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Prime Minister Vladimir Putin chaired a Government meeting

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Vladimir Putin's opening address:

Good afternoon,

Quite recently both the president and I have discussed in detail the social and economic issues facing us. I am referring to President Dmitry Medvedev's address to the Federal Assembly and my speech at the United Russia Congress.

We must work to prepare appropriate legislation and make any other necessary decisions regarding the issues the President and I mentioned.

We will discuss some of these issues today, such as measures to enhance the government efficiency and improve the quality and accessibility of public services. We must also lower administrative barriers for businesses.

Obviously, the diversification and steady development of the Russian economy are only possible when federal and local governments do not interfere with business, but actually encourage it by ensuring flexible regulation, fostering competition and protecting the rights of consumers.

For almost half a year, a new declarative procedure for starting a business has been in place that affects the majority of businesses, including in retail trade, food services, transport, and other consumer services. Unannounced inspections of small and medium-sized businesses without the consent of the Prosecutor's Office have also been prohibited.

These measures have proved to be popular, and we are already seeing their first results. Despite the crisis and the undeniable decline in business activities, thousands of people have used this opportunity to start their own businesses without the unnecessary red tape.

The Prosecutor's Office received 27,000 applications for unannounced inspections and dismissed almost half of them.

These numbers speak not only of the principled position adopted by the Prosecutor's Office: the introduction of the new rules also made it obvious that there are no grounds for the majority of inspections. At best they are being carried out simply to check off a box, and at worst they have been ordered by someone else and for someone else's gain.

We also face many problems regarding the provision of federal and municipal government services. At our request, the Prosecutor General's Office recently investigated this issue, and today we will hear a report on the measures taken to improve the situation.

I have the report on the measures I requested. More than 10 departments have issued orders to rectify violations. Government officials have been held responsible in 13 departments. Some of them were subjected to disciplinary action. Five departments have prepared regulations designed to remove administrative barriers. Six departments have dismissed officials guilty of violations.

But I would like to know who was dismissed and for what. It may turn out that a woman took maternity leave, but the report says she was dismissed for some infraction. I want to know who was fired and for what exactly, based on the results of the inspections by the Prosecutor's Office. Please, make this information available to me.

Let me repeat that a formal report won't do. Our departments should drastically change the substance of their operations.

Now I'd like to say a few words about additional decisions which we are planning to make.

First, it is necessary to make the bodies of authority more open. A list of information on the activities of the Government, federal ministries, services and agencies has been substantially expanded - by 20 items. This list must be published on the Internet without fail.

In particular, we will start publishing such important information as the plans and procedures for inspecting companies and providing public services. I have signed the relevant resolution.

Second, we have compiled an exhaustive list of paid services required for filling out legal documents. This list has been more than halved to 19 paid services. Commercial companies can no longer serve as intermediaries in providing these services. I'd like to ask all those present to make sure that nothing like this happens again.

We are directly prohibiting requiring individuals and companies to present any documents that are not envisaged by the regulations governing this or other public service. Officials guilty of violating this prohibition will be held responsible. A relevant draft federal law is ready and will be submitted to the State Duma this week.

Incidentally, I'd like to remind you that all inspections are to be conducted free of charge. Demanding money from individuals and companies for inspections is impudent and absurd. Breaking this rule should entail serious consequences. We think it is necessary to adopt a relevant law. In addition to this, I ask the Federal Anti-Monopoly Service to strictly enforce compliance with this rule.

Third, today we are making a decision on considerably shortening the list of goods requiring mandatory certification. The percentage of items that must be certified will be decreased from 78% to 54%. Let me remind you that this percentage is even lower in European countries.

Producers of consumer goods, such as household chemicals or perfumes, will be relieved of this expensive and often ineffective procedure.

The new procedures will make life easier for companies. Now they will only have to declare that their products meet safety requirements.

This not only eliminates red tape but also reduces the financial burden on companies. In our tentative estimate, business will save about 700 million roubles.

Needless to say, our work is not yet done, and, as I've already said, we must move forward. Also, it goes without saying that greater freedom for businesspeople implies greater responsibility for the quality of their products. The required amendments to legislation will be drafted.

Also, inspection agencies also have to do their jobs well. They should monitor the quality of goods to prevent the new rules from infringing on the rights of consumers.

Fourth, I hope that our parliament will pass a law establishing uniform procedures for providing public and municipal services, including electronically, before the end of this year. The draft of this law has already been through the first reading in the State Duma.

Starting in 2011, officials will not be allowed to demand any documents from people if these documents exist in public or municipal information databases. Departments should be sending documents to each other electronically on a regular basis. People should not be running around to different departments to get a document.

Ladies and gentlemen,

We have been trying to improve government performance for many years. Of course much still has to be done. We have seen some results, but we cannot stop now. We must continue to make progress without any pause.

Apart from the aforementioned priorities, today we should endorse a comprehensive plan for reducing licensing requirements for businesses and developing institutions for self-regulation and liability insurance. We will inspect all key areas and branches. I've already approved the schedule for this.

In addition, the Administrative Reform Commission should be given special powers for the same reason, including the right to abolish redundant public functions, reduce the number of officials in government bodies, and eliminate redundant bodies and institutions.

The Government will review the legislation drafted by the Commission at an accelerated pace, bypassing the usual procedure of coordinating with other departments. It took us two years to coordinate opinions on some issues, including some that we are finishing discussing today. How can we work so slowly?

I'd like you to prepare the necessary amendments to the Provisions on the Commission and the Regulations on the Government in the next ten days.

We will also discuss several other issues. We must make a decision on the draft of the Customs Code for the Customs Union of Russia, Belarus and Kazakhstan. This is a fundamental piece of legislation, and approving it will be a major step towards a real Customs Union's development that will benefit our three partner countries.

Now let's start the discussion.