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CONTENTS

PDF version | Archive

1. LEGISLATION
   1. New Administrative Procedure Code, new problems
   2. Nature and Landscape Protection Act
   3. What's new about the new Construction Bill?
   4. What does a huge legal norm - the Civil Code - has to say about societies ..
   5. Want information from an administrative agency? Bring a lawyer!
2. CASES or Progress in Old Cases
   1. LG. Philips plant in Hranice might close down soon ?? how about our case?
   2. NEMAK - an amicable settlement?
   3. TPCA - a serious take on corporate responsibility?
   4. Evidence of law violation in Rumburk, town council covers up the culprits
   5. Traffic referendum in Tabor
   6. Hitler's highway to disrupt more than just the Brno reservoir leisure area
   7. South Moravia and Lower Austria meet to discuss the Brno-Vienna highway
   8. Zoning plan for the Breclav area - at any cost?
   9. No success with complaints against EIA opinions yet
3. CASES or What's New
   1. Concrete lobby has long fingers - D3 to cut through the Sazava area
   2. Chamonix in Sumava?
   3. "Deadly Trinity" in Opatovice nad Labem
   4. Here comes Hyundai!
   5. SOS and ELS filed a legal complaint against Czech Airlines
4. DEVELOPMENT of the PUBLIC INTEREST LAW SECTOR
   1. ELS Spring School - topic: new Administrative Procedure Code
   2. Next round of the Human Rights School
   3. Senate's conference on mineral mining
5. INTERNATIONAL ACTIVITIES
   1. ELS lawyer the only representative of Czech NGOs in Geneva
   2. ELS published analysis on the EU EIA Directive
   3. ELS representative at the annual meeting of the Czech National Contact Point for Directive implantation OECD Watch
   4. Strategic meeting of Justice and Environment in Vienna
   5. ELS lawyers at the ¨Corporate Social Responsibility in Enlarged Europe" conference Brussels
6. ORGANIZATION NEWS
   1. Workplace discrimination
   2. 2005 statistics on ELS's activities and output
   3. New think tank - Economy and Society Trust
7. NEW PUBLICATIONS
   1. Guide to the new Administrative Procedure Code
   2. Law Against Corruption
   3. Environment Protection in Mining
   4. Asbestos and Law; Waste Dumps and Law
   5. Air Protection Law

The new Administrative Procedure Code took effect on January 1 despite the effort of several MPs.

We are not giving up our ambitions to change the Administrative Procedure Code in a more systematic way. We hope that in few months we'll be able to identify the worst problems based on our experience and adequately respond to them. Above all, our concerns involve potential abuse of the unequal position of different parties to administrative procedures and the considerably wide range of possibilities to bar the suspensory effect of appeals. If our concerns prove to be justified we will have to push strongly for amendments to the Code.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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The question remains: Are human rights the enemy of a prosperous society?

The situation regarding the 1034th draft amendment to the Act presented to the Lower House by its Members has not changes. The proposal has not passed the first reading yet. We have prepared very good arguments against the draft and we still hope that if added to the Lower House agenda the proposed amendment will be rejected right in the first reading.

As expected, MPs presented several proposals to amend section 70 (civic organization participation) of the Nature and Landscape Protection Act during the Lower House's discussion on the Construction Act. An emergency meeting of government and non-government lawyers was called by the Ministry of the Environment due to these attacks on the public's rights to participate in administrative procedures. We developed a counter-proposal but it was not read in the Lower House (for "tactical" reasons?).

MPs were not in the mood to deal with our proposals and preferred to reject it right away.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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The draft amendment to the Construction Act has gathered an unexpected momentum in the Lower House. MPs sat for its second and third readings within two weeks and, unfortunately, did not pass it. Just few hours were enough for them to read through 200 proposed changes with 150 previously processed by the respective committee.

In partnership with other NGOs (Green Circle, Environmental Studio), we managed to prevent the passing of several exceptionally harmful provisions such as the placement of structures in non-developed areas based on regulation plans or an extended scope of expropriation that would include industrial zones. In some cases, we were able to push through our proposals with acceptable text, e.g. the provision on public representatives. In the original, government-proposed form, the institution was defined in a completely non-functional way.

However, we remain more than critical to the overall text of the new Act.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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In June 2006, the Justice Ministry is expected to submit its draft of a new Civil Code for external amendment procedure. It will be a huge legal norm with some 3,000 provisions. The ELS is focusing on a single issue here - legal provisions regarding societies. The proposed text spectacularly fails to correspond with our idea of an understandable and functional legal norm that would foster the growth of civil society. Nobody has so far been able to convince the Code's authors that the regulation must be very simple. We believe that most events occurring in a civic society or association should be addressed in the organization's statutes and there is no need to define such issues by law. On the other hand, we agree that there should be a register of civic societies maintained by a court and that the establishment of a new society should be subject to an agreement of its future members regarding its statutes.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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Act no. 61/2006 Coll., amending Act no. 106/1999 Coll., on free access to information, has introduced a wide range of changes to the right to information. It cancelled the theory of negative decisions in the event of inaction on the part of liable organizations, introduced complaints against inaction on the part of liable organizations and/or against some illegal practices defined in the Act. The complaints are presented to the inactive organizations and a decision is made by the mandatory administrative agency.

