Vladimir Putin’s opening remarks:

Good afternoon.

Two of our colleagues have changed jobs. I’d like to thank them for their work in the government and wish them every success. They are Alexander Zhukov, who has been elected first deputy speaker of the State Duma, and Sergei Ivanov – today President Dmitry Medvedev issued a decree appointing him chief of the Presidential Executive Office. I’d like to thank you for your service and wish you success in your new jobs. I would also like to present government awards – Stolypin medals – to Mr Zhukov and Mr Ivanov.

As you know, President Medvedev has made his address to the Federal Assembly. I’d like you to study it thoroughly. The Government Executive Office must prepare draft instructions because a significant part of the address was meant for the government, and the tasks set forth in it fall within the government’s responsibility. I’d like you to complete this work in a week and report back to me.

The sixth State Duma has started working. We have just discussed this in connection with Mr Zhukov’s election to the post of first deputy speaker. I would like to note that in the last few years the government has been closely working with parliament. This cooperation has been very active and productive. Now the line-up has changed but conditions have been created for the government’s continued constructive work. I’d like to ask you to continue working with the deputies, although half of them are new. Nevertheless, let me repeat that there is every opportunity to establish good working contacts. Please, do this as soon as possible.

Business Russia held a conference yesterday. Some of you may know that I took part in the conference. Participants discussed many interesting issues of concern to our business community. First of all, they spoke about manufacturing and such major issues as the adjustment of the tax system in the interests of processing industries, access to federal loan guarantees, connection to electric grids and improvement of accounting and tax reporting procedures.  

They also discussed mechanisms to protect the rights of borrowers. There was even a proposal to set up a special agency for this purpose. This is worth discussing. We agreed that the Ministry of Economic Development will submit its proposals on many of these issues.

Naturally enough, the business community may also have its own requests, which, in the opinion of some government departments, must be transformed in the decision-making process, but I believe that many ideas that were formulated yesterday are perfectly adequate and can be carried out.

Conference participants also spoke about additional measures designed to protect domestic producers in the context of Russia’ WTO entry. We have been discussing this continuously. I told my business colleagues yesterday and want to repeat at this meeting of the Government Presidium that we have several months – about half a year – before the ratification for intensive analysis of all questions pertaining to the protection of domestic producers. This can be done through the WTO-envisaged procedures and mechanisms but we must do this in time. This is a large amount of work for the professionals. We must deal with this now, without any delay. I’d like to ask you to draft proposals on everything we discussed yesterday (many interesting and useful proposals were made at the conference) and translate them into reality as soon as possible, early next year – I repeat, early next year. 

I’d also like to say the following. All government members without exception must communicate more often with various professional communities and trade unions. I know that many of them often tour regions and meet with local people. It goes without saying that we must continue this practice.

We have done much recently to reduce administrative barriers and remove excessive bureaucratic procedures. We have started transitioning from permits to notification in the process of opening businesses. The notification principle operates for 43 of the most in-demand businesses – from the production to the retail sale of essential goods. In other words, to start a private company in these spheres it is enough to notify the relevant government bodies. But this is easier said than done. These are the rules and I have just described them to you, but in reality a future entrepreneur will have to overcome many obstacles before starting business. A company must be connected to the electric grid, which requires various permits. Numerous other permits still exist. It is not so simple in practical terms. I’d like you to look more deeply into the practical side of the matter.

Today, we are expanding the list of the types of businesses (the types of goods and services they provide) that can be started with notification. We will include another 25 types of work and services in manufacturing and the social sphere. It goes without saying we must continue this policy of supporting our business community.

There are some issues on the agenda that I’d like to mention. Today we will sum up the results of implementing federal targeted programmes and the Federal Targeted Investment Programme (FTIP) for the first nine months of this year. This year we have increased budget funding of federal programmes by almost a quarter. All in all, we have allocated a handsome 923 billion roubles for this purpose. Another 347 billion roubles have been reserved for the so-called non-programme part of federal investment. Unlike in the past, this year FTIP has the funds to support the construction of a number of regional and municipal facilities. We have done this for the first time. All in all, about 3,500 facilities are being funded under FTIP projects. This is a record scale of work.

At the same time I have to mention our chronic problem – violations of fiscal discipline. The sum of contracts concluded in the first nine months of this year exceeded 50% for 32 targeted programmes. No contracts have been signed under three planned programmes. On the whole, only half of the programmes’ annual budgets have been spent in three quarters of this year. Let’s analyse the results of the year and make the necessary conclusions. Incidentally, as I’ve said, we have already addressed this problem more than once, and I said that penalties must and will be adopted. I just want to warn you that we have said this! I’d like to ask the Government Executive Office to analyse the current work and submit proposals. We will restrict in the future those departments that failed to carry out the government’s plans before. There is a fight for this money and every department is out to prove it needs it for its important and urgent projects. And what is the result?

And one more item. Today we must adopt a package of decisions on the distribution of federal subsidies to regional budgets. This also applies to 6.2 billion roubles of additional financial aid to the regions. These funds will be used to complete the construction of socially meaningful facilities in the regions and fulfil social commitments in 16 regions. In addition, before the end of this year we will channel another 1.5 billion roubles from the federal budget to programmes of modernisation and support for single-industry cities in 15 municipal entities. I’d like to emphasise that next year the regions will have to spend an additional 2.5 billion roubles on the development and upgrading of these cities.

Let’s get down to work.