After Lithuania Has Entered the Huge European Union Market

Business development - an art and a need

A journalist Juozas GIRDVAINIS has visited the company AB Achema, talked to engineers, chemical industry specialists, operators of the uninterrupted production processes and compared the production data of the present day and 1985-1990. Chemical industry specialists and chemists working in laboratories have positively evaluated the product chemical analysis and assured that the production of AB Achema meets the highest quality standards.


WHAT IS NEW IN JONAVOS ACHEMA?

“Could Lithuania follow the example of Jonavos AB Achema in entering the huge EU market?,” I ask one of the first engineers of Achema company, graduate of the Kaunas University of Technology (former Kaunas Polytechnic Institute), Doctor of Technical Sciences Bronislovas LUBYS.
“Achema was established in 1990 and boasts the experience of over ten years. Achema manufactures top quality and competitive chemical products what has helped the company to survive on the market. The EU integration has even more strengthened our powers and made Achema a large and profitable company.”

CERTIFIED PRODUCTION

“Lithuanian companies in increasing their production volumes should also learn to enlarge sale of this production on the world markets. Mr. Lubys, could you please share your experience how to enter and learn to trade in the huge EU market, in the USA, Canada, Ukraine, Russia, Belarus and also Central Asia? In what direction should Lithuanian industrialists guide their commercial relations and what instruments should be taken to protect the domestic market?”
“The EU market is complex and raises many issues that were and are very important”.
“Besides usual requirements, there exist many intricacies in product certification. For instance, food products must be certified according to the whole technological production process. A company must be issued with a certificate approved in the EU laboratories permitting to launch the production and sale of food products.”

THE FACTOR OF SUCCESS
“I regularly remind the heads and specialists of companies belonging to the Lithuanian Confederation of Industrialists that holding ISO 9002 management and ISO 14001 environmental quality management certificates is indispensable wishing to trade in the EU”.
“The EU says that companies do not holding such certificates will not be allowed to enter the EU market. While some Lithuanian businessmen still think that if they are not to enter the EU market, they will sell their products in Lithuania. We must once and for all remember that Lithuania applies the same commonly recognized rules that function in the EU for long”.
“On the other hand, Lithuania still has lots to do to catch up with the EU strict requirements by its legislation and psychological thinking.”

TRUSTING A PARTNER
“Lithuania acceded the EU on 1 May 2004 and since then it faces many business-favourable solutions and well-wishing initiatives. Lithuanian industrial and food products do not need any quotas to be freely sold on the common EU market according to permitted limits - the aggregate of quality factors. The major task is to find trustworthy and reliable partners. Lithuania, like all other countries, wishes to honestly develop commercial relations and sell its products. Trusting a partner becomes a golden value. What requirements of business ethics are raised to our entrepreneurs?”
“Business ethics plays a major role in entering into business contacts with European businessmen. Cheating a business partner is said to be cheating oneself once and for all, and you will always find it to be more difficult to re-enter a market or resume business contacts after the fraud. And you will always be regarded as a untrustworthy partner.”

LITHUANIA’S UGLY VICES
“For instance, in Lithuania anybody who wishes may libel you, your honest business partner and a politician, to order to publish a hideous article or false information in the mass media or broadcast it on TV or radio. These are ugly vices that, let’s hope, our information society will outlive and not without the help of relevant legislation. There is the right to write and there is the right to protect oneself.”

STRONG PARTNERSHIP RELATIONS
“Such cases are no more recorded in Western business world. Business people organize business-like meetings, matchmakings; pass decisions with the help of associations and business clubs. They are open and sincere in their intentions and plans. The trust in partners is not earned in a day or two, or in a year, and tight relations are a great help in hard days. We faced a need for such help several times and immediately received it from our Western partners.”

THE SECOND FACTOR OF SUCCESS
“In our business, we strive to maintain long-lasting relations with all business partners. Good partnership is the second passport to successes after the product quality that secures successful business development. Companies palling to enter the EU market must be transparent and be able to offer the top quality certified production.”

WHAT DOES AWAIT US ON EASTERN MARKETS?
“Production exceeds consumption in Europe today, so it does in Lithuania. Will the Eastern market remain important as the production outlets?”
“Belarus, Russian and Central Asian markets are unpredictable where very often business issues are discussed and solved subjectively, and are viewed from political aspects. However it is not officially declared that the supreme governing authorities have political influence.”

HOW TO GET A TICKET TO A BUSINESS TRIP?
“Russia is governed by local “dukes”, called governors or mayors. They belong to the highest ruling authorities and good business partnership usually begins from entering into good contacts, having diner or a drink namely with “dukes”.
“The same rules exist in Central Asia, Kazakhstan and Ukraine where you usually begin business from a public institutions and not a business partner. Sometimes, a public servant will even tell, and not advice, you who to begin business with”.
“West and East mean absolutely different business tendencies, mentality and methods. However I should also note that the politicians’ influence to business is diminishing in the East and this fact should be well noted before starting a business”

ARE CONSUMERS’ RIGHTS PROTECTED
IN LITHUANIA?
“In our conversation we have already touched upon protection of the Lithuanian market and I think that it firstly depends upon our governing bodies.
“In later years, the Lithuanian government creates equal legal conditions for Lithuanian businessmen to develop business very painfully and that is a bad tendency. Let’s say Estonian entrepreneurs have far better conditions for developing partnership and the Estonian market is much better protected. Although they face the Finnish impact, they have much larger privileges, as compared to Lithuania. We in Lithuania still are expecting to have equal rights with foreigners on the Lithuanian market.
“In passing laws on electricity and gas, the Lithuanian legislative bodies radically diverge from the EU directives what will result in judicial proceedings. The Lithuanian business community so far is not ready to file cases against Lithuania, however a day will come when it will do so. I do believe that a newly elected Seimas will strictly follow the EU directives. Misinterpretation of EU directives made by the previous Seimas hinders business development very much. Protection of consumer rights is the major regulation exiting in all EU directives.”

