Prime Minister Vladimir Putin met with the Governor of the Vladimir Region, Nikolai Vinogradov
Transcript of the beginning of the meeting:
Vladimir Putin: Mr Vinogradov, these are the usual questions on the economy - what do you think of the situation in the economy and social services? How is business faring, and are there jobs and wages?
Nikolai Vinogradov: Well, of course we are feeling the effects of the global economic crisis. Five companies connected with the automobile industry are an additional burden for our region. We don't manufacture finished automobiles, but only automobile components, including for Togliatti and GAZ. And the situation is anything but simple - there has been a considerable drop in production, and, of course, there have already been cutbacks in personnel. Another sore spot is the nonferrous metals industry.
I must say that, in regard to both the former and the latter, we are working directly with the owners and are developing a series of measures that will help stabilise the situation somewhat. In particular, there are some signs of life at the Kolchugino nonferrous metals processing plant. We have met with the owners of the SOK Group, which owns a number of the companies in our region, and we have begun to talk with them. We will meet with them again in the near future. In other words, our present approach depends on the acuteness of the situation.
Last December, we approved a programme of anti-crisis measures. The programme entailed supporting major companies and small businesses, and it is being implemented. In this regard, employment has great significance for us. And I have to say that we are getting clear and earnest support at the federal level for our efforts to stabilise the labour market. We will receive around 1.2 billion roubles from the federal budget just this year.
What is happening? I think that we have already come through the most difficult period. The number of people registered as unemployed peaked at 32,000 in our region, and the number of job vacancies fell to 5,000. The number of people registered as unemployed is now 26,700.
Vladimir Putin: It decreased by 6,000?
Nikolai Vinogradov: Yes. It has started to decline. And furthermore, the number of job vacancies has sharply increased. The current number is about 8,500, compared to the number of 5,000 I cited before. This year, we are planning to commission around 16 manufacturing facilities. We are monitoring the situation and providing assistance so that they can begin operation. This will employ somewhere between 3,500 and 4,000 people.
As for our industrial production index, from June to July we saw growth, somewhere around 10%. On the whole, we estimated that from January to August, manufacturing also increased by somewhere around 10%.
As far as using federal funds to balance the budget, today our consolidated budget has a growth rate of about 8% as compared to last year. In other words, the situation here is normal - if we account for payment of wages in state-financed organisations.
As for the situation with commercial entities, we've made the following progress: the amount of unpaid wages peaked at around 40 million roubles. That doesn't seem like a very high number in absolute terms, and if we take into account relative size, then it is something like 0.8% of total gross wages. But nevertheless, there was growth.
To date, we have reduced unpaid wages to around 26 million roubles. This number fluctuates between 25 million and 35 million, and it peaked at 40 million. These changes have taken place.
As for agriculture, our total output of grain has grown 50%. We are not an agricultural region, because rural areas account for a total of 8% of the gross regional product. But nevertheless, we're having a pretty good year. We have a milk surplus. It looks like we're holding the line.
But the problem of loan repayment in rural areas has become more acute. Purchasing prices are affecting this. I know that rural residents plan, among other things, to meet with us, and I have materials related to the issue that I would like to give you.
There are difficulties. In my view, the solution must be found somewhere at the federal level. We got loans for eight years. I am thoroughly convinced that today we need to resolve immediately the issue of extending the terms of these loans to somewhere around 15 years in order for rural residents to be able to repay them. This is because we get a major increase in production, among other things, from renovating livestock buildings.
The time to pay back the principal on the loans is upon us. Given falling purchasing prices, the profit margin has shrunk for functioning agriculture companies. I understand perfectly well that the final results at the end of the year... But the way things are going is not very good, which today is a cause for concern.
In other areas, circumstances seem to be rather stable.
Vladimir Putin: How have your preparations for the winter gone?
Nikolai Vinogradov: On the whole, we are sufficiently ready. We considered these issues literally yesterday. Generally speaking, the situation is good.
There have been difficulties with payment for consumable energy resources, but we are working on this issue.
I must say that the preparation of the housing and utilities infrastructure as part of the housing and utilities reform has been a tremendous advantage.
Vladimir Putin: How much did you receive?
Nikolai Vinogradov: 620 million this year.
Vladimir Putin: From the federal budget?
Nikolai Vinogradov: Yes, from the federal budget.
Vladimir Putin: From the Fund?
Nikolai Vinogradov: Yes, from the Support Fund. The problems we have here will take years to solve, and by this I mean undertaking major renovations and moving people out of condemned residential buildings. Generally speaking, there is progress.
Vladimir Putin: How many condemned residential buildings do you have?
Nikolai Vinogradov: We need to relocate around 38,000 people.
Vladimir Putin: And how many have you relocated?
Nikolai Vinogradov: Around 6,000. Relocation is in its second year now. We're getting serious support for this. For the first time we have allocated money for the construction of public housing. Because the waiting lists in the municipalities were practically not moving. And now we plan to house disadvantaged families in free housing, i.e. public housing - and around 420 million roubles will be spent for this purpose. It's starting to come together.
There are also issues with regard to building roads. Just today, you and I looked at a bridge. We built it almost exclusively with federal funds and funds from the constituent entities of the Federation.
Vladimir Putin: You built it fast.
Nikolai Vinogradov: The result turned out pretty well. We will continue this work.
But there are quite a few problems. We're on the case.
Vladimir Putin: You said there are liabilities with regard to utilities. What are they connected with? With unjustifiably high tariffs or technical problems?
Nikolai Vinogradov: The former is the main issue. In essence, setting energy consumption standards per square metre is a task best carried out by local government. As for setting up tariffs or tariff protection - this is done by the constituent entities of the Federation.
A number of local government agencies are all but purposefully under-estimating, and therefore public utilities have discrepancies. Specifically, energy-supplying companies, which are primarily heating companies, that is to say gas companies, are faced with a discrepancy between payments received and resources consumed.
This is a systemic problem. It needs to be solved.
Vladimir Putin: Good.
