Business News

In this week’s business news: An expert from a government think tank criticizes the behavior of the country’s immigration police, the Confederation of Industry elects a new president, the home electronics company ETA is to let go a fifth of their staff, Czech cinemas see their revenue drop by nearly 40 percent, and the Food Inspection Authority closes down a Prague location of the national grocery chain Albert.

Government think tank expert criticizes immigration police’s treatment of foreigners

Petr Zahradník, an expert on European politics of the government’s economic think tank NERV, writes in Tuesday’s daily Hospodářské noviny that the unbelievably coarse, humiliating and incompetent way that Czech immigration police deal with managers and other highly qualified staff of international companies detracts from the Czech Republic’s attractiveness as an investment location. He added that while it was the task of the immigration police to prevent criminals and other unwanted persons from establishing residence in the country, the unit does not treat top scientists, investors and other immigrants that bring great advantages to the Czech Republic with the necessary respect. He also criticized the immigrations’ officer frequent lack of English language skills.

Home electronics company ETA to cut staff and move its production to Moravia

The Czech home electronics company ETA is planning to move its production from the town of Hlinsko in the Pardubice region to Moravia in the middle of 2011. The move will be accompanied by staff cuts; ETA will let 50 of its 255 employees go. The Czech company has been producing its electronics in Hlinsko for 68 years. After the move, its accounting, storage facilities, service department and part of its sales department will remain in the town. The move to Moravia is meant to optimize expenses, the general director of the company, Jiří Pathy, said in a press release. ETA was established in 1943 and is one of the best-known Czech brands.

Confederation of Industry of the Czech Republic elects new president

The Confederation of Industry of the Czech Republic has elected its vice president, Jaroslav Hanák, the new president. He was voted into office with a majority of 90 percent at the confederation’s general meeting on Thursday. Mr. Hanák said that his goal was to increase the Czech economy’s ability to compete, which he says is hindered by three factors, the inefficiency of the government, widespread corruption as well as shortcomings in the country’s infrastructure. The confederation will try to push through its Agenda 2010, he added, which calls for the consolidation of public finances as well as the reduction of the state budget deficit to under three percent GDP. The confederation is a voluntary, non-governmental organization that brings together employers and enterprises in the Czech Republic.

Czech cinema see grave drop in revenue, visitor numbers

In the first quarter of 2011, Czech cinemas saw a drop in revenue of about 40 percent, amounting to roughly 250 million Czech crowns. The number of cinema visitors dropped by about a third year-on-year. Among the main factors for this significant decline is the fact that no real blockbuster has been released in 2011. In 2010, the American director James Cameron’s megahit Avatar drew some 1.15 million viewers to Czech cinemas, which brought about 188 million Czech crowns in ticket sales, By comparison, this year, the film Nevinnost by well-known director Jan Hřebejk only drew some 149,000 viewers. In addition, average ticket prices increased by 15 crowns in 2010. In 2011, ticket costs were only raised by about 2 crowns.

Food Inspection Authority closes down Prague location of Albert chain supermarket

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The Czech Agriculture and Food Inspection Authority on Thursday closed down a Prague location of the supermarket chain Albert, after finding dead mice on the floor of the shop and mice droppings on its shelves. A spokeswoman of Albert said that only two dead mice where found, which must have gotten into the store from outside, when new produce was being delivered. She added that the exterminator company which regularly checks the store confirmed this. Experts are now cleaning the shop, and a new inspection is scheduled for Friday. Albert operates some 280 super- and hypermarkets in the Czech Republic.