Medical Diagnostic Centre:
Best Quality Health Care for Affordable Prices

Medical Diagnostic Centre
V. Grybo str. 32/10
LT–10318 Vilnius, Lithuania
tel.
(+370 5) 270 91 20
mob.:
(+370 6) 20 63918
faks.
(+370 5) 270 91 27
www.medcentras.lt

If you suffer health disorders, Medical Diagnostic Centre is the right place to visit. Here you will get the best medical care, save your time and money. The prices of services are much lower in comparison with foreign countries, and you will need only a couple of days to make a health check, diagnosis or operation performed.

he text - MDC), boasting the oldest traditions of private medical services in Lithuania, was established in 1995 based on the example of modern private American and European hospitals. In September the Centre celebrates the 10th anniversary. Why is this Centre so popular in Lithuania? Why does it attract so many foreign patients?
“Firstly, being the leader of private health care in Lithuania, we pay huge attention to the quality and safety of services.
Secondly, MDC stands out by a great variety of preventive, diagnostic and treatment (therapeutic and surgical) services. Patients do not have to wait in long queues at the reception or nearby doctors’ rooms. All the examinations are done and treatments prescribed mostly in one day.
Thirdly, a huge potential of human resources has been concentrated in this health care institution. The Centre employs over 120 highly qualified doctors, 40 of which are doctors of medical sciences, professors recognized in Lithuania and abroad.
Then, MDC is constantly investing into advanced medical technologies, uses a full range of the state-of-the-art diagnostic and treatment equipment produced by leading manufacturers: Siemens, General Electric, Olympus, Roche, Shiller, Alcona, Storz, etc.
Finally, MDC provides services of the highest quality to meet all the needs, demands and expectations of the patients. It is the first and only health care institution in Lithuania possessing two ISO certificates. The globally recognized independent certification body “Bureau Veritas Quality International” awarded MDC EN ISO 9001:2000 quality management and EN ISO 14001:2004 environmental management systems certificates. Our coming-true vision is to become open and perfection-seeking, also patient, family, society and environment friendly institution providing the highest quality medical services”, - says Laimutis PAŠKEVIČIUS, MD, MBA, Director of the Centre.
Not only time-saving Lithuanians but also foreigners highly evaluate the quick and exact ascertainment of the cause of illness. “I think that the main advantage of the MDC is that patients can get all the services they need - an illness ascertained and proper treatment or health check in just one day,” says the Director of Swedish Business Centre Rima INGSTAD. “As sad as it might seem queues in heath care institutions are characteristic not only to Lithuania but also Sweden. In Sweden people sometimes have to wait to get examined for so long that even some cases of death in queues have been recorded”. Rima INGSTAD, who keeps close contacts with her husband’s fellow-countrymen Swedes, says that MDC attracts Swedes by the wide selection and superior quality of services, high qualification of doctors and nurses, state-of-the-art medical equipment. She is supported by the Head of MDC Surgery Centre, Day Surgery Department, abdominal surgeon Alfredas SONGAILA. “Normally only one day is needed to diagnose any type of illnesses. Immediately after getting the diagnosis, effective therapeutical or surgical treatment is prescribed” says Alfredas SONGAILA. Over 400 laboratory examinations are performed in five different laboratories of the Centre.

More Powerful Magnetic Resonance Imaging Apparatus for More Exact Diagnosis

MDC has recently acquired a new powerful (1.5 Tesla) Magnetic Resonance Imaging apparatus. “The specific intensity of the magnetic field created by the new apparatus is very important in quickly getting clearer and more detailed picture of the changes in tissues while diagnosing illnesses. It is very important in cancer diagnosis, as this illness can be successfully cured in its early stages” - says J?rat? DEMENTAVI?IEN?, Doctor of Medical Sciences, MDC doctor radiologist. MDC Radiology Department is also proud for its modern Computer Tomography, X-ray, Mammography and Sonoscopy equipment.

Over 100 Different Types of Surgical Operations and Interventions

Over a 100 different operations and surgical interventions, such as laparoscopic and endoscopic abdomen and pelvis, gynaecological, urological, joint, plastic-reconstructive and aesthetic, ENT, ophthalmologic, orthopaedic, children’s surgery, etc., are performed in three operating rooms of the Surgery Centre, Day Surgery Department. The operations are performed by the best Lithuanian surgeons who provide surgery aid 24-hours per day. MDC eye surgeons also perform cataract operations using a modern ultrasound apparatus Infinity which is the only in the Baltic States qualified as exclusively safe for the eye tissue.

Affordable Prices

Patients’ wards meet high class hotel standards. Cosy atmosphere and attentive personnel are significant factors helping to recover in the shortest possible time. Business people can use computers, internet and telephone for their own needs.
“Operations costs are several times lower in comparison with analogous operations performed in the USA, European, Nordic countries,” says Alfredas SONGAILA.
“My Swedish colleagues from Senior Partners club agree that prices in the Medical Diagnostic Centre are very attractive. They plan to come to Lithuania not only for health checks or operations but also to visit places of interest, cultural and historical monuments,” adds Rima Ingstad, Director of Swedish Business Centre.
“Medical Diagnostic Centre takes care after each patient, a Lithuanian and a foreigner, with great respect. That is why a large number of our patients willingly come back and become faithful to MDC”, notes Laimutis PAŠKEVIČIUS, Director.

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ALONG with
modern
technologies

Aleksandras Laucevicius (Prof., MD, PhD, Habil Dr.) was born on the 21st of May, 1950. In 1968-1974 he studied medicine in the Medical faculty of Vilnius University. In 1988 he achieved his PhD and in 1999 -gained his Professorship. Since 2002 he has been elected as a Chairman of the Heart Clinic of the Medical Faculty of Vilnius University, a Member of the University Senate. In 2003 he was appointed as a General Director of Vilnius University Hospital Santari?kiø Klinikos. Since 1994 he has been a consultant on cardiology issues to the Ministry of Healthcare of the Republic of Lithuania.

Prof. Aleksandras Laucevičius is a member of the North American Society of Pacing and Electrophysiology (NASPE), the American College of Cardiology, European Society of Cardiology, President Lithuanian Society of Cardiology. He is the editor-in-chief of the Official Journal of Estonian, Latvian and Lithuanian Societies of Cardiology “Seminars in Cardiology” and a member of editorial boards of a number of other journals.