WILL THE LITHUANIAN CAPITAL LEAVE LITHUANIA?
“Let’s make an example. A person buys shoes and it seems nothing strange about that. A businessman, in manufacturing them, also buys raw materials, uses electricity and gas. So a producer and a businessman is both a buyer of raw materials and services, and also a seller. And in this case a businessman shall have the superiority of a buyer’s right. Owners of monopolies do not want to recognize and follow EU directives. The Lithuanian government will have to create equal conditions for developing business both in Lithuania and abroad. Lithuanian entrepreneurs cannot have better conditions for making business in Germany, France or the Netherlands than in Lithuania. However, money, like radio waves, disregard borders and already today some of the Lithuanian capital is planned to me moved from Lithuania.”

“Won’t it happen so that the Lithuanian government will look for business investment in foreign countries, while the Lithuanian capital will be forced to leave Lithuania?”
“This is one of the most topical issues in the sphere of Lithuanian business today and it shall be, without any delay, discussed and solved by the newly elected Seimas and the Government. One of the clearest and the worst examples is an attempt to make regulation of daily allowance for business trips”.

WHY DO WE NEED THE EASTERN MARKET?
“Today, the Lithuanian Confederation of Industrialists is said to be an influential non-political organization having a decisive word on Lithuania’s scale. Lithuania maintains strong commercial relations with Sweden, Denmark, Germany and France and also with Eastern countries, like the Ukraine, Russia, Belarus, Kazakhstan. How important are Eastern markets to the European Union and so to Lithuania?”
“To my opinion, the Eastern markets are very important to the European Union. Many Lithuanian products will not be competitive due to high prices of energy and natural resources. If energetic resources exceed 5 percent of the cost price in manufacturing a product, such a product will not be competitive on the Eastern markets in many cases. Also such products like cement and fertilizers will never be competitive in the East.”
“However, certified food products will always remain on demand in the neighbouring Eastern countries. Thus I think that we should strive to maintain our positions on the Eastern markets, and increase sale and production in them.
“Generally speaking, the production quality guarantee still has to make a long way to get recognition, while a certified product will always be on demand.
“For instance, political relations of Lithuania and Belarus are not always clear, however the sale of Lithuanian products in Belarus and vice versa continuously grows.”

DEVELOPING TOURISM IN THE EAST
“So far we were speaking about certified production and its outlet markets. Let’s turn to tourism and discuss how a holidaymaker, a guest or a family member may get to Lithuania or to the Eastern country?”
“The Lithuanian politicians, instead of improving relations with Belarus like Poland, Latvia and other countries, do not create good conditions for improving partnership and cooperation of both countries. One of the best examples is high prices of visas. It is not normal that a Lithuanian regular visa costs 20 euros, and you will have to pay 35 euros to get it quicker. If we add a fee for arrangement of all documents, a single-entry visa will cost around 50 euros. Meanwhile, a Polish visa for Belarus people and a Belarus visa for the Poles costs 5 euros and Poland is also a EU Member State.”

SHALL WE GO TO BELARUS?
“How should small and medium-sized business be developed in Belarus and Lithuania?”
“These issues are to be solved by Ministries of Foreign Affairs of both countries.”
“What instruments should help to develop tourism, weekend trips, organize cultural events, promote theatre going, etc.?”
“If a visa costs up to 5 euros, not only resorts of Druskininkai, Zarasai, Klaipëda and Vilnius would become abundant in holidaymakers but also flows of tourists from the Eastern countries and Lithuanian tourists going to the East or Central Asia would also grow.”
“All countries must create the best conditions for developing small and medium-sized business that is said to be the major source of state revenues. Finally, medium-sized business moulds the prerogative of the state policy. Lithuania should direct huge attention to these issues especially today after it has become the EU Member State.”
“What would be your wishes on the Eve of Christmas and New Year?”
“I would wish my colleagues and all people of Lithuania peace and harmony. Let all of us show and nurture love to Lithuania, be in harmony with ourselves and in families. Let us all here, in Lithuania, create a better civil society and strive for better life to ourselves and our children. I wish all of you harmony and well-being.”
“Thank you, dear President, very much for an open conversation. I would like to wish you strength, good health and optimism that you never have lacked. Merry Christmas to you and your family.”

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A TAX INFORMATION CENTRE IS TO BE ESTABLISHED IN LITHUANIA

The State Tax Inspectorate in cooperation with the Customs and Excise Administration of the United Kingdom has launched a PHARE Twinning Project Tax Information Centre. Marijona Varneckienë has asked the Head of the State Tax Inspectorate under the Ministry of Finance Violeta LATVIENË to tell more about the project.




- Why does Lithuania need a Tax Information Centre?
- Lithuanian companies and residents pay taxes voluntary under the procedure established by the Lithuanian law. Lithuanian taxpayers compute taxes on their own and they must posses as diverse information about taxes and their administration as possible. About 70 per cent of all infringements to tax laws are unintentional and emerge due to misinterpretation of tax regulations, amendments and supplements to tax laws, newly passed laws and other normative documents, etc.
A duty of a tax administrator is to furnish taxpayers with all information and consultations they need. At the moment, such consultations are given by training and consultation centres established at state tax inspectorates; State Tax Inspectorate under the Ministry of Finance has a website and publishes tax information in mass media. Nevertheless, taxpayers still feel the lack of information on tax issues. They say that looking for information takes too much time; consultants of tax inspectorates give different answers to one and the same question. This project should help to timely provide taxpayers with the information they need and to present the same interpretation of tax laws.

- What new possibilities will the Tax Information Centre open?
- In analysing the needs of taxpayers, we have established that taxpayers prefer receiving information by telephone and they find telephone to be the most convenient and the quickest way to obtain information. However, very often the phones are busy or it is difficult to get someone on the phone. Today, about 100 specialists of the tax inspectorate give consultations and sometimes they find it difficult to answer all requests. The project Tax Information Centre envisages establishing a Telephone Call Centre. All companies and residents will receive information by a short telephone number that will function like the short information number 118. The specialists of the future Telephone Call Centre will operate special and regularly updated information and will provide all interested persons with comprehensive and uniform information on tax issues.

