At the sitting held on 11 November, the members of the Industry Committee discussed the amendment submitted to the Bill amending and modifying the Mining Law and the Information on Public Procurements in the function of engagement of the Serbian economy and maintenance of economic activity.

The sitting was chaired by the Committee Chairman, Milorad Buha, and attended by the representatives of the Union of Employers of Serbia, Independent Union of Metal Workers of Serbia, Ministry of Energy and Mining and Public Procurement Directorate.

At the proposal of Deputy Committee Chairman Nebojsa Ceran, the Committee submitted an amendment to article 15 of the Bill amending and modifying the Mining Law.

The Committee members went on to talk to the representatives of the Union of Employers of Serbia and the Independent Union of Metal Workers of Serbia about the problems domestic firms encounter in public procurement processes, particularly in the case of public companies in Serbia. The representatives of the two unions submitted their petitions regarding the issue to the Industry Committee and expressed displeasure that none of the Government representatives invited to the Committee sitting had come. The Employers’ Union submitted proposals to amend and modify the Public Procurements Law, among other things requesting an increase of the preferential for domestic companies from 20 to 30%, as well as observance of the 15-day deadline when dealing with the objections made by the submitter of a request for protection of rights in public procurement proceedings. The representatives of the Union of Metal Workers stressed that tenders for big projects, particularly in the case of public companies, set unrealistic demands that domestic companies are unable to meet. They requested the Committee’s support for the position that tenders should be invited in such a way that allows domestic companies preference over foreign companies. They also stressed that about 150 million EUR have already been drawn for big projects from international financial institutions which did not stipulate the engagement of foreign companies only as contractors. They agreed that the employers and unions share the same opinion in this respect, expressing hope that the Government representatives would join them. The representatives of the Public Procurement Directorate stressed that the current Public Procurement Law, unlike other legal solutions in the region, contains enough instruments for the protection of domestic companies in public procurement proceedings. They are not of the opinion that domestic companies should be given preference in tenders against foreign companies, because that is not the case in the region or in the European Union either. In public procurement proceedings, Serbia implements two European directives that leave no room for limitations or favorisation of domestic companies. The Committee members mostly agreed with these opinions and, following a long discussion, unanimously adopted the following conclusions:

1. Another Industry Committee sitting should be held on the same topic, but after the 2010 Budget proposal is received;

2. The Committee shall form a sub-committee to deal with the issues from this sphere that shall present a unified front to the Government. The sub-committee shall comprise the Committee Chairman Milorad Buha, Deputy Committee Chairman Nebojsa Ceran and Committee members Nenad Popovic and Bajram Sehovic, who shall be joined by two representatives of the Employers’ Union and two representatives of representative unions;

3. The Committee endorses the initiative of the Union of Employers of Serbia to amend and modify the Public Procurements Law, if it shall benefit the engagement of domestic economy;

4. In line with the information presented, pressure should be exerted on state authorities directly involved in public procurements.