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BCCI presents the results of a survey on the Bill for Amendment and Supplement of the Spatial Development Act (SDA



 
In the period 8th March - 15th March 2012 BCCI conducted a questionnaire survey among its members in relation to the changes in the draft of the Spatial Development Act (SDA), which stipulate that employers are required to provide at least one room for sports activities and sanitary facilities. The obligations in the draft amendment of the SDA and the Physical Education and Sports Act (PESA) are defined as follows:
A new article is created, i.e. Art. 37a. “In newly-constructed industrialized, administrative or other business buildings with a capacity of more than 100 jobs at least one room for sports activities, along with sanitary facilities is to be provided.”. In this regard, in Paragraph 6 of the Transitional and Final Provisions of the Bill amendments and supplements are envisaged to the Physical Education and Sports Act: A new paragraph 6 of Article 47 is created which obliges the employer "to build at least one area for sports activity along with sanitary facilities for their employees" and a new Paragraph 3a is created “Employers of existing sites up to the entry of Art. 47, Paragraph 6 are required to provide their employees means and opportunities to use other sports facilities or equipment or to carry out reconstruction of an existing facility".
The Bulgarian Chamber of Commerce and Industry announced that 32 comments filled in the questionnaire form were received regarding the changes in the bills, and four branch organizations represented the standpoint of the companies with thousands of employees in the respective branches in the country. Official positions of two organizations have been attached herewith.

Results of the survey:

Question 1: Do you think it is necessary to stipulate these new provisions, since there exist similar requirements in the Physical Education and Sports Act at present relating to construction of facilities outside the workplace?
The majority of the respondents believe that it is not necessary to effect any changes since there exist effective relevant regulations in force at present.

The business recognizes the need to encourage citizens, whether working or not, to do sports, but does not consider these legislative changes necessary.

The responses of the companies are grouped as follows:
o 81% believe that it is not necessary to create new regulations;
o 13% consider it necessary;
o 3% cannot decide;
o 3% did not answer 

Question 2: To what extent do you find these changes to the SDA and the Physical Education and Sports Act indispensable?

 The majority of the companies believe that the changes are not necessary. At a time when the Bulgarian business is in a difficult position and foreign investments are decreasing, imposing additional obligations on employers would place extra burden on companies, affecting the implementation of future projects as well. In the previous study on the business climate conditions (carried out in February 2012) BCCI’s members reaffirmed the need for predictability in the law.

The results of the comments are summarized as follows:
o 78% believe that the changes are not necessary
o 16% cannot estimate the urgency of the said changes
o 6% believe that the changes are necessary

Question 3: Do you think that the changes will result in wider practice of sports in Bulgaria?

The prevailing opinion among the company managers is that the envisaged changes will not affect the wider practice of sports in our country. Few believe that legislative changes could expand the practice of sports among employees. Doing sports is a matter of personal desire, and each worker and/or employee chooses the appropriate ways to restore their working capacity and to fight fatigue.

The results of this question are as follows:
o 81% do not think that the result will be wider practice of sports, because doing sports depends on the personal desire;
o 13% believe there will be only a partial effect for employees of companies with more than 100 employees;
o 3% admit that opportunities for sport will be increased significantly;
o 3% cannot decide.

Question 4: Do you agree with the following statements with regard to the above said amendments to the Spatial Development Act and the Physical Education and Sports Act and their influence on business?

Undoubtedly, the lack of clear impact assessment of the proposed new amendments to the two laws (the Spatial Development Act and the Physical Education and Sports Act) raises concerns about their influence on the activity of companies in our country in a period, when many of the companies are experiencing financial difficulties. 

The business is united around three theses, namely that: 

1) the provisions are controversial;
2) tax incentives are necessary for the companies which would pay the expenses to comply with the provisions;
3) the prices of the products/services provided by companies would increase.

According to the members of the BCCI the impact of the above-mentioned legislative changes can be summed up in the following expected effects: 


o 85 % of companies reckon that the provisions are controversial – they do not specify what kind of sports activities the room should be designed for;
o 75 % of the surveyed companies assume that the changes might take place, provided there are tax incentives for the companies to compensate them for their expenses made to provide the rooms; 
o 71 % expect the legislative changes to result in an increase of the prices of their products/services, because of the incurred expenses;
o 66 % feel that the changes place additional barriers to foreign and Bulgarian investors;
o 60 % of companies reckon that the economic efficiency of newly-constructed buildings would decrease because of the requirement to build new facilities;
o 56 % assume that companies would limit their investments as a whole;
o 53 % of managers think that companies would restrict the capacity of the construction of buildings (which would mean fewer employees respectively); 
o 25 % expect the labour productivity of their employees to increase.
Question 5: Any other comments
The most important points made by companies in the course of the survey are as follows:
o The principles of free competition are violated, because obligations are assigned only to employers with more workers and/or employees. 
o It is unacceptable to regulate the social policy of companies, which is voluntary in its nature, with a normative act or enactment. 
o Possibility for each employer to decide whether they would like to invest in such rooms, by introducing a stimulating policy /tax incentives, etc./
o Lack of impact assessment of the provisions, without taking into consideration the economic situation in the country: lack of investments, growing unemployment, inter-company indebtedness, etc.
o The proposed texts are not clear and allow for interpretations. There is no definition of the term “room for sports activities”. An empty room with nothing but flooring may also be considered as such. 
o The investment does not confine to setting up the sports facility itself, but incurs additional expenses for exploitation and maintenance, as well as for specialized personnel. 
o The proposed tax incentives are not enough and do not compensate for even a small part of the finances which companies would have to invest. 
o The engagement in sports of workers and employees depends entirely on their free will and everyone has various needs as to what kind of sports to take up. 
o The question to what extend the productivity of workers and/or employees would increase remains debatable. 

20.03.2012

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