- Do other countries have similar Tax Information Centres?
- Twinning projects in Europe were launched in 1998. In the framework of these projects, EU Member States help each other in creating modern and efficient public administration systems, raising qualification of employees and managers.
In the course of project implementation, the current system of services provided to Lithuanian taxpayers will be analysed, and the best model of Tax Information Centre will be chosen. During project implementation, Lithuanian tax administrators will visit UK and Dutch telephone call centres where they will learn to operate special technical equipment. Even five centres with the staff of 60 people each provide telephone consultations on VAT, excise tax and customs issues in the United Kingdom. These centres receive about 2 million taxpayers’ requests per year.

- How much will the establishment of a new centre cost and when will it be opened?
- The estimate of the project Tax Information Centre is 5.7 million litas, of which 5.2 million litas will come from the EU PHARE programme. The remaining half million litas will be allocated by the Lithuanian Government.
The project will be implemented in a year and a half. The major works will be creation of the activity model, purchase of computer equipment to distribute phone calls, preparation of methodical guides and information about services to be given by telephone by future consultants.

- How many people will work in the Tax Information Centre? What type of requirements will be raised to them?
- About 60 qualified specialists will be employed in the centre. The qualification requirements for future consultants will be prepared in cooperation with British experts. We will also develop a continuous training programme for consultants. The operator of the Telephone Call Centre will not allowed to say “I don’t know” and in case he does not know the answer, he will have to immediately find the information and call the client back.

- Who are the project managers?
- The project manager from the Lithuanian part is the Deputy Head of the State Tax Inspectorate under the Ministry of Finance Birutë Černiuvienë and from the British part Head of International Relations Division of the Her Majesty’s Tax and Excise Public Service David Hesketh. The long-term advisor from Great Britain is Janice Ramsay and the project coordinator in Lithuania is Vaida Misevičiűtë, Chief Specialist of the Tax Information Division of the Department of Taxpayers Services in the State Tax Inspectorate under the Ministry of Finance.
The specialists of the tax inspectorate will actively participate in project implementation, will realize many different tasks, gain professional knowledge and experience.

- Thank you very much for the interview.

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THE FUTURE AND PROSPECTS OF IGNALINA NPP REGION

Arnoldas Abramavičius, Director of the Ignalina NPP Region Development Agency

The Republic of Lithuania has passed a political decision to shut down the Ignalina Nuclear Power Plant by the end of 2009. As a result, the personnel of the plant and the neighbouring municipalities will soon feel the negative outcomes of the decommissioning and face the increasing unemployment rates. The first challenge will be shutting down the Unit 1 at the end of 2004.
Striving to get ready for the smooth decommissioning of INPP, the Republic of Lithuania Government adopted the Programme on Ignalina NPP Unit 1 Decommissioning and measures for its implementation on 19 February 2001. One of the measures is establishing an Ignalina NPP Region Development Agency to draft and implement social-economic projects in the INPP region. The Ignalina Nuclear Power Plant region consisting of Ignalina, Zarasai Districts and Visaginas Town was formed by Republic of Lithuania Government Resolution No 287 of 26 February 2002, that has also established the principals for formation of the Region Development Council. The Region Development Council consists of Utena County Governor, mayors of municipalities in the INPP region and members of municipal councils (one from each INPP region municipality). The Action Plan for Implementation of the Programme on Ignalina NPP Unit 1 Decommissioning has been approved by the Ministry of Economy.


The legal background has been laid, however it is far more important to analyse the situation existing in the INPP region. What type of people live here and what do they do for living? What is the infrastructure? Only an in-depth analysis will disclose the needs of the region and its prospects for the future.
The primary task was drafting the strategic programming document - Region Development Plan that set the major aims in region development: regeneration of the region from the social and economic aspect, creation of new jobs and enhancement of sustainable development. The Region Development Plan was drafted according to the methodology approved by the Lithuanian Ministry of the Interior and in consideration of priorities and measures set in the Utena Region Development Plan.

The Ignalina NPP Region Development Plan was approved in the beginning of 2004. The plan provides for implementation of 210 economic and social measures and projects in the Ignalina NPP region following four priorities in region development:
a) business, industrial and rural development;
b) development of human resources;
c) development of infrastructure and environment protection;
d) creation of safe and progressive community.

Each of the municipalities of the region plans to prepare its own development strategy strictly following the Region Development Plan and its priorities. The efficiency of activities and social-economic stability of each municipality will greatly depend on these plans.
Lithuania’s accession into the EU has brought the support of EU structural funds. Business entities and a public sector must learn to prepare professional applications, feasibility studies and other documents. The INPP region Development Agency gives financial support to SME entities to prepare applications. The Lithuanian Ministry of Finance, in implementing Point 4 of Republic of Lithuanian Government Resolution No 573 of 8 May 2003 has envisaged additional marks in evaluating eligible projects and the possibility for financing these projects to be executed in the region from ministerial budgets.
The Ignalina NPP Region Small and Medium Business Development Programme has been drafted as a constituent part of the Regional Development Plan. The measure Direct business support was launched in 2003. Following this measure, the SME entities will receive grants to implement the business development projects, prepare business plans and applications for the support of EU structural funds. The major task in the seek to reduce the potential growth of unemployment is to secure the establishment of new work places in the SME sector, enhancing the competitiveness of companies and introduction of innovations and advanced technologies. 210 new jobs have been created in the region using the direct business support measures.
The Ignalina NPP Region Small and Medium Business Development Programme envisages the necessity to increase the competitive advantages of SME companies in the region, allowing the companies to re-assess their place on the regional market and activity strategies, especially in expanding the realization markets. Small companies need the largest support since they, as a rule, lack the turnover means. On the other hand, small companies, compared to large, are more flexible, react to market changes much quicker and find it easier to operate on a regional market. It shall be also noted that during the whole decommissioning process businessmen are offered new possibilities to participate in decommissioning-related activities, assimilation of alternative energy resources, etc.
The Ignalina NPP Region Business Incubator in Visaginas provides information-advisory services, offers premises for preferential lease to newly established companies.
Ignalina and Zarasai Business Information Centres are two more very important business support instruments.
The Programme of Local Initiatives and the Programme for Work with Youth support the non-governmental sector. In envisaging the long-term urban development and strategy of the region, drafting of the general plan of the region was launched in 2004 that should become a basis for the long-term development of municipalities in the region.
The major goal of all municipalities and region development institutions is to create qualitative living conditions through the use of all natural, cultural and social resources existing in these municipalities, provision of residents with jobs and ensuring that the whole community could have access to the available potential.
Only complex and concentrated attempts of regional governing bodies, business entities and social partners in cooperation with state governing authorities will help to soften the outcomes of INPP decommissioning both on the regional and national scale.
To my opinion, the exclusive attention to SME development and support measures are becoming major instruments in ensuring sustainable development of the region and creation of new jobs.

