Activity of the Government on February 17 – March 4, 2007

Appointments. Reshuffles

The Government has proposed the recalling of Eugen Carpov from the post of Moldova’s representative to the European Commission.

Decisions

Decision on implementation of the national strategy on prevention and combat of corruption and activity of the Centre for the Struggle Against Economic Crimes and Corruption (CSECC) in 2006. The document notes that the CSECC has taken some practical-organisational actions to implement the strategy in the field and to reduce corruption, to combat and prevent this phenomenon. Cooperation with competent nongovernmental organisations is remarked and appreciated at a high level. Following drawbacks and future tasks were named:

Problems related to revealing of corruption schemes among high-ranking functionaries;
Reserves in conducting penal investigations, ensuring promptness and efficiency of investigating corruption cases;
Central authorities face difficulties in implementing the strategy, ensuring internal administrative control, transparency of activity, cooperating with mass media and civil society.

Decisions on implementation of the reform on entrepreneur’s patent. The adopted decisions call for:

Modification of legislation to implement a simplified fiscal reporting system (the Parliament is due to examine the draft law);
Exemption of former patent holders who registered individual enterprises from purchasing and using electronic cash registers for a 6-month term after registration. Individual enterprises will have to write down invoices to consumers;
Allocation of funds to compensate costs paid by former patent holders when they registered individual enterprises.

Decision approving some normative acts (on record and calculation of incomes of farms). The executive has approved a regulation on calculation of the non-standardised net revenue raised by farms and auxiliary households to grow phyto-technical and livestock production, and an instruction on mode of calculation of standardised net income. The Ministry of Agriculture and Food Industry jointly with the National Bureau for Statistics and the Ministry of Economy and Commerce will calculate and approve every year the norms of material expenditure needed to grow crops and norms of net revenues in phytotechny and livestock sector. The Ministry of Social Protection, Family and Child will work out and implement a mechanism of directing social indemnities on basis of the net revenue raised by farms and households.

Decision approving the regulation on compensation of value of goods of victims of political repressions and payment of compensations to relatives of persons killed in political repressions. Under Law # 186 from 29.06.2006 on modification and completion of the law on rehabilitation of victims of political repressions (published on August 8, 2006), the Government should table within three months proposals on adjustment of legislation in force to this law and adjust its normative acts to these amendments. The law entered into force on January 1, 2007 and the executive could and should adopt the necessary acts later, in order to ensure the implementation of this law, but it delayed these actions. Christian Democratic Deputy Stefan Secareanu has recently called on the Government, invoking the non-execution of this law by competent authorities. Under new regulation, the value of goods confiscated, nationalised or dispossessed in connection with political repressions will be compensated on basis of demands by rehabilitated persons or their successors to special commissions created by district councils. The demand may be submitted within three years after the repressed person or successors were informed about rehabilitation and will be studied within six months after submission. If the goods are worth maximum 200,000 lei, the compensation will be paid within three years in proportional annual instalments. If the goods are worth more than 200,000 lei, the compensation will be paid in 5 years.

Decision on implementation of anti-corruption survey. The document stipulates the modification of a previous decision, extension of anti-corruption survey on Government’s normative acts, creation of a subdivision in CSECC to be in charge with anti-corruption survey of draft legal and normative acts.

Decision on results of execution of legal acts and indications of Moldovan president in 2006 by ministries and other central administrative authorities. The document says that:

The taken measures have improved much the discipline of executors and their personal responsibility for accomplishing the goals from legal and normative acts, indications of Moldovan president and decisions by Government’s leadership (as a result, the number of unfulfilled documents dropped 24-fold in 2006, compared with 2001);
Some negative trends still dominate the activity of certain ministries and central administrative authorities, their heads do not always get involved operatively in the process of execution of documents, they do not discipline their subordinates, and they are warned over this failure (Ministry of Economy and Commerce, Ministry of Culture and Tourism, Ministry of Agriculture and Food Industry);
Ministries and other central administrative authorities must work out action plans on execution of tasks within 20 days and report the execution to the Government every month;
Governmental officials will generally control the execution process and respect for tasks established by this decision.

