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The Legislative Duma of Tomsk Oblast
29.06.09. The deputies approved the Tomsk Oblast Administration Action Plan for Crisis in 2009 At the last Session the deputies approved the Tomsk Oblast Administration Action Plan for Crisis in 2009 but they also made a number of serious remarks on the document.
One of the major focuses of the crisis management efforts of the regional authorities is strengthening of social security, creation and preservation of jobs.
Anatoly Kobzev believes that this activity area should by divided into two focus areas.
‘Social protection as support for the defenseless should be isolated as a separate issue. In doing so, we will be able to work directly with the labor market and influence its demand and supply; see new opportunities; propose new measures to stabilize its functioning.
Previously, a regional program of additional measures to stabilize the labor market in Tomsk Oblast for 2009 was approved to preserve employment and create new jobs. The program costs 108.6m rubles. It consists of such actions as organization of proactive training, arrangement of temporary jobs and community services, etc. to provide employment to up to 8,000 people, including new jobs created under investment projects, and prevent growth of registered unemployment over 3.3%.
It’s an open secret that demand for labor increases when business is provided with enough support. That is why all crisis management activities are equally targeted at the individuals and the economy. Boris Maltsev, Speaker of the Duma, has many times pointed out that in the current circumstances it is vital to bolster small and medium business to ensure that at least 5,000 jobs are created in that sector. Funding of the Oblast Target Program on Small and Medium Business in Tomsk Oblast for 2008-2010 was increased more than two times against 2008 and made up almost 330m rubles, including 221.5m rubles from the federal budget. Innovation activity is still a priority for the region, hence 90m rubles was allocated for the Oblast Target Program on Development of Innovation Activity in Tomsk Oblast for 2009-2010 from the federal budget, and 30m rubles from the regional budget.
Meanwhile, following Boris Maltsev’s request, the deputies visited small and medium enterprises in the Oblast, received the businessmen’s feedback on state crisis measures of support for business and reported that criticism of the government is heard more frequently than applause.
One of the deputies, Ivan Klyain, summarized the general feeling of the businessmen he spoke with. ‘The authorities tend to support only large companies. Today one can buy fixed assets at a low price but it’s impossible to take out a development loan in the banks because the interest rate for the small business is 24% and higher. There is no long-term money at all, and short money in the time of crisis is pointless.’ But the commonest idea among small and medium businessmen is that the government has been creating too much panic. The businessmen say that ‘today we should avoid thinking of the bad things and ubiquitous lack of money but switch to positive prospects and opportunities that we can take advantage of during the crisis. For example, in times of crisis, the population can buy goods and products at lower prices.’
Ekaterina Sobkanyuk pointed at the absence of consumer demand stimulation tools in the Action Plan for Crisis.
Anatoly Kobzev focused everybody’s attention on the fact that after the crisis management measures carried out by the government tax burden of the business did not decrease, but grew. A little, though.
‘Factors resulting in the growth of the tax burden are change in the cadastral value of land, a new practice to account for the type of activity while determining the cadastral value, and, indirectly, increase in lease payments. Increase in taxes for the business today is an evident mistake of the government!’
Oleg Gromov also shared his impressions of the meetings with the businessmen and his own experience.
‘Major problems of our business today are lack of fixed assets and severe terms of loans. I feel nostalgic when I recall good old times when the director of a bank called me to say, “Why do you spend your working capital on fixed assets? Why don’t you take a loan from me with a 2% interest rate!”
Following Mr. Klyain and Mr. Igor Chernyshev’s proposal, the deputies will discuss and summarize the businessmen’s feedback at the nearest committee meetings to figure out further actions in this area.
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