OREANDA-NEWS. October 13, 2010. Opening speech of the Prime Minister of Ukraine Mykola Azarov at the Cabinet of Ministers of Ukraine session:

The Government is working on a systematic deregulation in various economic activities. We held a large meeting with all the central executive bodies involved in the building complex, as well as of vice-chairmen of governors responsible for this area. At this meeting it was decided to simplify procedures for issuing building permits. Technology lies in the fact that within a month the Government will develop a framework law, which will determine the mechanisms of the new order. It will cover all stages, from decisions about the allocation of land to commissioning.

The main idea of change is that during the transitional period introduction of new rules the main responsibility for the simplification of these orders would be vested on the Government, which could quickly make the necessary decisions. Simplification for issuing permits in construction and land allocation for construction system will allow to shorten average to 4 times time for permits issue to start construction works, contracts of sale of land from the filing of an application by investors.

Ultimately, it is to not only expedite the issuance of documents of permitting character, but also to activate the building, reduce the cost per square meter, to enhance the investment attractiveness of the area.

Another question - modern construction technologies and building materials require an effective regulatory system that would ensure high standards of quality and safety. Most of the today state building codes and standards do not meet the requirements of the time.

In order to improve the regulatory system governing construction in Ukraine, and harmonize it with European standards today we would consider an appropriate action plan.

Also today, we will consider a bill improving the procedure of state registration of business entities, besides that it is proposed to regulate the procedure for storing registration affairs by the officials forming them, to establish the administrative liability for officials violating order of storing registration files, etc. These changes would make impossible deliberate actions, which may delay the registration procedures.

In the framework of adaptation of Ukrainian legislation to EU legislation, we also consider an important question that relates to the Technical Regulations for safety of machinery and equipment.

Last week I paid a visit to Estonia and Finland. I want to inform you briefly of the results of visits. I am pleased to note that between our countries there are no economic or political differences. The leaders of these countries opted for a significant streamlining of relations with Ukraine in all spheres: trade, economic, cultural, social protection issues. They support the European integration of Ukraine and the desire to conclude the first stage of the Association Agreement with the European Union on free trade area, as well as the visa-free regime.

Interesting is the experience of these countries to overcome the crisis. What, first of all, they pay attention to? This was the update of the country, the technological modernization and support by the governments of measures to improve training and retraining of workers. The upgrading the country required personnel capable of performing advanced functions. That's where in the crisis conditions the leaders of these countries applied their efforts.

What I would like to point also? In a crisis, government and opposition work together, using every opportunity to stabilize the situation. And how in our case opposition forces, who, by the way, call themselves patriots, do act? They constantly make statements that contain false information, with only one purpose - to provoke instability in the country.

Now, on the eve of elections to local authorities, those who yesterday was completely discredited as public managers, are trying again to disturb the situation in the state, to intimidate people by all sorts of horror stories about the price and currency jumps. For example, Tymoshenko said yesterday that inflation in the country is 58.7%. The person, who during his premiership forbade the State Statistics Committee to make its current data management public, says it. The people, who claim for the title of the fighters for a better life, are fully aware that panic triggers price instability and difficult economic situation.

The Government always does evaluate frankly and objectively the situation and always tells people the truth. We make no secret that Ukraine is in a difficult situation. The country is emerging from crisis - it is an objective fact. Moreover, a number of circumstances compounds the way out of the crisis. First of all, this year there was an anomalous summer drought and a sharp reduction in cereal harvest, mainly in Russia and other grain-producing countries, while in Ukraine these factors are affected to a lesser extent. Deficit of grain on world markets triggered a sharp rise in prices on almost all food commodities, our country is not isolated from the world market and of course, that these issues were also touched upon us.

The Government is doing everything possible to stabilize the situation, but the abilities of the Government this year are somewhat limited, because we have an empty treasury, huge debts, and the storages, where minimum stock of food were kept, being an instrument of influence on price stability, are generally empty . Therefore, it took time to stabilize the financial sector, to create the necessary reserves, this work is now undergoing. Already now the Government has the actual financial and material aid as lever to respond to the challenges of our time, we have increased the currency reserves. So, I can say that any destabilization of the markets will not have place.