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Golden Medal for Management of Technological Processes

Bronius Mieţutavičius, Director General of UAB Vilniaus vandenys


The major goal raised by the company UAB Vilniaus vandenys is, through the rational use of natural resources, to supply the consumers with high quality drinking water, collect and perform treatment of wastewater and improve the ecological situation in Vilnius city. The said services are available to all users, they are given uninterruptedly and irrespectively of natural conditions, season or time of the day and are said to be vital and very important. The company supplies drinking water to residents of Vilnius and neighbouring districts.
UAB Vilniaus vandenys regularly participates in contests arranged by the Lithuanian Confederation of Industrialists and has been nominated as the winner of many highest awards. In 2002, UAB Vilniaus vandenys was awarded the medal “Lithuanian Product of the Year” for water quality improvement equipment of Antaviliai waterworks, in 2003 - the medal “Lithuanian Product of the Year” for modernization of the wastewater treatment facility. The Control and Management System of Technological Processes for Water Extraction and Supply has been awarded the golden medal this year.

UAB Vilniaus vandenys has been certified according to ISO 14001 environmental management system and operates following ISO 9001 quality management system. The company expands, looks after, modernizes and regularly renovates its networks, and in such way improves the quality of its services.
In many cases, the efficient operation of water supply and wastewater systems depends upon the control of technological processes and management solutions. Striving to smoothly solve the existing problems and eliminate the restrictive factors, the company regularly upgrades the control and management systems of technological processes helping to secure the provision of vitally important services.

The technological processes control and management system consists of a central dispatch centre that integrates all local dispatcher centres, water pressure measurement control points in the water-supply network and automated water supply pump-houses, and local dispatch centres that integrate water supply pump-houses, water quality improvement equipment and water fields.
The central dispatch centre of UAB Vilniaus vandenys is situated in an administrative building in the centre of Vilnius. The personnel of the dispatch centre and people on duty directly coordinate operation of all units participating in water extraction and supply process. Emergency services inform the central dispatch centre about liquidation of accidents, heads of water-supply departments coordinate all preventive and repair works done in water supply networks with the central dispatch centre. The central dispatch centre also receives residents’ complaints about water quality, disorders in water supply and the central dispatch centre is the place where the decisions are passed how to ensure water supply, liquidate accidents and breakages in Vilnius city. Besides these functions, the algorithm of operation of water-supply pump houses is formed in the central dispatch centre allowing, on the least energy costs and optimum capacities, to secure uninterrupted supply of water to consumers irrespectively of amounts of consumed water. To smoothly carry out all the said functions, the dispatch centre must regularly receive information about condition of equipment in water-supply stations, must maintain uninterrupted communication with all units participating in the process, and sometimes even directly operate water supply equipment. State-of-the-art computer equipment, software and telemetric equipment installed in the dispatch centre helps to implement the aforementioned tasks.
The central dispatch centre, via direct two-wired communication lines or GPRS switched in the GSM network, is connected to pressure measurement control points in the water-supply network and automated water-supply pump houses. The computers of the dispatch centre are connected to the computer network of UAB Vilniaus vandenys and personnel of all other units may monitor the operation of the system. In using the information collection and process control software InTouch by the company Wonderware installed in computers of the central dispatch centre, a dispatcher sees all technological schemes, parameters of water-supply stations and the network in the monitor of his computer. Specialists of the central dispatch centre may not only monitor operation of all water fields, second and third lift stations but also control their technological equipment.
Information received from local dispatch centres and other objects is stored in computers and provided to a dispatcher in the form of time schedules and reports. If one of the controlled parameters exceeds the established limits, a sound message appears on the computer monitor that informs a dispatcher about a breakage in the technological regime. Time schedules of water-supply stations, pressure in the network, water level in reservoirs and debit of supplied water help to exactly establish time and duration of a breakage or a broken technological regime, compile algorithms of operation of water-supply stations.
All local dispatch centres are situated in the second lift water-supply stations. The personnel on duty controls the operation of the station, connected water fields and water improvement equipment.
The work regime of the station is coordinated with the central dispatch centre where the work of all dispatchers is arranged. The control (switching on and off) of depth pumps, monitoring of their status (do they operate or not, is the remote control of a pump possible or not, what is the load voltage of a pump, etc.) are done from the computer of the dispatch centre though controllers arranged in water fields.
A computer monitor shows a dispatcher technological schemes of a water-supply station, water improvement equipment and time schedules of technological parameters. If one of the controlled parameters exceeds the established limits, a sound message appears on the computer monitor that informs a dispatcher about a breakage in the technological regime and a dispatcher may take corresponding decisions.
A dispatcher controls the whole technological process of the complex, may perform necessary control operations using computers in the dispatch centre. A double reserve computer, software, telemetric and communication equipment has been installed to secure the reliability of the whole system and it automatically switches on, without stopping the technological process, in case the main equipment is out of order.
The control of operation of water-supply stations from the central dispatch centre and local dispatch centres have helped the company to cut down water supply costs. Regulation of pressure in water-supply networks secures uninterrupted water supply to consumers, reduces pressure fluctuations in water-supply networks thus reducing the number of probable accidents and water losses, and helps using water resources much more rationally.

