Global Scrap Heap

Toxic Company

Where is your old, broken television set? You were told it would be recycled but it just might be somewhere on a pile of rubbish in India, China or Africa. Buying 87,000 tons of contaminated gasoline for a song, purifying and then selling it means that Swiss company Trafigura is looking at a $7 million profit. There is one slight problem, however, namely what to do with hundreds of tons of sulphur waste that was created during the purification process. On July 2, 2006, Probo Koala, a ship rented by Trafigura docked in Amsterdam, one of the very few cities in the world where sulphur waste is recycled. When the Dutch discovered that the cargo was far more toxic than previously declared by Trafigura, they decided to raise the fee to €1000 per cubic metre which prompted Probo Koala to quickly exit the harbour and head for the Ivory Coast. Once there, using the services of a local company, the waste was removed from the ship and then dispersed over a random area surrounding the nearby city of Abijan. Quickly thereafter, more than 100,000 people needed medical help at local hospitals. Cases of poisoning were diagnosed in over 1/3 of patients while sixteen people died. Unfortunately this is not a one-off case as rich countries not only produce more industrial waste but are eager to dispose of it and “store” it within the boundaries of their less wealthy neighbours.
Newsweek Polska

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Changes in Retirement Funds

Making Money?

A serious change in the Polish retirement system is here to stay. Most of our pension contributions will stay in the Social Insurance Institution (ZUS) because the Ministry of Finance wants part of the contributions, which have so far been transferred to the Open Retirement Funds (OFE), to remain in special accounts in the ZUS. As much as PLN 13 billion annually is at stake here. The Ministry of Finance admits that the main aim of this move is to reduce the public deficit. How it will work? Currently, our pension contributions go to the Social Insurance Fund and from there part of the money is transferred to the Open Retirement Funds. Nevertheless, the Polish government wants to change it so that only 40% of the hitherto contributions are passed to the OFE and the remaining 60% of the PLN 22.5 billion of the annual contributions that has so far been remitted to the OFE would stay in the Social Insurance Institution in special accounts. This is the part that the Open Retirement Funds are currently obliged to invest in safe treasury bonds.

Why does the government wish to introduce this change? If this PLN 13 billion remains in the ZUS, the State Treasury will not have to issue bonds for this amount. This sum is equal to 1% of the GDP, whilst Poland has to reduce the public deficit to a level below 3% of the GDP by the end of 2012. Should pensioners worry about this change? Mr Rostowski, the Minister of Finance, reassures everyone that they do not have to be concerned. What is more, he claims that leaving the money in the ZUS will bring more profit because at present the OFE charge commission on this part of  the contribution. “The Open Retirement Funds collect premiums for this money as if it was not a 100% safe investment, but rather a risky market decision. It would be better if this money stay in the pockets of future pensioners,” says Mr Rostowski. According to the Ministry of Finance, profits can amount to as much as PLN 500 million annually and, what is more, the interest rate of the special account in the ZUS will be equal to one of the bonds. Representatives of the Open Retirement Funds have a different opinion and they are worried that if the government takes the money away from them, this may result in a change in the investment strategy into a more aggressive one, which in turn may lead to diminution in future pensions.
Dziennik

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Holidays in Instalments

Sun, Sea and... Secure Loans

In order to receive a loan of PLN 7,500 for holidays abroad, it is enough to show one’s ID. Due to the 20% decrease in demand for foreign trips, travel agencies have been compelled to seek new methods of stimulating sales. The online travel agency Travelplanet.pl has decided to offer credit-sale. The loans are granted in cooperation with Getin Bank. “The nominal interest rate amounts to 9.9.% annually. Moreover, the customer also has to bear the costs of commission which amount to 3% of the granted loan,” says Wojciech Sury, representative of Getin Bank. Another expense is insurance which customers are obliged to buy in the event they do not present surety from three persons. Furthermore, the repayment can be divided into 3-12 instalments. Travelplanet only verifies what type of loan tourists need by taking into account their income, whilst the other operations are carried out by the bank. “If customers meet all the requirements, they can receive a loan during one visit to the travel agency. What is more, applicants do not have to show any income certificates in order to receive a loan up to PLN 7,500,” says Wojciech Sury. “The product was launched on the market two weeks ago and already several people have bought trips using these instalments,” says Bożena Garbińska, member of the Travelplanet.pl board. Other travel agencies such as eSKY.pl and Fly.pl are planning to introduce credit-sales also.
Gazeta Prawna

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Decisive Battle

Has the Waiting Finished?