Vilnius University Hospital Santari?kiø Klinikos (VUH SK) is one of the major academic diagnostic and treatment centres, providing secondary and tertiary level personal heath care services to the citizens of Lithuania and foreign countries. It is also the largest Vilnius University Hospital, where pedagogical and clinical work is being carried out on a daily basis.
VUH SK was established in 1980. Vilnius University and the Ministry of Health of the Republic of Lithuania are the sharers of the Hospital. The Hospital is a multi-profile institution with 23 medical centres where the highest-level routine and urgent medical assistance is being provided. They are: Centre of Anaesthesiology, Intensive Care and Pain Management, Centre of Abdominal Surgery, Centre of Cardiology and Angiology, Centre of Dermatovenerology, Centre of Eye Diseases, Centre of Endocrinology, Centre of Ear, Nose and Throat Diseases, Centre of General Practitioner, Centre of General Thoracic Surgery, Centre of Heart Surgery, Centre of Haematology, Oncology and Transfusion Medicine, Centre of Hepathology, Gastroenterology and Dietetics, Centre of Internal Medicine, Centre of Laboratory Diagnostics, Centre of Nephrology and Urology, Centre of Neurology, Centre of Physical Medicine and Rehabilitation, Centre of Plastic and Reconstructive Surgery, Centre of Pulmonology and Allergology, Centre of Radiology, Centre of Rheumatology, Centre of Women’s Physiology and Pathology and Medical Genetics Centre.
More than 2 800 employees work at VUH SK. The Hospital has a fully licensed medical staff of 716 medical doctors and over 1083 nurses and assistant nurses. There are more than 723 employees specialising in other fields than medicine, helping the medical personal in their daily work. More than thirty habilitated doctors and 143 doctors with scientific degree provide medical assistance in various areas of medical care. Most of them are members and heads of various European and world medical societies and associations.
VUH SK is also the main clinical teaching basis of the Faculty of Medicine, Vilnius University. Annually more than 350 medical students and 380 residents learn the basic diagnostic and treatment principles of separate diseases and put their skills into practice in the appropriate centres of the Hospital. About 3080 of health care professionals from the whole Lithuania improve their knowledge through continuing education programmes here.
The Out-patient Department of the Hospital provides about 240 000 consultative services for nearly 400 000 Lithuanian citizens yearly referring for miscellaneous health disorders. More than 43 000 in-patients are treated in the Hospital annually. About 21 000 surgical operations of different complexity are performed in the surgical departments: 4 000 eye, ear, nose and throat operations, 4 600 cardiac and blood vessel operations, over 5 200 abdominal operations, 3 100 gynaecological operations, more than 2 000 urological operations, more than 1 000 ortopeadic-traumatological operations, about 1 000 thoracic surgery operations and about 1 500 plastic and reconstructive surgery operations.
The Hospital is leading in the field of organ transplantation among health care institutions of Lithuania and the Baltic States. Since its inception, most complicated heart (38), cornea (169), kidney (290), and liver (5) transplantations have been performed. Most of them were successful. It is the only medical institution that provides bone-marrow transplantations and heart surgery operations to children and newborns.
Presently the Heart Surgery Centre, which is also the largest medical centre in the Hospital, performs more than 1900 heart surgery operations of various complexities per year. This year the cardiac surgeons of Vilnius celebrated the 40th anniversary since the first heart surgery operation had been performed. The total experience is over 26 000 operations (over 18 500 open-heart operations among them): over 7 000 cardiac valve replacements or corrections (over 120 Ross’s operations), over 6 000 coronary bypass grafting (the off-pump method was used in over 150 operations), complex aorto-coronary surgery for post-infarction aneurysms (Dor’s procedures were performed in over 100 cases), repair post-infarction septal defects (over 30 operations), combined coronary bypass graft and valve repair or replacement (near 500 operations), Over 5 500 repairs of congenital heart defects, over 300 operations of ascending aorta aneurysms, 38 heart transplantations. The program of artificial hearts has also been successfully introduced in the Centre. Since 1999, 19 artificial ExCor and 5 InCor hearts were implanted for the patients suffering from heavy heart failure and cardiomyopathy. The expertise acquired in specific areas extends a possibility for cardiac surgeons to participate in in-depth discussions about various modifications of operations in European and World Congresses of Societies of Cardiac and Thoracic Surgeons. The surgeons are actively involved in the activities of these societies. This year the World Society of Cardiac and Thoracic Surgeons have recognized Vilnius cardiac surgeons by granting them a right to organize the 15th World Congress in Vilnius. During this event, Professor Vytautas Sirvydis, Director of the Heart Surgery Centre of VUH SK has been elected as President of the World Society of Cardiac and Thoracic Surgeons. This is the highest acknowledgment in the field of medicine ever known in Lithuania.
The Centre of Cardiology and Angiology is also known for the highest level cardiological services that are being provided applying most innovative and modern treatment and diagnostic methods. In-patient Departments of Cardiology span the entire spectrum of patient care. Annually, approximately 4830 patients are treated there.
Cardiac and Intensive Care Unit treats over 2500 patients per year. Annually patients with acute coronary syndromes (over 900 patients with acute myocardial infarction ant approximately 800 patients with unstable angina pectoris), acute heart pulse disorders, acute heart failure and pulmonary embolism are treated in this Department. Over 450 primary angioplasty procedures and over 100 thrombolyses are being carried out here per year. GP IIb/IIIa receptor inhibitors are being used in the unit as well.
A whole range of percutaneous coronary interventions such as balloon angioplasty, coronary and peripheral artery angiography (over 3700), right heart catheterisation stenting with bare metal as well as drug eluting stents, high speed rotational ablation are being performed in the Unit of Invasive Cardiology. The Centre has the greatest experience in angioplasty for patients suffering from acute coronary syndromes in Lithuania. More than 1650 PTCA procedures are annually performed in the Unit (stenting makes 60 % of angioplasty procedures). This is a 24-hour service of the Centre. Invasive assessment of endothelial function - an intracoronary acetylcholine test is a part of scientific activities of the Centre.
For patients suffering from various kinds of arrhythmias the Unit of Cardiac Arrhythmias of the Centre performs non-invasive arrhythmia-diagnostic and invasive procedures such as intracardiac recordings and mapping, catheter ablation of supraventricular and ventricular arrhythmias (including hybrid therapy). It is the only Centre performing a radiofrequency modified maze procedure combined with mitral valve surgery in arterial fibrillation in Lithuania. Pacemaker insertion (550 insertions per year), 15 implantable cardioverter-defibrillator and cardiac resynchronisation therapy in heart failure is offered here to the citizens of Lithuania and patients from the neighbouring countries.
The Department of Cardiac Non-invasive and Ultrasound Investigations offers transthoracic and transesophageal cardiac ultrasound, stress echocardiogram (transesophageal cardiac pacing, dobutamine stress echocardiogram) and bicycle exercise stress electrocardiogram. In urgent cases, medical services are also available all day round.
