Monitoring→Public Institutions→Government

Reshuffles

The Government has proposed the recalling of Dumitru Croitor from the posts of Extraordinary and Plenipotentiary Ambassador of the Republic of Moldova to the Swiss Confederation, Permanent Representative of the Republic of Moldova to the United Nations Office in Geneva. Croitor was elected governor of the Administrative Territorial Unit of Gagauzia in 1999, but he tendered his resignation on summer 2002, after many pressures of the central administration and police forces in the region. He was nominated as ambassador to Switzerland in autumn 2002. Elections for the Gagauzian governor post are scheduled for 2006.

Decisions

• Decision on the approval of the draft law prolonging the action of the law on privatisation programme for 1997–1998. The decision that approves the project proposes the extension of implementation of this law until 2006. We note that the privatisation programme, which should be completed in early 1999, has been prolonged for many years, while the first term was increased three times. This programme contains a list of more than 650 objects, including the largest state-owned enterprises: S.A. Moldtelecom, S.A. Tutun-CTC, S.A. Aroma, S.A. Franzeluta, energy enterprises (RED Nord, RED Nord-Vest, CET-1, CET-2), and others.

• Decision on the approval of the draft law on processing of personal data. This draft proposes the introduction of regulations on protection and automatic access to personal data of Moldovan citizens, including data from identity documents, on payment of taxes, estate, etc.

• The Government has decided to recall the draft law on taxation of real estate on basis of their market price from the Parliament. The gradual taxation on basis of the price of real estate estimated after re-evaluation by cadastral offices was expected to be introduced on January 1, 2006. However, the Government has proposed the reduction of this tax 15-fold because this measure increases the real estate tax very much. However, the Parliament described these measures as insufficient and considered that the executive and competent authorities are not prepared enough to implement the new taxation system, so that the introduction of this tax was postponed. These changes became known for quite a long time, talks on this topic started last summer and, therefore, a normal questions appears: why the Government did not consult the public opinion and legislators before initiating drafts that produce negative and controversial reactions. On the other hand, it was said that owners of luxury real estate oppose the introduction of the new taxation system, as they would have to pay high enough taxes, if the present taxation rate is maintained, but on basis of the market value of their estate. The situation regarding transactions with real estate remains unclear at this stage, while taxation of these transactions takes into account the market value, they would increase the budget collections and collections of notaries, and would reduce the real revenue collected from owner. However, cadastral bodies continue to issue documents on residual (balance) value of private real estate.

• National programme on ecological agri-food production and action plan on its implementation. Under the programme, the legislation will be drafted and implemented in 2006–2010, normative documents will be adjusted to international requirements, a system of inspection and certification of ecological agri-food production will be organised. Model farms will be created at the first stage and the system of ecological agri-food production is expected to be organised there. The farms will receive logistical assistance, will benefit from preferential bank credits and will be exempted from land tax for conversion period, will benefit from direct subsidizing from the state budget. It is expected that more than 30,000 tons of ecological agri-food products be sold in 2006 after implementation of planned measures, and these products must account for about 75,000 tons by 2010.

• National action programme on priority actions for the improvement of situation regarding traffic security till 2008. The Government has prolonged this programme by taking into account the state of things in this area — the rise of the number of traffic accidents (by 5–18 percent a year, and 2,120 accidents were registered in 2005), considerable growth of the number of victims (366 persons in 2005, while the European average is seven-fold lower). The programme will be completed with chapters seeking the introduction of a control system on highways through modern information technologies, better training of motorists, rise of sanctions for certain violations, etc. To note in the context that this findings come after the radical reorganisation of activity of traffic police was announced, aimed to reduce the number of personnel, to attest the staffs, to limit controls, etc.

