29 november 2010

Prime Minister Vladimir Putin meets with Kursk Region Governor Alexander Mikhailov

Participants:
Mr Putin noted positive economic trends in the Kursk Region, particularly increasing trade and average income. At the same time, he pointed out the decline in housing construction and decreasing capital investment.

Transcript of the beginning of the meeting:

Vladimir Putin: This will be one of our regular conversations about social and economic conditions in the Kursk Region. I have reviewed the reports I was given. Now I see that wages have increased, wage arrears and registered unemployment reduced, and trade is increasing. So there are many encouraging figures. However, housing construction has decreased somewhat, as have cattle livestock and investment in the manufacturing sector. Do you agree?

Alexander Mikhailov: I'll tell you about investment now.

Vladimir Putin: Please do. So you acknowledge these problems. Let's talk about them.

Alexander Mikhailov: All right, Mr Putin. We do have the issues you mentioned. As for the rate of construction generally, we are meeting the current and the year's deadlines, and estimates show that we will hit the planned targets and have a 7% increase against last year. So that's the entire construction industry. As for housing, construction has really dropped somewhat compared to last year because construction companies have adjusted themselves to the downturn. Housing prices have come up. They might be inflated, to an extent, so the population cannot afford new housing. However, the regional government has done everything possible for those entitled to benefits (there are many, and housing certificates are issued for all these categories) and for WWII veterans entitled to new housing. Another 196 such veterans received housing certificates and keys to new flats two days ago. Around 900 people have received new housing in Kursk this year, and 1,527 have obtained housing certificates in the entire region.

As for other matters, we are supporting our mortgage agency to promote property purchases. We are also working with the construction companies. We have forwarded next year's estimates to the Ministry of Regional Development. In principle, we will regain last year's rates in 2011; we will commission a million to 1.2 million square metres of housing according to the regional development strategy. That is what I have to report about housing construction.

Vladimir Putin: Are you monitoring the situation?

Alexander Mikhailov: Yes, we do, and we have it under permanent control.

Vladimir Putin: Good.

Alexander Mikhailov: As for agriculture, I think everyone knows that we had a bad year. However, we managed to control crop production. Our region ranks first in the Central Federal District in grain production and second in Russia, after the Krasnodar Territory, for gross sugar beet yield.

As for the implementation of meat and dairy farming programmes, we commissioned 25 cutting-edge livestock farms together with investors over the last four years. Another seven are under construction, and five of them will be ready before the year ends. Construction of another six farms will begin next year. As for meat and milk production, it will stay at 2009 levels. It will certainly not fall. Unfortunately, however, livestock is dropping...

Vladimir Putin: Is it dropping only for cattle?

Alexander Mikhailov: Yes.

Vladimir Putin: But there is an increase in pigs ...

Alexander Mikhailov: There is really a major increase in pigs and a sizeable increase in poultry. As for cattle, there was a slight decrease but we have compensated milk production by increasing yields. Now we are ready to increase milk production. This year's production will be approximately equal to last year's, but our estimates show that when the new farms open, we will add 10 to 20 thousand tonnes a year starting in 2011.

Vladimir Putin: Pay attention to livestock decreases.

Alexander Mikhailov: Mr Putin, I watch this carefully. We recently convened a large conference using the recourses at our Agricultural Academy. The conference included district governors and investment company CEOs, and also, due to our efforts, zoologists, veterinarians and other experts from the Agricultural Academy, plus its graduate students specialising in zoology and veterinary medicine. The agenda included future wages in the industry and employment in production. We have established seven Agricultural Academy extensions at leading-edge farms, where students can undergo training. We are closely monitoring the matter.

Vladimir Putin: What about investment?

Alexander Mikhailov: According to our estimates, this year's investment will increase 2 to 3% compared to last year's – I mean production investment. There was no big slump last year despite the downturn, and we have investment under permanent supervision.

Vladimir Putin: I have different information. Let's talk in greater detail and review this.

Alexander Mikhailov: Okay.

Vladimir Putin: I have another question connected with agriculture. We have just discussed today the problems of funding reaching agricultural producers. How do you handle these problems?

Alexander Mikhailov: Mr Putin, first, our farmers were hit less than in the neighbouring regions, so all federal allocations reached their beneficiaries by November 1. Naturally, we also allocated regional budget money to support (drought and wildfire) victims, and these funds have also reached the farmers.

Now, loans are necessary, and we have analysed the matter with the Ministry of Agriculture and the Ministry of Finance. Money is already coming down to the farms, and we are monitoring this.

Vladimir Putin: There are two bridges under construction, across the Bychki and Lyubazh rivers. How is the job going?

Alexander Mikhailov: Yes, these bridges are on the Krym (Crimea), or M2, federal highway. Construction will finish soon. I hope we will commission both bridges by January 1. We have settled this with Igor Levitin on your order. This bridge construction is moving at a good clip.

Vladimir Putin: There are also a reservoir, a circus and a university to build...

Alexander Mikhailov: I want to make a request concerning the university. But in terms of the circus, I talked it over this summer with the Ministry of Finance, the Ministry of Economy and the Ministry of Culture. The project matters much to us, and I want it to open next year. Much progress has been made on the construction, so we have every opportunity to do so if the money we have talked about comes in time.

Vladimir Putin: It's 54 million.

Alexander Mikhailov: Yes. We have added 75 million roubles this year, and another tranche is due next year. So we should be ready to open the circus on schedule, in principle.

Vladimir Putin: What about the university?

Alexander Mikhailov: There are problems with it... This project was funded from the federal budget, but the funding was suspended in 2009 and this year. We received only a million roubles a year, that's why I have made my request. Mr Putin, if the builders get help and do everything they can, the university can open before January 1, 2012.

Vladimir Putin: The entire construction is estimated at 69 million, if I am not mistaken?

Alexander Mikhailov: A bit more. I'll show you the estimates later.

Vladimir Putin: Okay.

Alexander Mikhailov: Mr Putin, can I report on another of your orders? You have monitored the work, too. Whatever our problems might be, we will commission a perinatal centre at the end of the year, on December 28 or 29. The people of Kursk are grateful to you personally and the entire government for this. It is a critical project, so I dare invite you to the opening or, if you cannot, please visit it anytime you are in the Kursk Region.

Vladimir Putin: All right, thank you.