Within the Unit of Preventive Cardiology, the first state-of-the-art laboratory for the assessment of endothelial function was established in Lithuania. Two new methods recently suggested for the evaluation of endothelial function have been investigated and started being used.
Patients with cardiovascular diseases after acute myocardial infarction, PTCA, heart and peripheral vessels surgery can undergo rehabilitation in the Department of Cardiac Rehabilitation. Health restoring treatment services are offered to patients with angina pectoris, heart defects.
The most complex routine and emergency surgical management is rendered round-the-clock to the patients with visceral pathologies at the Centre of Abdominal Surgery. Radical gastrointestinal, pancreatic and liver tumour, bile duct and stomach reconstructive, liver, kidney and parathyroid transplantation, large intestine cancer reconstructive and defecation-controlling operations; video-assisted thyroidectomy, transrectal endo microsurgery, laparoscopic operations of hiatal and inguinal hernia are carried out here. Morbid obesity, adrenal gland, spleen and intestinal diseases are treated in the Centre. Abdominal hernias are treated according to a special scientific research program. Organ-preserving pathogenetically grounded operations were proposed and introduced for surgical treatment of gastro duodenal ulcers. A great amount of traditional operations performed by laparotomy now are replaced by laparoscopic, endoscopic and interventional ultrasound procedures. Some of the operations are unique and not performed in any other hospitals in Lithuania. The national register of Echinococosis of Lithuania has been created and collected in the centre. The register is included into the European Register. The surgeons of the Centre together with the specialists in hepathology, gastroenterology and intensive care are applying the method of artificial liver. The system MARS (Molecular Adsorbent Recirculation System) successfully introduced in the General Intensive Care unit of the Hospital is available only in VUH SK. In cooperation with the German Charite University Hospital the specialists of the centre are successfully developing liver transplantation program.
As said before, the Hospital is the only healthcare institution performing bone marrow transplantations. In 1999, the first bone marrow transplant in Lithuania was performed in VUH Santari?kiø klinikos. In 2004, a new structural unit - the Centre of Haematology, Oncology and Transfusion Medicine has been established. Since then, the Bone Marrow Transplantation Program (the only in Lithuania) has been rapidly expanding to cover both autollogous and allogeneic transplants. Well over 160 bone marrow transplantations have been performed here (a third of them - allogeneic). It covers not only blood diseases but also some solid tumours that need to be treated aggressively. The most recent positive development was the first unrelated transplant from a Polish donor carried out at in the end of 2004 and bone marrow transplantation to a child in 2005. The Bone Marrow Transplantation Program should in the near future cover cord blood and haploidentical transplants. As a result of the general agreement among cancer specialists in Lithuania, all young adults with sarcomas (Ewing’s sarcoma, rhabdomyosarcoma, osteosarcoma and others) as well as relapsed and refractory cases of germ cell tumours are referred to this Centre for the high dose chemotherapy treatment. A close collaboration with the Department of Orthopaedics of Vilnius Emergency Hospital and the Urology Department of Vilnius University Oncology Institute is established in order to provide the best multimodality management for these patients. Recently, one of the major interests has been the development of stem cell therapy for the purposes of regenerative medicine to be applied in cardiology, rheumatology, etc. Coagulation and transfusion services are also seen as a prerogative.
In the Lithuanian healthcare system, the Hospital is distinguished among other hospitals for its positive approach towards innovations with respect to information technologies that are introduced to every field and process. The Hospital is switching to digital radiology, where all available films and X-rays could be transferred to any other department or hospital. The Electronic Patient File, Internet Patient Card, E-booking system have been created and introduced both in the In-patient and Out-patient departments of the Hospital.
VUH Santari?kiø Klinikos is actively involved in various national and international scientific and medical projects. Last year the Hospital has become the coordinating centre of the EU funded project “The Reduction of Cardiovascular Diseases Related Mortality and Morbidity in the Eastern and South-eastern Regions of Lithuania by Upgrading and Optimising the Infrastructure of the Health Care System and Medical Services Provided”. The concept of reduction of morbidity and mortality from coronary heart disease (CHD) among the population of the Eastern and South-eastern Lithuania is an integral interinstitutional project that incorporates the three levels of the national health care system. Seeking to implement the objectives of the project, the activities will be focused on the three main areas: upgrading of the national health care infrastructure, restructuring of the regional health care services and improvement of quality and accessibility of health care services provided, considering the needs of the inhabitants of this problematic region. Epidemiological analysis presented in the project shows that health indices in this region are worse as compared to the rest of Lithuania and far worse than in the other countries of the European Union. Besides, health indices of the Eastern and South-eastern Lithuania are significantly worse as compared with Vilnius and other largest cities of the country. Upgrading of the infrastructure of health care institutions and their adaptation to solve the problems by the development and introduction of information technologies would reduce CHD morbidity and mortality. Successful execution of the strategic objective of the project would be ensured by the properly planned activities targeted at the development of services including prevention, early and specialized diagnostics, and implementation of new methods of treatment, rehabilitation of CHD patients, optimisation of the medical assistance network in the Eastern and South-eastern Lithuania, improvement of quality and accessibility of the services provided.
Along with the Eastern and South-eastern Lithuania cardiology project the Hospital together with 36 partners from the same region of Lithuania is executing a “Project for the Continuing Medical Education and Professional Training of Doctors at Health Care Institutions of the Eastern and South-eastern Regions of Lithuania”. The project aims at raising the level of qualification, specific skills, knowledge and competence of medical professionals in the field of prevention and treatment of cardiovascular diseases.
The Hospital is also a partner of international project Interreg BSR that aims at introducing telemedicine services in the partner hospitals. Within the project, special equipment to monitor the patients of the Centre of Cardiology and Angiology as well as those of the Centre of Radiology would be used.
The Hospital is continuously introducing new methods, expanding and improving its services. Lately, the system and variety of privately covered services has been introduced. It has already become popular among private people, businessmen and embassies.
VUH Santari?kiø Klinikos in partnership with the Lithuanian Academy of Music and Theatre have joined efforts to implement a unique project called “Clinica Musicalis”. This project is directed towards the spiritual and physical recreation of the patients of the Hospital. Concerts of classical music with visiting stars from all over the world as well as young promising musicians and singers present their music to those who are suffering from various diseases. The concerts gained popularity among the patients as well as the staff members of Santariškių Klinikos and neighbouring institutions. The patron of the project is a world-known musician and maestro Mstislav Rostropovich.

