The cabinet has adopted a bill on the property of the state, provinces and municipalities. The proposed law forms the basis for managing the SIT 2trn (EUR 8.35bn) in property owned by the state and local governments.
The sheer worth of the property is reason enough for a special law to have been drafted which deals with how this property is managed, Public Administration Minister Gregor Virant told the press after Thursday's cabinet session.
The proposed law concerns the state, municipalities and the future provinces, as well as the public sector as a whole, Virant explained. The main goal is to manage the property with due care and diligence.
Among other things, the law will seek to ensure that the property not needed by the state is sold off or leased out to the best bidders.
All transactions will have to be transparent and documentation about them made available to the public, said Virant.
Real estate is to be sold at public auctions or through Internet auctions or a public call to invitations in a bid to maximise the price, he said.
He said that even after the best bidder is selected, the competent authorities will be able to enter into additional negotiations in which the price could be additionally raised.
According to Virant, a direct sale will be possible only in limited cases and is by all means an exception to the rule.
Such sales will be possible if the state is not a 100% owner of a property or in the case of exchanges of property, transactions worth less than EUR 80,000 and two or more failed public auctions or tenders, he explained.
Moreover, transactions involving two state bodies or public institutions - for example exchanges between the state and municipalities - will also be exempt of auctions or public tenders.
Valuations of property will be necessary regardless of the type of sale, Virant stressed as he outlined the document.
Moreover, an important feature of the new bill is the transfer of property among public institutions or state bodies. "This means that a government can transfer real estate which it does not need free of charge to a municipality and therefore ensure better management of that property," he said.
However, a number of safety checks have been included to avoid abuses. As an example, Virant said the state would be able to nullify a deal to transfer not-for-profit real estate to a municipality if that municipality later goes on to sell the real estate for commercial purposes.
Under the new bill, the government will also be able to sell property worth less than EUR 400,000 without the prior approval of parliament. Currently, parliament needs to approve all transactions involving state property.
The bill also sets out the establishment of a register of public property and a register of the internal real estate market, said Virant.
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