• Decision on approval of the draft law on beekeeping. The draft proposed by Government contains a series of regulations on this sector and aims to support the development of this sector, to ensure a qualitative and ecologically clean bee production. Moldova has more than 87,000 bee families at present. It produces about 2,000 tons of honey a year and exports only the third part of production (about 700 tons). The main problems of beekeeping include the lack of sale market, lack of specialised testing laboratories, high prices of prophylaxis medications. However, the sector is constantly developing, while the number of bee families rose by 34 percent in the past four years.

• Decision on awarding of some fields to the Metro Cash&Carry Moldova Company. Five hectares of agricultural land in the administrative-territorial territory of the Chisinau municipality have been awarded for construction of a new Metro market. The enterprise benefits of the ownership right, but it will have to recover the losses related to exclusion of fields from categories of agricultural land (losses estimated at about 260,000 dollars) and to erase the fertile stratum of soil from the surface of attributed field. The Government Decision does not mention the price of this field. However, the commercial price of a hectare of field in the Chisinau municipality is estimated at over 100,000 dollars.

Sittings. Decisions

• A Moldovan delegation headed by first Deputy Premier Zinaida Greceanii has negotiated the supply of natural gas to our country with the Gazprom concern administration in Moscow. According to reports, the sides did not reach a final agreement regarding the price of Russian gas for Moldova, but agreed that it will grow up to the “medium European level” (the Russian concern administration had earlier estimated the price of 150–160 dollars per 1,000 cubic metres). The sides discussed issues related to payment of Moldova’s debts to the Gazprom concern.

• Prime Minister Vasile Tarlev has convoked a working sitting on situation of the thermo-energy complex of Chisinau. The presented information shows that the financial and technical situation of thermo-energy stations is complicated because of very high crediting debts, pressing needs of modernisation, which would reduce the cost price of electricity. The executive chief ordered heating generation and distribution enterprises in Chisinau to unveil own modernisation concepts within one month, while the Ministry of Industry and Infrastructure was told to study and to table proposals on implementation of these concepts within two months.

• Moldovan Premier Vasile Tarlev considers that it is premature to speak about visible results of the European Union’s border monitoring mission to Moldova and Ukraine. He told a TV programme that “more than 170 carriages loaded with metal have left the Ribinta-based metallurgical plant for abroad without identity documents or constitutional customs specimen since the launch of this mission till the mid-December.” The explanation of this situation is that the decisions of Moldovan and Ukrainian Governments on regulation of exports of goods are not implemented.

• The Economics and Trade Ministry has examined the draft national employment programme for 2006–2008, which aims at small business development through favourable economic premises capable to create jobs, to attract investments, to upgrade the industry and to provide finances for implementation of policies on labour market. According to forecasts, territorial employment agencies will register more than 60,000 job seekers a year, and less than half of them (23,000–25,000 jobless people) will be employed. According to the project, the state will subsidize new jobs in real sector of national economy (tourism, handcrafting, small business, patent-based entrepreneurial activity). According to the governing programme, central and local public administration authorities must create more than 300,000 new jobs by 2009.

• The Republic of Moldova has signed electricity supply agreements with Ukraine and Romania. In the context, Prime Minister Vasile Tarlev said that own electricity production capacities of Moldova have increased up to 35 percent of the overall consumed energy. The goal of the Government is to produce electricity in Moldova that would cover about 90 percent of needs in 2008–2009.

• The Government decided to ban the transportation of passengers by reassembled automobiles starting January 1, 2006. Automobiles which provide passenger transportation services and hold licences for a period longer than the established date will continue their activity until expiration of licences (1–2 years). The more than 200 minibuses travelling in the Chisinau municipality will be substituted by 500 buses and trolleys that the municipality will gradually acquire. The interdiction will affect owners of minibuses travelling on urban and interurban itineraries, as most of existing vehicles are reassembled and adjusted to passenger transportation requirements. The envisaged subjects do not warm this ban, saying that the vehicles have been reassembled at specialised enterprises which hold licences and they did not recover their investments so far. Supporters of this interdiction indicate the need to ensure the traffic security and to relieve the busy traffic in the Chisinau municipality.

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