Prime Minister Vladimir Putin met with Sergei Katanandov, the Head of the Republic of Karelia
Transcript of the start of the meeting:
Vladimir Putin: Mr Katanandov, we will discuss the situation in Karelia-social and economic developments, employment problems, and the implementation of welfare pledges.
Sergei Katanandov: We went through hard times at the end of last year and barely kept the economy afloat. January and February saw 71% of last year's industrial output. We joined hands with industrial managers, district authorities and the Government to cope with our formidable problems. At present, the output is steadily at 85% of last year's.
There were no smaller problems in the labour market. The number of the unemployed grew by 6,000 within three months against previous 9,000.
Karelia was one of the first regions to get federal support, with lump 162 million rouble allocations earmarked on a programme, and we were reassured that more funds would come if necessary. 70 million roubles have been spent on social welfare for today, and unemployment has reduced by 3,000 thanks to retraining and new jobs created thanks to federal aid. The government-financed sector is getting major attention.
We are also monitoring inflation and price rises-another burning issue. Inflation is at 9.3% presently. We are launching new measures now that an election campaign is on.
Vladimir Putin: What are they?
Sergei Katanandov: We have invented them for the elections.
Vladimir Putin: Social welfare must be permanent-not only timed to election campaigns.
Sergei Katanandov: Russia has a Law on Veterans. We have adopted its republican analogue. Seniors need special care in these hard times. We are adapting the social security card to Karelian conditions. Every pensioner, at token exceptions, will get one. Its holders are entitled to all purchases consumer services at a discount, be it in a shop, at the beautician's or at a petrol station. We are attracting the republic's best private entrepreneurs to charity.
Vladimir Putin: What about wages?
Sergei Katanandov: The monthly average is 17,000 roubles. We can only regret that Karelia cannot afford wage raises to improve public incomes.
Vladimir Putin: I mean back wages in the public sector and elsewhere.
Sergei Katanandov: Wage arrears make 23 million roubles at present.
Vladimir Putin: In the entire Karelian economy?
Sergei Katanandov: Yes.
Vladimir Putin: And the public sector?
Sergei Katanandov: No back wages at all after we borrowed a billion roubles for timely wage payments despite budget cuts. We have done it on several previous occasions.
The situation in the public sector is normal, more or less, though statistics are prettified occasionally, as we have been notified. We have recently had a serious conversation with law enforcement officers. We have to involve city and district prosecutors in monitoring remuneration. Criminal suits have been brought against several managers for back wages.
Vladimir Putin: What about health service?
Sergei Katanandov: It is being monitored, as you might know. We have been reporting to the federal Government for two years now. Our public standards for health service are rather high, so it satisfies mere 30% of the population-unlike education, which meets greater satisfaction. We are alarmed, and have launched several ambitious projects-remember the district health centre I have shown you on our way here? There is another new centre, for cardio-vascular patients. It unites four hospitals. Several district hospitals have opened within these three years, and another several are under construction in the republic's north.
Medicines are unaffordable as they are plus high local markups-46% presently due to great distances for deliveries. The prices are exorbitant in remote areas. We will revise it all now.
