16 february 2012

First Deputy Prime Minister Viktor Zubkov attends the Third Russian Forum of Fishing Industry Workers

Participants:

The First Deputy Prime Minister read out a message of greetings to forum delegates and guests from Prime Minister Vladimir Putin.

In his speech, Viktor Zubkov said, in part:

"I would also like to congratulate you on the opening of the Third Russian Forum of Fishing Industry Workers and to thank you for this invitation to attend the forum.

"Those, on whom the development of Russia's fishing industry directly depends today, have now gathered in this auditorium. First of all, this implies fishermen themselves – representatives of the industry's leading enterprises, associations and unions.

"One can see many familiar faces here. We regularly meet with you in the regions and here in Moscow. The government and Prime Minister Vladimir Putin keep an eye on the issues of concern to fishermen. As you know, Mr Putin is directly involved in tackling your problems. Your opinion is a highly important source of objective information for passing adequate governmental decisions.

"The forum has gathered in such an impressive setting for the first time in ten years. Over these years, we have managed to completely implement the proposals of the previous forum and to considerably speed up the industry's development. The industry's regulatory documents have been virtually re-drafted from scratch. Specific catch quotas have been allotted for the next ten years, and fishing sectors have been distributed for the next 20 years. Policy documents, including the industry's development strategy up to 2020, and a separate federal targeted programme, are being implemented. Economic support measures are contributing to the industry operation. This includes loan rate subsidies, reduced payments for the use of biological resources, the conversion of enterprises to a standard agricultural tax and the reduced customs burden. Administrative barriers are being consistently reduced.

"As a result of these systematic decisions, the government has created clear and understandable long-term rules of the game for the industry. This has enabled the fisheries sector to quickly overcome depression despite the global financial and economic crisis and to become one of the most attractive Russian economic sectors in terms of its investment climate.

"This is proved by the impressive results of your enterprises being posted for the past few years. Annual fish catches have been expanding steadily by 300,000 tonnes since 2008. In 2011, their volumes had exceeded 4.2 million tonnes.

"Such trends create real opportunities for attaining specific targets stipulated by the Food Security Doctrine – Russian fish products must account for at least 80% of gross catches.

"The industry's financial and economic situation also continues to improve. The industry's 2011 financial balance has soared by 85% on the basic 2008 period and totaled 13.2 billion roubles. The share of profitable companies continues to increase. Such companies account for almost 80% of the grand total. Current average monthly wages top 25,000 roubles. This is 11% more than average nationwide wages. The fisheries industry has turned into a leading national economic sector in terms of GDP growth rates.

"I would like to stress that each parameter highlights your selfless everyday work. I would like to use this opportunity and to thank you and all fisheries industry workers for such work.

"As Vladimir Putin has noted, the industry now faces new and even more ambitious objectives. The current pace of development should not slacken, and the industry needs to continue its quality transformations. This is the only way to guarantee worthy competitiveness with our partners in the complicated global economic environment.

"In this connection, I would like to draw your attention to some high-priority issues.

"The distribution of resources is the most principled issue. The formalisation of specific quotas in line with the historical principle has proved its effectiveness. At the same time, life has the final say in some cases. Some companies are not cost-effective in using their respective quotas. This raises the issue of more actively enforcing legislation which makes it possible to revoke such quotas. We must act very prudently and carefully in this context. A number of companies have found themselves in a difficult situation for objective reasons, and they need assistance and a shoulder to rely on. But the appropriate decisions need to be adopted with regard to the enterprises that deliberately violate norms and regulations. Cost-effective fishing companies must have priority access to the main production resources. And this task must be tackled in collaboration with the fishing community.

"On the whole, I would like to stress once again that the practical enforcement of legislative norms regarding the long-term allocation of quotas is the foundation of the industry's stability. Moreover, it facilitates new investment in the sector.

"In this connection, the government has no intention of amending the current mechanism in any way even after 2017. Moreover, the government is ready to study the possibility of extending the duration of quota allocation agreements for a period of 20 years. The fishing community now submits such proposals to the government. It is our opinion that such proposals should be examined and discussed. The relevant instructions will be issued after the congress. I can see that you support this.

"And now I would like to say a few words about coastal fishing. This concept was largely coined due to the constructive stance of regional leaders and their dialogue with the fisheries industry. The leaders of many regions are present here, including Sakhalin Region Governor Alexander Khoroshavin; Kamchatka Territory Governor Vladimir Ilyukhin and Astrakhan Region Governor Alexander Zhilkin. They always know what the situation is like.

"The government also plans to continue supporting the development of coastal fishing in line with the relevant quotas, including tasks regarding the socio-economic development of regions.

"This sphere also has its own problems. You will also discuss these problems today. The government knows about such problems. The Federal Agency for Fishery must draft a new concept for the development of coastal fishing. The relevant instruction has been issued. I would like regional governments to become actively involved in such work.

"Speaking of seafood sales, all of you know that it's not easy to catch seafood. But successful seafood sales are often more difficult and essential. We are aware of these problems. They include unjustified price hikes, the lack of specialised fish markets and the existence of numerous intermediaries, which are often fly-by-night companies. As a result, retail seafood prices often exceed production costs several times over.

"The government works consistently to simplify the access of seafood producers to the sales market.

"The Law on Trade was enacted in 2010. Its provisions have considerably simplified the access of small and medium-sized producers to the retail infrastructure. The law formalises specific deadlines regarding refunds of payments for supplied products by retail chains and also limits bonuses. Nevertheless, some problems remain. Right now, we are submitting additional amendments to the law in order to seal off all loopholes for additional payments.

"Speaking of Russia's accession to the World Trade Organsation, this will certainly create new conditions for the industry's work. Such conditions still have to be closely assessed and analysed. At the same time, the government will retain adequate measures of industry support making it possible to facilitate a competitive environment with foreign producers.

"And, finally, I would like to discuss the development of aqua-culture. Russia has a tremendous potential in this sphere. But this potential is used to only a small extent. Aqua-culture makes up for no more than 3% of seafood products. The share of aqua-culture in other countries reaches 40%. The situation must be rectified. We have the required pre-requisites for doing this. The Law On Aqua-Culture is currently being drafted. The State Duma has already examined this document in the first reading. Some of its provisions need to be amended with your involvement. I think it would be useful to establish a nationwide association of aqua-culture enterprises, which could defend the interests of all fish-breeding companies.

"Esteemed colleagues and friends, these are only a few issues requiring our common permanent attention. These and many other issues still have to be discussed today, and possible troubleshooting options have to be found. Most importantly, all of us have reached consensus on the issues facing us. We strive to jointly tackle these issues and to look for approaches which would meet the interests of all the participants, including fishermen and the state.

"This is particularly important during active work on the draft long-term state programme for the development of the fisheries industry.

"I'm confident that the results of today's forum and your constructive proposals will make a substantial contribution to work on this document which will determine the industry's development up to 2020.

"In conclusion, I would like to once again thank you for inviting me to take part in your convention."