Prime Minister Vladimir Putin met with Irkutsk Region Governor Dmitry Mezentsev
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon.
Dmitry Mezentsev: Mr Putin, I would like to take a few minutes to discuss some issues of high importance to the administration and to the residents of the Irkutsk Region. Among these are the responsibilities which were taken by the region's authorities and the Ust-Ordyn Buryat Autonomous Area's top officials, who developed a unified programme for the merger of the two territories which was supported by a majority vote from millions of local residents at the referendum. At that point, the tasks and obligations taken by both federal and local officials were achievable - now, however, the situation with the regional budget is more challenging.
With 15 community and social facilities planned in the Ust-Ordyn Buryat Autonomous Area, we have only managed to accomplish the construction of the two medium-sized polyclinics, of 150 and 200 rooms respectively, in two local villages.
We require the supplementary finances to be allocated according to the 2008 presidential decrees in addition to the money from our local budget. These finances would give us the opportunity both to implement projects and prove to local residents that the plans for the merger programme are reasonable.
Vladimir Putin: Mr Mezentsev, how long has it been since you took this office?
Dmitry Mezentsev: It has been almost two months.
Vladimir Putin: But you have been familiar with the issues in the Irkutsk Region, and now in the merged constituent entity, for a long time as you represented the region in the Federation Council. What do you consider the top-priority projects for the region and the entire entity?
Dmitry Mezentsev: Actually, my answer to this question would have to be based on the budget. First, there are social issues. We would like to see a consistent policy, as implemented by the regional administration, enjoy support from local residents becoming the basis for its credibility to reduce the negative migration rate. The number of people leaving the territory is high, the major reason being a lack of trust in the region's ability to make progress and in the federal authorities' support. We have a great number of abandoned projects, including many in business, which do not enjoy support from the government. This also contributes to the people's lack of confidence in the future, especially amid the current economic crisis - and it is this imponderable and intangible confidence that should serve as the basis for the region's future development.
Vladimir Putin: But where's the confidence if people continue to leave?
Dmitry Mezentsev: We want people's confidence to become a foundation. Irkutsk, Eastern Siberia's largest city, is nearing its 350th anniversary. We would certainly like the federal centre, local businesses and residents do everything they can for the city to take on a new attractive look, both for expanding tourism and to develop Siberia's future in the 21st century.
Vladimir Putin: Mr Mezentsev, the upcoming anniversary is surely a good occasion for the city to "cash in", as they say, but it is only a one-time occurrence. It is more important to think of creating a solid economic basis to settle social issues. Which economic projects do you consider as most prospective to receive support from the government?
Dmitry Mezentsev: By 2011, we are to submit the improved development strategy for the merged constituent entity. We are fully aware that economic development based on raw material exports is doomed, but in the near term it will be difficult to change this. We should not even consider it in some industries such as the timber industry, as the Irkutsk Region is the leading territory in terms of timber and timber products manufacture. We should implement certain regulatory steps to increase the credibility of the local timber industry and to battle associated crime, to make it a systemic production sector. We should develop timber processing so that consumers don't think our activities are limited to exporting only logs. We need to launch a number of large wood construction companies in the region as village residents would like to have more attractive neighbourhoods.
Vladimir Putin: Good. So, it is timber processing that needs development. Yes, it is true that exporting unfinished logs is the easiest but not the wisest approach. What other prospects are there?
Dmitry Mezentsev: Prospects also lie in attracting both domestic and foreign investors. The region boasts an enormous energy potential. The local Irkutskenergo energy company with a two gigawatt capacity is one of the major local enterprises keeping the territory competitive. Certain enterprises, including Taishet Aluminium Plant, not only provide jobs but also add to the territory's actual and export potential.
Vladimir Putin: This is reasonable. At yesterday's meeting on ecology, as well as at today's visit with the author Valentin Rasputin, we said that producing energy and exporting it abroad is aimless and works only if no other option is left. The region should use energy production activities as the base for expanding its manufacturing facilities.
Dmitry Mezentsev: Speaking of expanding facilities, we have a project to modernise a powerful Soviet-era petrochemical complex. We are exceedingly grateful to you for emphasising the Government's view on reconstructing the Baikal pulp-and-paper mill and your concern for the mill's thousands of employees. We also appreciate your mentioning the necessity of the comprehensive development of both Baikalsk and Sludyanka areas, along with the attention given to creating a special tourist and recreational economic zone and the possible launch of a special technology development zone.
We are aware of all these things and we consider it important to revise the region's production potential. This revision should include thorough and public discussion of the activities to advance local potential in solving problems, including the environmental problems resulting from local manufacturing activities such as the Baikal pulp-and-paper mill and other plants.
Vladimir Putin: What about the region's social sector? I mean providing new jobs, education and medicine.
Dmitry Mezentsev: Mr Putin, Irkutsk is a city with many educational institutions, with a combined student body of about 110,000 out of a total population of 600,000. This is definitely a positive point as it adds up to Irkutsk's youthful atmosphere. On the other hand, graduates should be hopeful about employment prospects upon leaving the university. There is a distinction between the opportunities provided today by universities in Irkutsk and the region's other major cities, such as Bratsk, Angarsk, Shelekhov and Ust-Ilimsk. This is why the regional administration considers the expansion of small business to be so important. We understand that small businesses provide both new jobs and considerable revenue for the local budget, as well as excellent opportunities for young people to find their vocation without relying too much on the government, city or regional administrations. They can expect their own personal knowledge and skills to be of demand on the market.
We will pay considerable attention to developing a special programme in both Irkutsk and the region to support small business and provide assistance in expanding various market segments, raging from folk arts and crafts and souvenir production to expanding public catering networks and tailor and repair shops where local residents can apply their skills.
Also, it is obvious that large companies will go through restructuring resulting in a varying availability of jobs, hence the need for reserve jobs. The example of the Baikal pulp-and-paper mill shows that the 1,600 employees left jobless upon the plant's closure have no opportunity to leave the town of Baikalsk to find another job due to the underdeveloped transport infrastructure, as well as other reasons.
This is why we must consider a plan for expanding the region's production capacity within the development strategy to fully utilise the territory's potential. This includes education.
We would like to implement more joint projects with the neighbouring constituent entities and to work with them more closely. We are planning a joint tourism programme with the Republic of Buryatia which designates two special tourist and recreational zones on Lake Baikal's right and left shores. The Trans-Baikal Territory, meanwhile, offers a number of cellulose production related projects, including those with China. Locations for future manufacturing facilities are critical in order to avoid overproduction and to avoid increasing final product costs through inefficient transport logistics. We need more mutual cooperation between the region and the neighbouring territories when considering our development strategy.
Vladimir Putin: Just be careful again not to construct facilities which would turn out to be of no use in the end.
Do you have any wage debt in the region?
Dmitry Mezentsev: The wage debt is negligible.
Vladimir Putin: What about the economic sector? I'm referring to public employees.
Dmitry Mezentsev: With budget-paid employees, wage debt amounts to 36 million roubles, which we plan to pay by September 1.
Vladimir Putin: This has to be done since your region regularly receives funds from the federal budget. I believe this is necessary for the territory's efficiency.
Dmitry Mezentsev: Mr Putin, I have mentioned the local administration's view on this issue. Despite difficulties with the local budget, which now is at its worst in seven to eight years, we are maintaining the social responsibilities we took. One example is re-establishing the 4,000-ruble payment to families who adopted children.
Vladimir Putin: I know that was your decision, which I think was absolutely correct. Now, let's proceed to the issues related to the territorial merger.