Companies tendering for the second metro line will meet in court to argue about what can be seen in the Istanbul photos. The trial, which is the last chance for China Overseas Engineering Group, began yesterday. In April the group lost a tender to Astaldi-Gülermak, an Italian-Turkish consortium, which offered PLN 4.1 billion. The Chinese appealed against such a decision claiming that they have strong evidence that will disqualify the Italians and Turks. According to them, Gülermak cheated the Polish metro authorities boasting about the completed Istanbul stations. However, the media showed photographs suggesting otherwise. Astaldi-Gülermak claims that the photos show an unfinished shopping centre, a hotel and a school. Their competitors maintain that the photographs show metro stations. They also want to prove that Gülermak is an inexperienced company. A company that also appealed against the bidding was Warsaw-based Mostostal. After it turned out that the company has proxy difficulties, it was dismissed from further legal procedures. It can only be hoped that the metro verdict will be delivered in the nearest future. And time is running out. Polish government officials plan to restore traffic over the completed underground stations before Euro 2012. Yet it will be impossible to do so if the contract is not signed by autumn 2009.
Gazeta Wyborcza

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Polish PayByNet

Paying via Computer

Banks in Poland are launching a new payment system which will function both in internet stores and public institutions. For the time being, the PayByNet system allows users to purchase goods in electronic stores in an easy and fast way, however, before long, we will be able to apply this system also in order to pay taxes, fines and other financial liabilities in public institutions. The system, operated by the National Clearing House, delivers to a bank a defined transfer; therefore, it is not necessary to fill out any forms. All you have to do is click after which a message is immediately sent to the internet store. The PayByNet system is currently being implemented in the biggest Polish internet book store Merlin.pl, and it has already been in operation in Lataj.pl, which sells airline tickets. Other e-shops are also planning to introduce the system.

“PayByNet eliminates one of the main problems for e-commerce, namely the reservation of goods in anticipation of payment processing,” says Artur Wojtczuk, Internet Payments Manager in the National Clearing House. So far, the system has been used mostly in e-commerce; however, it has recently become the first payment service implemented on the Electronic Platform of ePUAP Public Administration Services that will allow us to pay outstanding fines and liabilities. The Regional Office of Silesia and City Hall of Piotrków Trybunalski have been the first public institutions to implement PayByNet. “We anticipate that more customers will make use of this service,” says Marietta Balda, who is responsible for e-payments in Nordea Bank, the first bank to launch this system. Apart from Nordea Bank, the system has been introduced also by Citi Handlowy, whilst other banks such as Millennium, BPS, Kredyt Bank, Inteligo and BZ WBK are planning to implement it very soon. “We are currently at the stage of establishing the terms and conditions and we plan to launch this services at the beginning of 2010,” confirms Wojciech Kaczorowski from Bank Millennium.
Rzeczpospolita

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Poles Not Welcome in UK

No Poles, Please

Between 2000 and 2006 about two million Poles emigrated for economic reasons and the majority of them settled in Ireland and the UK. However, with the economic crisis not loosening its grip, people who are now considering moving abroad in search of job opportunities may want to reconsider. “They better think twice,” says Barbara Tuge-Erecińska, the Polish Ambassador in the UK. She believes it is immensely difficult to find a job in the current economic situation. Quoted by The Guardian, Tuge-Erecińska claims that people with no knowledge of English have almost no chance of finding a job in England. What is more, the difficulties on the English job market have also struck immigrants who have lived on English soil for some time. “In such difficult times, when there are no vacancies, English public feeling may turn against Poles,” said the Polish Ambassador in The Guardian. A new wave of immigrants may only add fuel to the flame of hatred that burns in England towards foreigners. Tuge-Erecińska also warned against accepting job offers through the Internet because, according to her, it is the easiest way to fall into the net of false job intermediaries. In order to be heard throughout Poland, the Ambassador has asked priests to pass her words onto people living in the country.
wyborcza.biz

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Airport in Modlin

Modlin Revamped

The Governor of Mazovian Province has given permission for an airport to be built in Modlin. It will be one of the most important infrastructural investments for Euro 2012. The first passengers will be able to make use of the airport in the spring of 2012. Construction of the Modlin airport, a key investment for the entire Mazovian Province, will relieve the overcrowded Fryderyk Chopin airport in Warsaw. The investment is one of the government’s priority projects as part of Poland’s organisation of the European Football Championships in 2012.

“The opening of the airport in Modlin is not only an opportunity to unburden Okęcie airport, but also to stimulate economic development of the entire region, a chance for creating new workplaces, as well as increasing investment and tourism,” says the President of Mazovian Province Adam Struzik. The airport will be built in a convenient location, which is currently being used for civil aviation, mostly private, where the S-7 Warsaw-Gdańsk highway and regional road No. 62 converge. The merit of this location is the fact that there is a rail link which allows for direct connection with the airport and the capital. The airport in Modlin will service international flights, as well as local flights between regional airports. The role of the new airport is to complement Warsaw’s Okęcie airport. Moreover, it will provide something which is impossible at Okęcie, i.e. a night service for international flights, including transfer flights. It is estimated that between the years 2012 and 2014 as many as 2 million passengers will make use of Modlin airport. The whole investment will cost around PLN 400 million, ofwhich PLN 50 million will come from the regional self-government and the rest from EU subsidies.
Gazeta Prawna

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Who’s the Boss?

Best Boss?

