Transcript of the beginning of the meeting: 

Vladimir Putin: Good afternoon,

Today we are holding another meeting for consultations on key issues of the country's economic and social development.

The economic situation remains complicated, which is manifested in many areas of the real sector. At the same time we have seen some positive shifts.

For example, inflation is going down. It was 1.4% in May 2008 and 0.6% in May of this year.

The number of registered unemployed has been falling since the end of April. Between May 18 and May 24 it fell noticeably, by 22,000, and between May 25 and May 31 by another 24,000.

Our gold and currency reserves have started to recover. At the end of the year we had $427 billion. By February 1 they dropped to a little over $386 billion; on June 1 they amounted to $404 billion and continue to grow.

We are implementing a number of joint projects with our foreign partners. The total amount of foreign investments in the 1st quarter was lower than in the 1st quarter last year, but still foreign investments are increasing. The inflow was $12 billion in the 1st quarter.

I would like to thank United Russia and its representatives in parliament for supporting the anti-crisis measures proposed by the Government. Most of the steps they envisage are being implemented or have been implemented. They include prompt adoption of 17 federal laws.

Now about what needs to be done in the near future. First of all, it is the social policy. We need to complete the work on a package of social measures, which envisages a substantial rise of pensions in 2010, abolition of the Unified Social Tax and a transition to insurance payments. Let me note that the package of draft laws to improve pension legislation is an inseparable part of the anti-crisis strategy.

In this connection - I have already spoken about it at the State Duma but I would like to repeat it - in the times of the continuing crisis, and given the falling budget revenues, our ambitious social plans and substantial increase of spending on pensions, we should see how to balance the budget and what we can save on in 2010.

Second, introducing new and higher standards of housing for World War II veterans. To recap, we are going to pass on from 22 to 36 square metres per person. This is going to be the minimum total area of their housing.

Third, extending the compensation to parents who have to pay for private kindergartens. The subsidies and government aid previously available to state-run pre-school child centres will now be made available to private ones, too.

Fourth, as we have agreed, legislation must be passed on additional support for orphans and children who have no parental care.

Among the priority draft laws in the economic sphere I would like to single out the following: introducing amendments to the Law on the Budget for 2009 and the Planning Period of 2010-2011. Our amendments envisage, among other things, measures to improve the mechanism of government guarantees on credits to the real sector. We have discussed it at length. Unfortunately, the mechanisms that were proposed originally are clearly not working well enough. Corrections need to be made.

To make the housing and utilities sector more effective it is necessary to speedily pass the law that improves the procedure of delivering financial support to the regions and municipalities.

It is necessary to improve the procedure of taxing the financial instruments of time transactions. That is the initiative of the Finance Ministry. Such instruments and measures are adopted in developed economies. We should make the necessary corrections to our legislation. Current legislation does not always take into account the realities of the dynamically developing financial market.

It is also necessary to take some additional measures to shore up the domestic banking system and the real economy sector, to develop the system of antimonopoly regulation, make federal and municipal orders more effective and use the reserves of the development institutions. I should also mention the anti-raider package.

We have discussed our anti-monopoly legislation many times. It is excessively liberal. In general, it is not even liberal; it simply shows a lack of inner discipline.

I would like once more to invoke the experience of developed economies with developed market institutions: the breach of antimonopoly rules is regarded as a very serious offence, sometimes a criminal offence.

I would like to stress the need to support small and medium-sized businesses. I urge you to speed up the adoption of the laws that increase the size of revenues that make a business eligible to use a simplified taxation system.

In addition, a legal framework must be laid for the creation of a network of small high-tech enterprises attached to research and educational institutions. The current rules need to be changed. We need to make it possible for higher education institutions to do research and apply their achievements in the economy, deriving profits.

We no longer need restrictions that limit the involvement of young scientists and university students in scientific activities. They should be given an opportunity to work and to make money.

Another crucial target is to remove administrative obstacles. We have done a great deal already but there are many more checks to abolish, and cash register regulations to specify. Please speed up the adoption of relevant laws.

We have talked about all of that, and formulated our positions on it at a recent meeting with small business owners. Judging by their response, small and medium-sized companies are looking forward to our decisions, and those decisions must be translated into laws. Please pass on my request to be quick about it to all Duma members and especially to the principal parliamentary groups.

The matter does not require much discussion. When the customer needs a receipt, the shop assistant must give it - but why bother when it is not needed? It is easy to find a decision that would not add duties to traders and put customers in an awkward situation.

I would like to discuss some other topics apart from legislative work. The United Russia party has an ample record of fruitful partnership with trade unions. Every regional party branch has an ad hoc team for such partnership. It is bringing practical results - thousands of retained jobs and rights protected in industrial disputes.

Nevertheless, the party should not rest on its laurels as employees' rights are our top priority.

Monitoring compliance with labour legislation is the primary field of partnership with trade unions, where the party can be of great help to them.

