Trade minister wants faster write-offs to cut unemployment

Prague, March 5 (CTK) - Czech Industry and Trade Minister Martin Kuba said Tuesday he wants to open a debate in the government about accelerating the pace of write-offs for companies so as firms are able to invest more next year and reduce unemployment.

The government would introduce faster write-offs only for a temporary period, Kuba said at a meeting with managers organised by weekly Euro.

"I think the operation could have a neutral effect on the budget thanks to the drop in unemployment," Kuba said.

The cabinet already introduced faster asset write-offs for companies several years ago as an anti-crisis measure concerning selected property bought by companies from January 2009 to June 2010.

The write-off period was shortened from three years to 12 months in the first category of property and from five years to 24 months in the second category. Companies could then write off cars after only two years instead of five years.

Kuba also indicated Tuesday that the investment in solar power plants is too high.

"We are a state which pays Kc40bn for renewable sources, of which Kc30bn for solar energy. The installed output of (nuclear power plant) Temelin and solar power plants is similar, but Temelin produces 20 percent of electricity and solar plants 2 percent of electricity which we do not need because we export it," Kuba said.

The state agencies CzechTrade and CzechInvest will merge as of December 31, Kuba said at a press conference later Tuesday.

The number of their foreign offices will rise from the current 57 to 70 in June this year. The work will be performed by Industry and Trade Ministry staff.

After years of disputes the Industry and Foreign Ministries have come to an agreement on cooperation regarding the country's commercial representation abroad, and the document will be signed soon, Kuba said.

"We have decided to merge (the agencies) into one organisation that will provide support to business, innovation and investment as well as to export as it goes hand in hand with one another," Kuba said.

The foreign network will be boosted in China, Brazil, Turkey, Peru, Colombia, Chile and Indonesia this year.

The system of services for Czech exporters has changed, with services now offered in the form of package programmes. Interest in services of foreign representative offices has increased by 57 percent this year on an annual basis, said Kuba.

The Czech Republic ran the biggest trade surplus ever last year, Kc310bn, and exports amounted to Kc3,000bn. The share of EU countries dropped to 81 percent from 83 percent in 2011.

Export to priority countries, set by the new export strategy, has grown by a fifth.

The Czech export strategy until 2020 seeks to cut reliance on EU markets, expand exports and make it possible for more small and medium-sized companies to export their products.

The strategy also defines 12 priority countries for Czech export, among them Brazil, China, India, Iraq, Ukraine and the United States.