Opposition: The Communal Economy Law Leads to ‘Centralization, Privatization, and Liberalization’

In the proposal of the Communal Economy Law, which was evaluated in Thursday’s parliamentary debate as the umbrella law for performing communal activities because it encompasses “the essence of the tasks carried out by local self-government units”, the parliamentary opposition had a number of objections, accusations were made that it is heading towards centralization, and it was referred to as “lex crematorium” and “lex tax”.

State Secretary in the Ministry of Construction and Spatial Planning Željko Uhlir explained that the intention is to establish a system of communal economy aligned with the laws regulating water supply and drainage, waste management, funeral services, public procurement, concessions, and the provision of services.

“Lex generalis”

“The issue of the significance of the communal economy for life and work in local self-government units and the principles on which the communal economy must be based, the organizational forms in which communal activities are carried out, and issues related to the performance of these activities, issues related to the construction and maintenance of communal infrastructure, and issues related to the assessment and collection of communal contributions and communal fees will be regulated appropriately,” emphasized Uhlir.

>>> Parliament Supported Tax Relief for Companies Investing in Research and Development

SDP’s Marko Vešligaj stated that the proposal is heading towards further centralization, privatization, and liberalization of communal services, and he also suspects favoritism towards certain lobbies.

“The law should be ‘lex generalis’, but the mass of laws is inconsistent with this law and no one even asked local self-government units what they think about it,” claims Vešligaj. He particularly points out that communal companies are discriminatively restricted in performing market activities.

His party colleague Željko Jovanović expressed doubt that the proposed law, which is in the first reading, aims to favor some private interests at the expense of the public interest of local self-government units.

>>> Petrov: The Government is Hypocritical When It Says It Was Unaware of the Situation in Agrokor

“The question is who and for what will pay the communal contribution? It will be paid for the use of already built communal infrastructure and will be paid by all landowners. Does this mean that the communal contribution from now on, if the law is adopted, will be a constant financial obligation of all landowners, i.e., existing buildings that are already built, and not just those that will be built in the future,” said Mostovac Rober Podolnjak.

“Lex tax”

Mostovac Mira Bulj was interested in whether the proposed law attempts to transfer the burden of maintaining county and state roads to local self-government units. “This is essentially centralization; citizens will ultimately live worse because they will have to pay higher fees for maintenance,” emphasized Bulj.

In this context, he called the law “lex tax” because, he says, “the people will not have services, and local leaders will lack the means to realize what is intended for them.”

Independent Tomislav Žagar asked whether the Government will oppose the introduction of property tax.

>>> Štromar: Property Tax is Impossible

“I welcome it; let it be a communal law, let it be a communal lease, let them do whatever they want with the communal fee, but will the Government oppose the introduction of property tax,” said Žagar, stating that the communal fee should remain in this law but property tax should not be introduced.

HDZ’s Branko Bačić responded that the law clearly stipulates the definition of the communal fee, “which means that the Government is practically giving up on property tax, and I think this is more than clear.”

“Lex crematorium”

Mladen Madjer (HSS) called the law “lex crematorium” because, he says, it should end up, like many laws, in the crematorium.

“When will this law even come into effect in small local self-government units? This is again an attack on small local self-government units, on the rural environment, which is already devastated,” said HSS’s Madjer.

>>> Plenković: Property Tax Will Be Addressed Through the Communal Economy Law

Mostovac Marko Sladoljev reminds that communal companies will no longer be able to engage in market activities.

“This means that all branches of Zagrebački Holding that do not engage in communal activities will have to go into privatization, and waste collection is not a communal activity, so it will also have to go into privatization,” he asserted.