The organisation that binds island and coastal organisations is pointing out serious issues with a draft Law on Concessions
We bring you the complete public statement by the Island Movement, a self-sustainable and solidarity network of islanders and islands lovers, building a responsible and sustainable society through connecting individuals, organizations and ideas:
“The Finances and State Budget Committee of the Croatian Parliament discussed in its 9th session, held on 25 January of 2017, the Draft Law on Concessions, delivered to the Parliament Speaker by the Croatian government, through an act from 19 January, 2017.
The final draft was adopted by the government in late May, placing it into adoption procedure.
After the forum “Are our beaches and ports really ours” was announced in Split, the law’s first reading took place in the Parliament.
The second reading was scheduled for one of the coming sessions, at the bottom of the agenda. But for some unknown reason, in the entire chaos in Parliament over the parliamentary majority, the same Law was suddenly moved to the top of the agenda and will probably be discussed soon. We cannot escape the feeling someone is in an exceptional rush to adopt this Law in the chaos the government is in, while the summer season is on and few islanders can focus and get involved in the process to understand what is going on with this Law, and how it will affect their basic existentialism on an island.
Additionally, the draft Law was not sent into public discussion procedure. The last draft during the Orešković government was sent to counselling and the report from that counselling was added to the draft, but it was changed in the meantime and had to be sent for counselling again, but this did not take place.
What is truly happening with the adoption of this Law and what does it mean for islanders, but also all those living on the coast? In short – the Law on Concession is being declared a superior law, which also regulates concessions on maritime property. Until now, the draft Law stated whatever is not regulated through it is regulated through other laws and regulations, while the adoption of the current version of the law means all other specialised laws will have to be harmonised. Harmonisation of special laws which make up the concession system, including the Law on Maritime Property, is planned under the draft Law in the six months from adoption.
So changes to this Law on Concessions are not just changes to it only, but to all other special laws. This is reason enough to remove it from procedure as it affects so much without the inclusion of the public, viewing everything only from the financial aspect – maritime property is of special interest and thus protected by the Constitution. We feel it cannot be, or must not be given to concession only by the recommendations of the Finance Ministry.
Furthermore, article 35 of the final draft of the Law on Concessions the innovation of the offer is disputable, enabling changes to the sequence of the selection criteria for the most favourable offer in order to incorporate an innovative solution. “Innovative solution” is not defined anywhere and as such as can be “freely” interpreted and lead to misuse and financial damages for the Republic of Croatia. We suggest a clear definition of “innovative solutions,” and considering that is nearly impossible, the complete removal of such a construction, and all other constructions which inevitably lead to free interpretations of the concession providers.
Articles 66 and 67 define lien on a concession without a minimal time period in which the concession is not allowed to be transferred or pawned. This opens a space for manipulation and misuse, while the current evaluation system of concessions (especially in the case of maritime property) enables for the concession to be taken by a concessionaire with questionable economic ability and stability!
In the very evaluation of concessions, in the case of maritime property, the conclusion is that the concessionaire declared a winner in a tender can achieve his goals by pawning the concession, with only a fragment of the needed capital. This enables profiteers and persons with suspicious intentions access to tenders.
These are only some of the disputable sections of the draft Law. Since the issue is maritime property and exceptionally valuable resources of special interest for the Republic of Croatia and local communities, our opinion is that clear and strict criteria need to be defined.
The Law does not provide for the inclusion of the public in the assessment procedure of the justification of a concession, nor in the concessionaire selection procedure – we consider it especially important for representatives of local communities where the concession object is located to be included in the procedure, as well as representatives of the public who will monitor potential corruptive risks.
Hence the Island Movement, composed of many island, but also coastal initiatives, islanders and citizens, insists on the addition of an article which excludes maritime property from the Law on Concessions, for the Law to be returned to normal procedure and for a broad public discussion to be held on this issue. Maritime property concessions need to be resolved through the Law on Maritime Property and Seaports.”
