The Legislative Duma of Tomsk Oblast
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April 29, 2015. 41st Session of the Duma of the 5th convocation
On April 29, 2015 the 41st session of the Tomsk Oblast Legislative Duma of the 5th convocation was held. The Governor of Tomsk Oblast Sergey Zhvachkin presented his annual report on the performance of the executive government of the region in 2014.
He said among other things:
“Today, we are summarizing the results of the year 2014. I will not read all 160 pages of my report. I hope, all of you had enough time to scrutinize it beforehand. I will talk about the most important things – what decisions the regional government made and how they influenced the economy and the social comfort of people living in Tomsk Oblast.
The year 2014 was difficult. It was not the most successful year in terms of economic results. However, I cannot and will not have others call it a crisis year. Crisis means shutdown of enterprises, unpaid salaries, massive unemployment. This has not and will never happen in Tomsk oblast.
It is not a crisis. It is bad economic weather: rain of sanctions, fog from ratings by international rating agencies, winds from currency rate fluctuations. Even in those conditions we did not sit around and wait indefinitely. We kept working.
Through a joint effort by the executive and legislative branches of the regional government two years ago we started working on import substitution so much in vogue today. We were launching new areas of production. And the year 2014 was when those decisions triumphantly proved right.
Full report by Sergey Zhvachkin
Oleg Gromov asked the Governor about the timeframe for the reconstruction of the motor road Kamaevka – Asino as part of the INOTomsk project. Vladimir Kravchenko had a question about programs to attract young professional to rural areas. Aleksey Fedorov was interested in a program for sustainable development of rural areas. Leonid Terekhov was concerned about the living standard. Vasily Semkin reported to the Governor on the challenges of bringing natural gas to the territories included in the city boundaries of Tomsk. Paruir Yavrumyan talked about the too large land tax burden. Galina Nemtseva wanted to hear about the historic preservation program and work with the representatives of Tomsk Oblast in the Federal Assembly. Evgenia Pavlova was interested in the forthcoming municipal elections.
Sergey Zhvachkin answered the deputies’ questions and thanked them for the productive cooperation in 2014.
“On the one hand, the deputies in our Duma represent various political parties; on the other hand we all are citizens of the same region – Tomsk Oblast. I thank you all for being part of the largest party – party of people living in Tomsk Oblast – and work for the wellbeing of your countrymen.”
Oksana Kozlovskaya commented on the Governor’s report
“The Governor was subjected to very close questioning. And he did not try to avoid those questions. Rather, he gave detailed comments on each of them. Despite certain economic hardships, Tomsk Oblast has a lot to be proud of. It has good demography dynamics – the current population of the region is 1,075,000 people, which means that the region remains attractive and lures people from other regions. The working age population is growing. Average salaries of public sector workers are high compared to other regions in the Siberian Federal District. And we can’t afford losing momentum. We have to move forward. It is important to make sure that all commitments are fulfilled in 2015 just as they were in 2014.”
Oksana Kozlovskaya noted that Tomsk Oblast takes part in many federal projects such as industrial parks, additional funding for the Tomsk SEZ, and gas supply.
“In 2015, just as the Governor said in his report, the gas supply project is extending in the direction of Asinovsky District. This will not only provide another boost for the development of the regional forest industry but also bring natural gas to 3,000 households.”
She also believes that roads remain the area of big concern for the region.
“Roads in Tomsk Oblast require 6.5bn rubles for proper maintenance. We can afford just a little above 2.5bn rubles. We keep working with the federal authorities on this issue. The recent change in the scope of the INOTomsk project, approved by the Russian Government is a good example – the region has got a new motor road Kamaevka – Asino. That is a new turn. To the credit of the Oblast Administration, they have resolved a long-standing and challenging issue of the lack of places in nursery schools. Today, we heard a commitment that by the end of 2015 this problem will be solved across the entire region for all children from 3 to 7 years old. It is an ambitious statement and a very right and aggressive target.”
