Opening statement of Prime Minister of Ukraine Mykola Azarov during Government's meeting on January 9, 2014

posted 09 January 2014 14:16

Honorable Members of the Cabinet of Ministers!

Dear invited!

 

Once again I congratulate all on the occasion of the New Year and Christmas holidays.

Today our main task is to organize the system operation of the economy after the holidays. At the end of last year, thanks to the arrangements of the Presidents of Ukraine and Russia, we resolved fundamental problems of sustainability of state finances and economic development through the restoration of unimpeded trade and industrial cooperation.

In the final days of last year, as the President instructed, all delays in payment of salaries and social benefits from the budget were eliminated. We began 2014 without delays in payments, and we can continue to fulfill social obligations clearly and in accordance with the schedule. Thus, despite the long weekend, as of January 9, more than UAH 6 billion pensions has been funded - absolutely everything that is planned for that date - and pensions are paid routinely. And you realize how it is vital for the elderly people.

It is obviously that 2014 will be better for our people, for the Ukraine.

We must optimally use new features. We have everything so that 2014 would be the year of stability and development. If the society is consolidated on such purposes, 2014 will be the year of stable prices, stable exchange rate, sustained increase in wages and pensions, and extra payments to state employees for the quality and volume of work.

The adoption of the State Budget is very important for the sustainable development of the country. It ensures stability in the country, industry and agricultural production development and on this basis – rise in social standards.

Our Government knows how to do it. You can criticize the Government for a lot of things for shortcomings in the work - unfortunately, there are some shortcomings, but we are the first to find them. And not to see that in less than four years social benefits increased by almost half in the country - just you can not! And this is in a state that fully felt the pressure of the global economic crisis and the economic recession in Europe, and trade problems with Russia. At the same time, our country had the burden of Europe's largest gas prices, but it also withstood the price and tariffs for housing and communal services. Inflationary price increases in Ukraine over the past four years was 14 %, approximately 3% per year – is a European rate of inflation, while for two years in 2008-2009 – it was almost 40%.

You can, as the opposition do, to spatter the economic policy of our Government. But deposits of our citizens increased by 205% (more than in two times) or by more UAH 222 billion. And it is an inescapable fact. Only for the last year, retail deposits in national currency rose almost by UAH 70 billion, or by 36%. Overall, our citizens are kept with banks UAH 434 billion - more than the annual revenue of the State Budget! What does it mean, if not an absolutely undeniable credibility to the Government's economic policy? You can talk as much as you like, but it is an undeniable fact.

Add to this that the opposition tries to swing such trust almost every day: it continuously provokes panic about the stability of the national currency, it has called and calls to withdraw deposits - why do they do it? And who would believe them? People clearly, so to speak, "voted" by their savings for the national currency, the national economy and they "voted" against the opposition’s calls.

Therefore, our Government will continue to pursue a policy of reliance on the domestic market and the intensification of the national economy. And to perform social initiatives of the President of Ukraine, it will gradually increase the purchasing power of our citizens.

On the one hand, we have offered lawmakers to cut by 1% income tax to more funds remain in business for modernization. On the other hand, we continue to increase the social budget parameters. The minimum wage in the current year will exceed the level of 2009 almost in 2 times, the size of the salary of the employee of the first wage category of the Unified Tariff Scale by 1.7 times.

As a result of these increases, the average wage until the end of 2014, for example, of a district general physician of higher category will increase by UAH 602 per month, of a physician assistant by UAH 401 per month, of a head of the kindergarten by UAH 645, of a teacher of higher category of an educational institution by UAH 602, of a senior researcher by UAH 748.

Certainly, we have also provided in the following year phased increase in cost of living for one person.

At the same time the Government guarantees that the budget for 2014 is balanced at most, realistic, created for the people of Ukraine.

The Verkhovna Rada of Ukraine adopted the resolution on the peculiarities of consideration and adoption of the State Budget for 2014. According to it, the Parliamentary Committee on Budget has begun the preparation of proposals to the draft budget with the participation of authorized representatives of the Cabinet of Ministers. The preparation will take place in a very short period of time up to 10 o’clock of January 16, 2014. On the same day the draft State Budget of Ukraine for 2014, according to this resolution has to be passed as a whole.

That is why every member of the Cabinet should devote next week primarily to the work with deputies, with parliamentary committees and parliamentary groups to convey to them our conviction: the developed by the Government budget is the main key to financial stability and economic development in 2014.

 

Dear colleagues!

2014 should be the critical year. We will move toward radical modernization of the economy or we will sink in a political infighting. In fact, this subject requires a deep opening, but now I limit myself to just a statement of the fact, still undeniable for the authorities, the opposition, and for all our people. It is absolutely unconditionally. The economy that is based on industry, where 75% of the equipment is physically and mentally worn out in many sectors of the economy has no prospects in global competition. We have seen this in the past. Prior to this fact, any political ambition - personal, party and so on - should be postponed for the sake of the all-national perspective.

