site.btaInfluential Trade Union Supports Government in Controversy over Fuel-Sector Bill

Sofia, July 4 (BTA) - The influential Confederation of Independent Trade Unions in Bulgaria (CITUB) Wednesday sided with the government in a controversy over its bill on the administrative regulation of the business with oil and petrochemical products. The trade union issued a statement saying that it supports the underlying philosophy of the bill: "to bring order to the fuel market in the interest of the public purse and more public revenues", to use the union's words.

The bill is seen by its opponents as being custom-made to serve the interests of large fuel suppliers. If it passes conclusively, fuel wholesalers and tax warehouse keepers will be required to have a statutory capital of 3 million leva or more and fuel retailers 20,000 leva. They will also be required to furnish a collateral or 500,000 leva bank guarantee. Small operators have protested, warning that the bill will force them out of business.

In a strong-worded statement on July 3, Deputy Prime Minister Valeri Simeonov called the bill "disgusting" and "lobbyist", and said it caters to the interests of several large fuel companies and particularly LUKOil.

CITUB is of the opposite stance and believes that the bill can help increase budget revenue and protect "tens of thousands of employees in the fuel sector".

They warn that "the tension which is being created stands in the way of constructive social dialogue among the economic communities concerned".

CITUB agrees with the authors of the bill, who say its aim is to stamp down on illicit fuel businesses. They said in their statement that this is "one of the sectors with the largest grey segment" - and that their principled position is against the shadow economy as it causes losses to law-abiding businesses and limits the opportunity for bigger social spending and higher wages and pensions.

Pointing out that they represent the interests of over 300,000 Bulgarians, CITUB calls for reintroducing the bill in the plenary "where it should be put to the vote taking into account the interests of all stakeholders, including small and mid-sized businesses, and the Bulgarian industry but mostly Bulgarian taxpayers, who must not be made to suffer at the expense of private and other interests".