The amendment also introduced a number of new reasons agencies can use to withhold information. There is also a new system of information licenses and an obligation on the part of administrative agencies to post online their legal regulations and a list of main documents that they can provide.

The obligation to provide information now applies to all public institutions (although the Act fails to define what a public institution is). The amendment defines new cases when a liable agency has the right to postpone a request without making a decision on the request and allows courts to order an agency to provide information based on a legal complaint. It also sets out a new list of data that applying parties must state in their information requests.

In the light of the complex nature of the new Act, all we can do is recommend to all non-lawyers to always take a legal advisor when dealing with administrative agencies because otherwise they would be very unlikely to provide any information at all.

For more information: Michael Kousal, "Legislation" program, ELS Brno

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We have devoted countless pages in our Newsletters to the story of the "famous" investment already. Development during recent months and the expected "unfortunate" end of the venture offer a nice opportunity to recapitulate the case's entire history:

In 2000, the Czech government signed a contract on investment by and incentives for the Czech branch of LG. Philips Displays, s.r.o. The investment incentives, not including a tax holiday, were worth CZK 1.6 bln and, in return, LG. Philips promised to create a development center and employ 3,250 people. To this day, however, no more than 1,300 employees have found jobs in LG. Philips. In spring 2006, LG. Philips Displays is forced to file a petition in bankruptcy due to its "morally obsolete" CRT screen production. The company will have to sell its Czech branch in Hranice in order to satisfy creditors. However, its entire registered capital equaling more than CZK 3.5 bln had been pledged to the Hong Kong-based JP Morgan bank since 2004. Apparently, LG. Philips was well aware at that time that there would be major problems with the sale of its "old screens" although this did not prevent the company from massively investing in the production of LCD screens in its branch LG. Philips LCD, the world's biggest manufacturer of this type of monitors. So why the need to close the Hranice plant? Why not start producing LCD monitors there, similarly to what Panasonic did in Plze?ö? Because it's cheaper to build a new LCD pant in Poland where the company gets substantial investment incentives. A textbook example of corporate irresponsibility! And you bet that the money generated from the pledge of the Czech branch's assets were used well to finance the growth of LG. Philips LCD and its foreign expansion.

Because Philips failed to meet the conditions subject to which it received investment incentives the company should return the incentives to the Czech Republic. But where will it get the money when all its assets have been pledged? And, moreover, how to force LG. Philips to return the incentives when it is a "s.r.o." - a limited liability company? The state tried to help LG. Philips with its failing foreign investment as soon as problems first occurred, offering, for example, pro-export incentives worth hundreds of millions of korunas. Now, the CzechInvest agency is trying to find a suitable buyer for the production compound. At the same time, however, the Czech government repeatedly refused to lend ear to pleas for help from Tesla Ecimex, the traditional Roznov-based Czech TV screen manufacturer that is currently facing bankruptcy for exactly the same reasons as Philips.

Four state officers are now being prosecuted for permitting LG. Philips to start production in Hranice and they already had to leave their jobs based on the Public Service Act (no. 312/2002). Due to this case, however, senator Jilek (KDU-CSL) has recently proposed (and the Senate accepted his proposal) to remove the relevant section (no. 11) from the Act. The senator claims that state agencies as well as their liable employees are faced with complications due to the obligation to transfer a clerk charged with illegal actions to a different position prior to a final guilty sentence. Who cares that the above section was meant to protect the public from state officers whose moral integrity raised doubts and that it was designed to support citizens' trust in an independent performance of pubic administration. The Philips case has not been closed yet: in addition to prosecution of the four officers there will be a second round court hearings on the integrated permit that were, in the ELS's opinion, granted Philips in breach of the Czech and European law.

For more information: Jiri Nezhyba, "GARDE - Global Responsibility" program, ELS Brno

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In November 2005, the ELS marked another victory in the dispute over the illegal construction of a heavy industry plant by Mexican-based NEMAK in Havra?ö near Most. This time, however, we saw success at the Prague Municipal Court and the tribunal confirmed that administrative agencies took illegal actions in their decision regarding the plant's impact on countryside. Farmer Rajter's family are the only plaintiffs to keep up their efforts in fighting one of the biggest foreign investments in the Czech Republic. The City of Most and the Region of ‚??sti nad Labem have offered a new farm to the family where they could move provided that the ELS and the Rajters take back all their legal complaints against NEMAK.

Negotiations on the offer started. The Rejter family has asked the ELS to support them in the talks and the ELS promised to withdraw its complaint should an agreement be reached. An important motivation for the ELS to provide legal assistance to the family was their strong civil opposition against the NEMAK plant and their exemplary attitude to the entire case.

During the five years of our collaboration, a strong partnership was forged between the ELS and the Rajters and, having considered all pros and cons, the ELS agreed to support an agreement because otherwise we would not be able to guarantee that NEMAK's investment would be stopped. This would mean that the ELS's decision could potentially "sacrifice" the Rajter family to "higher interests. Negotiations on a substitute farm were eventually stopped because the City of Most was unable to find enough land that would allow to family to work in the new location. So, the City offered to buy a portion of the family's land in the immediate vicinity of the new plant for a price that would enable the family to move from the area. This plan received support from the Czech government at its meeting of May 10, 2006. The settlement negotiations continue.

