STATE, PROVINCIAL AND CITY INCENTIVES FOR THE LOCAL ECONOMY DEVELOPMENT

04.03.2013.
Mayor of Novi Sad, Miloš Vučević gave an opening speech at the Conference “State, Provincial and City Incentives for the Local Economy Development” organized by the Local Economic Development Office of the City of Novi Sad.
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- Without more serious support to SMEs,  in the first place, and then to all investors and companies on the market, we cannot expect an improvement of the economic conditions. The state must invest more and it has to change the habits and actions that have, so far, provided poor results, while it also has to put all its energy into making a program that will provide more effective solutions.This is precisely today’s topic, to resume what has been done and what still needs to be done, so that all levels of government can indeed become a genuine service to business and citizens - mayor Miloš Vučević emphasized.

 

Member of the City Council in charge for the economy,Goran Sečujski, said that Novi Sad’s unemployment rate is 18.5%, which is better than the national average, but that still represents a big problem. He presented the measures that will be implemented under the National Employment Plan for 2013. 

The representatives of the City Council for Employment, the National Agency for Regional Development, the Agency for Foreign Investments and Export Promotion of the Republic of Serbia - SIEPA, Vojvodina Investment Promotion Fund - VIP Fund, the Export Credit and Insurance Agency of the Republic of Serbia- AOFI and theNational Service for employment-Branch Novi Sad also took part in the event.

One of the concrete steps that the City of Novi Sad has taken in creating of favorablebusiness environment is the formation of a stand for the production services, which will allow investors to obtain all the information related to finance, lease, technical standards, permits, legal issues, etc. This stand, also known as the One Stop Shopwill provide a complete and efficient service and it will speed up and simplify the procedures that an investorgoes through at start up phase-  head of the Local Economic DevelopmentOlivera Simovićsaid.

One of the City incentives for investors is that the land construction fee can be decreased with the City Council approval up to 90% for building production halls and premises providing IT services that may be subject of the international trade worth of more than €1 million, which are significant to the city's economic development and employing permanently more than 50 people.Likewise, the Cityof Novi Sad has initiated the amendments to the Regulation on conditions and manner under which the local self-government can alienate or lease a plot.The state government has adopted the amendments to the of the Regulation which has enabled the local self-government, with the prior approval of the Government of the Republic of Serbia, to dispose or lease a plot, with a surface area greater than 25 a, at a price lower than a market priceor without compensation, for investments in manufacturing sector and information and communication technology, which can be subject of the international trade, under the condition of employingat least one person full-time to every 2 a of the alienated or leased land.

Likewise, the Local Economic Development Office provides information on the conditions for business and investment opportunities in Novi Sad, specifically intended for entrepreneurs and potential investorsthrough its web portal www.novisadinvest.rs.One of the innovations is the possibility of advertising of available locations or production and business  facilities in the City of Novi Sad, owned privately, without compensation and with proper documentation.