Polish Business Survey
Environment tax upsets businesses
The government has prepared an environment protection bill which, it hopes, will oblige businesses to recycle waste. Those companies which are unable to do so will be forced to pay a tax which will be used for environmental protection. The environment ministry believes that if this becomes law then it will meet EU requirements. However the employers organisation Polska Konfederacja Pracodawców Prywatnych believes that some of the articles are unconstitutional and, furthermore, new taxation leads to an increase in costs and prices which in turn encourages the grey sector, weakens the economy, increases unemployment and adds more corruption. EU regulations do not oblige companies to pay an enivronmental tax, where they exist it is largely on a voluntary basis. The employers organisation claims that this could add five percent to production costs and around one percent to every household s weekly shopping bill. Around PLN1bn is expected to be collected in this way.
The bill would oblige companies to recycle around 60 percent of their waste by the year 2007.
Arena.pl starts today
Today sees the first day of operations at Arena.pl, a portal managed by Internet Ventures Poland (IVP) and advertised as Polish Infoseek. It is rumoured that the American Templeton is involved in the business. Templeton is one of the largest investment funds who purchased a 20 percent share in IVP for USD4m. It is also rumoured that Arena.pl will be part of a regional portal covering Central and Eastern Europe, it will also be appearing in the Czech Republic and Hungary.
Netia still waiting for licence
On the 22 April a 30 day deadline passed in which private telecoms operator Netia should have received a concession for the lucrative Warsaw market. It would appear that the treasury is using its right to prolong this deadline by another thirty days. Such a decision can only be taken in a case of dire necessity. Netia is hoping to get the licence before it makes its stock market debut in mid June whereas rivals Elektrim and El-Net who have also a licence for the same area, will do everything to make sure Netia does not get it.
Polpharma finds investor
Polpharma from Starogard Gdański will soon be sold. A consortium of Polish investors headed by Jerzy Starak will sign an agreement with the treasury to buy 80 percent of the company at the beginning of May. The cost will be PLN343m and will be partially financed by a consortium of banks. The Slovakian Slovakofarma who also tried to buy a share in the company is not giving up on Poland. Despite having lost out over Polpharma it will now bid in the privatisation of Polfa. Polpharma is the largest producer of drugs in Poland.
PKN can t find its colours
For more than a year Polski Koncern Naftowy (PKN) has been trying to come up with a new image. It still has not decided what its new logo or colours will be nor what its new name is. The plan to have this finalised by the end of the year is looking somewhat unlikely as 600 fuel stations will have to be completely redecorated. Currently fuel stations still have the logos of Petrochemia Plock and CPN. Certain fuel stations are not suited for the new image and will have to be completely rebuilt.
Norwich Union to leave
The British press has confirmed what we published several days ago that Norwich Union will be pulling out of Poland following its merger with Commercial Union. Norwich Union has a retirement fund and a life assurance business here worth around GBP200m.
Record business
The first quarter was a successful one for the audio-visual business who noted a 13 percent increase in revenues over the same period last year.