"Gazeta": "VLADIMIR PUTIN WARDS OFF ATTACK ON CENTRAL BANK"
The Prime Minister had a meeting with the United Russia party leadership in Novo-Ogaryevo
Last Friday, Prime Minister Vladimir Putin, who is at least an informal head of United Russia, met with the party's leadership. With his annual report in the State Duma coming in April, Friday's discussions could be described as a rehearsal for it. The conversation did not last long (just over an hour).
"WHAT DOES THE CRISIS HAVE TO DO WITH THAT?"
The Prime Minister first broke the bad news: the crisis was far from being over and had not even hit bottom. "The steps being taken by leading economies are having little or no effect. This means that this period (a crisis period - Gazeta) may endure long enough," he said. In these conditions, according to the Prime Minister, "it is necessary to draw a stiff line between first and last priorities." The Government did this by increasing anti-crisis spending and cutting investments.
It is up to the regions now. Until recently, governors have shown poor judgement concerning their priorities. "Some of the schools have not been repaired for 30 years. What does the crisis have to do with that?" he asked angrily.
"They must get their priorities right. It means some regions have decided there is something more important," Mr Putin said.
To draft anti-crisis measures in the regions and municipalities, he urged United Russia members to draw on the "party's brain potential".
IN SEARCH OF LONG MONEY
The party leadership was, of course, interested in how to provide loans for businesses. They blamed the Central Bank for the money squeeze. Martin Shakkum, Head of the State Duma's Committee on Construction and Land Relations, made the following proposals: first, he suggested that some of the Bank's territorial offices be closed (Moscow Mayor Yury Luzhkov, who had often been critical of the Ministry of Finance and the Bank before and was bored until that moment, livened up) and second, that the regulator be left only with the money-issuing job and stripped of the power to monitor the banking sector. He proposed that the banking supervision committee be separated from the Bank and merged with the Savings Insurance Agency.
Mr Putin rejected the idea of Bank reorganisation, however. "The proposal can be examined, but without haste. I consider what the Central Bank has been doing until now to be justified and effective. The availability or absence of long money in the economy does not depend on the Bank," the Prime Minister answered.
SAVING 160 BILLION ROUBLES ON CHECKS
Mr Putin instructed United Russia to look into how the law on reducing small business inspections will be observed starting June 1. The implementation of that decision would not only promote small businesses (and public welfare), but also save budget money. "The federal budget spends, it is terrible to say, 160 billion roubles annually on checks alone, through various channels and departments," the Prime Minister said.
Boris Gryzlov, chairman of United Russia's supreme council, proposed going further and introducing a moratorium on all small business inspections during 2009. Mr Putin said he liked the idea. "The only thing that holds me back is the quality of services and goods. I fear that ordinary people might later ask us: ‘What have you done?'" the Prime Minister warned.
"THERE WILL BE NO MELTDOWN"
Social issues also interested the United Russia leadership. Yury Lipatov, Chairman of the State Duma's Energy Committee, was concerned about the Government's ability to honour its social pledges in 2009. The Prime Minister said it would. Pensions in 2009, he said, would be raised several times: on March 1, April 1, and December 1. At the same time, to meet the budget deficit, the Government would borrow more widely (in 2009 only on the internal market and from 2010 on, also abroad). Currently the Budget Code allows just 1% of the GDP deficit to be financed out of sources other than the Reserve Fund. Mr Putin promised speedy amendments to the Budget Code to remove this barrier.
However, whatever the deficit (it must not be more than 8% of the GDP) and however long the global (and Russian) economy might be jolted, the Prime Minister said there would be "no meltdown".
"What matters above all is the quality of our work. When there are resources and money, it is a pleasure distributing them, but when we are in the midst of a crisis, things become more serious," the Prime Minister said.
Maxim Tovkailo