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Wide assortment of new furniture and a complex of services in BaldŘ rojus

Rimantas GRIGARAVIČIUS,
UAB Baldř rojus Director General

Vilnius,
Kalvarijř St. 125
Office@baldurojus.lt
Tel./fax
+370 5 27 000 88

Baldř rojus is a leader in retail sale of furniture. It offers living-room, bedroom, youth-room, anteroom and office furniture, sells household appliances.
The commercial area of the renovated trading centre together with wholesale and franchise partners occupies over 23 000 square meters. The new building stands out by the original architecture and is an example of innovatory interior and colouristic solutions.
We are proud to say that Baldř rojus is one of the most modern furniture trading centres in Lithuania. It displays and sells modern furniture manufactured in Lithuania, Germany, Italy, France, the United States, Asia and other countries. Here, a buyer will always find the richest assortment and the newest selection of furniture of the world-famous furniture manufacturers SCHIEDER, Hand Made Sofa, MTI Furniture, Venier, Forte, Euopea, Parisot, IMS, Black Red White and other. The centre sells the furniture by instalments, offers consultations of designers, awards cards of a privileged buyer that entitle to discounts, presents and participation in lotteries.
Baldř rojus has introduced a new service - complex interior solutions.


Baldř rojus is a leader in retail sale of furniture. It offers living-room, bedroom, youth-room, anteroom and office furniture, sells household appliances.
The commercial area of the renovated trading centre together with wholesale and franchise partners occupies over 23 000 square meters. The new building stands out by the original architecture and is an example of innovatory interior and colouristic solutions.
We are proud to say that Baldř rojus is one of the most modern furniture trading centres in Lithuania. It displays and sells modern furniture manufactured in Lithuania, Germany, Italy, France, the United States, Asia and other countries. Here, a buyer will always find the richest assortment and the newest selection of furniture of the world-famous furniture manufacturers SCHIEDER, Hand Made Sofa, MTI Furniture, Venier, Forte, Euopea, Parisot, IMS, Black Red White and other. The centre sells the furniture by instalments, offers consultations of designers, awards cards of a privileged buyer that entitle to discounts, presents and participation in lotteries.
Baldř rojus has introduced a new service - complex interior solutions.

What is a complex interior solution?
Baldř rojus takes care of all interior-related matters:
- a qualified team of designers will prepare an interior design, will advise what furniture and accessories to buy;
- qualified salespersons-consultants will help to choose furniture from the huge assortment;
- a transport team will deliver furniture to its final destination;
- carriers will take the furniture to your flat or house;
- specialists will quickly assemble the furniture at your place.
Attractive prices and a flexible discount system.



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Our mission is to protect the Lithuanian market from unsafe non-food products

A journalist Elena BERUKĐTYTË
talked about activities of the State Non Food Products Inspectorate
with the Head of the Inspectorate Dr. Raműnas LEBEDYS

Head of State Non Food Products Inspectorate Dr. Raműnas LEBEDYS, “Let me take this opportunity and wish all readers of your journal and Lithuanian consumers Merry Christmas and Happy New Year! I wish all of you to give and get safe and high quality Christmas presents!”

Gedimino ave. 38/2, Vilnius, Lithuania
Tel./fax: 262 94 13,
e-mail: rastine@is.lt
Http://www. inspekcija.lt


The State Non Food Products Inspectorate pursues the mission of protection of the national market and citizens from unsafe and low quality non food products by performing the market surveillance since its reorganization on 1 July 2000. Within this period, the Inspectorate worked hard to legalize the EU legal acts, reorganized its structure, rallied high qualification specialists and adopted the procedures conforming to the EU market surveillance principles. This was a period of arduous work: PHARE Twinning project with the Spanish partners was implemented, other projects were realized to help to enter and smoothly operate in the EU market surveillance system. In the seek of the strategic goal - ensuring the efficient surveillance of non food products market in conformity with the EU law - the Inspectorate performs the market surveillance and sees that all economic entities would supply to the market only safe non food products and services that fully meet the requirements of legal acts, also protects the consumer rights.

- What type of products and services does the Inspectorate control? What legal acts govern product safety and protection of consumer rights?
- We carry out the market surveillance and protect consumers rights through implementation of the Law on Product Safety, Law on Consumer Protection, other laws, technical regulations on product safety prepared by different ministries, hygiene norms, various rules, procedures that number over one hundred. We have ten regional branches in counties where state inspectors carry out inspection of electrotechnical appliances, furniture, building materials, chemical substances, cosmetics, machinery, oil products, boiler, tobacco products, toys and many other products. They check whether the said products comply with mandatory safety requirements, do not bring harm to human health or life, environment; whether they are labelled correctly and consumers receive the correct information in choosing and buying a desired product or service. In the field of services, we exercise control over the safety of services of car maintenance centres, installation of gas-run equipment in motor vehicles, swimming pools, dry cleaning, laundry houses, hairdressers, beauty parlours, solariums, saunas, accommodation and other services, analyse consumers’ complaints and, in case of a need, help in protection of consumers rights. Over 7000 control checks of commercial and business companies are carried out per year.
In implementing the aforementioned legal acts and exercising functions entrusted to the Inspectorate, we have detected 61 dangerous product on the market this year. The supply of toys of 38 names and electrotechnical appliances of 23 names to the market was stopped and distributors were asked to withdraw these products from sales outlets.
Seeking to efficiently use the budgetary financing and to achieve the best results, the Inspectorate has strengthened the control of wholesale commercial companies and importers, is expanding the implementation of safety control programmes of targeted products with special attention to higher risk products. At the moment, we carry out uninterrupted control programmes of electrical chandeliers, electrical decorations, computers, furniture, toys and other products. This year, we have received and examined around 1000 complaints what accounts for more than one tenth of all inspections and is by one fifth more compared with the previous year. Consumers mainly complain about low quality electrotechnical products (mobile phones, heating systems, computers, TV sets, refrigerators and other household appliances), also building materials, furniture, services of car maintenance centres, installation of gas-run equipment in motor vehicles, dry cleaning, laundry houses, other products and services. Three fourths of complaints prove to be right. The fact that we receive more and more complains shows that consumers are raising higher requirements, are better aware of their rights and what institutions to address in case of buying low quality products and services. The Inspectorate is successfully realizing one more function - provision of information to consumers and the wide public about dangerous products on the market, what measures to take in cases distributors of products and suppliers of services do not implement requirements set by legal acts and thus violate consumers’ rights. The State Non Food Products Inspectorate participates in implementation of the Lithuanian National Consumer Education Programme. All information about activities of the Inspectorate, dangerous products on the market is available on the Inspectorate’s website at the address www.inspekcija.lt. We also publish articles on our activities in newspapers, participate in radio and TV programmes, organize seminars for businessmen. Consumers are invited to call us regarding the protection of the rights by the free telephone 8 800 55551. All said measures help in implementing the consumer education policy and stimulation of fair competition on the market.