In the last few months the Polish employment market has undergone a significant change, mainly in terms of personnel policies. The consulting company  KPMG and the Polish Confederation of Private Employers Lewiatan have published the report “Flexibility in the employment market – choice or necessity”. The results show that as many as 70% of the businesses polled had downsized in the period from autumn 2008 to spring 2009. The average, however, did not exceed 5% of the personnel. “Every fifth business admits that they assign more work to their employees. A smaller number of respondents claim to choose retraining and relocation of their personnel. The smallest group concerns employers who opt for unpaid holidays or telework, 15% and 9% respectively. Employers are very cautious about implementing flexible working conditions,” explains Leszek Wroński, a KPMG partner. 40% of those polled believe that Polish ex-pats coming back to home will influence the flexibility of working conditions. More than half claims that “homecoming” will increase the mobility of employees and 43% suspects that it will have an impact on the growth of qualifications and the competence of employees.

At the same time, the annual “Employer of the Year” competition conducted by the international platform for young people AIESEC and the independent poll by Universum Student Survey, conducted in 28 countries, select the best employers in their line of business.  The  latter helps to find out more about students’ expectations and preferences concerning their career development and to analyse both the image of employers and the factors which make them most desirable. “Google treats their workers exceptionally,” claims Marta Jóźwiak, Communications & Public Affairs Manager at Google, which ranked fourth in the business industry. Google as a potential employer is very attractive for many students as, apart from the social package and the opportunity to develop, the company offers “cool” and “hip” offices which look more like a playground than a workplace. “One of the company’s aims is to provide the best working conditions. Free meals, snacks and soft drinks are at the employees’ disposal. The interiors of offices are colourful and friendly, there are relaxation and entertainment areas. What kind of facilities there are in the office is left up to employees. For example, engineers from the Kraków-based office have a climbing wall. The role of such facilities is not to disrupt but to stimulate creativity,” says Jóźwiak. Whatever the facilities, however, both employees and employers have to survive in these tough times.
Brief.pl

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Unemployment Rises

Unemployed Europe

Unemployment in Poland hit 8.2% in June 2009. However, for the sixteen countries of the Euro Zone unemployment hit a record 9.4%. Compared to Euroland, Poland’s 8.2% does not look as bad as it could be. Poland’s Central Statistical Office (GUS) places unemployment in Poland at 10.7%, however, GUS uses different markers to calculate these statistics. The average rate of unemployment for all the EU states was 8.9% (a rise of 0.1% from May, and a 2.0% rise from June last year).  This means that over 5 million people have lost their job in the European Union over the past twelve months. Ironically, these statistics bode well for Poland’s workers as unemployment does not seem to be rising at the same level in Poland as it is in the EU. Additionally, Poland’s economy seems to be coping better with the crisis than most EU states.
Gazeta Wyborcza

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PO Going Strong, SD Still Weak

Piskorski Worried

The Democratic Party’s (SD) support is comparable to that of the League of Polish Families (LPR) or the Polish Party of Women (PK).  Support for Civic Platform (PO) has not wavered and is still at 56% compared to two weeks ago – such are the results of the most recent survey conducted by GfK Polonia for Rzeczpospolita. “The results are impressive,” says Jacek Kloczkowski, a doctor of Political Sciences at the Center for Political Thought. However, it still remains to be seen how the KDT fracas will affect PO’s standing. Law and Justice (PiS) faced similar problems when it was in power. It stood firmly in a row against nurses and consequently its standing dropped. Kloczkowski points also to another possible source of trouble for PO – the cuts in the budget. Compared to the previous survey, PiS and the Polish Peasants’ Party (PSL) have gained 2 and 1 points respectively while the Democratic Left Alliance (SLD) has lost 1 point. The most recent survey was first to gauge support for the new Democratic Party (SD). SD, led by Paweł Piskorski, got off to a slow start and became the party of choice for only 1% of Poles, an identical result to that of the League of Polish Families (LPR), the Self-Defence Party of the Republic of Poland (Samoobrona), the Republic Right Party (PR) and the Polish Party of Women (PK).

Piskorski, however, plays down the survey’s results. “I’m not bothered by them. I would be bothered if SD had the same level of support a year from now,” says the SD head. Piskorski highlights the fact that SD is still to launch its media and program offensive. However, in his opinion, had the survey mentioned the names of the respective parties’ politicians then SD’s result would have been better. “I expect that by the end of this year we will have a party which will have bounced back becoming a political alternative recognisable among voters. And come 2011 SD will be contending for a double-figure result in the parliamentary elections,” Piskorski says. According to Kloczkowski, SD stands a real chance of establishing itself as a solid political party. One of its strongest arguments is that even now, in the midst of the economical crisis, money is not a problem for Piskorski’s party. “Everything depends on how well SD take advantage of this chance. Libertas has proven that it is not enough simply to establish a presence in the media to win over voters,” says Kloczkowski. GfK Polonia conducted the survey between the 17th and 19th of June on a representative sample of 1,000 people.
Rzeczpospolita

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