Govt refuses to pay debt for ski champs in Liberec

Prague, Jan 5 (CTK) - The Czech state will no longer continue participating in the repayment of the debts the organisers of the Nordic World Ski Championship in Liberec, north Bohemia, in 2009, accrued, the government decided yesterday.

It took note of Education Minister Josef Dobes's (Public Affairs, VV) respective proposal, government spokesman Jan Osuch said after the government's meeting yesterday.

The championship's organising team, headed by Olympic winner Katerina Neumannova, accrued a debt of 108 million crowns, not including penalty.

Dobes first wanted the state to pay 50 million crowns of the debt. The city of Liberec was to pay another 25 million crowns. Later, Dobes withdrew his proposal.

"The Education Ministry believes, also with regard for the current state of public budgets, that the government should not approve any solution that would require settlement of the situation with financial means from the state budget," Dobes wrote.

He wrote that the state bears no legal liability for the commitments of the organisers, therefore the creditors should turn to court.

Some creditors have already succeeded at court with their claims.

The loss of the championship is ascribed to lower yields from the sale of tickets and the starting economic crisis.

"The then Education Ministry's management probably underestimated these problems and did not duly supervise the preparation of the event," Dobes writes in the report for the government.

To prevent a repeat of such situation, the ministry has approved principles of organising similar events.

The organisers will have to cover minimally a half of the costs under the threat of hard penalties.

The organisers will also have to submit a detailed sport and economic audit of any planned event.

($1=18.543 crowns)