A few words about the parameters of inflation in September, the real parameters. Once again, I emphasize, we, unlike their predecessors, are not going to manipulate the statistics. Indeed, the September consumer price index was 2.9%. However, this is not cause for panic and inflation rush at the consumer market.

In this regard, political opponents’ statements look quite strange about hiding the real situation and the silence from the Government. This testament is the lack of minimum professional competence in this field or in the citizens of Ukraine minds firm manipulating. We have witnessed the use of such manipulations in recent years, this will not happen again.

When calculating the consumer price index one uses the International Classification of individual consumption. For example, the eggs in September increased 1.5-fold, but they occupy in the consumer basket only 1%, or one hundredth, vegetables grown in price by 16,8% and make 4.38% in the basket, and oil is about 1.5%. At the same time, prices for other groups, which occupy more weight in the structure of consumption, have remained virtually unchanged. I repeat, in September we had an extremely high inflation - 2,9%, this is a very high inflation, but it's not 58, not 59.

Solving the problem of unreasonable prices establishing for some commodities is one of the most important and government works to solve it. How can we in future level the negative impact of these factors for the population? First of all it is the creation of civilized food market. This is a significant rise of our agriculture and the system of government and corporate reserves, which can react instantly to high demand of the population. In this direction we will move.

Dear Colleagues, the Government is implementing infrastructure projects to ensure sustainable economic growth and to improve the welfare of the citizens. Together with the World Bank we are implementing energy projects that will improve the reliability of electricity supply to consumers of the Crimean region, reconstructing equipment for Dnieper and Donbas electric power systems and building new power lines to the Dniester HPP. At today's session we will consider a joint project of the Government of Ukraine and the World Bank for the transfer of electric power.

The State pays attention not only to build roads, stadiums, airports, bridges. We fully support the initiative of citizens and local authorities aimed at improving the health of the younger generation. Today, members of the Government will consider allocating Rivne junior sports school resources to construct a sports complex.

Recently, we have taken a decision that entitles employees of cultural institutions to receive annual financial assistance for vacation. Today we will take a decision on payment of financial assistance for rehabilitation in the amount of a salary for employees of state and municipal museums.

To support freedom of speech and legal framework of the independent media activities the Government has drafted a bill "On reforming public and communal print media."

In addition, to ensure the right of citizens to participate in public affairs, defending their rights, laws, interests, today we consider more effective organization of personal reception of citizens in the Cabinet of Ministers.

Today we will consider a number of issues of international cooperation. These are different kind of agreements between the governments of Ukraine and the Republic of Macedonia, Kingdom of Denmark and the Kingdom of Thailand, Government of the Russian Federation and the Republic of Kazakhstan, Kingdom of Saudi Arabia, and we will consider them in the decision of the Council of CIS Heads of Government.

In addition, we will consider a bill aimed at the implementation of internal procedures aimed at Ukraine's accession to the Kyoto Convention on simplification and harmonization of procedures.
At the end, I want to appeal to the governors. The heating season has begun, virtually all the regions report that the heating season has begun, that the kindergartens, hospitals, schools and houses get heat in entirety.

Unfortunately, the facts show that the situation is not that they try to present it. Even in the capital, not all the houses are heated in accordance with the regulations. The first connection have shown not quite a satisfactory quality of preparation for the heating season. As in previous years, some heat supply organizations are not heating houses, but the streets, that is why the governors should hold personal responsibility for the quality of heat supply to social facilities and housing. Assessment of your work will be the number of appeals to the government hotline.

In addition, not less important issues. Since the beginning of the heating season the number of requests for subsidies will increase. Therefore, on the field we should attract people so each application was examined in the shortest possible time, and the supplying organization should not rush into all sorts of threats of blackouts. Heads of administrations are also responsible for that.

On behalf of President of Ukraine V. Yanukovych, the Government will repeal certain provisions of the decree "On the extension of paid services by institutions of higher education". D. Tabachnik will report on this.