Polish Business Survey
Changes to pensions sought
Representatives of the Freedom Union (UW) are currently preparing a bill that would propose changes to the current legislation on pension plans. Their aim is to increase the investment variants open to the industry and its ability to compete.
One of these changes would allow certain pension funds to aim their products at a specific age group. Another would allow individual companies to open more than one fund as from next year. Currently this will only be permitted as from 2005. The MPs are also seeking a change that would allow external fund management companies. At present fund management is internal only and is an expensive solution for the pension companies.
Marek Góra, the specialist who headed the pension reform plan said that the proposals are good but it is too early to introduce them. He believes that there are enough problems already with the current system not working and in particular with the inability of ZUS to forward cash to the pension funds. He believes that a year or two will be necessary before such changes can be made.
Reassurance not reassuring
Reassurance company PTR noted sales one third down in the first three quarters of this year when compared to the same period last year.
At the beginning of the year its contract with the Daewoo insurance company was not renewed. This contract gave PTR 65 percent of its business. It is unlikely that PTR will be able to make up this loss as companies from abroad that are entering the Polish market already have reassurance firms with which they work and therefore do not need such services here. However the greatest threat to the company is the current difficulties of PZU which accounts of two thirds of the market. PZU together with its life company PZU Życie have a 24 percent stake in the company.
Rafał Mania, member of the board at PZU SA says that the losses of PTR are too much. The company is now thinking about what to do with it. The life company believes that management changes are essential, however the current problems of PZU means that little though has been given to PTR. The next shareholders meeting will be on Friday and this subject will no doubt be discussed.
The situation of the company may change if the law does first. Reassurance companies in Poland are forbidden to work in both the life and property sectors. As the company is not permitted to work in the life sector, around forty percent of the market is thus closed to PTR.
Dalmor privatisation under way
The treasury has said that it will publish its offer to sell shares in deep sea fishing company Dalmor from Gdynia this month. It hopes to finish the privatisation process within the first quarter of 2001.
Food consolidation seen
The Warsaw good exchange (Warszawska Giełda Towarowa) now finds itself negotiating with several important exchanges in this country. Beata Stelmach, who heads the WGT, says in an interview in today's Puls Biznesu that she believes that consolidation in the sector will aid the food and agricultural industries.
Government stuck on Austrian investment
The government cannot make up its mind whether the steel works that Voest Alpine Stahl wants to build in the port of Szczecin-Świnoujście is a good thing or not.
Deputy economy minister Edward Nowak thinks that this investment would have a negative effect on the sector and make its restructuring impossible. Another opinion was expressed by Wiktor Łaszczyk, who is director of the industrial restructuring department in the economy minister. He said that blocking this investment would be contrary to article 44 of the European convention and could bring about an intervention from the EU commission.
VAS wants to employ 500-600 people and produce around 1.2m tons of plate annually, most of which would be for export.