OREANDA-NEWS. October 01, 2010. M. Azarov - Dear colleagues! The President of Ukraine held meeting of the Committee on Reforms. It was dedicated to deregulation of different spheres of social life, economy first. Fair criticism sounded to address of many ministries and departments, regional administrations for the slow implementation of the decisions taken by the Government itself. Work on the abolition of unnecessary and often meaningless permits, approvals, with a significant reduction in the number of regulations that binds business initiatives and entrepreneurship, is performed slow.

Therefore, I strongly demand: ministers, heads of departments, local authorities must implement all the plans on deregulation work. Covering two weeks the Government Secretariat (A. Tolstoukhov) is to report to me on the tasks execution.

Also criticism sounded on creation of various enterprises under the state executive power. They are provided with such services, which are in fact functions of certain authorities.

We agreed with you about the liquidation of such enterprises. So in addition I commend Mr. Tolstouhov to arrange urgently the inspection of all ministries, committees, departments, regional administrations to establish objectively: where and what was created. In a week the full list of such enterprises with a list of paid services they provide, should be on the table the Prime Minister.

Parallel I entrust the CRD to check how money, collected from businesses, was spent. At the same time the Cabinet Secretariat is to draft the government resolution to liquidate these enterprises - with the mechanism of their liquidation and terms.

I draw your attention to importance and principle of the task. We begin the second phase of establishing order in the State, which lies in the assessment of what was done, in the control of tasks execution, correcting what has been wrong. We deployed the country for creative work. We moved from place the economy stopped flywheel. And that is why the Government will not allow anyone to slow down and distort the new course.

Dear members of the Government! After the ruins, left by ridiculous governance in past years, there were many skepticism: is it even possible to change the situation quickly enough to resume large-scale projects in our economy?

We proved that it is possible. I would give just a few examples. The day before yesterday we opened the railway traffic on Darnytsia bridge. This is the first time in more than 30 years (since the construction of South Bridge) such a project with such a serious scale is implemented in Ukraine. For the first time since 1949 the old railway bridge, recognized as emergency one, will be put to reconstruction. Improving rail communications, and soon of the automotive will be huge.

In general, this is the first huge transport breakthrough in Ukraine. I have already expressed gratitude to railroad workers, builders, new heads of local authorities, who promptly decided “loaded” during years problem. At the same time I emphasize that the level of coherence and efficiency obliges the builders not to lower the rates of work and to put definitely this landmark facility in operation during the prescribed period. Remind that I hold that construction on my personal control.

Major strategic projects are implemented in the energy sector. So, the pre-construction phase of the power line for 750 kilovolt of Rivne Nuclear Power Plant to the "Kiev" substation is completed with paths to Khmelnitsky nuclear power plant and the Chernobyl nuclear power plant, financed by EBRD. The total length of transmission line makes 500 km. We have not carried out such project since the independence. Experts form Minfuelenergy, "UkrEnergo" have performed a huge amount of preparatory work and now you can, in fact, pass to the building. This transmission line will submit to the power grid of the new unit of Rivne NPP additional 1000 MW. And due to that, Kyiv for example, which exhausted the reserves of power, can now confidently lay the master plan for development of the capital region and the metropolitan. Large-scale development projects will be guaranteed by electricity provision. Also the reliability, stability of the entire energy system of Ukraine will significantly increase.

Meanwhile, we all realized that it is not enough to generate enough electricity. It should be economically, best effectively used. The problem area in energy saving is well known - it is our utilities. In some cases, loss of energy are reaching 50%. And for those losses, by the way, our people are paying from their own pockets. Therefore, the innovations in energy efficiency, primarily in housing, for us is the priority. And such decision exists.

Thus, under Government's consideration there are proposal to implement in Ukraine large investment projects to increase energy efficiency and introduce a "social energy basket". It provides reducing energy payment for those who use scientifically based regulatory scope, and increase of the payment for extra energy. Incidentally, this system is the norm for our neighbors, Poland and Belarus.

