Transcript of the meeting:
Vladimir Putin: Mr Misharin, we had a look at how industry is faring in your region –not bad at all, at least based on what I've seen and progress on major projects. These projects are worth the money, as long as the region spends the money wisely.
The Pervouralsk New Pipe Plant used all the money that was earmarked for it – five billion in the form of a government guarantee and 10 billion in loans. Of course, the crisis interfered with its plans, but everything has been completed and the results are very impressive.
I'd like to say a few words about the VSMPO-AVISMA Corporation. You visited it seven years ago. Do you remember the condition it was in? The involvement of Rostekhnologii changed everything. The support of the local authorities changed the situation beyond recognition. They have invested almost $700 million in reconstruction and are planning to spend as much in the next two to three years. This will fundamentally change production. Major changes will also take place here, at the Locomotive Plant. AVISMA launched new production with American partners; the Locomotive Plant is cooperating with German partners, whereas the Pervouralsk New Pipe Plant is a strictly Russian enterprise. All three enterprises are paying a great deal of attention to the prospects for creating an entirely new technological foundation, and they deserve support.
Another area that requires attention is the resolution of social challenges. Providing housing, which we've discussed today, is a priority of the government. Yesterday we discussed the Housing programme at the government meeting and adopted a new federal targeted programme. But programmes should also be adopted at corporate and regional level. In fact, I'm pleased to say that the directors of all the enterprises we visited today are thinking about this and suggesting their solutions to these problems. I'd like to note that as governor these issues are also your responsibility. I'd like us to agree to grant the New Pipe Plant (as I said, this was money well spent) another several billion in government guarantees. Let's help them secure a loan for its housing construction plans.
These ideas can be modified for other enterprises. The VSMPO-AVISMA Corporation and the Locomotive Plant can also do something in this vein. Let me repeat that today I heard the ideas of their directors on supporting mortgages, making a down payment, and paying compensation for servicing the loan, the interest payments. This is all possible, but it would have been much more difficult for them without your support. I'd like you to focus on this.
You've received considerable funds for road construction. How have you spent them? What have you done in Yekaterinburg?
Alexander Misharin: Thank you, Mr Putin. Indeed, today we have presented a number of projects to you, and I'd like to thank you for your decision to support housing construction.
This year our industrial production index is 115.5%. We are gradually returning to pre-crisis levels. Investment has returned to 2008 levels – about 240 billion roubles. The housing issue is becoming increasingly urgent. This year we intend to commission 1,750,000 square metres of housing (this is a little more than in 2008
and much more than in 2009). The decision on government guarantees for enterprises that attract young specialists and qualified workers to develop high tech production is a very important and pressing matter. I think that now a lot of companies are launching additional programmes in an effort to support the Housing programme endorsed by you. Its main requirement is one square metre of housing per capita a year. This means that the Sverdlovsk Region must build 4.4 million square metres. There is a great deal of work still to be done, but I think we will manage.
As for the roads, I appreciate a decision to allocate the Sverdlovsk Region 1.3 billion roubles for street repairs, primarily in Yekaterinburg (repair standards have never been met in Yekaterinburg). This allowed us to repair 10% of streets, which is our norm for 10 million square metres – one million square metres covers 175 roads and 47 exits. A 9.5 km-long road was built to the Uralmashzavod Plant. They were waiting for it for several years.
Here I have some before and after photos. We've already seen some other pictures today.
Vladimir Putin: Okay, but I need to understand how we can help you. I would really like to help. But this issue shouldn't be taken up at the federal level all the time. We should help you to address it locally, resolving all the problems in each courtyard.
Alexander Misharin: Yes, but I'd still like to add that people showed understanding and support for the road repair programme even though these works had to be done under a tight schedule and traffic jam increased during this period. But overall, it's good that we have brought to the forefront the need to modernise municipal infrastructure, in particular in courtyards. Starting next year we would like such programmes to be financed by ordinary people, regional authorities and the federal government, as set forth in Law 175...
Vladimir Putin: We have just toured VSMPO-AVISMA Corporation in... What's the name of that town?
Alexander Misharin: Verkhnyaya Salda.