- What Lithuanian and foreign institutions does the State Non Food Products Inspectorate cooperate with?
- Interinstitutional and international cooperation is very important in our activities. Already during the first year, we signed cooperation agreements with the State Tax Inspectorate and State Language Inspectorate, later with the National Consumer Rights Protection Board, State Labour Inspectorate, State Energy Inspectorate, State Road Transport Inspectorate, Customs Department, Communications Regulatory Authority, State Public Health Care Service and other state bodies, also with business companies and public organizations protecting consumer rights. Collaboration with the Customs Department is especially important in control of toys and other products entered into the List of Sensitive Products. We exchange information with state institutions, direct huge attempts to find out products that potentially raise the greatest danger for fires, safety at home, etc. Territorial divisions with their partners perform over 400 joint inspections per year. Our Inspectorate is initiating the cooperation and expects good partnership with Estonian and Latvian market surveillance institutions, also with market control institutions of Denmark, Finland, Germany and other EU Member States. Partnership and cooperation is a very wide and complex field of activity inviting for further improvement of our activities, exchange of experience and information, realization of joint projects on product safety control, saving funds and enhancement of market surveillance efficiency.

- What changes has the Inspectorate experienced after the EU accession? Does the Inspectorate participate in activities of the EU institutions?
- Activities of our Inspectorate have risen in importance immediately after the EU accession and reorganization of customs control in the enlarged EU. At the moment, some products arrive to Lithuania from third countries through Poland, Latvia and other EU states, therefore we have entered into tighter cooperation with EU importers and also market surveillance bodies.
We welcomed the first of May being absolutely ready to join the single EU market surveillance system. The Inspectorate together with the National Consumer Rights Protection Board provides the European Commission (EC) with the information about dangerous products ascertained on the Lithuanian market via the RAPEX system. We also receive information from the European Commission about dangerous products found on the common market. Thus, in making inspections we search the Lithuanian market for dangerous products ascertained by foreign colleagues. Exchange of information enhances the efficiency of our work and reduces the risk that these products may bring to Lithuanian and EU consumers.
The Inspectorate participates in improving the EU legal market surveillance system. I have been trusted to represent Lithuania in the Council’s Working party on responsibility for low quality products and the EC Committee on inspection of conformity of products imported from third countries to product safety requirements. The Inspectorate actively participates in the EC Joint product safety working group.

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Public Health Under the Surveillance of Medicines Control

A journalist Elena BERUKĐTYTË
talked to the Director of Inspectorate of Pharmaceutical Enterprises under the State Medicines Control Agency Irena VAKETAITË

The Inspectorate of Pharmaceutical Enterprises is one of 12 structural units of the State Medicines Control Agency with branches in Kaunas, Điauliai and Klaipëda. 11 specialists are employed in the Inspectorate. The principal tasks of the Inspectorate are to control and monitor whether the activities of pharmaceutical companies conform to good manufacturing practise (GMP) and good distribution practise (GDP) of medicines, good drug-stores practise and other requirements set in legal acts governing pharmaceutical activities; following the results of the control, to suggest to improve legal acts regulating pharmaceutical activities, also offers methods and procedures for control of pharmaceutical activities; and to participate in activities of international organizations that coordinate the work of institutions regulating pharmaceutical activities.

- What changes has the Inspectorate of Pharmaceutical Enterprises experienced after the EU integration?
- Since the EU imposes very strict requirements to medicines manufacturers and distributors, the Inspectorate has assumed additional tasks as soon as Lithuania joined the EU. The Inspectorate has been tasked to define whether the production process of medicinal preparations conforms to good manufacturing practise (GMP) in files of registration of medicinal preparations and to analyse urgent notices received from foreign countries about medicines defects; to control withdrawal of medicines, done by companies, from the market. The Inspectorate also takes samples of medicines that are already on the market and examines them in the medicines control laboratory of the States Medicines Control Agency, controls activities of drug-stores, evaluates the preparedness of legal persons to obtain a license for pharmaceutical activities.

- Could you please tell more about the requirements put to manufacturers and distributors of medicines?
- In the European Union, medicines are attributed to the fully harmonized sphere of regulation. The EU Member States observe the common medicines policy governing medicines legalization on the market, their production, distribution, classification, labelling, advertising, control and other principles. Regulations of EU directives are being transposed to the national legislation and are implemented in each Member State.
The Pharmaceuticals Directive says that the major goal of all rules governing production, distribution and use of medicines is to reach the efficient public health care. However, this goal shall be pursued by instruments that would not hinder the development of medicines industry within the Community or trade in medicines, i.e. the principle of free movement of goods shall be observed. Thus, all EU member States raise the same requirements to entities of the medicines market and their inspection.
The same Pharmaceuticals Directive provides for the necessity to control the whole process of medicines distribution from their production to supply to end-users. Such control shall assure their proper manufacture, storage, transportation and sales. In this respect, all companies engaged in manufacture and distribution of medicines shall undergo licensing under the procedure established in the EU and shall conform to requirements of good manufacturing and good distribution practises. The said requirements are set in the Republic of Lithuania Law on Pharmaceutical Activities and approved by the Minister of Health orders. In their work, the specialists of the Inspectorate closely follow these documents, study and analyse ISO standards, documents and recommendations drafted by the Pharmaceutical Inspection Cooperation Schemes for introduction and inspection of good manufacturing practise, documents prepared by the European Medicines Agency, other technical and methodical publications of pharmacy industry, etc.

