OREANDA-NEWS. December 16, 2010. Dear members of the Government!

Dear invited!

For the first time the Cabinet of Ministers of Ukraine holds its regular session in new membership.

First of all, I want to thank our colleagues - the leaders of the ministries and departments, which were downsized or reorganized. They honestly, responsibly and professionally carried out their duties. Now they work in not less important and crucial areas.

I want to wish all of us fruitful work, optimism and confidence in our abilities. The work will be hard but, I can assure you, interesting.

Yesterday the Parliament of Ukraine adopted in first reading the draft Law "On State Budget of Ukraine for 2011". 275 deputies voted for this decision.

I want to thank the legislators who supported the law. Moreover, as you know, the budget process takes place in difficult conditions, almost in time trouble. Responsibility and integrity of the majority of MPs doing all the best to make the state enter the new year with the approved budget, shows that the authority is able to solve complex problems, to act for public interest without political egoism.

Instead, we expected constructive criticism of the budget from the opposition, but we received nothing but baseless charges, gross distortion of facts. Unfortunately, instead of undertaking along with the power the budget improvements, giving relevant suggestions and pointing out possible shortcomings, the opposition again resorted to boring demagoguery, unsupported accusations.

And who does blame our government?

Aren’t these those, who generally left the country without budget for the current year and "manually" were distributing people's money as ones of their own wallet? Aren’t these those who do not know where tens of billions of loans were dispersed, who managed the economy in the way to ruined it to world record margin, who froze for two years wages and pensions while devaluated twice the national currency?

Those, who during two year did not built a single object required for people and which could make them be proud, try to say us something. Those who lost the confidence of international financial institutions, investors, allowed the fall of sovereign rating of Ukraine to the brink of default.

That means, those try to blame us, who showed our people and the world how one should not govern the country and those who even in the opposition tried to stall to make positive changes, make vital legislative processes of the country in time-trouble.

Now we expect a busy stage of drafting the budget for second reading. We expect - and we will ask the Parliament - that it took place until 24 December.

I instruct all ministers, heads of departments to work out carefully and promptly the MPs’, committees’, and parliamentary factions’ suggestions and comments. Already during the first reading helpful comments and suggestions sounded. All, that is in conformity with interests of the country in 2011 should be included in the budget.

I think everybody understands that we won’t have the ideal budget in conditions when the state only gets out of the crisis while reforming the tax and budget system. However, we must improve the bill with the deputies’ help, consider constructive criticism.

Only country stands on the path of economic development, that is why the next year budget cannot promise immediate and rapid rise in living standards, but it is realistic, and therefore ensures that:

- public sector workers salary next year will be paid without delay;

- pension for those with pension behind the living wage will be increased;

- planned economic development program will be financed smoothly in order to develop the economy provided a better life.
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Our country has entered a very important period of development. Today we also carry a number of crucial system reforms, which completely change the life of the country: judicial, tax, budget, governance, and pension.

With only political will and power stability Ukraine finally stands on the path of reform. This is the pained choice of dramatic changes that will make Ukraine strong and prosperous, will provide a European standard of living for all our citizens.

It is clear that several simultaneous large-scale reforms implementation is very difficult. However, each of these reforms is necessary and urgent. Reforming the tax system creates incentives for innovation development of economy, government reform provides better management of social and economic processes that are closer to community needs, and pension reform will give people incentives to work more efficiently, and the economy a huge resource savings of pension funds, funds directed into the real sector.

As you know, Monday under the chairmanship of еру President of Ukraine an extended meeting of the Council of Regions took place, where the President Viktor Yanukovych underlined once again: there is no an alternative for program of reform "prosperous society, competitive economy, effective state".

Now the society actively discusses the reform of public administration. The authorities have set the example by starting with transformation. Almost half the number of members of the Cabinet is reduced, the structure of the Government and the central bodies of executive power is optimized.

The Government adopted a decree establishing the number of civil servants working in central executive and subordinate local bodies to be reduced for not less than 30%.

On Friday, the latest, ministries and departments must provide the Ministry of Finance proposals for the size of the central office and subordinate regional bodies. In another 10 days, the government must approve the corresponding act determining the maximum number of officials.

Please note that at the meeting of the Council of Regions the President of Ukraine demanded: officials reducing should not have any political focus, no political affiliation. There is only one principle: save for public service the best professionals, save the required functions of public administration.