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The Right Medicine For The Right Patient

The journal Business and Exhibitions invited
Dr. Kæstutis Čereška, General Manager “GlaxoSmithKline Lithuania” to share the experiences and challenges that are faced today by the global pharma industry and local markets

- First of all, could you please give us a short overview of “GlaxoSmithKline” global corporation - its history, mission and scale of performance.
- GSK is built from a rich legacy of science, medicines and business success. It was founded in 2001 after the merge of two large companies “GlaxoWellcome” and “SmithKline Beecham”. I should note that the roots of the company date back as far as the first half of the 18th century. Nobel prize-winning research, medical breakthroughs, strong products in fighting various diseases and infections created a company - one of the global pharma industry leaders, with the estimated 7 % of the world’s pharmaceutical market.
GSK now employs over 100,000 people worldwide, all focused on helping people to stay healthy and fit. Of these, over 40,000 are in sales and marketing, nearly the same number of employees work at 80 manufacturing sites in 35 countries and over 15,000 are engaged in Research & Development (R&D) of medicines. GSK invests approximately 13 billion litas a year in R&D, of which 5 billion litas go to Europe. So GSK investment into R&D per year nearly equal to Lithuania’s annual budget.
- When was GSK founded in Lithuania?
- “GlaxoSmithKline” opened a Representative Office in Lithuania in 1993. At that time the company was represented by one person - Gintautas Storpir?tis. G. Storpir?tis successfully developed GSK business in Lithuania and drove the company to No 1 position in the market. It is the fourth year when G. Storpir?tis is heading GSK business in the Baltics. After three years in GSK Headquarters in London he currently manages the area from Lithuania.
Now GSK Lithuania team of 120 employees of medical, pharmaceutical, economic, financial, logistic and marketing backgrounds actively promotes 255 GSK medicine formulations.
- What could you highlight as key priorities for GSK in 2005 and the coming years?
- The key objective of our company is to improve Lithuanian patients’ access to innovative and effective medicines. We aim that a Lithuanian patient would receive the same high quality treatment as the citizens in other European Union countries. The R&D-based pharma industry makes huge progress and so we hope to soon bring to patients new medicines to fight a variety of diseases - among them diabetes, cancer, osteoporosis, prostate hyperplasia, cardiovascular.
- There are speculations that the more sick people are in country, the better business is for pharma industry?
- Absolutely not! GSK wishes everybody good health and hopes people will find ways to improve their lives by leading a healthy way of life and not using medicines. However, if they fall sick, they must get the best treatment available. GSK cares about disease prevention a lot. We are one of the largest global vaccines producers and lead in preventing people from hepatitis, measles, rubella, chickenpox, flu and other infections. In 2007 we expect to offer European women a vaccine to prevent the cervical cancer.
- Tell us more about GSK standards of operation and ‘Zero Tolerance’ policy on breaches of ethical behaviour.
- GSK closely works together with other pharmaceutical companies promoting ethical ways of working. GSK Europe has a common Code of Conduct and drives the initiation of codes across the industry. A new Code is being prepared by the Lithuanian Association of Representative Offices of Ethical Pharmaceutical Manufacturers. It is of vital importance that the collaboration between the medical profession and the pharma industry is based on high ethical standards and common aim to offer the right medicine to the right patient. Only sincere cooperation with patients helps to find out how our medicines help them and what improvements are still to be made.
- What would you consider as the heaviest barriers against innovations?
- The political, social and economic environment in Europe is constantly evolving. Differences in economic strength and healthcare prioritizations among the EU countries will create challenges around the issues like funding and access to medicines. Presently, the resources that Lithuanian government allocates for the healthcare, around 4% GDP, are still much lower than compared to the investments of 5.8% on average in the new EU Member States and 8.6% for the fifteen “old” Member States.
We are very much concerned that poor healthcare status in Lithuania and inadequate financing of healthcare system may become a major barrier to the economic development and innovative treatments for Lithuanian patients, if this is not addressed in the very nearest future.
- Share with us your future expectations.
- “GlaxoSmithKline Lithuania” team of over a hundred professionals, as a part of the global GSK Corporation, is determined to work in partnership with the Lithuanian healthcare establishments, patients, medical specialists and other partners to improve the healthcare status in Lithuania. In this way, we will play our part in bringing forward a healthier Europe, in which all citizens, including Lithuanians, can benefit from easy and early access to medicines and vaccines that enable them to do more, feel better and live longer.

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Starting a Dialogue
Between Tax Administrators
and Business Community

The new Republic of Lithuania Law on Tax Administration effective from 1 May 2004 has established a partnership between tax administrators and taxpayers. A journalist Marijona Varneckienė has asked the Head of Vilnius Country State Tax Inspectorate Birut? JURGELEVIČIENĖ to share her ideas how this partnership will change the tax administration.