- How many licensed medicines manufacturing and distributing companies have been registered in Lithuania as of the present day?
- According to the data of the Pharmaceutical Activities Licensing Commission, there are 14 licensed medicines manufacturing companies (and 1 branch company) registered in Lithuania, of which nine companies hold GMP certificates, others have changed the location, undergo inspection or prepare activity results. Lithuania has 72 licensed medicines distribution companies (and 2 branch companies), 45 companies hold the good distribution practise certificates and 18 companies take on lease services of companies conforming to GDP requirements. The rest companies are subject to strict control of the Inspectorate.

- With what expectations does the Inspectorate meet the New Year and what works are still to be done this year?
- This year, the Inspectorate still has to finish the “large-scale” evaluation of medicines manufacturers and distributors. In the coming year, the Inspectorate will continue the planned inspections in companies and will improve the qualification of specialists. Already today, the State Medicines Control Agency is getting ready to get accreditation according to the ISO 9001 standard and to undergo the second audit for EMEA. In spring, the Inspectorate of Pharmaceutical Enterprises will be inspected by the Swedish and British inspectors, later followed by inspection of the Canadian GMP inspectors that has been envisaged in the EU-Canadian mutual recognition agreements on GMP inspections.

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Veisiejai - the Land of Pinewoods

free land areas for reforestation purposes hinder smooth business development

Jolanta Tamođaitytë spoke to the Director of Veisiejai State Forest Enterprise Zenius ŢELIONIS

The Director of the Veisiejai State Forest Enterprise Zenius Ţelionis was born in 1955 in Lazdijai. Since 1961 he attended the Lazdijai Secondary School and in 1972 entered the Forestry Faculty of the Lithuanian Academy of Agriculture. In 1978, Z. Ţelionis started to work as the forestry officer in Liepalingis Forestry of Veisiejai State Forest Enterprise, later held the position of Deputy Director of Veisiejai State Forest Enterprise and was awarded the position of the Director in 1999.
Zenius Ţelionis actively participates in cultural life of Veisiejai: he and his wife Ramutë dance in the dancing group of elderly people, play music instruments and sing in an ensemble of Veisiejai House of Culture. Z. Ţelionis has two children Sandras and Simona.



The Veisiejai State Forest Enterprise administers 59004 hectares of forests, of which state importance forests cover 20911 hectares (34.8 per cent), private forests and forests intended for restoration of ownership rights - 37739 hectares (64.6 per cent), and other forests - 354 hectares (0.6 per cent).
70 per cent of forests are situated to the South of Veisiejai, in the geographic region of South-Eastern plain. The relief of this region was formed during the last stage of glacial period and therefore it is not very expressed. Forests of Krosna and Seirijai forestries and the Northern part of Liepalingis forestry belong to the region of the Southern Lithuanian highland and here the relief is very clearly expressed. This highland is a huge accumulation of hills that was formed during the last glaciation. The territory of the Veisiejai State Forest Enterprise is divided into 9 forestries: Seirijai, Veisiejai, Liepalingis, Ančia, Kapčiamiestis, Paliepis, Baltađiđkës, Stalai and Krosna.
The forest coverage percentage of land area is 37.7 per cent. Coniferous stands occupy the largest territory (85 per cent) with prevailing pinewoods (74 per cent). Spruce accounts for 11 per cent, oak - 1.4 per cent, larch - 0.1 per cent, lime - 0.1 per cent, birch - 7.6 per cent, black alder - 3.9 per cent, hornbeam and maple - 0.3 per cent.
Veisiejai forests are rich in bilberries, famous for such plant species as heathers, reedgrass and wonderful violets in spring.
Veiejai forests abound in traditional fauna like deer, red deer, wild boar, hind, fox, mongoose, squirrel, badger, mink and also more rare species like moufflon, aurochs and fallow-deer

- Does the Veisiejai State Forest Enterprise have any protected areas? What rare flora and fauna species are found there?
- Protected areas cover 23782 or 40 per cent of the total forest area. State strict reserves, parks and state reserves occupy 13604 hectares or 57.2 per cent of all protected areas. The Veisiejai State Forest Enterprise administers a part of the state strict reserve, two state regional parks (Meteliai -17729 hectares and Veisiejai - 12200 hectares) and nine state reserves. The Veisiejai Regional Park has the sole specimen of Tofieldia calyculata in Lithuania, abounds in Gymnadenia odoratissima, Malaxis monophyllos, Cypripedium calceolus, Cladium mariscus. One can see crakes, spotted crake, quail, otter and even Emis orbicularis.
A small lake surrounded with calcific swamps, numerous families of orchidaceous and habitats of other marchland plants are protected in Liűbelis nature reserve. Mixed forests, mainly pine, oak and elm, of Ringëliđkës botanical-zoological reserve are very important from the biological aspect. In this reserve, visitors may find rare butterfly species, see brooding white-tailed eagle, lesser spotted eagle, stock dove and greed woodpecker. By the way, even forty plant species entered into the Red Book of Lithuania are countered in Meteliai regional park.
Trakas forest is famous for having the only location site of natural sessile oak (Quercus petrea) in Lithuania. Here one may encounter brooding graylag goose and ferruginous duck, see black stork, crane and honey-buzzard, brooding little crakes and bearded tit. Even the great dormouse has been found in Statiđkës forest.

- How are reforestation works carried out in agricultural lands and forests?
- Lithuania is said to be beautiful when it is green. The Lithuanian Forestry Enhancement Programme provides that reforestation of non-forest lands should grow by 158 hectares each year. Following the Lithuanian-Danish project, the Veisiejai State Forest Enterprise planted 50,2 hectares in 2000, 18 hectares in 2003 and 6.1 hectares in 2004 of non-forest land. 15 projects have been drafted for reforestation of private lands in 2005 making the total area of 60,45 hectares. The enterprise carries out reforestation works in forest land amounting to 120 hectares each year and about 15 per cent are left for natural regeneration.

