8 august 2011

Prime Minister Vladimir Putin meets with Trans-Baikal Territory Governor Ravil Geniatulin

Participants:
The conversation focused on the implementation of Vladimir Putin’s instructions to the region, issued during his driving tour along the Chita-Khabarovsk highway in August 2010. The governor reported that all the instructions, including construction of necessary infrastructure for the new highway, are being fulfilled. The two officials also discussed the region’s socio-economic development, including the modernisation of healthcare and education.

Transcript of the beginning of the meeting:

Vladimir Putin: Mr Geniatulin, I have looked through the papers. On the whole, your figures are good enough. The region is posting notable growth in industrial production, in fact greater than the average across Russia. Fixed investment is also substantial – over 40%. But I also have some questions to ask you because there are some problems. You still show a small wage debt.

Ravil Geniatulin: We’ve cut it by 60%.

Vladimir Putin: There are other things, too. The commissioning of new housing has slowed down; it’s not too serious, but still below last year’s level. Let us  discuss these problems.

Ravil Geniatulin: Mr Putin, you were absolutely right to notice that we have shown growth. I would like to emphasise that our economic indicators fell by a mere 2.2% during the worst stages of the recession. Last year we grew 3.7%, and 13.8% this year. Trans-Baikal is a mining region; its industry is dominated by coal, gold and polymetal production. This sector accounts for our growth.

Cargo transportation has shown intensive growth, too. Local transit operators are working at full capacity. Very intensive work indeed. I know we still have wages in arrears; I readily acknowledge that, although we have cut it significantly and are working to cut it further. There are no back wages at public-sector organisations. But some commercial companies do have some. The average monthly wage in the region reached 20,600 roubles for the first time last June. This may not be much, but it is still major progress for us.

Vladimir Putin: At least you have almost reached the average in Russia.

Ravil Geniatulin: That’s true. We’re almost there, but there is room for growth…

Vladimir Putin: It was below 20,000 roubles two or three months ago, wasn’t it?

Ravil Geniatulin: That’s right: it was 19,600 roubles. We crossed the 20,000-rouble threshold in May-June, which is good. What’s important is that people’s real wages are growing. I think people understand this, because we’ve seen a rise in mortgage loans of late. You are correct that the commissioning of new housing slowed in the last six months, but I am sure the figures will be back to normal by December 31. We always have seasonal fluctuations.

Vladimir Putin: You mean you commission most of the projects by yearend?

Ravil Geniatulin: Right again. In November or December.

Vladimir Putin: It has been a year since we commissioned the new highway and discussed the issues related to it. They include communications services, access roads to nearby towns, and some other issues such as supplies and services, including medical services. What is happening here?

Ravil Geniatulin: Here’s my report. All of your instructions are being carried out. Would you care to look at this (showing documents). The work is in full swing. This is where the stations will be located, 33 stations in the region. This is the area they will cover. We expect twenty more towns will be covered in addition to the current six.

Vladimir Putin: Is Rostelecom working on this?

Ravil Geniatulin: Rostelecom and Beeline. Three companies are working on the project. I would like to note how intensively the Communications Ministry is working on this. I appreciate their contribution. This is our status at present. They are putting up the relay towers now. Like this.

Vladimir Putin: Perfect.

Ravil Geniatulin:  They have assured me that, beginning October 1, anyone will be able to make a call from any point on the highway you drove down last year.

Vladimir Putin: Great. Let’s do that.

Ravil Geniatulin: Right. We’ll be making calls on October 1.

Vladimir Putin: Right.

Ravil Geniatulin: As for the medical services, the Healthcare Ministry is making good on its commitments, as are we, with respect to the co-financing plan. We have determined the precise locations of medical centres along the road. We have held tenders and started capital renovations in buildings designated to house these centres, and new equipment is being provided.

We will buy two helicopters to ensure traffic safety on the highway. We have agreed with [Interior Minister] Rashid Nurgaliyev that the regional government will pay for one of them and the Interior Ministry for the other. The first one will be delivered in a few days and will begin operating immediately.

Other infrastructure projects for accommodations, food and fuel supplies were given a boost after your trip down the highway. On August 1, a new camping site opened at a bay by the road. This work has been very intensive, and I am grateful for that… Moreover, remember the 93 km stretch of old road from the 1970s or 80s? Well, this year…

Vladimir Putin: The one close to Chita?

Ravil Geniatulin: Yes. This year, 15 km of that will be upgraded and commissioned. All your instructions are being worked on.

Vladimir Putin: How about the town I visited?

Ravil Geniatulin: Aksyonovo-Zilovskoye. A gym is under construction there. The foundation has been laid. Equipment has been delivered, and I believe the project will be completed on schedule, by December 1. The local hospital is being modernised. It is a major renovation project worth over 30,000,000 roubles. This is a lot of money for us. They are replacing windows as well as the water and power systems in the building. The local school is being renovated, too. In fact, we will break ground for a new residential development in a few days. Why so late? Because we had to discuss things with [Regional Development Minister] Viktor Basargin and it took time. We had to announce a tender, otherwise legally… So we are holding the tender and getting to work. I expect several buildings to be ready for primary commissioning in November.

Vladimir Putin: Could you please speak about the access roads to towns?

Ravil Geniatulin: They are being constructed according to plan. Mr Levitin [Minister of Transport] and the road builders have determined the routes according to the plan. The work is underway. The timeframe for the projects is through 2011 and 2012.

Vladimir Putin:  I know. To complete them in 2012, you have to start now. Right. How is healthcare and education modernisation progressing in the region?

Ravil Geniatulin: We are working to fulfil your instructions to raise teachers’ salaries now. We are doing this in two stages. We have raised their wages by 6.5% at this stage and plan to raise them even higher in September, by 30%. Things are improving for education professionals.

Vladimir Putin: How high will their salaries be eventually? Compared with the average wage in the economy?

Ravil Geniatulin: Still below average…

Vladimir Putin:  How soon will you be able to reach the average?

Ravil Geniatulin: In 2012.

Vladimir Putin: How far below are they now?

Ravil Geniatulin: Some 4,000-5,000 below the average.

Vladimir Putin: When in 2012?

Ravil Geniatulin: We’ll try to include the raise in next year’s budget.

Vladimir Putin: So when in 2012?

Ravil Geniatulin: We’ll aim for January 1. But it will be hard. I have drafted a letter about considering the possibility of …

Vladimir Putin: So, you will raise teachers’ salaries 30% in September and begin working on an additional raise on January 1 to reach the economy-wide average.

Ravil Geniatulin: To put them on a new compensation scheme in the first quarter…

Vladimir Putin: What about healthcare?

Ravil Geniatulin: We have received everything included in the programme. We have held tenders for cancer treatment equipment. We are monitoring the process, so as to preclude any violations or unpleasant surprises.

Vladimir Putin: But there is a similar problem there… Wages for medical workers are an important component of the sector’s modernisation. It is part and parcel of raising standards. I would like you to focus on that.

Ravil Geniatulin: I’ll do that.