For more information: Pavel Franc, "GARDE - Global Responsibility" program, ELS Brno

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As previously reported in our Newsletter no. 1/2005, the ELS has developed a legal analysis disclosing illegal actions taken in relation to what is the biggest foreign investment in the country ever - the production plant built by Toyota M. C. and PSA Peugeot Citr?Üen near Kolin. We proved beyond any doubt that both companies were partly responsible for the actions. Our findings are clearly inconsistent with corporate responsibility standards as publicly declared by both investors. Therefore, the ELS has proposed a lost of specific measures that should, at least to some extent, correct the alarming situation where a major investor not only violates Czech regulations but also changed the countryside near Kolin in an insensitive manner and significantly changed the region's traffic situation. Neither company accepted our proposals officially but gradually admitted the validity of most of our objections and started to co-operate with the ELS last year.

The two companies adopted the following measures based on our demands:

• they had an analysis on the region's needs developed and, with assistance from the Partnership foundation, opened a grant program with a budget of CZK 4 mln a year. Grants were presented for the second time this year.
• they no longer demand an exception from a regulation banning heavy vehicle operation during silent hours (and built a special transit center for these purposes)
• they provided money to people living in the area who were negatively affected by the traffic generated by the TPCA plant and thus enabled them to build noise barriers.

The two TPCA investors are currently working with the ELS on a project that will return greenery to the area around the production plant. Although it is an obligation defined in the plant's construction permit the investors decided to collaborate and consult with the ELS in a much larger extent than is the usual norm and the ELS acted as an opponent and helped develop an alternative study. TPCA accepted our proposal and a new study emerged from our discussions. The investors are currently talking to the ELS about future activities that would revitalize a wider area affected by the new plant.

For more information: Pavel Franc, Jiri Nezhyba, "GARDE - Global Responsibility" program, ELS Brno

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In February of this year, Danone, a. s. finally obeyed a decision made by the Prague High Court and issued a public apology for using the ¨BIO" mark on its products (yogurts) although they were not made using produce of environment-friendly farming (see www.danone.cz and www.ctk.cz ) and thus might have misled consumers. The apology is part of an amicable settlement procedure proposed by Danone, a.s. during the appeal hearing at the Prague High Court against a sentence previously delivered by the Prague Municipal Court that required Danone, a. s. to apologize for its illegal actions stemming from its use of the "BIO" mark on yogurts that are currently marketed under the name "ACTIVIA". These are the results of what is probably the ELS's longest lawsuit. The case started in 1999 when the company took advantage of a glitch in the Czech legislation and applied the "BIO" mark to products that were not related to sustainable farming. The ELS contested Danone's unfair practices. It is important to realize that it was a precedent-setting case where consumer protection organizations probably used unfair competition as their argument for the first time ever. One of the side effects was a clearer interpretation of what a "consumer protection organization" really means: an organization now can prove its consumer protection mission by stating this as its main objective in the organization's statutes.

For more information: Pavel Franc, "GARDE - Global Responsibility" program, ELS Brno

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In December 2005, the ELS sent an open letter to the Mayor and councilors of the town of Rumburk asking them to sack Jiri Busek from the position of head of the local construction authority. It is our reaction to a new official statement issued by the Region of ‚??sti nad Labem where the regional office confirmed that Busek's construction authority violated the law in at least six different cases. The regional office concluded that the construction authority violated the law in relation to Lidl, Benteler, Dymnik golf course, residential houses in Bezrucova street, buildings in Vrchlickeho street, and access road to three family houses. When issuing the relevant permits, the construction authority failed to conform to the zoning plan and the Construction Act, evaded the Administrative Procedure Code in order to manipulate files and issue decisions without assessing a project's environmental impact.

The town council has not dismissed Jiri Busek yet although it must have known about his misconduct for more than a year. One could just ask what are the ale reasons for keeping Mr. Busek in his current position at any cost? The public can just speculate whether the town's representatives do not care about his practice of consistent law violation, whether they actually like this situation for some reason or whether they are afraid what information Mr. Busek could let out once out of the office.

Furthermore, the ELS filed a complaint against the Rumburk town council in February 2006. The council had refused to present to the ELS copies of minutes from a meeting where the council discussed acquisition of over-priced shares of the Rumburk Hospital. But the Supreme Administrative Court previously decided in a similar case that anybody is entitled to such information. The ELS has so far filed four administrative complaints against the Town of Rumburk due to access to information.

Another interesting point is that the town's web site (www.rumburk.cz) does not show several documents including the minutes regarding the hospital share acquisition. The web site also lacks minutes from the council's meeting on the proposed sacking of Jiri Busek. As you can see, there are many indications that the Rumburk town council intentionally complicates access to specific information that the ELS has requested.

For more information: Vitezslav Dohnal, ELS Tabor

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Our lawyers in Tabor are actively involved in the preparation of a referendum on local traffic problems. Local citizens have requested the ELS's help with the text of referendum signature sheet and the referendum proposal. The referendum activists have collected nearly 3,500 signatures. However, the municipal office rejected more than 3,200 signatures due to forma reasons. For example, city officials objected that the "address" section of signature sheets included a preprinted word - "Tabor". The law says that each person signing a referendum initiative "shall state his or her full name and address and attach his or her signature". The city officials argued that referendum supporters did not in fact state their address because somebody else printed it for them. The City also rejected signatures by people who stated the year of their birth only by the last two digits, used the repeat character instead of their address clearly referring to the previous line or used initials instead of their first names.