Vladimir Putin: Yes, and we drove past a new hockey centre, which has already been opened, as was said. This is one of the new sports facilities in the Sverdlovsk Region...
Alexander Misharin: The centre will be opened by the end of the year.
Vladimir Putin: Much has been accomplished, which I'd like to congratulate you on. You have already tried this arena, to my knowledge, and ordinary people would also like to play hockey there, you know. The company's director said it will be opened to the public in March, but I'd like you to expedite this issue and help the company open it at least by January.
Alexander Misharin: Will do.
Vladimir Putin: So people can use this arena during the New Year's holidays.
Alexander Misharin: Yes, we will do it. It's the right decision. Such facilities should be built across the region, not only in Verkhnyaya Salda. Incidentally, we have worked out a programme for ice rinks in courtyards. Here it is. These pictures show what we plan to build in the first 1,000 courtyards. We believe that this programme should involve as many courtyards as possible since it will definitely improve the social atmosphere.
Vladimir Putin: Have you received the funds to relocate people from dilapidated houses?
Alexander Misharin: Yes, we have.
Vladimir Putin: What about the funds for major repairs?
Alexander Misharin: In the past three years we have spent 13.2 billion roubles on the major housing repairs programme. Regarding relocation, 267 old houses have been pulled down, and 4,754 people moved to new houses from them. Major repair works were done at several blocks of flats, where 570,000 people, or 12% of the population, live. This has been one of the most efficient programmes. I'd like to ask you to continue it into next year.
In 2009 and 2010 we used all the funds we received and met all our commitments. The funding of this programme was increased by 20%, which we also used to the letter. Still, it's not enough, and we would like to receive more.
Vladimir Putin: How many dilapidated blocks are there in the region?
Alexander Misharin: We have relocated people from all dilapidated houses registered as of 2007. Now we are compiling a list of blocks that are deemed dilapidated after 2007.
Vladimir Putin: One more question, the modernisation of the healthcare system. As you know, the State Duma is reviewing the draft law on mandatory medical insurance, which will allow us to allocate substantial funds to regional healthcare systems. But these funds will be provided only to those regions that are ready to modernise. What progress has been made on this issue in your region?
Alexander Misharin: We have elaborated a modernisation programme, which suggests constructing 12 centres, each of which will service patients in several municipalities. One of the primary objectives of the programme is reequipping medical facilities. Much attention will be paid to purchasing new equipment to diagnose cardiovascular diseases. Overall, the programme is intended to make medical services equally affordable for everyone. We have also developed a plan for high-tech medical services.
In addition, we are implementing a programme for prenatal centres. At least four centres will be constructed through this programme. This year, one centre was opened in Nizhny Tagil, and in December another such centre will open in Yekaterinburg. It will service 3,000 future mothers. This centre will be commissioned in several weeks, by the end of the year. The Nizhny Tagil centre was inaugurated on September 25. Yesterday I looked through reports to find that 560 babies have been born there so far. This centre is very important for the town. We plan to build three more prenatal centres, including in Verkhnyaya Salda. This project is funded 50/50 by the regional government and VSMPO-AVISMA. The other two centres will be built in Kamensk-Uralsky and Asbest.
Vladimir Putin: What's the situation regarding demography in the region? What are birth rates?
Alexander Misharin: The region is seeing a natural decline, but last year its population increased for the first time in many years, by 1,438 people, through migration.
Vladimir Putin: What about birth rates?
Alexander Misharin: Birth rates are increasing. Here's a chart. We expect to pass this mark in 2011 or 2012. Life expectancy is increasing as well.
Vladimir Putin: It's been on the rise since 2000, as far as I can see...
Alexander Misharin: Yes, and I believe if we implement the modernisation programme...
Vladimir Putin: This is what you expect it to be in 2013...
Alexander Misharin: Yes, Yekaterinburg has seen a natural increase this year.
Vladimir Putin: Good.
Alexander Misharin: The programme for diagnosing cardiovascular diseases will allow us to pass this mark a year earlier. One of the targets of the programme is to diagnose men aged between 45 and 55 years – that's the most risky age. There are about 300,000 such people in the region.
Vladimir Putin: And please see to the problems of kindergartens.
Alexander Misharin: Yes, this is a critical problem...