Decisions on reorganisation of some administrative bodies. The documents approve the structure of maximum personnel and a regulation on organisation and functioning of the Ministry of Social Protection, Family and Child, as well as close the administrative department of the Defence Ministry.

Decisions approving some draft laws:

on zoological gardens;
on organisation of (alternative) civil service;
on natural monopolies;
on declaration of estate by individuals.

Sittings. Decisions. Statements

Alternative energy resources

The use of regenerating energy resources was the topic of a working sitting chaired by Prime Minister Vasile Tarlev. It was noted at the sitting that the national programme on use of regenerating resources till 2010 was worked out in line with Government’s indications. Three investment projects on building of Aeolian stations with a total power of 200 MW, industrial making of bio ethanol from sugar sorghum and implementation of mini hydro-stations were tabled for examination. According to the prime minister, the implementation of projects is slow and he demanded the specialised coordinating council to work out an action plan and choose competent persons and concrete terms of implementation. The prime minister also demanded task books for projects on building of Aeolian stations and making of bio ethanol, conduct of an auction in optimal terms in order to attract investors in these sectors.

Goals of budgetary-fiscal policy for 2008–2010

A sitting chaired by prime minister has examined measures needed to coordinate the main directions of tax policy with the Government’s action programme, to create a more attractive fiscal system for taxpayers. The prime minister outlined the need of promoting a more progressive fiscal policy in order to ensure faster development paces of national economy and to enhance the investment attractiveness of Moldova. The fiscal policy for 2008–2010 must focus on ensuring equity, stability and fiscal transparency, encouraging investments, creating new jobs, supporting development of real sector of economy. The document should promote “a better service for taxpayers and extend the range of services,” inclusively by developing the information system of presentation of electronic fiscal reports. The need of ensuring a functional and structural consolidation of the State Tax Service, improving the fiscal procedures by widely applying information technologies was also outlined.

Priority of some producing branches

The situation in the milk, dairy and beef producing sector was studied at a working sitting chaired by Prime Minister Vasile Tarlev with governmental decision makers and producers working in this field. It was noted that the situation has improved starting 2002, when the first offices for artificial impregnation, veterinary services and milk acquisition opened, when subsidies for development of this field were allocated for the first time. The lack of finances and limited access of farmers to preferential credits needed to build and renovate farms on basis of modern technologies, shortage of qualified personnel still are the main problems of this sector.

Vasile Tarlev noted that this segment plays a very important role in agricultural circuit and promised that the Government will grant the necessary support for a quality and efficient growth in this area. In the context, the Ministry of Agriculture and Food Industry was told to make an additional analysis of situation and to propose a larger financial support system for activities in this area. The Ministry of Economy and Commerce and the Ministry of Agriculture and Food Industry will analyse the price formation system for dairy and will work out a better mechanism in this field. The prime minister proposed the creation of an association of milk producers to protect the rights of this category of farmers.

Premier Vasile Tarlev chaired a sitting on situation in tobacco growing sector, which studied problems faced by tobacco producers and processors and development prospects of this branch. It was noted that the tobacco industry is a priority for Moldovan agriculture, but its potential is not used completely. The enterprise Tutun CTC must play an important role in this area and it will enhance investments in crediting producers and acquiring tobacco for exportation. The prime minister instructed decision makers to shortly implement an efficient mechanism aimed to support the development of tobacco industry, which would essentially increase the tobacco fields, enhance tobacco processing volumes and encourage exports. Tarlev supported an initiative on creation of a product council in tobacco sector to evaluate the price formation methodology for tobacco and raise argued proposals on measures needed to establish transparent criteria of activity in this sector. According to estimates by the Ministry of Agriculture and Food Industry, tobacco fields will grow up to about 5,600 hectares in 2007, compared with 2006, and they are expected to be extended up to at least 10,000 hectares by 2010.

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