The ELS lawyers filed a complaint at the Ceske Budejovice Regional Court against this grossly formalistic interpretation of the law. The Court took the view of the plaintiffs and decided that the activists need only 46 more signatures to have a valid motion for referendum.

For more information: Vitezslav Dohnal, ELS Tabor

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Representatives of the City of Brno and the Region of South Moravia continue to push on vehemently for a very harmful route of highway R43. They want the project constructed based on plans developed in the 1930's. Europe's north-south traffic backbone would cut through Brno and bring continent crossing trucks to a calm residential neighborhood.

City officials, subordinates to local politicians who are acting according to instructions received from their party headquarters, presented the latest version of the proposed highway to local citizens at a meeting on the Brno zoning plan (April 11, 2006). Neither the public's vigorous opposition nor the approaching elections were enough to change city representatives' resolve to bring the highway to Brno even though there is an alternative to the already approved route along the Boskovicka brazda. This route would divert heavy transit traffic away from the city, would have a much smaller impact on local residents, and would be in line with European law. Furthermore, a scouting study has confirmed that the alternative route would be feasible. One would assume that valid legal and technical arguments would allow reason to win. However, zoning authorities insist on their old, obsolete position. Why? Because of the narrow-minded Directorate for Highways and Communications, other interests ?? decide for yourself.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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Representatives of South Moravia and Lower Austria have united in their efforts to solve the highway situation between Brno and Vienna in a constructive, cost-effective and environment-friendly way. Over 20 civic initiatives have written a joint memorandum and presented in Poysdorf, Austria in March 2006.

On the Czech side, the memorandum proposes a solution using the existing D2 highway and the southern by-pass in Breclav that is currently under construction for CZK 1.5 bln.

The Directorate for Highways and Communications, the Czech Ministry of transport, and the Region of South Moravia are proposing a parallel Trans-European highway along D2, i.e. the R52 speedway between Pohorelice and Mikulov. Not only would this solution cost much more and would be an unacceptable large-scale waste of public funds, it would also damage beyond repair the unique countryside near Mikulov and Palava, the town of Mikulov, Musovska jezera lakes and the Lednice-Valtice area, a unique site of world cultural heritage protected by UNESCO.

For more information: Pavel Cerny, "RCE" program, ELS Brno

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The R52 construction corridor is included in the draft zoning plan of the larger Breclav territory as approved by the representatives of South Moravia in December 2005. The process of writing this zoning plan has been marked by major protests and many cases of illegal activity. The most alarming part is that the zoning plan's impact on the environment is being assessed based on a no longer valid law of 1992 although new legislation based on an EC Directive was in force at the time the decision to write the new zoning plan was made. One of the results is that the zoning plan is not considered a "cross-border concept" although some of its elements (road R52) will affect Austrian territory. Furthermore, the impact on "NATURA 2000" areas were not assessed as required by the law. The Ministry of the Environment and regional authorities are not about to correct these problems. Therefore, the ELS, representing several individuals and non-government organizations, has presented the case to the Public Right Guardian. He has already granted an opinion declaring that the regional authorities took a wrong course in violation of good governance principles when they refused to provide to the Mayor of Dolni Dunajovice a copy of the "zoning forecast", a document used in the development of the zoning plan. The case is heading towards a precedent setting complaint against regional representatives and their approval of a zoning plan for a larger territory.

For more information: Pavel Cerny, "RCE" program, ELS Brno

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Our lawyer, representing affected land owners and NGOs, has filed a complaint against the EIA opinions granted for the proposed R52 speedway and the planned extension of the D1 highway between Kyvalka and Holubice. We presented the grounds for our complaints in the previous Newsletter. Among other things, we are applying the Aarhus Convention and the related EC Directive in a "strategic" complaint as these regulations, binding for the Czech Republic, require that all "acts, decisions or failures to act" in relation to permit procedures with serious impact on the environment be reviewed by courts. It applies to EIA opinions although it is impossible to file complaints against these documents under the Czech law. The Prague Municipal Court rejected our complaints without giving much thought to arguments based on the Convention and Directive. Therefore, we responded with a complaint at the Supreme Administrative Court.

For more information: Pavel Cerny, "RCE" program, ELS Brno

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Shortly before Christmas 2005, the government decided to have the D3 highway cut through the Sazava river area. There were three alternative routes in the Central Bohemia region under consideration. The "stabilized" version was developed by the Directorate for Highways and Communications and has received strong support from the Region of Central Bohemia and the Ministry for Regional Development. This is the approved version. The two other alternatives ("Zenkl-Vyhnalek", "Promika") offered a more sensitive and cheaper solution for the valuable Sazava and Neklov areas but had no chance against the concrete industry lobby.

The entire D3 route is expected to cost about CZK 80 bln with the Sazava part alone claiming CZK 30 bln.

The currently proposed D3 route intersects the biggest pocket of high-quality brick-clay in the Czech Republic (Dolni Jircany) as well as an area affected by centuries of gold mining near Jilov where there are many underground drifts and hollows. The highway construction will be a highly complicated project (two more than kilometer-long, 100-high bridges and a number of tunnels), which will considerably increase the time and money necessary.

