Poles Like Expensive Mobiles

Bling Culture?

In 2009 the sales of smartphones reached over a million in Poland. In three to four years’ time expensive mobiles will make up one third of the market according to manufacturers. Poles purchased nigh on 3 million smartphones over the last three years according to GfK Polonia. In 2007 620,000 mobiles were sold while the 1 million barrier was broken a year later, largely thanks to Apple’s iPhone, which became available to Era and Orange subscribers. Even last year, despite the financial crisis, sales of smartphones continued to rise. Generally, smartphones are expensive gadgets. They are available at low prices but only when the phone provider decides to bear a large percentage of the cost hoping to later make this back by charging a high subscription fee. The standard  price, without a contract, normally exceeds a few hundred zlotys. Why have they become so popular in spite of the price?

A TP spokesman believes that “they are no longer sought after only by businessmen, regular customers are also beginning to purchase them on a large scale, especially those who need to have quick and regular access to the internet and e-mails”. This phenomenon may also be related to the rising popularity of mini-blogs and social networking websites such as Facebook. A smartphone allows one to remain online and therefore be able to regularly make uploads and comment on the activities of other internet users. Smartphones have gained enormous popularity not only in Poland as last year 174 million were sold worldwide, 15% more than in 2008. Nokia remains the no. 1 smartphone manufacturer in the world, followed by Research in Motion (the maker of BlackBerry). Apple comes third with its flagship product, the iPhone. In 2009, for the first time ever, touch-screen phones actually ‘won the battle’ with regular-screen phones. In 2010, the smartphone market promises to be extremely competitive as leading cell phone makers such as Samsung and LG are planning to expand their range of products and focus more on the development of smartphones. High prices have been an obstacle hindering the expansion of the smartphone market but this is changing as some manufacturers are in the process of developing pay-as-you-go phones whose cost will not exceed EUR 100.
Gazeta Wyborcza

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Vocational Schools Gain Popularity

A Generation of Plumbers?

For three years now Warsaw City Hall has been trying to encourage secondary school graduates to continue their education in vocational schools and has achieved impressive results. According to the “Education on the job market” report, in spite of the low birth rate the number of pupils entering technical schools is steadily increasing. In September 2009 more than 4,500 teenagers enrolled, 31 percent more than 3 years ago. Today in Warsaw every fourth pupil goes to a technical school. Schools are broadening their programmes of study by adding new vocations that children can learn about. This year nine new options were added including ‘road equipment mechanic’ and ‘advertising organization expert’. Some schools are also introducing their own individual courses of study. The goal is not only to increase the number of pupils opting for technical schools in favour of regular, comprehensive high schools but also to improve the quality of education. The results are more than satisfactory. School principals are reporting that graduates receive job offers even before finishing school while those in construction are literally flooded with offers. Many believe that teenagers who choose technical schools have a much better start in adult life. Companies are eager to work with schools, often provide specialized equipment or grant scholarships to the best students – all in an effort to promote vocational education and ensure that the pupils of today are provided with the best tools and are well-prepared to enter the job market in a few years.
Gazeta Wyborcza

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Tribunal Waits For Judge

Waiting for a Decision

Things did not go according to plan on Friday as the Sejm failed to appoint a new Constitutional Tribunal judge. The vote was adjourned to allow more time to properly review the candidates. The motion to adjourn was put forward by the head of the Sejm Justice Committee, Ryszard Kalisz of SLD on the basis of a statement issued on Thursday by the Civic Monitoring of Candidates for Judges (Obywatelski Monitoring Kandydatów na Sędziów) – a coalition of 3 non-governmental organizations. The coalition demanded the adjournment as “the selection procedure did not meet the standards that are called for when one of the most important public offices is about to be filled”. It seems that the candidates were selected at the last minute which made it impossible for the selection process to be carried out according to procedure. There are two candidates for the vacancy – Krystyna Pawłowicz supported by PiS and Krzysztof Barczyk, backed by PO. Both declined “civic monitoring” by not agreeing to fill out a form and later read out the replies publicly. Pawłowicz claimed that it was not mandatory to do so while Barczyk agreed at first but later refused and presented a sick note instead. The Sejm’s decision to postpone the vote was partly caused by the fact that there are some doubts about whether Barczyk meets the criteria for the position. In addition, two former chief judges of the Tribunal deny their support for the PO-backed candidate who claimed that judges Zoll and Stępień were in favour of him becoming part of the Tribunal.
Gazeta Wyborcza

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Winter Losses

Snow First, Floods Next?