Deputy Speaker of the Legislative Duma of Tomsk Oblast, Chairman of the Budgetary and Financial Committee, leader of the United Russia party faction Aleksander Kupriyanets commented on the Governor’s report.
“The Governor’s report in many ways reflects what the Russian President has been saying lately. Vladimir Putin says that Russia has been able to withstand the economic war. Of course, those who waged this war against us are unnerved at our economic performance. Tomsk Oblast worked hard to maintain the stability of its economy, keep people employed and prevent the crisis from escalating. As Sergey Zhvachkin said, the tax base as well as the industrial output was increased though a rapid development of processing industries whereas leading oil producers reduced their production rates.
The deputies were pleased to note that the social stability has been well maintained, too. New nursery and secondary schools appear, salaries are kept high.”
Chairman of the Economic Policy Committee Arkady Eskin said he believed the growth of industrial output in the region was the key result of 2014 despite all economic hardships.
“This means that we have done the groundwork which will secure the positive development of the economy. The gas supply project does not only provide heat security to the citizens but also boosts the local industry.”
He believes that the Administration of the region needs to invest more energy in protecting the region’s interests at the federal level in terms of the distribution of taxes collected in the regions.
“The current situation in the oil and gas industry is upsetting, and not even because of declining production. The point is that the new tax collection system takes all taxes to Moscow who then distributes the pool among the regions. That undermines the region’s economy. Of course, the federation will decide what is best but pushing forward ideas and proposals is the job of the executive and legislative branches of power in the regions.”
Comment by Chairman of the Committee for Legislation, State Structure and Safety of the Legislative Duma of Tomsk Oblast Vladimir Kravchenko
“The Governor has clearly said today that even amidst the economic tempest our ship is steadily progressing forward towards its goal skillfully navigating between reefs. He has set the right tone for all of us. We must now communicate this positive mood to the people living in the areas we represent.
The Governor’s report has helped many deputies and workers of the Oblast Administration to compare notes and summarize the results of their own work.
On the one hand we looked back at what we had done in 2014 and reconfirmed that against all the odds we had distributed the budget and set priorities right. On the other hand, we answered our questions and saw for ourselves that in spite of the crisis the region is aggressively moving forward towards its goals.
Oblast deputy Oleg Gromov said that the Governor had delivered a clear and easy-to-understand piece of information about the current state of affairs in Tomsk Oblast
“We now know what we will say to the voters and how we can convince them that the development of the region has gained positive momentum. It is very important that all social benefits and salaries did not go down. Times are much better now than back in 1998 or 1994. Today we have a sound basis for further development of Tomsk Oblast.”
Oleg Gromov believes that 2014 was not a bad year for the region, yet Tomsk Oblast did not manage to escape from the crisis:
“Even though the crisis was somewhat ‘creepy’ in its nature, still it made an impact on individuals and businesses. However, we managed to withstand. And we accomplished a lot. The Governor described our achievements very well in his report. It was especially pleasing to hear about further development plans, including a plan for Asinovsky District. For several dozens of years we waited for gas to come to the area and finally this year we are watching it happen. Prospects for the forest industry are great news, too. Agriculture is disappointing, though. Despite sporadic achievements, agricultural facilities keep struggling. Life in rural areas is dramatically different from that in cities.
Comment by Chairman of Labor and Social Policy Committee Leonid Glok
“Sergey provided a detailed report on what was done by the Oblast Administration and executive authorities at all levels in 2014 and how they prepared for 2015. It is very important. It is a snapshot of the current social and economic status of the region. I liked the update on the nine ‘beacons’ which have been a subject of many discussions and follow-up work. For example, industrial parks are growing rapidly – there are many residents already and infrastructure projects are under way. It was a great report but I missed two very important topics. First of all, the goals for 2015 are clear but underlying issues are not. Secondly, he did not say a word about the involvement of social institutions into the decision-making process. He did talk about expert councils and the Public Chamber but he did not mention that they should be integrated into public administration.”
