Kia to expand its production. He thinks that the approved subsidy represents aid additional to the first contract between Slovakia and Kia dating back to 2004. He points out that the Zilina region, where the Kia assembly plant is situated, is a region with unemployment rate of only 5.7 percent, while the average unemployment rate in Slovakia is around eight percent. He also emphasized that carmakers in Slovakia are already importing workforce from abroad due to a shortage of qualified workforce in the automotive industry in Slovakia. He believes that the funds will, to a certain extent, be used to finance the employment of people from regions other than Zilina, and countries other than Slovakia. He considers this misuse of state funds.
He pointed out that the draft bill on investment aid, which the parliament approved at its session on Monday, will enable the government to give away its money to a greater extent. He thinks that this draft is much softer than the rules valid until now; for example, it widens the circle of supported fields from modern technologies and knowledge-based economy to the whole industry. Moreover, the law enables the government to decide willfully which regions of Slovakia are to receive incentives.