The best know tourist attractions in the area include the deep valley of the Sazava river with the popular Sazava Track, picturesque railway route better known the "Sazava Pacific", and the national natural reserve Mednik. Furthermore, Lower Sazava has been nominated for "Natura 2000" a system of natural sites of European importance. The D3 highway will cut the Stred Cech reserve in two.

The final choice of the highway route will be made by the Region of Central Bohemia. The region is expected to continue its discussion on zoning plans for the larger Benesov and Prague territories including the D3.

The ELS has developed a list of available legal measures and other actions against the D3 highway in Central Bohemia. Go to Section Cases/D3 (www.eps.cz) for more.

For more information: Michal Bernard, "RCE" program, ELS Tabor

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We have reopened an old case where we collaborated with the environmental society Calla and tried to prevent the creation of a ski resort at the former military base Boletice in the Sumava mountains. Nearly 54% of the military practice field lies in the protected natural area of Sumava mountains and the location represents a valuable territory with unique natural conditions. It is one of the most valuable natural areas in the Czech Republic. Boletice was included in the list of locations proposed for the NATURA 2000 project under both the bird and habitat directives and was named Important Bird Habitat in 2006.

However, environmental considerations cross paths with ambitious business plans in Boletice. The Region of South Bohemia and the company Lipno Servis are planning a huge ski resort in Boletice. The resort would offer 27 km of slopes, 10 lifts (with a total capacity of 16,000 persons per hour), a coasting path, natural ice rink, cross-country paths and other winter sport alternatives. To provide access to the resort, there would have to be wider roads and a new railway route is proposed as well.

The plan has attracted a wave of protests from experts and environmental NGOs. An interesting aspect of the entire case is a proposed association agreement on "Chlum - winter sport resort". The ELS has analyzed the agreement as approved by regional representatives. We identified several terms that breach the Regions Act. The Region promises to transfer large areas of land in Boletice to Lipno Servis without a proper tender. The ELS has pointed out this controversy to regional representatives and a new version of the agreement is now being written.

For more information: Michal Bernard, "RCE" program, ELS Tabor

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Myllykoski, a Finnish paper corporation, is about to build a giant paper mill in Opatovice nad Labem, designed to belch 400,000 tons of glazing calender paper a year. There are no plans to produce recycled paper. The plant is to be erected within the Opatovice power plant compound and another two investment projects are planned for the same site - a refuse incinerating plant and a bio alcohol plant.

The combination of these three operations within one small area will have a major negative impact on people living in nearby villages. The power plant alone exceeds acceptable noise limits already now. The new plants will significantly increase heavy traffic in the area, the already high noise level as well as toxic emissions and other negative aspects of industrial production will further grow and harm the health of local residents and the environment.

The ELS is actively participating in the paper mill's EIA process and we have become a party in the procedure to issue an integrated permit for the project.

For more information: Michal Bernard, ELS Tabor

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In September 2005, Hyundai Motor Company announced that the Czech Republic was among the countries considered for the carmaker's new plant. Advantages of the Nosovice location include its short distance from Zilina, Slovakia where the investor's affiliate KIA has already completed its own plant. Nosovice offers 260 ha of farmland worked by a cooperative of landowners who produce the famous Nosovice sauerkraut. Although the Region of Moravia and Silesia offered other locations including Mosnov (and an offer from Holesov appeared later as well) the Nosovice location was the most popular with Hyundai's management, not least because of its beautiful setting under the Beskydy mountains.

The pressure to sell land was enormous but the hard core of Nosovice landowners, headed by the cooperative's managers, was firmly against for a long time. However, the region then came up with an idea that put the negotiations and the overall atmosphere in Nosovice and the surrounding area to a completely new dimension. All families in Nosovice and Nizni Lhoty were offered CZK 100,000 in compensation for the negative effects of construction works. To top it off, Prime Minister Paroubek started "threatened" that land would be expropriated if owners don't sell it voluntarily.

However, the cooperative insisted on conditions that would allow it to farm in the future and demanded compensations worth hundreds of millions of korunas. However, the potential agreement with the cooperative was a crucial factor that other landowners would base their attitude on. These and other citizens of Nosovice who opposed the idea to build a Hyundai factory in the town at first wrote a petition against the zone, collected the signatures of more than 360 locals and eventually founded an association called Land for Life ( Půda pro zivot). Lawyers of the ELS's GARDE - Global Responsibility program helped them write a letter to Huyndai's CEO asking the company to stand up to its declared principles of social responsibility and reconsider its decision to place its investments in Nosovice in the light of the negative environmental and social consequences.

Due to the endless talks with the cooperative and landowners, the Region announced on December 12, 2005 that it would stop pre-construction work in the zone. Nevertheless, Governor Tosenovsky set a new deadline (December 16) for securing the acquisition of land from all owners. On Wednesday December 14, the Region reached a compromise with the cooperative and the farmers agreed to sell their land. On December 15, 2005, three days before the new deadline key landowners received anonymous letters threatening to kill them and their families due to their decision not to sell. In this tense atmosphere, all the remaining landowners eventually decided to give up their property. The Region had no scruples to sign this agreement although the Law of the Czech Republic clearly states that contracts signed under death threat are null and void in their entirety.