Party influence can and must complement trade unions' lawful response. Partnership should be certainly balanced out. The party should not interfere in trade unions' work and in business under any pretext. What matters most is to avoid populism - in particular, not to obstruct further implementation of programmes for industrial modernisation and restructuring, and cost reduction. We should realise that our economy needs it vitally, especially during a crisis.

We repeat again and again that our economy will emerge out of the crisis strengthened and renewed. Why are we so sure? Because it is our duty to promote cost reduction, industrial restructuring and so on - provided we comply with the law and do not violate workers' rights. We must think about people. I think the United Russia party can do a great deal in this field if it joins efforts with employees, employers, trade unions and business.

The Government has launched occupational retraining programmes, and is promoting their implementation. That is part of the modernisation drive. I think those programmes deserve a mass scope. Occupational retraining should develop into a full-fledged party project.

Party activists should be in the foreground as educational programmes are developed, and render every help to relevant educational institutions.

Employment centres should also be sure the party will assist them because such centres are the core of occupational retraining. Whenever they have problems with a company, the United Russia party should promote dialogue between them. The party should be in the centre of such issues and maintain contacts with work collectives.

If you find Government regulation necessary, I am ready to give relevant instructions to the ministries and other agencies engaged in this work.

Our next subject concerns the party Chairman's reception offices, whose functioning is an essential part of party work. They have had more than 160,000 applicants since August 2008, when the first such offices were established. About a quarter of requests have been satisfied, and work is going on at about a half.

Importantly, the offices not only resolve particular problems but also help us to discover legal bottlenecks at both the federal and regional levels, and find necessary remedies.

I want the party to respond more promptly and dynamically to the problems of single-industry towns and small settlements, on which the crisis and unemployment have the worst effect as people have smaller chances of finding other jobs. I need not quote any examples - the media have been giving such problems ample coverage.

I repeat: the party is duty bound to respond promptly and professionally.

As for community liaison offices, I want to say this: I have heard that complaints forwarded from such offices to relevant state agencies result only in bureaucrats' non-committal replies. That is inadmissible. Please pay special attention to it. Whenever you find out about such instances, respond promptly and adequately to the current situation. That is my request.

Boris Gryzlov: Mr Putin, I would like to draw your attention to the fact that when we discussed the anti-crisis programme on April 6, and worked on 17 federal laws, which were adopted in the programme's framework, United Russia's parliamentary party was the only group to support these initiatives. We are talking about real work in conditions of conflict with the opposition. Needless to say, as the Speaker of the Duma, I should ensure that the opposition exercises all of its rights, such as the right to speak and criticise. Nevertheless, I must admit that the position of other parliamentary parties is not quite constructive.

United Russia understands the need to adopt these laws. Our deputies took part in drafting many of them. The "zero reading" format has already become standard practice. In effect, we no longer work in any other way. These important bills, in particular social bills, have been produced through the meticulous work of the relevant ministries, departments, and MPs.

Having discussed the main directions of the party programme at our congress on November 20 last year, we decided to review it at the next congress. Now we are setting up a commission on this programme, which is already selecting proposals for it. Probably, we will address this at our next meeting, as we will already have something constructive to discuss.

We understand that the programme should support all the new elements of Strategy-2020. No effects of the economic crisis should compel us to revise our guidelines.

The growth of labour productivity by four or five times is a very serious goal. This figure is set in Strategy-2020. In order to achieve it, we are working on a national innovation-based system as a party project both under this programme and congress resolutions. This is a high profile subject.

It goes without saying that Russia has many innovators and exceptionally gifted minds. It also has many new areas of technology, which, however, need to be introduced. The national innovation-based system provides for meticulous efforts to build bridges, spanning inventions and their industrial adoption. To do this, it is necessary to single out the most promising inventions, identify the enterprises which could introduce them, and invest the required funds. This is already being done. In this context, we are drafting a number of bills, which will be entitled ‘Investment Bills Package.' I believe we could complete its elaboration for discussion in September.

As for the bill on cash registers, which must be passed in June, we will certainly adopt it. It has already been endorsed in the first reading. Next week we will review the amendments which are now being discussed, and which you have mentioned.

Needless to say, we do need a law on bringing the incomes of small companies to 60 million roubles for the transfer to a simplified system. This is the subject we have discussed with you. This bill will also be adopted in June.

A decision to allow higher educational institutions to set up small research companies is very important and timely. Since I head several directions linked with science and investment - I myself supervise the Committee on Science and New Technologies in the State Duma... I think this is a very important bill, which we will also pass in June.

Today, I would like to give you a list summing up the results of the work on the current project, "National Professional Team." We have conducted a number of expert meetings, and summed up the results produced by all expert groups. The list includes 300 names of professionals who are ready to work in the executive government bodies, business, science, and the media.

I would like Mr Vorobyev to give the list to you. He has directly supervised this project as the Chairman of the Central Executive Committee. I believe the list will help find resourceful personnel capable of working effectively.

Vladimir Putin: This list should be compatible with the presidential programme of personnel reserve.

Boris Gryzlov: They are overlapping.

Vladimir Putin: This should give positive synergy.