Comment by Oblast deputy and CPRF party member Aleksey Fedorov
“I have heard many reports. This one is very professionally done and developed to the greatest detail. It does not talk about ‘soap bubbles’ or unrealistic projects. On the contrary, it describes very specific action items and metrics, which will work for the region’s benefit. I am certain that this plan will see the light of day even if not as soon as we want. During financial instability it helps stay afloat and demonstrate good results in refilling the budget and setting attractive salaries. I come from a small village and I expected to hear more on a plan for the development of rural areas as this subject is not part of the socioeconomic development strategy for 2025. These few projects that we have (such as development of dairy farms) are too feeble to make a step change and boost rural development.”
Comment by Leader of Just Russia party faction Galina Nemtseva
“When listening to the reports, there is always inconsistency between what is said from the rostrum and stories of real people who come to us for advice. Sergey Zhvachkin’s report was no exception. Such are basic principles to structure a report – achievements are placed on the forefront and shortcomings are at best mentioned in passing. From this point of view this report uses a conventional approach. We do have a lot to be proud of. I liked that the report does not only talk about the results of 2014 but also sets targets for 2015. At the same time, the question about the reduction of the budget was left open. Also, the report does not say whether the region is going to adopt a different historic preservation program. Yet, I hope, answers will come sooner or later.”
Comment by leader of the LDPR party faction Sergey Bryansky
“I have rather mixed impressions about the Governor’s report. On the one hand, it is true that the region improved many indicators, resolved many problems, and there are a lot of promising projects in progress right now. On the other hand, the real incomes of the population are going down. It seemed that the Governor did not pay enough attention to such important subjects as expansion of industrial capacity, oil and gas extraction, new oil wells. The extracting industry is the keystone for Tomsk Oblast and the most solid basis for its development. I would prefer to hear more about that.”
Tax holidays for start-ups
The Oblast deputies adopted in two readings amendments to two laws – On setting tax rates applied in Tomsk Oblast under the simplified taxation system and On the patent-based taxation system.
It is proposed to set a 0% tax rate for newly registered private entrepreneurs who use the simplified taxation system. Qualifying areas of business are production, social and (or) science and research. The tax holidays will apply for no longer than two fiscal periods.
There are restrictions such as a requirement that the average salary per employee should be at least three times the minimum salary established by federal law (17,895 rubles per month in 2015). Also, the average headcount should not exceed 15 full time equivalents.
Tax holidays were also established for newly registered private entrepreneurs on the patent-based taxation system. Qualifying areas of business are also production, social and (or) science and research. The 0% tax preference will apply for no longer than two fiscal periods. There are restrictions such as a requirement that the average salary per employee should be at least twice the minimum salary established by federal law (11,930 rubles per month in 2015).
Labor patent for migrant workers became cheaper
Given the changes in the economic situation, it was proposed to reduce the cost of the labor patent for migrant workers. The deputies had originally discussed that early this year and then as part of the discussion around the report by Head of the Tomsk Oblast Office of the Federal Migration Service Aleksander Romanov.
The law On setting in 2015 a special labor market coefficient for the calculation of individual income tax for certain categories of foreign citizens employed in Tomsk Oblast under a patent became effective on January 1, 2015. The coefficient was set at 2.5504 (4,000 rubles per month) for visa-free migrant workers coming to Russia for employment.
In 2015, migrant workers coming to Tomsk Oblast generally have not obtained the labor patent. For the same period in 2014 there were 2,624 patents issued. In 2015 – only 401. In January-March 2015, 3,095 migrants came to the region seeking employment.
The amendments propose to reduce the cost of the patent to 2,500 rubles per month, which brings the regional coefficient down to 1.594. To simplify the paperwork for migrant workers Tomsk set up a migration center – the second one in the Siberian Federal District. The center has been functioning since March 18. Also, on July 1, 2015 Tomsk TB hospital opens a ‘one-stop shop’ for migrants where they can obtain necessary medical certificates. Many other actions are in progress as well to attract visa-free migrant workforce and legalize their employment.
