Govt to change terms of investment incentives

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The government is considering changing the terms of under which it provides incentives to large investors. The private TV station NOVA quoted Prime Minister Vladimir Spidla as saying that the main impetus for a change was the recent experience with Flextronics, an electronics contract manufacturer with worldwide operations who recently decided to close down its production facility in the Moravian city of Brno and dismiss thousands of workers. Flextronics, the largest investor in Brno, received various investment incentives both from the state and the local authorities, such as an exemption from paying customs duties and the corporate tax, and a subsidy for the creation of new jobs.