As a consequence of the unusually cold and snowy winter, Poland’s GNP in the first quarter of 2010 is likely to be approximately PLN 1.5 billion lower than it would be under ‘normal’ weather conditions. Invest Bank economists predict that the yearly dynamics coefficient in the construction sector will drop by 15% owing to unfavourable weather conditions. Heavy snowfall makes it impossible for certain work to be carried out, the extremely low temperatures lead to delays that were not foreseen. Light frost is an obstacle that can be overcome but when the temperature drops below -20 degrees C. all construction must come to a stop while companies still  incur all fixed costs, i.e. those related to the maintenance of construction sites.

The transport industry has also suffered losses. Polish State Railways (PKP) was forced to allocate an additional PLN 5.5 million to combat the weather. “These are the costs of de-icing electrical lines as well as using diesel locomotives rather than electric ones, whose operative costs are considerably higher,” says a PKP spokesman. Those in the car business also complain as customer service issues are on the rise owing to weather-induced delays. Cities are spending millions of złoty on the removal of snow with Warsaw topping the list with over PLN 100 million already spent this winter. On the other hand, there are companies that are actually profiting from the harsh weather conditions. Salt mine profits are higher than usual, coal mines and gas companies are responding to increased heating and energy needs and earning above-average amounts as a result. As we await the end of the winter season the country is already making preparations for one disaster everyone hopes to avoid – floods.
Gazeta Wyborcza

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Deceitful Real Estate Agents

Honesty is Key

Real estate agents cheat their customers. Not only do they present e-advertisements as their own, but also increase the prices of properties without notifying their owners and then pocket the difference. After the financial crisis, the real estate market became difficult, therefore, real estate agents who live on commission try to encourage customers to use their services, however, they do not always do it in accordance with the law and professional ethics. As a consequence, last year a record number of 165 professional responsibility proceedings were begun and in as much as 128 of them the Real Estate Agents Professional Conduct Committee at the Ministry of Infrastructure considered that a real estate agent had committed an improper activity.

Increasingly more often, real estate agents evade the law and illegally appropriate advertisements published by owners on various web sites and present them to customers as if they were the agents. Simultaneously, they increase the prices of flats, houses or plots of land without the owner’s knowledge and consider the surplus as their commission. “I had an ad for the sale of my Warsaw flat as a direct offer where I emphasised that I am not interested in cooperation with any real estate agency, since I do not wish to pay commission. The very day after, I received a call from a potential customer who asked me what the price of the flat is because he found an ad on the internet published by a real estate agent at a price PLN 20,000 higher than mine,” says Małgorzata from Warsaw. The unfair practices of real estate agents may become more common because the government would prefer the provision of services of real estate agencies not to require a licence. As a result, such a business could be run by any person who has an appropriate insurance policy. The aim of this new solution is to make the profession more accessible, since at present, in order to become a real estate agent you have to graduate with an appropriate masters or post-graduate degree, as well as  complete a six-month practical training course. Moreover, in order not to lose one’s licence, real estate agents are obliged to participate in professional training sessions every year.
Gazeta Prawna

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Three Colors of EURO 2012

Doomsday?

With only 844 days left until Euro 2012 begins, PL.2012, the company responsible for the preparations of the big event is examining its so-called masterplan. This includes all the crucial investments that are to ensure that the European championships will be undertaken efficiently. In 2007, after Poland and Ukraine were chosen to host Euro 2012 a few thousand investments were envisioned. In 2009, approximately 400 were selected while now only 20 of those are seen as absolutely necessary. Every month PL.2012 checks on the progress that each host city has made and points out areas in which delays have occurred. The January 2010 audit clearly shows that all four cities, Warsaw, Wrocław, Poznań and Gdańsk, are struggling to meet their deadlines. The authorities of the cities in question disagree though and believe that work has already reached an advanced stage and that satisfactory progress has been achieved.