Why do I emphasize this? Because the downsizing and cost savings is not the end in itself. The goal of the power is the introduction of technologically new, advanced public management, promote the state officials skills upgrading.

Figuratively speaking, the modern plane can not be controlled by the one who knows only how to drive the cart.

We need to keep professional staff, which successful implementation of reform Program in the coming years will depend on.

Again: this is just the beginning. On the agenda - the reform of local government.

In this regard, I want to underline: the number of officials at the local level must also be reduced by about a half, but the main criteria during the reform of regional government is responsibility, professionalism, and functionality. Moreover, starting next year, local government gets more power and budgetary resources for the use of which it should be competent to answer.

Concerning pension reform, which affects the interests of all the citizens of Ukraine, the principled position is that the bill was the most widely discussed and took into account all the constructive suggestions and comments.

I have instructed the Vice Prime Minister - Minister of Social Policy Sergiy Tigipko as the developer in chief of the pension bill, to organize personally the pension system content understanding by all the citizens: explain its provisions, open discussions with the NGOs representatives, trade unions, employers, entrepreneurs, experts, international consultants and others. In particular, discussion and suggestions will be conducted on the Ministry of Social Policy web-site.

As a result of such discussion, after analyzing the proposals made by people after all will be heard, we have to get the best version of pension reform in which every citizen will see his interest.

Actually I want to emphasize that the reforms will be successful only if they are transparent, understandable to people, and when during their execution the interests and opinions of every citizen are taken into account, regardless of age, profession or social status.
Therefore, whether our most important task is the information, advocacy and advisory work on the changes taking place in the country. We have to bring to public debate and make suggestions all the population of Ukraine. It is necessary to take into account in our work all the sound proposals.

To this end, the Government at today's meeting will approve the resolution of the Cabinet of Ministers of Ukraine to hold public discussions of systemic social and economic reforms, taking into account the views of citizens for their improvement.

On the agenda.

Today we will consider a concept of the Law of Ukraine "On Combating Human Trafficking"

The document should include not only the measures to increase public awareness on this dangerous social phenomenon, but a system of protection and assistance to victims of trafficking. It is about their rehabilitation and social integration, taking into account the needs of victims of various forms of exploitation and more.

In block of social issues today we will consider:

First, the draft law "On amending some laws of Ukraine" by which we improve the procedure for granting state aid to families with children.

Second, the Government resolution on allocation of academic scholarships of the Cabinet of Ministers of Ukraine for the current semester.

Our Government pays great attention to construction and reconstruction of social infrastructure. New hospitals, schools, gasducts are constructed. We recently opened the reconstructed speed tram line in Kiev. Now we open up new Kiev subway station and completely renovated Moscow square transportation hub.

At this meeting we will review Odessa Regional State Administration projects submitted to the Government on:

- construction of medical building for 297 beds at Odessa Regional Clinical Hospital;

- reconstruction of buildings of municipal institution "City Infectious Clinical Hospital;

- priority construction of wastewater from biological treatment station "Pivnichna" in Odessa on the "Hltbokovodnyi vypusk" object.

The government continues to introduce risk-based supervisory functions of public authorities in some directions.

Today we will consider the draft resolutions, which set the frequency of inspections in the areas of:

creation, formation, maintenance and use of the insurance fund documentation;

development, manufacturing of special technical means of tacit information and its trade.

For the Government consideration a draft of State privatization program is submitted.

The complexity of the document is shown that today, the privatization of state property is subject to the State Privatization Program, which was calculated for 2000-2002.

The new program will allow to attract investments to the state economy, the budget will free the country from holding objects whose presence in public ownership is economically unfeasible.

We plan to amend the legislation, aimed at increasing the attractiveness of domestic enterprises as the basis for the repair of ships, including foreign military vessels.

The Government is completing the development and adoption of regulations necessary for the effective implementation since January 1, 2011 of the new Budget Code.

At today's session as part of this work is we will consider the order of transfer of budgetary transfers, as provided by the Article 108 of the Code.

In the area of international relations we will consider:

bill on ratification of agreement between the governments of Ukraine and the Federative Republic of Brazil on air service;

draft Agreement between the Governments of Ukraine and the State of Israel on mutual promotion and protection of investments, as well as air service;

draft Agreement between the Cabinet of Ministers of Ukraine and the Swiss Federal Council on visa facilitation.

Thank you. Let us work on the agenda issues.