DBPapers
DOI: 10.5593/SGEM2014/B13/S3.003

ANALYSING IMPACT OF PIT CLOSURES IN THE CZECH REPUBLIC AS REGARDS REGIONAL FINANCIAL AND TAXATION STRUCTURES

J. Magnuskova
Wednesday 1 October 2014 by Libadmin2014

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-09-4 / ISSN 1314-2704, June 19-25, 2014, Book 1, Vol. 3, 17-22 pp

ABSTRACT
The Czech mining industries have reduced considerably. The extraction of metal
minerals declined in 1990 and was followed the strong trend of pit closures that started in 1992 with serious implications for people and industries in the affected regions of the republic. The mineral extraction industries were the state monopolies and it is the state that is considered to be responsible for easing the tension of these industries’ reduced operation. The closing of pits have immediate implications for unemployment and related regional economy, social and taxation structures. Running of pits implies cooperation of many people and related regional industries, as it is the case of heavy industries in general. If these are cut down or fail, serious unemployment problems arise with difficult social consequences. This is especially the case if no other industries exist in the region that might be of some alleviating effect. There are two such regions in the Czech Republic, namely the Moravian-Silesian and Usti Regions, where the nemployment rate is in excess of 10%. The regions of high unemployment rate have less labour taxation budgetary means, which makes implementation of their investment plans difficult. It is rather obvious that the long-term prognosis of coal extraction in the Czech Republic in unfavourable and the coal extraction industries cannot solve the problem of permanent job provision. Some solution might be provided by attracting new industries to establish and new businesses to invest in the afflicted regions.

Keywords: Coal extraction, Pit closures, Economic impacts, Coal reduced production, Unemployment