Gdańsk – the construction of the PGE Arena, despite some minor problems, is running on schedule. Unfortunately the same cannot be said about the airport as the construction of the new terminal is delayed and is set to start in March. The two main road investments, Słowacki and Sucharski streets, will not be finalised until 2013.
Poznań – more than half of the fourteen investments are delayed. On the other hand, Poznań will be the first city to boast a completed stadium. The official opening will take place in October when the Polish national team will play their first game there. Roads leading to the stadium and those connecting the stadium and Ławica airport ought to be finished by 2011. The airport is a problem area where there is plenty of catching up to do.
Warsaw – besides the National Stadium, the masterplan includes five road investments, two airport-related ones and three train station overhauls for the nation’s capital, a total of seventeen of those are delayed, and two will definitely not be completed in time for Euro 2012.
Wrocław – there are major problems related to the construction of the stadium since the agreement with the original contractor has been terminated as a result of critical delays. A new agreement was signed two weeks ago but work is yet to begin.
Gazeta Wyborcza

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Minister of Finance Sick of Winter

Winter of Discontent

“I’m sick and tired of winter both privately and as Minister of Finance,” Jacek Rostowski told RMF FM. According to Rostowski, “this winter will definitely not have a positive effect on our GDP. It is hard to say how much this winter will cost the budget”. He added, “it could be more than a few tenths of one percent of our GDP this quarter. We will have to see because the structure of the economy has changed greatly since the last time Poland experienced such extreme weather conditions.” Poland’s Minister of Finance has also commented on the possible PO (Civic Platform) candidates for president. “My guess is Radek Sikorski. Attacks coming from PiS (Law and Justice) are a sign of fear.” In an article in today’s Newsweek, Jarosław Kaczyński claimed that “there is a specific incident that will bring discredit upon Sikorski, but it cannot be revealed yet because it is classified.”
Onet.pl

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Huge Cuts At PZU

PZU

Every seventh employee of the insurance giant is due to be laid off in the near future. The trade unions are threatening to strike. PZU is cutting costs. This year 2,300 out of a total of 15,000 employees will have to part with the company, another 5,200 will sign a new employment contract, many of whom will have to either accept a change of location and an increased workload or resort to being (temporarily) unemployed. Finding a new job may be a nearly impossible task as in January the number of unemployed people in Poland reached 2 million, while the unemployment rate climbed from 11.8% in December of 2009 to 12.8% in a mere month. The Ministry of Labour’s estimate for the end of 2010 is a frightening 13%.

PZU’s CEO claims that “we have no choice, we’re being forced to make these difficult decisions. Administration costs are currently at 12% while a respectable corporation of this size ought to be at a level of 8%. If we fail to achieve that figure, we will no longer be capable of competing with international financial groups present on the Polish market”. The envisioned changes are indeed necessary as PZU’s main goal for the first half of 2010 is to be listed on the stock exchange. That goal has become more realistic now that the seemingly endless feud between the main stockholders of PZU – the State Treasury and Dutch Eureko – came to an end in October last year. According to market analysts, the lay-offs might improve PZU’s image in the eyes of investors. The insurance company, despite estimated profits of PLN 4 billion this year, has steadily been losing its market share for years. A one-time monopoly no more, unless this trend is halted, in a few short years its market leader position will be a thing of the past. One of the priorities is improving staff efficiency. On average, a typical insurance company employee handles 6-7 damage-related cases daily while at PZU that figure is often 2 or less. The problem of over-staffing must be dealt with immediately. After 300 employees had to leave at the end of 2009, the time has now come for a ‘second wave’ of lay-offs.
Gazeta Wyborcza

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Marek Kondrat Speaks

Kondrat - Actor, Oenophile

When did you last drink ‘Jabol’ (cheap Polish wine)?