- What recreational objects and sites could you offer to holidaymakers and forest lovers?
- 339 hectares of forests have been felled to be used for recreational purposes. Forest lovers and holidaymakers may enjoy their time in 40 rest and 22 camping sites. The sites are carefully looked after and renovated, however some forest guests still make great harm and spoil them. Foresters teach children how to behave oneself in a forest, work with young forest lovers in seven secondary schools.

- Do you have any hunting areas? What is the main game and what countries do hunters come from?
- In the territory administered by our enterprise, we have Kalniđkiai forest to be used for the development of professional hunting. However, its management has been trusted to the Alytus State Forest Enterprise. The main game is moufflon, fallow-deer, deer, wild boar, hind, hare, fox and other small predators. Both Lithuanian and foreign hunters hunt in these areas and they are very satisfied with the rich game.

- Could you please describe the major problems that your enterprise faces? How do you plan solving them?
- In the passing year, we faced the problem of the lack of logging and other forest workers. The first reason was the drain of young work force to foreign countries. Second, forests enterprises were asked to strictly follow the requirement of the General Forest Enterprise to fell no more than 50 percent of the total felling stock during the first half of the year. As a result, from mid May to beginning July forest enterprises could not hire contracting companies for logging works. Some contractors went to work to Belarus and Kaliningrad Region, or bought cutting sites at private forest owners. The third reason could be soaring fuel prices, and no increase of labour cost rates due to the Law on Public Procurement. Increasing labour cost rates I see as the only solution of this problem and that should help contracting companies to recover their workers and become financially stronger.
We hardly progress with the forest coverage enhancement programme, as we face great difficulties in obtaining free land areas to be used for reforestation. Year by year we are given the same answer “No land plots to be used for reforestation purposes will be available until the land and forest reform is finished”. Private land owners are also not wiling to join the reforestation process, thus we cannot plan the amounts of saplings to be planted. Nevertheless, the enterprise gets ready future reforestation, consolidates nurseries, installs watering systems, etc.
One more problem is impudent wood plunderers and forest disturbers. Exaction of fines is becoming very difficult. Judicial proceedings are long, exhausting and expensive. To fight these evils, we have created mobile groups and ask for the assistance of environmental agencies and police.

- We in Lithuania say that all dzűkai are passionate singers. You also belong to a folk ensemble “Du lađai”. How far are your songs heard?
- Music and songs are my two greatest hobbies and I cannot imagine my life and especially leisure without them. By the way, sometimes I am reproached of not being a hunter, but I find it more pleasant to play organs in my small cosy room during long and cold winter evenings, on Saturdays and Sundays. It is the best relaxation after arduous works of the day. In general, we always try to participate in all events of our community and I think that the audience loves our songs. Two years ago, our ensemble recorded its songs and presented the cassette to the wide public.

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NO SNOW, NO ICE

Vilma VALIUKEVIČIENË,
Deputy Director of IÁ Đvaros technologija

Our vision is to become a strong company enjoying the trust of all partners and clients, like a traffic-light on a crossing or an emergency aid of cleaning services. We even cherish ambitions to enter into partnership with the clients even before they plan to build a house or make repairs of a building, advise them which type of floors will be the easiest to look after. The supply of building materials is huge, and not everything what looks nice in the shop will look beautiful in a house after the first touches of shoes and fingers.

Đvaros technologija is a newly established company. However, what is new is just a name, while its employees have great experience in this sphere. An idea to come together and establish a company Đvaros technologija was not born accidentally. We were employed in different companies and met very often to discuss the problems and shortcomings in cleaning technologies. We saw that clients faced many difficulties. What may be cleaned on own efforts and where professional assistance is needed? It is often a case when a client employs cleaning personnel and also buys cleaning services that it may do on its own, or, vice versa, buys a bottle of “magic liquid” and tries to clean remains of the cement from concrete tiles. In the first case, a client pays twice since he pays to his own cleaning staff and a service company, although he could easily do without the services of the latter. In the second case, a client still pays twice as he has to repave the acid-damaged tiles.
This is a reason why we have decided to introduce consulting services and so to become an untraditional company. Our goal is not just to sell a bottle of “magic liquid” but also to become a personal adviser on all cleaning issues. We say our clients to be not only those who buy a product but also those who ask for assistance and advise on how to save on cleaning costs, which cleaning company to choose, which stains to clean on own efforts and which to leave to specialists, what type of cleaning machinery or a vacuum cleaner to buy, etc.
Consultations are a constituent part of our activities the role of which will grow in the future.
Another field of our activities is sale of top quality chemical products. Now the company plans to introduce new cleaning detergents and equipment. In summer, IÁ Đvaros technologija won the distributor’s right to represent some of Europe-famous companies manufacturing chemical products: Stockmeier Chemie, HL Chemie, Schomburg and the Austrian company Carpet Cleaner manufacturing equipment and chemical detergents for dry cleaning of carpets. The production we sell is ready to solve everyday cleaning and far more difficult problems: graphitic cleaning, grease absorption, cleaning and prevention of grease spots, green coatings, mould and fungus, cleaning and maintenance of complex mechanisms, car maintenance and other agents.
Many of our products are new in Lithuania, therefore we have entered into very close contacts with their manufacturers. Our goal is to set up a “Producer-Our Company-Client” contact, and seminars conducted by representatives of the manufacturers should help in reaching it. The seminars we organize will help to establish better contacts with clients, give consultations to them or simply discuss the problems or other topics on interest.
In October, ÁI Đvaros technologija participated in the LITEXPO exhibition “City” where it introduced a new product - ice melting agent Eis Tiger. The new product enjoyed great interest of the visitors what encouraged us to organize a seminar to introduce the new product to the wider community and even practically demonstrate how it works. The seminar was conducted by our partners, inventors and manufacturers of Eis Tiger “HL Chemie”. If somebody had doubts about the quality of the new product, they were soon settled when Eis Tiger was put into a glass of cold water and in a moment water became hot. According to one of the heads of the company “HL Chemie” Berthold Schräder (in the photo) who came to Lithuania to lead the seminar, Eis Tiger fully satisfies its characteristics and realizes everything what other ice melting agents only promise.

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