-Nearly a year has passed after adoption of the new Law on Tax Administration. What has changed?
- I may say that there have been many changes. To my opinion, the most important attainment is the new attitude towards taxpayers. We view the business world with respect and trust and seek to have an open dialogue with it. We also feel that honest businessmen understand us and approve of our intentions to reduce the extent of shadow economy.
Dishonest businessmen severely infringe fair competition conditions on the market. A competitor that does not pay taxes may offer goods or services at a far lower price. Several years ago, it seemed that no harm is done in avoiding tax payment, while today people understand that tax evasion results in deceiving everybody, including old-age people and children.
- In what sectors is the largest concentration of shadow economy observed?
- Shadow economy is usually described as illegal business, such as smuggling, realization of stolen items, prostitution and drug trafficking. I think that shadow economy that originates from falsification of results of legal activities in trying to avoid tax payment is no less dangerous. These are illegal transactions, their unrealistic values, etc. I feel very sad when an honest businessman involuntary gets involved into criminal activities.
- What methods are used to enhance cooperation with business?
- A new tax administration procedure - tax investigation - was introduced a year ago. Mistakes established during the investigation may be corrected within a period set by the inspectorate. Our institution also gives recommendations on how to make the corrections.
During seven months of the current year, over 3 thousand tax investigations were conducted in Vilnius County. Nearly all companies corrected the mistakes and tax returns, and paid taxes to the budget.
Specialists of the inspectorate visit companies, meet business associations. To my opinion, such meetings are very productive and beneficial.
One of the most interesting meetings has been arranged with representatives of the Lithuanian construction business. They have told that those “clever” people who pay 200-500 litas as the official salary and the rest money is handed “in envelopes” are able to knock down the construction prices by even 6-8 percent. In such a case, a huge harm is done to businessmen who honestly pay all obligatory taxes. Unfair builders much easier win public procurement tenders in which the lower price is the main criterion for selecting a winner, also are awarded state orders for construction services.
Building sector representatives have told that more open collaboration with the State Tax Inspectorate has helped them to better understand peculiarities in computing the profit tax in cases of buying old buildings or taking land on lease.
- Doesn’t there exist a probability that some companies will be under the tax inspectorate’s patronage, while others will be severely punished?
- I can assure that it will never happen. We are not interested in fining tax payers, vice versa our goal is to make all tax payers pay all obligatory taxes they are due to pay.
On the other hand, if we ascertain cases of wilful tax evasion, taxpayers become subject to very strict punishments and no exceptions are possible in such cases.
- Is the State Tax Inspectorate equally open to all taxpayers? Maybe only large companies receive the exceptional attention of the inspectorate?
- All companies and each taxpayer are free to address the inspectorate any time they find it necessary. Here they may get comprehensive information about tax computation and payment.
Taxpayers say that telephone is the best method for receiving consultations. For this purpose, a Tax Information Centre is to be established in Lithuania in the near future. Having made a call to this centre, a taxpayer will immediately get qualified explanation. A specialist of the tax inspectorate will be fully responsible for the presented information, his answer will be recorded and later used by a taxpayer in tax disputes.
The State Tax Inspectorate also receives e-mailed questions and gives e-answers to them. The e-declaration system has been successfully introduced, so different declarations may be e-filed with the tax inspectorate directly from the work place of home. The tax inspectorate informs a declarer about the fact of receiving the declaration, mistakes noticed in the declaration, etc. In short, we lay all our efforts to make taxpayers’ cooperation with the tax inspectorate useful and easy.
- Won’t the friendly attitude of the tax inspectorate stimulate even more wilful tax evasion?
- In recent years, the taxpayers’ control has made a huge progress. New information technologies, accumulation and storing of information about a taxpayer in the tax inspectorate, possibility to get access to databases of other supervisory bodies, exchange of information with other countries, progressive economic analysis methods help us to look after taxpayers in any situation, sometimes them not even feeling to be supervised.
- You have told that honest businessmen may absolutely unintentionally get involved into criminal activities, the cause being cooperation with almost unknown business partners. Is the tax inspectorate able to protect a businessman from such transactions?
- Businessmen are themselves responsible for transactions they conclude. They must be convinced that they have business contacts with the same company as said in the company documents. They must receive the supported evidence that is the basis for the transaction - reports of acceptance/transfer, waybills and other required documents. If businessmen have doubts, they may address (either in writing or in person) the State Tax Inspectorate asking for information about the company they are interested.
The State Tax Inspectorate under the Ministry of Finance has a website specifically designed for taxpayers. Here they may find information about companies that do not fulfil their tax duties. The new website is a great help to business entities that want to avoid doubtful transactions.

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Leasing Services -
An Impetus for Business Development

Juozas Aliukonis, Director of UAB NORD/LB LIZINGAS

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

RadviliŠkis
Makes the Name
of Lithuania Famous

Antanas ČEPONONIS, Radviliškis District Mayor

2000 Wagons
Leaving the Station Every Day

Vytautas Kulikauskas,
Head of Radviliškis Railway Station
of AB Lietuvos geležinkeliai Freight Transportation Board

RadviliŠkis is the capital
of Lithuanian railway lines

Radviliškis Railway Station
of AB Lietuvos geležinkeliai
Freight Transportation Board
Laisvės Ave. 15,
LT-82119 Radviliškis
Tel.:
(+370 422) 98 200,
98 201
Fax:
(+370 422) 98 100
gs.radvil@litrail.lt

Joint Efforts Bring
Fruitful Results

RadviliŠkis Locomotive Depot Celebrates the 135th Anniversary

Česlovas GEDVYGAS,
Head of Radviliškis Locomotive Depot of AB “Lietuvos geležinkeliai” Freight Transportation Boards

Radviliškis Locomotive Depot of
AB Lietuvos geležinkeliai
Freight Transportation Board
Laisvės Ave. 17,
LT-82119 Radviliškis
Tel.:
(+370 422) 98 307,
98 208
Fax:
(+370 422) 98 306
lt2@litrail.lt

Repairs and
Maintenance
of Wagons

Petras Ramoška, Head of Radviliškis Freight Wagon Depot of AB Lietuvos geležinkeliai

AB Lietuvos geležinkeliai
Radviliškis Freight Wagon Depot
Puškino St. 1,
LT-82124 Radviliškis
Tel.:
(+370 422) 98 407
Fax:
(+370 422) 98 141
rutalv@takas.lt