I instruct the Ministry of Energy, Housing and Communal Services, Ministry of Labor to explore this investment project. We will proceed from the obvious reality that energy will never be cheaper. Thus, Ukraine needs to be ready for such development. Our responsibility is not only to protect the vulnerable population by subsidies, but to give all citizens a tool for energy efficiency in their homes.

In general the question of efficiency, extremely efficient and equitable, in the interests of society, resources use should be focused in all the industries.

So, it is necessary to reverse the situation in construction. Building organizations overstate the cost of works and thus limit the demand. The decline in demand does not give resources for continuation of the building. It creates a vicious circle.

So I instruct the Minister of Construction Mr. Yatsuba, the State Committee on land, regional administrations under the supervision of the Vice Prime Minister V. Tikhonov to uncompromisingly deal with pricing in construction, with land values and constraints on land allocation for construction. If we do not solve these issues – we would not push the building complex, which suffered the worst losses. Up to 60% of the volume is lost over the past 2 years! Restoration of pre-crisis rates of construction шы еру a national project for the next 5 years and the ground for it is laid today.

The second sector of Government focus - agribusiness. The Vice Prime Ministers Mr. Slauta, MRr. Tigipko, Agrarian Policy Minister are instructed to create a comprehensive program of food self-sufficiency of Ukraine and the accelerated development of agriculture, which will provide and stabilize the prices, and food security and creation of market infrastructure (vegetable stores, refrigerators, wholesale markets) and bulk breeding recovery.

These two sectors: construction and agricultural, according to our plan will be in 2011 the engines of economic growth as they are domestically oriented and invulnerable to external conditions. Overall coordination of national programs for construction and agriculture is put on the Senior Vice Prime Minister Mr. Klyuyev.

Concerning the agenda. As we have repeatedly said the Government along with the solution of current issues pays great attention to the formation of policy documents for the medium term prospective. Here the emphasis is on the economy. In particular, we are not satisfied with the scope and structure of investments that are invested in Ukraine. Investments were mainly directed only in industries that generate high returns and are quickly recovered. At the same time, the priority sectors remained without investment. Inaction on this issue in recent years significantly worsened the position of Ukraine in the ranking of competitiveness.

So today we look at the Concept of the State Target Economic Program on development of investment activity in 2011-2015. Its adoption will create conditions to stimulate investment, aimed at modernizing the real economy and sustainable economic development.

Also on the agenda we have the State target program of recycling components of liquid rocket fuel for the 2010-2014 biennium, which is important from the standpoint of environmental safety.

We will consider the draft Concept of National crime prevention programs till 2015 aimed at eliminating the causes that generate law offense in different spheres of public life.

The Government supports the development of renewable energy as the strategic direction of public policy to enhance energy security and improvement of environment in Ukraine. Today we will consider amendments to the comprehensive program of wind farms building.

We are giving back to the State mortgage institution its basic function – refinancing of primary mortgage lenders. Other non-core functions that actually led to deterioration in its performance will be canceled.

The Government keeps under constant control the use of State funds, sent to regions in the form of public investment. Today we will consider direction of 65 million UAH to build medical building of Odessa regional hospital for approximately 300 beds. At the same time we will reduce the costs of the object, where the preparation of technical documents is not fully completed in the same city.

I want to address myself to the governors: if for whatever reason this year work on the objects could not be carried out, the money should be redirected for other facilities. Quickly submit proposals for redistribution. I worn you: the resource, which this year will be frozen due to non-readiness of the territory is the barrier for investment resources in 2011. Country will not finance unproductive managers.

Also today we will consider changes to the draft order on the state reserve wealth. The task is clear: to establish transparent, competitive pricing of property and to prevent budget losses.

Traditionally social unit includes draft resolution, which establishes additional allowances for special working conditions. In addition, we consider the issue of additional resource allocation for payment of state social assistance to orphans and children deprived of parental care, gratuities for parents and foster parents for providing social services in orphanages and foster families on the basis "money follows the child". Thank you.