As soon as the land was sold, the car plant's EIA procedure began focusing on all three locations under consideration (Nosovice, Mosnov, Holesov) without comparison of their respective environmental conditions. This goes against the very principle of the EIA process as defined by law and EC Directive 85/337/ES. A number of permits for the zone have been granted even before the EIA process was completed.

For more information: Pavel Franc, Jiri Nezhyba, "GARDE - Global Responsibility" program, ELS Brno

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In November 2005, the ELS lawyers expanded their activities to include issues of consumer protection. In addition to our own Danone case, we start an intensive collaboration with the SOS (Consumer Defence Association) providing legal help to the organization regarding certain precedent-setting cases of consumer right infringement.

Our first joint effort involved the illegal practices of CSA. On January 31, 2006, the ELS and SOS filed a complaint at the Prague 6 District Court. We had identified stark legal discrepancies in CSA's business terms and conditions. A huge media campaign carried out by the CSA at the end of 2005 offered "adventure certificates" or "Christmas adventure gifts" that basically consisted in pre-paying a discount ticket to a destination of one's choice. However, the CSA allow customers to apply this discount only before June 30, 2006; the certificate will become invalid after this date and the holder will not be entitled to a refund. "These terms and conditions constitute a direct breach of the provisions of the Civil Code that does not allow parties to contractually agree on the extinction of a right if it is not applied before a certain date. Without this legal provision, unjust enrichment would be de facto legal." On December 12, 2005, the SOS and the GARDE-ELS sent a registered letter CSA asking the company to refrain from illegal activities. The two organizations also presented the CSA with a complex legal analysis of the situation and proposed a dialogue and an amicable settlement. However, the CSA ignored the invitation. The airline merely responded to our press release and announced that the company was considering all legally available means to protect its good reputation. Due to this, the two organizations defending the rights of consumers had no other choice but to seek a restraining order against the CSA from a court.

For more information: Filip Gregor, "GARDE - Global Responsibility" program, ELS Brno

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The new Administrative Procedure Code took effect as of January 1, 2006. This offered a strong motivation for us organize a two-day seminar for civic associations. The OSF foundation supported our efforts and enabled us to open the latest Spring School in Kozi Horka near Brno on March 30 and 31.

The event focused on interpretation of the new legislation: presentation of the new Administration Procedure Code, the scope of effect of the law, fundamental principles of administrative authorities' activities, material and territorial competence of administrative authorities, parties to procedures, form of procedures, decisions, protection against an administrative authority's inaction, appeals process, review of legitimate decisions, public-law contracts, general measures, complaints under section 175, interim provisions.

The practical part of the course consisted of a portfolio of cases where ELS lawyers answered questions. The second day was devoted to a simulated administrative procedure where all participants were able to test their newly acquired knowledge in "real situations".

This year's Spring School attracted 26 students.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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ELS lawyers served as lecturers at the Human Rights School of 2005. The event was held by the Public Interest Lawyers Association at the Law School of the Palacky University in Olomouc between November 24 and 26, 2006. The environmental law part of the program included Michal Bernard's paper on legal aspects of mineral mining and Vitezslav Dohnal's lecture on environmental protection in the judicature of the European Court of Human Rights. Other topics included consumer protection, mediation, legal interpretation of the CzechTek controversy and education in legal clinics.

For more information: Vitezslav Dohnal, "PIL" program, ELS Tabor

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On January 5, the Senate of the Czech Republic hosted a conference on mining law regulations. The event offered lectures by representatives of mining authorities, the Ministries of Industry and Trade and the Environment, mayors and representatives of the mining industry. Our own lawyer read a very critical paper as well.

Most conference delegates agreed that the current mining regulations are in great need of change. Towns, in particular, have to deal with major problems stemming from mining regulations in their present form as they have no power over devastating mining projects, destruction of the environment and related health problems of local citizens. Full transcripts from the conference are available at the Senate's web site.

For more information: Michal Bernard, "RCE" program, ELS Tabor

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On February 16 and 17, 2006, a workgroup met in Geneva for the first time to discuss the third pillar of the Aarhus Convention (Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters). The workgroup consisted of representatives of justice and environment ministries of all EU member countries and representatives of selected NGOs. The ELS accepted an invitation from the UN's Aarhus Convention office and sent one of its lawyers to the event.

From the very beginning it was clear that the conference attracted an incongruous group of people with different approach offered by NGOs and the government establishment as well as different interests backed by different countries. Access to courts based on the Aarhus Convention is a very sensitive issue and the main reason why the workgroup failed to reach any material conclusions. The conference's biggest achievement is an agreement on the need to develop an analysis on the implementation of Article 9 of the Aarhus Convention by EU member countries. It should serve as basis for programs designed to increase awareness among judges and the general public of rights defined in the Aarhus Convention. There should also be training projects with the objective of ensuring court review of decisions affecting the environment in line with the Convention. The ELS wants to contribute to these projects as part of JaE, a European network of non-government organizations.