The Radviliškis Freight Wagon Depot employs
515 people averagely aged 36, of which 171 are engineers in the refrigerating wagon section,
123 metalworkers in the rolling-stock repairs unit, 33 gas and electricity welders, 13 lathe operators, 5 milers, and other workers.
The main activity of the enterprise is to carry out repairs of freight wagons, repairs and operation of refrigerating wagons (freight transportation).
Radvili?kis is one of the largest and most important railway nodes in Lithuania.
The names of Radvili?kis and railways are inseparable. The town of Radvili?kis is situated between the highway ?iauliai - Panev??ys and main railway lines. In 1869 Radvili?kis had the population of 475. There were 80 wooden houses, a church, a folk school, a post office and a small hospital in the town. Radvili?kis took especially high speed in its development after laying the first railway line. A Locomotive Depot was established in the Radvili?kis Railway Station in 1870. After the rebellion of 1861, the tsarist army took control over Radvili?kis. During the years of the Russian rule the town got inhabited by people of various nationalities, the majority of which became railway specialists in later years. Even today, the railway staff has the international character since people of various nationalities were and are employed in the enterprise. In the year 1919, the 4-5 year secondary school was opened in Radvili?kis, with A. ?liogeris as its first director.
Until 1916, repairs of wagons was carried out in the open air. The same year, a Wagon Depot was established in the Radvili?kis Railway Station.
The Radvili?kis Wagon Depot was destroyed by fire in 1953 and reconstructed in 1958. Before restoration of Lithuania’s independence, the Depot belonged to the Baltic railways, and after- to Lithuanian Railways.
Very many changes occurred in the enterprise activities after Lithuania regained its independence in 1990. In 1994, a wood processing workshop equipped with new machine - tools and drying room was built; a new wagon assembly shop was opened in 1995; a compressor house in 1996 and a modern boiler house in 1997. In the year 1998, the enterprise bought a modern programme-controlled lathe for turning wagon axels. The construction of refrigerating wagon repairs facilities was finished in 2003.
The Radvili?kis Freight Wagon Depot operates new wagon repairs technologies, has introduced defectoscopes for testing and repairs of wagons, has significantly improved the quality of repaired wagons.
In 2001, a wagon chassis repairs line with dismantlement/assembly stands equipped with the defectoscoping mechanism DF-205 was put into operation. Later, the enterprise introduced the machine-tools facility for welding and mechanical treatment of main parts of wagons used to prolong the exploitation of chassis of freight wagons for 6 years and improve its exploitation characteristics.
A line for defectoscoping of wagon axel-bearing composed of defectoscopes and computerised bearing selection equipment has been also put into operation.
At the end of 2003, the Radvili?kis Freight Wagon Depot bought the machine-tools facility for formation of wagon axels, launched the formation of new axels so refusing buying them from other countries. The enterprise has acquired the computerised UKVR-type stand for testing wagon break equipment that may test the quality of repairs of wagon breaks in several minutes.
The enterprise has also carried out renewal of the vehicle fleet, renovation of roofs and facades of all buildings, replaced windows and doors, put into operation a computerized wood drying-room.
At the end of 2004, the Radvili?kis Freight Wagon Depot was certified according to the ISO 9001:2000 quality management system.
At present, the enterprise is ready to perform the depot and capital wagon repairs, wagon modernization, renovation of tank-cars, and to prolong the time of their operation for 16 years. Today wee seek the Wagon Depot to be granted the right to conduct renewal of covered and goods wagons and semi-wagons and so prolong their operation time.

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Agriculture
in Figures

Overall censuses give exact agricultural data

Agriculture was and is a very important economic activity in Lithuania and must be always supported by exact data. The more precise data is available, the better basis may be given for restructuring and modernization tendencies, also it is far easier to forecast the volumes of support needed for separate agricultural activities.
The most precise information about the situation in agriculture in Lithuania was obtained in 2003 after conducting the Total Agricultural Census, when a single programme was used to analyze activities of farmers’ and family farms, agricultural enterprises.
According to the Census data, there were 272 thousand farms producing agricultural products in Lithuania as of 1 June 2003 that owned one or more hectares of agricultural land (9.3 hectares on average per farm) and 363 thousand small-size land users that owned up to one hectare. Small farms prevailed in Lithuania: 169 thousand farms (62 percent of all farms) owned up to 5 hectares.
57 thousand farms (21 percent of all farms) had from 5 to 10 hectares what accounted for 16 percent of the whole agricultural land.
The number of large farms owning over 100 hectares made 2 thousand. They accounted for 0.8 percent of all farms and owned 26 percent of the whole agricultural land, of which 300 farms (0.1 percent of all farms) owned over 500 hectares and possessed even 13 of the whole agricultural land.
Farm size varied by regions: the largest farms were found in K?dainiai, Kaunas, Panev??ys, Pasvalys, Joni?kis and Pakruojis district municipalities, the smallest - in Alytus, Tel?iai, Utena counties.

Agricultural land
by farm categories
Overall censuses conducted in Latvia and Estonia (2001) and Poland (2002) showed similar results. The average farm size in these countries was similar to Lithuania, however the concentration of the agricultural land was very different. The largest area of agricultural land in farms owning 50 and more hectares (such farms accounted from 1 to 3 percent of all farms in above said countries) was observed in Estonia (56 percent), Lithuania (35 percent), Latvia (33) and Poland (26).
The Census enabled to identify economic size of all farms (EU farms are divided into 10 groups) and group them by farming types. The largest part of farmers’ and family farms in Lithuania were attributed to lower groups and they owned only 45 percent of the agricultural land. Farmers falling within the highest group possessed 13 percent of the agricultural land.
No clear specialisation of farms was observed during the Census. Mixed crop and animal production farms prevailed taking 26 percent of total standard gross margin of all farms. Cereals and rape growing farms earned 13 percent of total standard gross margin, other crop production farms - almost 30 percent, vegetable-growing and horticulture - 4 percent, animal production - 27 percent.
The map 2 shows the difference in types of farming by counties.

