Zagreb - Presenting the Croatian Parliament with a report on investments in islands in 2023, a government representative informed lawmakers of the new developments for islands and islanders brought by a new bill on islands, which is open for public consultation until April 7.
The intent of the new law is to improve the quality of life and encourage islanders to remain on the islands, said the State Secretary of the Ministry of Regional Development and EU Funds, Zrinka Raguž, revealing some of the new provisions in the future legislation.
She explained that the new law introduces the possibility of financing the costs of water transport to islands connected to the water supply system in cases of emergencies or needs that exceed the capacity of public water supply.
Raguž recalled that the Ministry of Regional Development already co-finances water transport for islanders, a right used by more than 7,000 people, and that €16.5 million was invested in this measure from 2016 to 2024.
In response to a comment by Boris Piližota (SDP) about the lack of basic communal infrastructure on many islands, especially health services available seven days a week, she said that the new law foresees improvements in primary healthcare on islands, as well as special measures to accommodate doctors.
One of the solutions the future law will include is co-financing the installation of water purifiers and desalination systems on islands, which will partly help with drinking water supply, she responded to Rada Borić of We Can!, who pointed out that Croatia lacks regulations that would require the use of rainwater and the construction of cisterns for its collection.
Additional wage for each employed islander
The State Secretary agreed with the assessments of HDZ MPs that the government is systematically and concretely investing in the development of islands.
The "Croatian Island Product" label has been awarded to 1,445 products from 785 entities so far.
Support is offered to local employers and they are provided with an additional salary for every employed islander who has been a resident of the island for at least six months, said Raguž in response to HDZ MP Josip Ostrogović's statement.
He noted that the report confirms that islands are not viewed through the lens of exoticism and seasonality but as living areas of Croatian territory.
Josip Borić (HDZ) commented on the scheme worth €150 million in non-refundable funds, the so-called ITP mechanism, and asked how many projects it has covered in coastal and island counties and what the implementation rate is.
ITP is a unique programme that takes special care of islands. So far, 21 projects worth €61 million have been contracted, which is about 40% of the allocation, said Raguž.
She also explained why less funding was invested in islands in 2023 compared to the previous year, something that has not been the case in recent years.
"The decrease was solely and exclusively caused by the completion of the Pelješac Bridge project (in 2022), which carried the largest amount of non-refundable funds," Raguž said, reiterating that Croatia recognises its islands, islanders, and life on islands as areas of special national interest, with significant natural, economic, and tourist potential.
From 2006 to 2023, a total of €5.5 billion invested in Croatian islands
Nearly €640 million was invested in Croatian islands by the state in 2023, which was a 15% decrease from a record high investment of €698.3 million in 2022, according to the government's report on the implementation of the Islands Act in 2023.
From 2006 to 2023, a total of €5.5 billion was invested in Croatian islands, which means that an average annual investment in the said period was €309.14 milion.
Since 1999, when the first Islands Act was passed, investments into Croatia's Adriatic islands have been growing. For instance, in 2022, allocations for that purpose increased by 23% from 2021.
2023 was the first year with a year-on-year decrease in the allocation for islands since 2017.
The government explains that these trends can be viewed through the investments in the 2020-2022 period, when they were influenced and significantly increased due to the dynamics of the implementation of the southern Dalmatia road connectivity project, which included the construction of Pelješac Bridge with access roads and the Ston bypass.
From 2016 to 2023, a total of €3.5 billion was invested in islands, of which €3.2 billion (91.8%) were non-repayable grants, while loan funds amounted to €286.62 million (8.2%).
The number of businesses continuously grew, from 4,954 in 2019 to 5,712 in 2023.
During the same period, the number of employed people grew from 23,174 to 27,479, reaching a record high level.
The average monthly net salary per employee in 2023 was €902, which is 11% higher than in 2022.