What should be done immediately?

First of all. We’ve run at full capacity industrial cooperation program with Russia already in February, which gives us in the next few years hundreds of thousands of jobs and guarantees to budgets of all levels, that there will be a financial framework for the development of our domestic market. As well as free trade are within the CIS to operate, which importance to our economy can not be overemphasized. Vice Prime Minister Yuriy Boyko is responsible for this. The cost of these programs is tens of billions of dollars. Even more - this is the future of the basic sectors of our industry. Especially since new gas price, which was reached as a result of the agreements our President, give the opportunity for industrial development.

The second. The activation economic development program must start working steadily. It is the categorical demand of the President of Ukraine. It is the calculated by us chance in 5-10 years to have a competitive industry and agriculture. The First Vice Prime Minister S. Arbuzov is responsible for this. The main thing here - to concentrate all possible financial resources for successful projects, primarily related to the modernization of industry and production. And here it can not be compromises or delays.

I demand that causes of inhibition of investments in businesses and industries that defined in the program for the economic development will be eliminated within the month.

The third. We should begin realistic talks on practical terms of the Association Agreement with the European Union and the Free Trade Area with the EU. I instructed under the leadership of Vice Prime Minister Y. Boyko to conduct an in-depth sectoral analysis of the implications of a free trade area for the national economy. We do not need suggestions. We should talk with our partners based on facts, figures and irrefutable arguments. Because, there is the existence of Ukraine, which is developing its own modern economy, but not the economies of other countries, on scales. We can not to ignore any risk. And I am confident that the facts will find understanding in our European partners when we put on the table a package of conditions for implementation of the Association Agreement and FTA.

This work should also be performed in a very short period of time. I emphasize personal responsibility for this of ministers Prasolov, Korolenko Prysyazhnyuk, Stavyskyi, Temnyk, Kozak. And in general, it is a matter of every member of the Cabinet.

Thus, the task is that we have a balanced, systematic project of state development in February with full use of the advantages that free trade area with CIS and industrial cooperation with Russia and cooperation with the European Union give.

We need a coordinated system of action in specific areas, industries and even for individual companies. Foreign investors also need the same, without whom the task of modernization of the Ukrainian economy can not be performed.

 

Honorable Members of the Cabinet of Ministers!

Concerning the agenda.

Today we will consider a bill that makes it possible to restructure arrears for maintenance of buildings and adjacent areas and for public utilities (water supply and sewerage, gas, electricity, district heating, waste removal) that emerged as of January 1, 2014.

This is not a write-off – this is an opportunity for people who for various reasons were not able to pay and can not get rid of debts, to conclude contracts for the gradual repayment of these amounts and pay them easy.

The Government continues to implement projects of infrastructure: roads, schools, kindergartens, hospitals, etc are built. In order to ensure efficient use of public funds today, we make changes to the procedure of verification of compliance with regulations and standards of calculating the value of construction projects that are built with the assistance of the budgets of all levels, credits under sovereign guaranteed loans, etc.

Pursuant to the provisions of the Code of Civil Protection it is scheduled to approve:

- Provision on a unified state system of civil protection;

- Default position on departmental fire protection service. (By the way, in view of yesterday's emergency in Kharkiv and Kyivv today, it has particular relevance.)

- The list of objects, the design of which shall be based on requirements of engineering activities of civil protection.

In order to avoid duplication of the supervisory functions by bodies of the state market surveillance and separation of kinds of products for which such supervision is carried out – a list of kinds of products on which the Market Supervision is carried out will be approved.

On the order of the President of Ukraine the Ministry of Ecology and Natural Resources of Ukraine has developed an Action Plan aimed at curbing illegal mining of coal, which will be consider by members of the Government today. The issue is extremely important because the illegal mine-cisterns not only cause significant damage to the environment, but also take away lives.

Recently the President of Ukraine has signed the Law of Ukraine “On the grounds of functioning of the electric power market in Ukraine” which is aimed at liberalization of the wholesale electricity market of Ukraine and creating of efficient competitive environment on the electric power market, including principal requirements of the EU legislation.

Today the members of the Government shall approve the Plan of preparing of draft acts necessary to ensure effective realization of this law.

So, we will create a considerable impetus to drawing investments into modernization of production, transition and supply of electric power.

And there is another very important issue. In 2014, Ukraine chairs in the Commonwealth of Independent States.

Objective is responsible; a significant amount of work has already carried out. Today we will create the Organizing Committee, approve it’s the personal composition and approve action plan of the presidency of Ukraine in the CIS this year.

 

Thank you.