20 years ago, I guess, when I was building a house in Mazury. Together with my brother-in-law we bought a crate of ‘Jabol’ for the workers, but at 4 a.m, after fishing all night, we would treat ourselves to ‘Jabol’ too. It was great. [smiling] 

They say that back in the times of Historia żółtej ciżemki and O dwóch takich, co ukradli księżyc, the Kaczyński brothers were taller than you.

That’s true and I was glad that after many years I could “look down on them”. I remember them from my childhood and I have a theory that if someone is full of hate they stop growing! [smiling]

In that case, one former deputy PM must have had an idyllic childhood.

I think Mr Roman had his fair share of abuse. The Kaczyński brothers on the other hand fed themselves with hatred for the system and everything around them. That sort of nutrition doesn’t boost growth.

But it’s effective.

And hazardous too. Identical twins do everything together. The President is his brother’s president, not ours. I’ve noticed Jarek’s dominance over Leszek, which is clearly visible. Jarek was probably born first and poor Leszek came second. Today, the Kaczyński brothers are like Nixon towards the end of his term, when he could well have caused a great deal of harm. Luckily, somebody spotted it and stopped him.

Kondrat - President?

Perhaps it’s your turn now? We’ve had actors who took the presidency.

No thanks. I’ve already had such proposals. Besides, we all know that those actors who became presidents were rather poor actors. [smiling]

But you would be a fantastic speaker.

I even know what I’d say! I once came out top in a Warsaw presidential poll! The journalists Najsztub and Żakowski asked me why I won’t take up the gauntlet but I don’t know enough about Polish people. I don’t know who we really are. Just like those in power, who don’t travel that much and don’t know “the nation”, as they love to call us. The difference is that I admit to it.  

How would you describe Poland?

This country is ‘different’. Poles have the dilemma of not wanting to belong to any civilization, be it western or eastern. We choose to dabble in our heroic history whereas Europe offers us cooperation, but this cooperation rejects Europe’s painful past. What really annoys me are the ignoramuses trying to convince me that they are on a mission, using words like “nation”, “Poland”, “patriotism”, “motherland”, and treating me like an idiot. They take advantage of the blessings of democracy. Polish people either feel inferior about their provincialism or are extremely pompous towards those ‘worse off’ than us: Albanians, Romanians or Romanies… There is a song in Stanisławski’s cabaret: “Thank you Albania that you exist. Thank you Albania, thank you. Thanks to you we’re not the worst, thanks to you we’re not last.”

wywiadowcy.pl

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More Gas Needed

Burning Problem

How do you ensure “gas security” for Poland and avoid the excessive rising costs of ‘blue fuel’? – this is a question that will soon have to be answered by politicians and managers in the energy sector. The consultancy company Ernst & Young has recently tried to tackle the issue and published a report on the diversification of gas supplies to Poland. In the upcoming months strategic decisions will have to be taken that will have a huge impact on the Polish gas market for years to come. It is anticipated that a many-year contract with Russia will finally be signed, negotiations on the building of gas ‘connections’ with Germany, the Czech Republic and Slovakia are pending. Authors of the report confirm the opinions of most experts: gas supply diversification and the construction of pipelines connecting Poland to its neighbouring countries are needed.

Unfortunately, these very costly investments will naturally result in an increase in gas prices. The report reads that “the public interest might require that the cost difference of the supply of gas from alternative sources be covered by all final recipients of the product. The potential decision not to undertake the diversification investments based strictly on economic reasons would contradict the country’s efforts to increase the safety of gas supplies”. The price hike is due to take a serious toll on the chemical industry as gas is a basic raw material used in the production of fertilizers, and Polish companies already have to face tough competition from abroad. Ernst & Young experts believe that the improved infrastructure will make it easier for alternative suppliers to enter the market and challenge PGNiG’s monopoly. Ensuring gas supplies will also be crucial for the energy industry. Increasingly more energy-producing companies are considering the construction of gas power plants. Although gas is more expensive than coal which at present provides 94% of electricity it emits far less CO2. After 2020, when the EU directive mandating all Polish power plants to buy CO2 emissions takes effect, it might actually turn out that gas-derived electricity will be less costly than that based on coal.
Gazeta Wyborcza

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