Crop structure

The Census pointed out to three main goals in production of agricultural products, namely selling the whole production, selling the residual production, producing production for own needs. The share of farmers’ and family farms producing agricultural production for the said purposes was the same, making two thirds.
Cereals occupied the major share in the agricultural crop structure - 64 percent.
Cereals were mainly cultivated in farms situated in ?iauliai, Kaunas, Panev??ys, Marijampol? counties accounting for 67 percent of the crop area. Leguminous crops made from 1 to 2 percent of all crops in nearly all counties, except Vilnius county with 3 percent.
Industrial crops (flax, rape, sugar-beet, etc.) covered more than 8 percent of the crop area. They were mainly grown in ?iauliai, Panev??ys, Marijampol? and Kaunas counties, where they accounted from 9 to 13 percent of the crop area.
The largest specific weight of potatoes, from 9 to 13 percent, was observed in the crop structure in Vilnius, Utena, Alytus and Klaip?da counties. The specific weight of field vegetables was far larger in farms situated near cities or suburban municipalities.

prevailing livestock

Cattle and pigs traditionally dominated in the livestock structure. Cows accounted for over 55 percent of the cattle, what proved large volumes of milk production.
High livestock production was best illustrated by the number of livestock per 100 hectares of agricultural land, recording 35 cattle during the census, of which 18 cows, 73 pigs and 649 poultry. The largest number of cattle and cows per 100 hectares was observed in Taurag?, Klaip?da, Tel?iai, Alytus and Marijampol? counties, pigs - in Taurag?, Klaip?da, Vilnius and Marijampol? counties, sheep - in Utena and Vilnius counties, poultry - Vilnius, Klaip?da, Kaunas, Tel?iai and Utena counties.

Agricultural workers

The Census was also targeted to registering the number of agricultural workers engaged in agricultural activities in different size farms during the last 12 months before the census, also their breakdown by age and time worked. As of 1 June, 545 thousand agricultural workers were engaged in agricultural activities, of which farmers and their family members accounted for 95 percent leaving the rest share for workers in agricultural enterprises and partnerships. Nearly three fifths (58 percent) of farmers and their family members worked in small farms (up to 5 hectares), 35 percent in farms owning 5-20 hectares. Owners of large farms usually employed people, while owners of small farms hired people for short term.
Women accounted for more than half of all people engaged in farming (53 percent), while men made the larger share in younger age group (people under 60). It was a very usual case, even 99 cases of 100, when the farm was owned by the farmer himself. According to the daily work, around one third of farmers and their family members worked 2-4 hours per day, 18 percent - 4-6 hours, 8 percent - 6-8 hours. Working hours in large farms were usually longer.
The Agricultural Census has provided detailed information and results (three volumes will be soon available in the e-format) that will be very useful in analysing the existing situation, comparing it to other countries, preparing programmes for restructuring of agricultural sector. The Euro-integration process stimulates consolidation and specialization of farms and the situation in farming changes very quickly. The last changes will be recorded in the survey of agriculture structure carried out in June this year. The survey has covered 66 thousand farms and its results will be published in 2006.

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Saulius STAŠKUS,
Co-owner of UAB Norgertus

Saulius STAŠKUS, Co-owner of UAB Norgertus

Our company launched shrimp fishing in the waters regulated by the Northwest Atlantic Fisheries Organization (NAFO) in 1996. Since then, it underwent numerous reorganizations and in 2003 was registered as UAB Norgertus. The company has totally renewed its fishing fleet, equipped vessels with modern and EU requirements meeting shrimp processing lines, also shrimp cooking equipment used for shrimp shelling, cooking and making the production ready for end-users. All vessels are given veterinary numbers certifying their conformity to the EU hygiene requirements and every year undergo the inspection of the State Food and Veterinary Service of the Republic of Lithuania.
UAB Norgertus employs 35 people at one time and this year operates two fishing trawlers. In 2004, the company’s shrimp catch in NAFO waters grew to 6000 tones.
The whole catch of the company is sold on the international market, mainly Iceland (75-80 percent), France (10-15 percent) and Japan (5-10 percent).
The demand shows that industrial shrimps (packed in 18 kg bags on board of vessels) are the most popular in Iceland, the country that has the largest number of shrimp shelling and processing plants. Cooked unshelled shrimps (packed in 5 kg boxes) enjoy the greatest demand in France, while large-sized uncooked unshelled shrimps (packed in 1 kg boxes) are mainly sold in Japan. Such demand is decided by the traditional Japanese cuisine, like sushi, where large-sized uncooked shrimps are used. The largest part of the shrimp catch is sold to the Icelandic company Bakkavik Ltd., French company National 1 and Japanese company Itochu French.
Shrimp fishing is mainly done in Flemish Cape 3MNL region of the NAFO regulated waters. The company vessels are allowed to fish 579 days in 3M sub-region of these waters and to catch 145 tones of shrimp per year in 3L sub-region.
The major difficulties that the company faces today are very high fuel prices as opposed to very low shrimp sale price. During the last 12 months, the fuel price averagely grew by 40 percent, meanwhile shrimp price dropped by 20 percent within the same period. In this context, the main company’s short-term goal is to maintain its positions on the market in the face of such difficult conditions. Wishing to reduce losses, we try to fish large-sized shrimps and so increase average catch prices.
The Fisheries Department has helped UAB Norgertus to get additional quotas from other countries-NAFO members. This year, on the endeavours of the Fisheries Department, EU and Greenland has given us a right to catch 580 tones of shrimp in East Greenland region. Such cooperation helps to secure the uninterrupted work of UAB Norgertus vessels and to avoid their demurrage.

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Aidas ADOMAITIS, Director of the Fisheries Department
under the Ministry of Agriculture of Lithuania

We Work to Make
Forests Rustle in Greenery

An interview with the Director of Kaunas State Forest Enterprise
Juozas JERMALAVIČIUS by journalist Alfredas Dominauskas

The Kaunas State Forest Enterprise was established in 1919. In written sources, the history of Kaunas foresters goes back to the 15th century, mentioning Babtai, Veliuona and Kaunas oak woods and the then logging works for the first time.
The Kaunas State Forest Enterprise administers 25.9 thousand ha of forests. All forests are divided into 7 forestries. State forests occupy 15 thousand ha or 65 percent of the total forest area. Panemunės Regional Park established within the territory of the Enterprise covers 204 ha. There are 8 state reserves set up by the Enterprise.

