Agenda: On introducing amendments to state programmes, on the tax administration roadmap, on simplifying utility connection procedures and on developing labour market and employment support measures.
Opening remarks by Dmitry Medvedev
Meeting with deputy prime ministers
Dmitry Medvedev: I would like to say a few words about our agenda for the upcoming week. We will review a number of state programmes. Some of them have to be amended up to 15 April, including efforts to ensure the implementation of the basic regulatory documents and to bring them in conformity with the current economic situation.
I will hold meetings, and we will also assess how education, transport and healthcare systems are developing. We will have to organise some other events, and we will also meet to discuss state programmes.
I would also like to note that I have signed a new road map dealing with tax administration. Its measures are called upon to reduce cooperation deadlines between taxpayers and tax agencies, including the time needed to submit tax declarations, and the preparation and effecting of the relevant payments. On the whole, this road map should expedite the conversion of taxpayers and, of course, tax authorities to electronic documents. Therefore it will become possible to improve the administration of a number of special tax regimes, including the so-called simplified taxation, patents and some others.
Dmitry Medvedev: "I would also like to note that I have signed a new road map dealing with tax administration. Its measures are called upon to reduce cooperation deadlines between taxpayers and tax agencies, including the time needed to submit tax declarations, and the preparation and effecting of the relevant payments."
And there is one more issue, which deals with utility connection procedures. I will sign this document, which is ready to go. As a result, the period for technological connection will be reduced by 30 days. The overwhelming majority of applications for utility connection come from individuals and relatively small companies. This means that this resolution should improve the conditions for small and medium-sized businesses.
Let me remind you that our aim is to reduce the timeframe for utility connections to 45 days on average by 2015. This is quite tough, if we remember what we had quite recently. These changes will benefit the consumers who use equipment with a capacity not exceeding 150 kW, which is the most popular equipment with startups and relatively small companies. This should also promote our general progress with regard to assessments within the framework of the existing ratings.
Dmitry Medvedev: "Let me remind you that our aim is to reduce the timeframe for utility connections to 45 days on average by 2015. This is quite tough, if we remember what we had quite recently. These changes will benefit the consumers who use equipment with a capacity not exceeding 150 kW, which is the most popular equipment with startups and relatively small companies."
Mr Dvorkovich (addressing Arkady Dvorkovich), please tell us in more detail about the document I am going to sign after this meeting.
Arkady Dvorkovich: Mr Medvedev, colleagues, in a nutshell, we should replace successive connection procedures by a parallel procedure. Currently, in order to connect to a grid, a company or a person must first…
Dmitry Medvedev: We are speaking about the procedures themselves, not successive or parallel connection.
Arkady Dvorkovich: Exactly. We are speaking about the procedures and how they are carried out. Currently a company or a person should first submit documents to a grid organisation and secure a technological connection. Next they should submit documents to a sales organisation and sign an electricity supply contract. It is only after this that they will be supplied with electricity. The draft resolution (hereinafter, the resolution) assumes that the applicant will allow the grid to carry out the reconciliation procedure and sign a power supply contract with a sales organisation. This contract will be signed before the technological connection is effected. Thus, as soon as a connection becomes technically feasible, the contract will already enter into effect, and the electricity supplies will start right away. This will reduce the grid connection procedure for such organisations and individuals by 30 days.
Arkady Dvorkovich: "Currently a company or a person should first submit documents to a grid organisation and secure a technological connection. Next they should submit documents to a sales organisation and sign an electricity supply contract. It is only after this that they will be supplied with electricity. The draft resolution (hereinafter, the resolution) assumes that the applicant will allow the grid to carry out the reconciliation procedure and sign a power supply contract with a sales organisation."
In addition, the work on the draft law is coming to an end (it is scheduled for completion in the second quarter), which will help cut the time it takes to connect to a grid by another 60 days and bring the deadline, as you mentioned, to 45 days.
But even the first phase, which we are discussing today, will allow us to move up to the 60th place or higher. We believe that in future we will be able to rank among the top 30-40 countries in terms of this indicator after the draft law is passed and fully implemented.
Dmitry Medvedev: These 30 to 40 top countries, how fast do they implement these measures?
Arkady Dvorkovich: It takes them anywhere from 30 to 45 days.
Dmitry Medvedev: In other words, a month or a month and a half?
Arkady Dvorkovich: Yes.
Dmitry Medvedev: Okay, we’ll see. Hopefully, this will eventually lead to radical simplification of the grid connection process. This is truly important for promoting business.
Businesses cannot expand without expanding the labour market and promoting employment. The situation in this area has been fairly good so far. Overall unemployment in December stood at 5.6 %. The challenges that we are facing now are very important. Above all this, of course, concerns improving productivity and creating numerous modern, effective, or, as some say, high-productivity workplaces. We do have targets in this sphere.
Dmitry Medvedev: " Overall unemployment in December stood at 5.6 %. The challenges that we are facing now are very important. Above all this, of course, concerns improving productivity and creating numerous modern, effective, or, as some say, high-productivity workplaces."
The labour market, despite being in fairly good shape, is still plagued by a few problems. First, this market is not properly balanced. Second, and this can be seen across several areas, we are experiencing shortages of skilled workers and we are preserving inefficient employment. I spoke about this on several occasions recently at various venues, saying that we need to support employment, but it does not mean that we should preserve inefficient employment. We must be able to have a soft influence on the labour market, but to do so we need to carry out a number of programmes and ideas.
Ms Golodets, will you please speak about this in detail?
Olga Golodets: Mr Medvedev, colleagues, the current situation on the labour market is unusual. As you mentioned, unemployment is low, and the demand for labour is on the rise, and we are unable to meet it in full.
Olga Golodets: "There is unemployment (917,000 unemployed people are currently registered with the employment service), but we also see a growing demand for labour. There are 1.8 million vacancies registered with the employment service, which is indicative of a major structural imbalance on the labour market. "
There is unemployment (917,000 unemployed people are currently registered with the employment service), but we also see a growing demand for labour. There are 1.8 million vacancies registered with the employment service, which is indicative of a major structural imbalance on the labour market. Expanding manufacturing plants are experiencing shortages of skilled workers. In this connection, we will re-focus our active employment policies on measures to improve the professional level of the workforce and to promote labour mobility and facilitate adaptation of workers who move to new regions in search of effective employment. The project is being discussed, and we will submit it to you this week.
Dmitry Medvedev: All right. This is truly a big issue. We will continue to address it from various angles.
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