A SESSION AT HRT Croatian Radio & Television General Director Josip Popovac, Jadranka Sasko and Zvonko Milas, chairman of the HRT Programme Council"Prime Minister Kosor has no desire to push HRT into bankruptcy, but it does want the leadership of the national TV station to understand that the situation in the country is very difficult. Government is cutting spending, citizens are cutting spending and having a tough go of it, and HRT alone is behaving as if there was there were no problems - it has not undertaken a single anti-recession measure, there is no rationalisation of its operations, it spends more with every passing year, and its unpaid debts just keep piling up. But, regardless of the indignant reactions and criticism, the Prime Minister has said two key things - that she is willing to find an accommodation and that employees of HRT need not worry about their wages, and that she will meet with the HRT leadership several times and resolve the situation that has arisen with them," a Croatian Government source to Nacional last weekend.

And so, but all accounts, last week's report that Croatian Government is proposing a 25 percent reduction of the TV subscription fee will, after all, pass through a series of serious negotiations between representatives of Government and Croatian Radio & Television (HRT), and, as Nacional's sources point out, a compromise of sorts is not ruled out - that the proposed cut to the TV subscription fee not be 25 percent, but perhaps 20 or 15 percent, and it is possible that the implementation of the proposal be further put off, and that the decision would come into force at the start of next year. Whatever the case, the announced reduction of the TV subscription fee has once again put the national television broadcaster in the public spotlight, and some say that it is a practically open fight between top Croatian politicians and all of HRT, with each side holding heavy weaponry - Government and Prime Minister Jadranka Kosor have the lion's share of Croatian citizens on their side, who are sure to be happy to see the monthly subscription fee drop from 80 to 60 kuna, while HRT can fight the decision in the press and with the forceful lobbying it has already launched.

A RUMOUR HAD ALREADY SPREAD LAST WEEK among HRT employees that the decision to reduce the TV subscription fee was the result of an alleged personal antagonism between Prime Minister Jadranka Kosor and some people at Croatian Television (HTV). As Nacional's sources point out, it is no secret that Jadranka Kosor has of late had numerous objections to the way in which some HTV editors are covering her work and that of Croatian Government. A lot of coverage was given last week, for example, on HTV primetime news to the efforts of unions to collect signatures for a referendum on the proposed new labour legislation, while the Prime Minister's visit to Brussels was only afforded scant coverage.

On the day on which there was a showdown between two criminals from Serbia in Zagreb, on Lake Rakitje, it ran as the third story in the news, while HTV editors felt that the fact that pop singer Severina Vuckovic had signed the union petition for a referendum was a more significant news item. Prime Minister Kosor herself was allegedly most bothered when some ten days ago she toured the flooded areas of the Slavonia region with President Ivo Josipovic, and as a result was unable to make the opening of an exhibition of photos of handicapped Croatian war vets.

The fact that she did not make the exhibition was practically openly criticised in some HTV shows, which allegedly infuriated Jadranka Kosor, who ironically asked her aids "I guess I should have asked the flood waters to come later, and not to cause these kinds of changes to my itinerary." But regardless of the fact that there really is no understanding or friendship between the Prime Minister and some HTV editors, such as Zoran Sprajc, Nacional's sources emphasise that she does not want her position on the issue of TV subscription to be understood as a personal showdown with Croatian Radio & Television, and especially not with the employees of the media house. It was for this reason that she took several opportunities late last week to tell HRT employees that they need not fear for their wages, as a catastrophic rumour had spread in the meantime at the broadcaster's headquarters on Zagreb's Prisavlje Street that there would be no money to pay wages in a few months time.

CRITICISED FOR FLOODS Instead of coming to the opening of an exhibition featuring disabled war veterans, the Prime Minister toured flooded parts of Slavonia, which was criticised by HRT reportersAND WHILE CROATIAN CITIZENS very positively welcomed the announced reduction in the TV subscription rate, there are very serious objections to the idea. Some feel, namely, that the Government proposal is a poor solution for the growing number of problems at the national TV broadcaster that will, if the announced subscription rate reduction does go through, only exacerbate an already difficult situation at HRT and in other media. There is no doubt that a decision on a 25 percent reduction in expected revenues cannot be made overnight, and especially half way through the fiscal year. As a result the leadership of HRT could in the days to come seek its salvation in three possible scenarios, each of which has many more faults than advantages. The first is the possibility, admittedly the least likely, that the HRT leadership could decide to reduce the public television to one channel, i.e. make a decision to shut down HTV channel 2. That would produce savings that could bring HRT, even after the reduction in the subscription fee, to a "positive zero," but that would in fact cut in half the content of the public television. It would also have as its consequence mass layoffs, and in some circles it could be interpreted as providing the HRT management with an alibi to fire undesirables at the TV broadcaster.

THE SECOND POSSIBILITY IS THAT HRT implements expenditure cuts and fire several hundred employees to "survive" the coming year with a moderate loss of a hundred million kuna. Given that the coming year is an election year, it would certainly not suit the ruling HDZ (Croatian Democratic Union) to have the dissatisfaction and dominance of opponents of their government to continue for any extended period of time at HRT. As a result the financing of HRT, i.e. the bare survival of the national TV house, would depend directly on the good will of Finance Minister Ivan Suker, who could, if HTV editors are not overly critical towards Government, resolve the current financial difficulties at HRT with short term loans or a recapitalisation. And so HRT as a whole would constantly depend on the mood in the ruling party, which would be very evident in its programming.

THE THIRD AND, FOR THE MOMENT, THE MOST LIKELY possibility is the one that could cause the most harm to HRT, and to many others. Since it will not get enough money from the TV subscription, the HRT leadership could decide to cover the difference from its marketing activities, which would result in a real catastrophe - first of all, HRT would increase its advertising and commercial content so much that it would in fact cease to be a public service and be reduced to the third commercial television station. The strategy of the HRT marketing department would probably be to offer dumping prices for advertising time, which HRT has in fact been doing for years now. By doing so they are simultaneously cheapening their own advertising space, and on the other hand are directly choking the other two countrywide television stations, who live only off advertising, and in fact all of the other media in the country, print media in particular. As a result of it all it is clear to many that the reduction of the television subscription fee is one of the worst of the half-baked ideas to come out of the Jadranka Kosor administration, which would, if it is actually seen through, have far-reaching consequences. The issue of HRT could have instead, or still could be resolved by an alternative proposal - that HRT in the new legislation regulating its operations be significantly limited in or entirely bereft of advertising. That would force HRT to truly transform itself from the current chaotic mixture of commercial and public content into an entirely public television service, while giving the other media a chance to survive and - to offer viewers commercial content.