For more information: Ludek Sikola, "Legislation" program, ELS Brno

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The Environmental Law Service has developed an analysis on implementation of the Czech Republic's obligations arising from Directive 85/337/ECC on the environmental impact of some projects. The analysis concludes that in many aspects the Czech Republic fails to implement administrative requirements of Community Law to local regulation (non-transposition). Above all, there are big problems with getting information to the public, getting people involved in administrative procedures and the public's access to court protection in general. The analysis also mentions many cases of professional misconduct in the use of legal regulations governing environmental impact assessment (wrong implementation). There are also problems with the poor quality of expert documents used in the assessment process, failure to assess some projects, bad use of alternative assessments, etc. The ELS uses the analysis to propose a series of desirable amendments to the actual EC Directive. The Czech and the English version is available at www.eps.cz, section Studies.

The study was financed from EU funds - Transition Facility program

For more information: Vitezslav Dohnal, "PIL" program, ELS Tabor

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Lawyers of our GARDE - Global Responsibility program became members of OECD Watch in fall 2004. In mid-2005, they developed assessment reports for OECD Watch at the occasion of the five-year anniversary of reviewed Directives. The reports focused primarily on the National Contact Point and Directive application.

Related to the Directives is a decision of the OECD Council that defines ?¨Guidance for Multination Enterprises for Implementation of OECD Directives" and ?¨Procedure Guidelines". The documents say that every country that signs the Guidelines must establish ?¨National Contact Points" (NCP) that would work on the implantation of the Guidelines. At the occasion of OECD Investment Committee's session in Paris on September 22, 2005, ELS lawyers and OECD Watch issued a press release ?¨International coalition OECD Watch calls for stricter regulation of multinational corporations".

ELS lawyers concluded that OECD's Guidelines for multinational enterprises fail to promote true responsibility among corporations. Companies that have problems sticking to OECS standards in the Czech Republic, especially when it comes to the environment, include NEMAK Czech Republic, s.r.o., LG. Philips Displays Czech, s.r.o. and TPCA Czech, s.r.o..

For more information: Pavel Franc, Jiri Nezhyba, "GARDE - Global Responsibility" program, ELS Brno

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Members of the Justice and Environment network have developed an action plan for 2006. The document is primarily designed as a basis for the network's successful project application at the EC - DG Environment. The upshot of the action plan and the complicated negotiations that preceded its formulation was identification of common priorities for 2006 and definition of forms of communication and collaboration within the network. The first annual meeting of Justice and Environment took place in Bratislava, Slovakia in December 2005.

Another strategic meeting was held in Vienna in early 2006. It was necessary to coordinate the new rant from EC - DG Environment.

For more information: Martin Fadrny, ELS Brno

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Lawyers of the ELS's program GARDE - Global Responsibility won a grant from the European Commission's General Directorate Employment, Social Affairs and equal Opportunities. The grant is to be used to promote awareness and build capacities within the non-profit sector and labor unions in the area of social responsibility of enterprises in several countries of the European Union. The ELS acts as a coordinator of the project that includes 10 partners from seven EU countries: Austria, Estonia, France, Hungary, Slovenia, Slovakia and the Czech Republic.

Social responsibility of enterprises is a key mechanism uniting European activities in the fields of environment protection, social cohesion and economic growth.

In partnership with the World Bank, the European Commission held a conference on February 20, 2006. It was called ¨Corporate Social Responsibility in Enlarged Europe" and its objective was to assess the current situation and development of the issue in new EU member countries. The conference was attended by four representatives of the ongoing project - ELS, FIDH, EMLA and LLP.

As part of our project, we trained instructors, organized seminars on Corporate Social Responsibility in Prague, Bratislava and Vienna, held training seminars for labor unions and published several case studies.

All information, study program, case studies, etc. are available at a new web site www.responsibility.cz

For more information: Pavel Franc, Jiri Nezhyba, "GARDE - Global Responsibility" program, ELS Brno

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In January 2006, we kicked off a project that monitors abuse of employment-law regulations and employee discrimination by multination enterprises.

The project's objective is to draw public attention to the serious problems that involve violation of employment-law regulation by multinational corporations, primarily retail chains.

When negotiating an investment plan, most multination corporations argue that they will create new jobs. Job creation is considered a matter of public interest without paying any attention to the conditions. To say nothing about how many jobs are lost due to the foreign company's investment.

The ELS wants to form a partnership with organizations that have the power to control and affect workplace conditions offered by these employers. It primarily includes labor unions.

Furthermore, the ELS monitors efficiency of state institutions responsible for inspection of employment-law relations. An example of such institution would be the newly established State Job Inspection Agency with its regional branches and employment offices.

In order to get the public interested in the issue of employment regulation violation, it is necessary to speak publicly about these problems and try to prevent their occurrence by all available legal means. The more employees decide to put pressure on their employers and demand their responsibility the more likely the public will be to start asking questions about observance of workplace regulations by these employers and employers will be forced to a more responsible approach to own employees.

The ELS offers free legal help to employees of multinational enterprises who have encountered abuse of employment-law regulations at their workplace.

