FACTBOX-Policies of Chile's main presidential candidates

Oct 30 (Reuters) - Chile's presidential election is shaping up to be a three-way race between a conservative billionaire, a former president from the ruling center-left coalition and a former film producer running as an independent. [ID:nN30314820]

The two traditional candidates on the Dec. 13 ballot, center-right businessman Sebastian Pinera and center-left former President Eduardo Frei, likely will keep the prudent fiscal policies that have made Chile's economy one of Latin America's most stable, analysts say.

But Pinera wants the private sector to take more leadership in stimulating the economy and creating new jobs, while Frei emphasizes the state's role but has not yet announced his economic policy platform.

Left-leaning independent Marco Enriquez-Ominami, 36, has broken away from the ruling coalition and advocates tighter state control over health, education, transport and social security. He also would raise taxes on the mining and corporate sectors and lower income tax.

The following are the main policies of the three main candidates:

SEBASTIAN PINERA:

* Maintain relaxed fiscal rules indefinitely by maintaining the current medium-term target for the fiscal surplus at zero percent of gross domestic product. In response to the global economic crisis, the government temporarily lowered its so-called "structural fiscal surplus" target from 0.5 percent of GDP to zero.

* Improve management of state companies like copper miner Codelco and energy company Enap.

* Allow private pension funds to hold a combined 20 percent of state copper giant Codelco.

* Give incentives to the private sector, particularly small and mid-sized companies, to create 1 million jobs between 2010-2014.

* Look at merging the regulators for the stock market and banking sector.

* Foster investment in alternative energy sources.

* Introduce legal rights for same-sex couples but keep ban on gay marriage.

* Extend maternity leave to six months from three months.

EDUARDO FREI:

* Expand social welfare programs to include the middle class.

* Introduce labor reforms that would allow the creation of more unions and give more workers collective bargaining rights.

* Gradually reduce pensioners' public health system contributions from 7 percent.

* Introduce a state guarantee on mortgage payments.

* Study the possibility of developing alternative energy sources, including nuclear power.

* Make private health providers and pension funds publish earnings and dividends.

* Introduce legal rights for common-law and same-sex couples.

* Give half of cabinet posts to people under age 45

MARCO ENRIQUEZ-OMINAMI

* Raise royalties on copper mining and open debate on raising them for other sectors like salmon farming and forestry.

* Raise taxes on companies and lower the upper limit on personal income tax to 30 percent from 40 percent.

* Create a state pension fund system.

* Open to revising the strict fiscal surplus target, which is now at zero percent of GDP, to allow more debt.

* Increase state role in transport, health, housing, education and social security and raise government spending on infrastructure and public works projects.

* Agrees in principle to give workers or state pension fund 5 percent stake in state copper company Codelco, but only if new corporate governance law proves deficient.

* Legalize gay marriage, abortion and marijuana.

* Change system of government to Westminster-style hybrid, to include president and prime minister.

* Create a consumer protection ombudsman's office.

(Reporting by Simon Gardner, Rodrigo Martinez, Antonio de la Jara and Alvaro Tapia; Editing by Louise Egan and Bill Trott)