CZECH REPUBLIC
In the Heart of Europe


V.I.P. INTERVIEWS
MR. PAVEL NEMEC
Interview with
MR. PAVEL NEMEC


Minister of Regional Development
Prague, 17.12.2002
Tel: +420 224 861 141
Fax: +420 224 861 350
www.mmr.cz

Firstly, could you introduce the main responsibilities of your Ministry to our readers and what would be the main challenges that you are facing right now?
I am very glad we could meet because your magazine is very important and does a lot to make countries learn about each other. Regarding the responsibilities of the Ministry, I have the responsibilities of the member of the government and I am also responsible for the Ministry of Regional Development. This includes the agenda of the European integration in the questions of financial help both before and after the accession of the Czech Republic, tourism, and support of the Czech Republic as a tourist destination, agenda of regional development, construction, and housing both from the aspect of financial support and from legislation, and finally a small but necessary issue of burial services.

As we come from a foreign magazine, representing the country for foreign investors, which parts of the agenda are the most interesting for the foreign investors?

It would be the support of regional development, such as industrial zones or local infrastructure and of course territorial planning, which is the base for regional development as it tells what is going to be built where. I think that investment into tourism and the development of Czech Spas as a subsection of the tourism is going to be very attractive due to the ageing population and more people willing to spend their holidays actively and abroad.

One of the problems in the Central and East European countries is that it is very centralised, everything important is in the capital. How are you trying to attract foreign investors into the regions?

Our responsibility is to ensure a high quality infrastructure, as it is the main way to encourage investment inflows, because if the investors do not have good roads, they will not get to the Czech Republic or its regions and will not be able to export their products. Many investments can be seen along the highways, for example the Prague agglomeration is expanding beyond Prague precisely along the highways. As I am a lawyer by my education, I cannot help to mention that the investors also need stable legislation, so that the decisions of state institution are predictable. Good taxation system is the last step that can encourage the profitability of the investment. Therefore, the basic conditions are the law and the infrastructure and the taxation system could be an advantage.

What would be the Czech organisation that you are co-operating with and could you also tell us the ways of the communication in attracting the investment to the regions?

The competencies in this are divided; the large part is with the Ministry of Industry and Trade. There is also the Government agency Czech Invest, which I think is doing a great job.

You also have representative offices abroad and you also participate in exhibitions if I am correct?

Yes, our Ministry does take part in exhibitions and we have a representative abroad in the agenda of tourism. For example, the latest development now, is that through our office, the Ministry is trying to create another representative office in China, more precisely in Shanghai.

Attracting tourists is one of the big challenges of all the economies, beside spas, you also have conference tourism, active tourism. What would be the potential in the future?

The Czech Republic has a lot to offer in these areas. Conference tourism is an excellent way of expanding tourism because the best advertising of any tourist destination is when satisfied people return from the destination and later come back again with their families to the spas or active holidays. We also have very good opportunities for cycling and golf.

There is also a co-operation between some of the regions in Slovakia and the Czech Republic. Could you tell us more about it?

Slovakia is close to us for two reasons, first geographically, second traditionally, because we developed within the same state and there are no language barriers between us. We try to co-operate in many areas, including tourism. We have established a so called trans-border co-operation and mutual exchange of tourists. We also present the Czech Republic and Slovakia together, jointly for more distant countries, such as China, Japan, or Australia, where we do not compete.
What about the developments in the construction sector, especially housing is an important issue?

Our Ministry has still to undertake such reforms so that everyone has an opportunity to find housing that is appropriate both financially and according to the needs, either for rent or for ownership. Here we have a problem, because we inherited deregulated prices from the previous government when private owners could not reinvest into the buildings and so could not take care of the buildings they lived in, properly. This is something we are trying to change on the first place. We also want to enable more freedom in the agreements between the tenants and the owner. Finally, the Ministry provides direct financial help to the regions so that they could build housing. We also want to improve that, to a financial help with return. We also enable mortgages and savings along similar standards of the EU. The state is not an investor; it aims to help people so that they could build their own houses.

Once the Czech Republic enters the EU, there will be no boundaries anymore. There are going to be different regions of Europe. What is your vision considering the future? Do you envisage the joint action of some of the parts of the Czech Republic with Poland, for example, on the European market?

The co-operation exists already today. The EU tries to prepare the candidate countries how to proceed after the accession. It encourages co-operation among regions across borders and provides pre-accession financial help so that our people can learn to use the structural funds after the accession. There are many examples, such as industrial zones that operate across borders and joint commissions of territorial planning.

Could you name some of the latest projects that are already under way within the Ministry of Regional Development?

There is a project of a joint industrial zone on the border of the Czech Republic and Saxon, Germany. The co-operation of regions again depends on a good infrastructure, not only on our part, but also on the part of our partners. We want the Czech Republic to be connected to the net of highways in Europe. For example, we want to connect our highway to the German highways, so that it would not end somewhere in the fields behind the borders.

Another important field of the investment is the IT sector. There has been more and more foreign companies investing in that sector. What effect will it have on the work of your Ministry?

This field develops enormously and I think that it is mainly thanks the massive foreign investment. The development can be seen everywhere - the Czech Republic is one of the countries with the largest usage of mobile phones and we have a very good position with respect to the access to the internet. We are one of the first within the EU that allowed the use of electronic signature. Precisely because of that the Government created a new ministry, the Ministry for Information Technology, under Mr. Mlynár, which is a proof that the government means has very serious plans in that direction.


How do you co-operate with the different majors or the representatives of the regions to communicate the possibilities of the regions abroad?

I think that the co-operation is very good. We have many programs that we conduct along with the mayors. With them, the co-operation is traditional, whereas it is only developing with the representatives of the regions because several competencies are passed onto them, so we have to find the best style of co-operation. Our regions would deserve to have their own budgetary competencies, and we support them. We should follow the principle of subsidiarity here, in that every issue should be first dealt with at the regional level and then at the state level if necessary.

Mr. Nemec, could you tell our readers about your professional background and how you became head of a Ministry?

I am educated as a lawyer. Before I became a Minister, I worked in one company, where I reached the position of the first deputy of the Director, from beginning at the lowest position. Then I managed to buy the shares of the company from a private owner, so I became director of that firm. Afterwards, in 1998, I was elected to the House of Representatives for Unie Svobody (Union of Freedom) and in 2002 I was re-elected. On the 15th July 2002 I was appointed Minister of Regional Development. Also, before I was elected, I worked for one of the representatives for two years. It was a great advantage because I learned about his work and found it much easier to begin my work once elected.

Could you give a message to our readers?

The Czech Republic is a standard European country with nice and flexible people and I think that it would be a shame if the potential investors did not try and use the skills of the people here and the opportunities that we have to offer. One proof is the emigrants that we had in 1948 and 1968, who often worked in high positions abroad. And because work is not the only part of life, the Czech Republic has a lot of beautiful opportunities for relaxation.
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