- What role does the Kaunas State Forest Enterprise play in Lithuania?
- As a joke, I could say that our Enterprise plays a central role, since it is situated in the central part of Lithuania. If speaking seriously, the Kaunas Enterprise is one of the smallest in Lithuania and so its economic potential is lower. However in terms of profits, the Enterprise hardly yields to other forest enterprises. We have our own sources of income, use advanced technologies that slightly differ from those practised by other enterprises.
- What has changed in Enterprise activities after Lithuania’s accession to the European Union?
- The EU integration firstly means putting stricter requirements to our own work as well as stricter requirements put by our clients, since all processing companies guide their activities and standards to the EU market. Environmental requirements have also become harder. All forest enterprises hold certificates what makes doing our work at the best. Some changes have been brought by the EU directives providing for enlargement of protected areas in Lithuania (10 thousand ha). Lithuania welcomes more and more foreign guests, holiday makers or specialists, so we should strive to make recreation objects and wayside service lots more beautiful and modern. We should reorganize our economic activities so as to earn more income and use the money for increasing wages and salaries, realisation of various projects. We strongly feel the labour force drain to other countries and thus must look for ways how to preserve the best employees.
- Do you feel any advantages of the EU support?
- We are a state enterprise so the benefits are very small. The EU structural funds aid is mainly directed to private sector. On the other hand, I cannot say that we do not feel any advantages. This year, we have concluded an agreement with the company Sostena, selected on a tender basis, on buying a new fire-engine and expect this purchase to be partially compensated. We also hope to receive financing for reforestation of burned areas. To my opinion, the main hindrance here is the red-tape, writing and filing heaps of different paper documents.
- What damage does illegal felling make to Kaunas forests?
- The greatest harm is done to private forests. I think that the peak of illegal cuttings is already a past phenomenon and the situation little by little gets better. In each case of illegal felling we lay great efforts in finding thieves, use strict methods in bringing discipline. Such measures are effective and, to my opinion, the time will come when a Lithuanian, like a Swede or Finn, will regard forest as a sacred thing and will dare not think of illegal activities in forests.
- If Lithuania will have any forests left...
- ...and our major goal today is to preserve them.
- Let’s speak about reforestation.
- There are two terms used in reforestation: forest regeneration and afforestation. Forest regeneration means growing forest in its former sites. The Forestry Law says that forest regeneration must be done within three years and we strictly follow this requirement. Another notion - afforestation - is subject to deeper discussion. Afforestation causes much more problems as there are very few land areas around Kaunas with low productivity. A Lithuanian Forestry Enhancement Programme has been approved. There are state land areas that are left to be taken from the county. Alas, the unfinished land reform hinders the forest regeneration processes. Our Enterprise has a well-developed nursery and seed-plot and is absolutely ready to start afforestation works. I do hope that the process will soon take speed, the forest areas will grow.
- Hunting business is another source of income. How is it developed in your Enterprise?
- Our hunting areas are rather small and revenues from hunting are very low. Other districts in Lithuania may boast having far larger animal hunting areas, while the main game in our forests is birds.
- Could please speak more about the nursery established within the Kaunas Enterprise?
- The Kaunas State Forest Enterprise has a nursery established as far back as in 1927. The nursery brings 4-5 percent of income. People highly value our production and know that our Enterprise will always supply their homes and farmsteads with the most beautiful plants. Private home owners and forest owners will always be offered consultations starting from soil preparation to planting and looking after the plants. We attach extremely high importance to consultations and training. Our nursery is used for growing saplings imported from other countries, if only our climate allows their cultivation. The Kaunas Forest Enterprise may offer plants at far lower prices; all our production perfectly fits the Lithuanian climate. The selection ranges up to 170 plant species. The areas of decorative plants cover 22 ha. We allow buyers digging the desired plant themselves, however if they damage them they will pay for it.
- Could you please say a few words about the employees of the Enterprise?
- Forest works unusually depend upon the season, so the number of our employees ranges from 100 to 115. We put experience in forestry works as the main priority. We also strictly follow the work hours, so there are very few cases when the work day lasts longer than 8 hours. Each person should feel a fully-fledged worker: get salary for his work done; get bonuses for his merits. Today, people highly value their jobs, for instance our freshest worker came to the Enterprise seven years ago.
We wish to encourage all people who hold respect to a tree pay no less attention to the environment around it. We build recreation sites, benches in forests for people who find peace in forests and not for forest vandals. You are always welcome to come to our Enterprise in searching for decorative plants for your farmsteads or houses - we are always ready to give consultations and help to choose among the huge diversity of plants.
- Thank you very much for an interview and a wonderful excursion around your Enterprise.

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...Speaking About the Creator
Danas Andriulionis…

Danas Andriulionis was born in 1951 in Rokiškis. In 1975, he entered the Vilnius Civil Engineering Institute to study architecture; in 1979 graduated the Klaipėda Department of Visual Communications and Advertising with a specialty of an artist-designer. D. Andriulionis is the Member of the Lithuanian Artists’ Association since 1999. He has arranged over 20 personal exhibitions in Vilnius, Kaunas and Klaipėda.
D. Andriulionis lives and works in Klaipėda, actively participates in Lithuania’s creative life. The artist’s works are included into private collections not only in Lithuania but also in France, Germany, Israel, Great Britain, Austria, USA and Russia, etc.
Archaic symbolism that is characteristic to the works of Danas Andriulionis tells that there are so many contacts between the old and the new Worlds. His creation transmits the unity of the World and guides to the completeness of the Eternity. The artist penetrates into the Balts’ mythology, discloses both to himself and the people around visions inspired by these myths. His works of art integrate the history and philosophy, nature and space. D. Andriulionis’ pictures combine Lithuanian ornamentation, Teuton runes and even Oriental mandalas. Cultural and semantic layers cover and supplement each other and so unclose the meanings that could be fully deciphered only by old oracles or Solomons…

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Lithuania’s History
in Gintautas LukoŠaitis’ Sculptures

The sculptor Gintautas Lukošaitis was born in 1972 in Kurtuvėnai. In the years 1983-1990 he studied at M. K. ?iurlionis Art School, in 1990-1996 - at Vilnius Academy of Fine Arts. Today, the sculptor lives in Šiauliai.
In 1997, the artist was recognized as the winner of the competition for creation of a monument to the General Jonas ?emaitis VYTAUTAS. In 2004, together with the brother Mindaugas Lukošaitis, the sculptor represented Lithuania at the 26th Sao Paulo biennale.
After the end of the Second World War Lithuania was annexed to the Soviet Union. Soon after, the underground fight for restoration of Lithuania’s Statehood started and continued until 1953. The subject of this fight plays a very important role in Gintautas Lukošaitis’ works.

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