For more information: Jana Koukalova, "GARDE - Global Responsibility" program, ELS Brno

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Donations from individuals

• 61 donors
• compared with 2003, the ELS received 474% more in donations

Volunteers

• the ELS gets help from 23 volunteers (they work on Counseling cases)
• example: volunteers worked 194 hours in November and December
• there are two volunteers working on Public Relations

ELS Counseling

in 2005, the ELS provided counseling to:

• 423 individuals
• 263 non-government organizations
• and 29 public institutions (towns, natural reserve management, municipal offices...)
• 6 journalists, 4 businessmen
• in 2005, the Counseling department provided 725 consultations
• most questions involve zoning decisions, construction permits and environment protection

NBiggest cases: 21 cases
Aluminum plant near Most - ¨Farmer Rajter's Story", LG. Philips Displays in Hranice, Toyota Peugeot Citroen Automobils (TPCA) in Kolin, Hyundai in Nosovice, Myllykoski paper mill and waste incineration plant in Opatovice, proposed extension of highway D1 (in relation to road R43), road R52 and zoning plan for the larger Breclav territory, proposed construction of Frydek - Mistek by-pass, construction of highway D8 through Ceske stredohori protected area, highway D11 through Libicky luh protected area, highway D3, Nove mlyny, Lidl in Tabor, Lidl in Rumburk, Danone, golf course in Hluboka, golf course in Celadna, traffic noise in Cesky Tesin, Ruzyne airport, waste dump in Pocatky, quarry in Teletin, Danube- Odra-Elbe channel, supermarkets in Brno etc.

An ELS favorite - the Nemak case: 264 legal actions

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Foundation of the Trust for Economy and Society was inspired by our GARDE program. While working many of its cases, the ELS realized that the non-government sector lacks an organization that would unite experts on economy, sociology and other social studies and that would provide an alternative perspective on our current social reality.

We have, therefore, contacted Mrs. Na?îa Johanisova, the only person in the Czech Republic who seriously studies contradictions in official economic doctrines. We also invited Mr. Jan Drahokoupil who currently studies sociology and social anthropology at the University of Central Europe in Budapest. We gradually found more people interested in these issues and in January 2005 held a first meeting of the founding committee of the Trust for Economy and Society. The ten people who attended the meeting agreed to establish the Trust and became its members together with the ELS. We wrote letters to leading researchers inviting them to join the Trust's advisory board. The organization's web site was launched in January 2005 at thinktank.cz including an e-mail conference whose participants include the Trust's founding members as well as other people. On May 3, 2005, the Trust for Economy and Society was officially registered by the Ministry of the Interior under file no. VS/1-1/60762/05-R and received identification no. (ICO) 269 97 46. The Trust is based in Brno at Dvorakova 13.

Mission and objectives of the Trust
The Trust's mission is to get the professional and general public actively involved in the development of economic and social models, concepts and practical solutions that would support democratic and socially just processes within the society and fostered permanent sustainability and responsible attitudes among businesses. The Trust offers and develops alternatives to mainstream trends, especially in terms of economy.

The Trust's key objectives include:
a) to initiate and develop professional and public discussion on and criticism of dominant premises of neo-classical economy and neo-liberalism as well as the dominant paradigm that forms the policy in the Czech Republic and elsewhere,
b) to contribute to the creation and development of critical thinking in the Czech society,
c) to analyze the consequences and potential risks current policies might create for the society and economy as well as the concept of a democratic state and rule of law,
d) to support the creation, development and operation of local, ethical and democratic economic alternatives in practice,
e) to foster personal growth, increase the number, qualification and social status of exerts and non-experts who promote in real life economic and social principles that support democratic processes, rule of law and sustainability,
f) to support and develop economic tools that create balance between human activities and the environment.

Economy and Society Trust
Dvorakova 13
602 00 Brno
URL: http://www.thinktank.cz/ e-mail: testrast@gmail.com

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ELS lawyers greatly contributed to the writing of ¨Pruvodce novym spravnim radem" (Guide to the new Administrative Procedure Code) soon to be published by Linde. The book offers a detailed interpretation of the controversial act that has been consistently criticized and commented on by the ELS legal program. There are also nearly 50 samples of the most commonly used applications filed by parties involved in administrative procedures. Both interpretation and samples focus on consistent observation of procedural rights of all parties and authorities' friendly approach to the public in general.

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This new publication by ELS lawyers focuses on their legal battle against one of the hottest problems of our modern history: corruption and favoritism in public administration. Its ambitions are not small: to offer practical and clearly understandable guidelines and solutions to various (legal) issues encountered in situations that may very easily happen to private individuals as well as NGO members. We focused on the public's participation in decision-making processes, a factor that, in our opinion and experience, has a highly anti-corruption effect.

87 pages | Price: CZK 150 (CZK 105)

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Readers of this publication will learn about the current mining situation in the Czech Republic: the negative effect of mining on the environment, protection of mineral pockets in different stages, economic tools available for protection of the environment, etc. We included a brief overview of the historical development in mining law in the Czech Republic as well as currently effective regulations. The book is a practical legal manual on mining.

BOOK- 60 pages | Price: CZK 150 (CZK 105)
CD | Price: CZK 50 |
BOOK + CD | Price: CZK 200 (CZK 140)

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The two parts of this legal manual offer overviews of legislation on asbestos and waste management in the Czech Republic. The authors discuss issues such as public health and air protection, waste dumps and conditions defined for their establishment, operation and other serious aspects related to these topics.

Price CZK 150 (CZK 105)

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This publication has two aims: first, to describe fundamental legal regulations in the area of air protection and, second, to provide general guidelines for anybody who suffers from smell nuisance or other types of emissions. The publication offers a number of specific examples.

Price CZK 150 (CZK 105)
CD CZK 50
PUblication+CD CZK 200 (CZK 140)

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