Speech by President Goran Racic at the National Assembly on the occasion of the debate on the program of economic reforms

20.03.2017


PROGRAM REFORM OF THE REPUBLIKA SRPSKA

 FOR PERIOD 2017.-2019.

 

                Chamber of commerce of this, as in previous years, in accordance with its program goals RS Government submitted a document entitled "Proposed measures the business community for the document Economic Policy of the Republic Serbian in 2017" with the aim of creating a favorable business environment in the Republika Srpska.

           

This document is based on the analysis of the current situation in the economy of RS, which is characterized by low levels of economic activity, only 9,500 of companies at the end of 2015, the GDP of 9.135 billion, or 6,465 KM per capita GDP, the unfavorable structure of the GDP of low-industrial production of 15%, and thus the processing industry of about 9%, a high share of public administration in GDP, high unemployment, negative foreign trade balance, lack of liquidity, indebtedness, lack of competitiveness, and counted another probeleme, and aims to be the implementation of the proposed measures provide a favorable business environment, which would produce investment, employment and GDP growth rate of over 4%, which is not impossible, given that we have a threshold of economic activity is very low.

 

The measures that we proposed to the Government of the Republic of Slovenia and for which we expect to find in the program of economic reforming (PER) 2017th to 2019th relate to:

 

  • Relieving economy by reducing the fiscal and para-fiscal burden:
  • By amending the Law on taxes and contributions with the aim of returning to the level before the economic crisis,
  • By amending the Law on income tax with the aim of increasing the non-taxable portion of income to the level of minimum wages,
  • By amending the Law on Child Protection with the aim of solving the system of maternity leave.
  • Adoption of the Law on the tax system that would abolish a number of non-tax revenues, which have no legal basis, and the remaining analyzed in terms of feasibility and height,

    

  • Measures to reduce public spending through:
  • Reform of public administration, increasing efficiency, cost-effectiveness, reduce costs and the number of employees,
  • Harmonization of salaries to those in the economy or to tie wage growth for growth indicators in the economy,
  • The restructuring of public enterprises with the aim of better management and more efficient operations,
  • (Measure by PK for years repeated in its documents, but I have a feeling that's not good enough understood, the PER that today we consider, is mentioned in the part related to the increase in the efficiency of public institutions by making software program for public investments PIMIS) Involving local capacity in the implementation of planned investment activities of the public sector, so that the public sector had an obligation to the beginning of the year when adopting the annual plans and programs of the same submitted to the Government of the Republic of Slovenia and the CCRS, as to timely balancing the needs of the one and potentials, on the other hand, allow that the more money the rest of the public sector in the economic system of the Republic of Serbian,

 

  • Analysis of the new Labour Act and by-laws, because the application of the same Act has caused some doubt as. In particular this applies to the Regulations on keeping records of the presence of workers at work, which provides a very complicated and unnecessarily voluminous form for keeping these records, it means that employers must hire one or more face for this job. We are looking to urgently repeal this Ordinance and to records of employees at work leads the way and forms as it conducted earlier.

 

  • Improving the liquidity of the economy and extra-budgetary funds by adopting a set of laws that would regulate this area.

 

  • Measures timely support and encouragement of the economy:
  • The adoption of the incentives that would define the type and extent of incentives, as well as the conditions for obtaining, (within this measure is necessary to leave earlier practice of a public call for employment by the Institute who are the source of much doubt and nazadovoljstava employers in the same regularity and provide fully a new approach to providing incentives for employment, and that would allow any employer during the year hired new workers is entitled to a refund of the contributions paid in the caterer period of time, eg, three years)
  • Creating a registry of incentives in the economy

 

  • By upgrading the inspection and judicial authorities, combating the gray economy,

 

  • Reform of the education system in order to meet the needs of the economy.

 

In addition to the regulations that are the jurisdiction of the National Assembly of the Republic of Slovenia, for many years there is a demand and a need for amendments to the Law on Value Added Tax. In addition to the essential requirements for a change in terms of the transition to a system of payment of VAT by the charged implementation, extension of the deadline for payment, shortening the deadline for VAT refund, redefining misdemeanor law, there are requirements on which we should all agree, and that is the request for raise the threshold of VAT on the amount of a minimum of 100,000 KM, which would ubjeđenjni we brought to the employment of several thousand new workers mainly in entrepreneurial activities, as well as greater availability of officers of the inquiry businessmen and abolishing the costs suits. We are delighted that this year will be to work on amending the Law on Value Added Tax, and we as an institution, which represents the interests of the economy, we are ready to give its active contribution.

 

Originally offered preliminary draft program of economic reforms of the RS for the period 2017th-2019th, was not satisfactorily had regard to the measures proposed by the Council. After the talks with the Prime Minister and the responsible ministers, especially after individual talks with the Minister of Finance and Minister of Industry, Energy and Mining in the premises of the Chamber, today's proposal the economic reform program of the RS for the period 2017th-2019th significantly expanded the measures required by the Council. The document itself is conceptually different from the earlier economic policy, it is much more meaningful. Most of the measures which the Chamber proposes the systematic nature and their implementation is not sufficient period of one year.

 

Measures aimed at reducing the burden on businesses in the part referring to the reduction of burden on labor must be time-aligned with the announced amendments to the Law on Income Tax and the Law on Personal Income Tax, so as not to get the load for the first, followed by relief.

           

Despite the fact that most of our measures found its place in the PER and we agreed to monthly meetings with the Minister of Industry, Energy and rudartsva and Minister of Finance, in order to monitor the implementation of the established PER, taught by previous experience that the measures adopted economic policies are not implemented as envisaged, we ask that tomorrow form working teams in relevant ministries in which the participation of representatives of the Chamber, to work on the preparation and adoption of the new Law on Child protection, amendments to the Company Law and the reform of the employment and the adoption of a set of frames that would improve labor market.

           

On the Law on Child Protection talking for several years and there is no one reason why this was not done making the same. It is no longer just an economic issue, reimbursement of maternity leave in the gross amount of the fund, but it has a far greater significance in terms of natality policy or issue position ciation. For all these reasons, we ask you to immediately begin drafting a new law which would soon be adopted and in order not to hinder reforms in other areas, which are conditioned by this Act.

           

As for the Law on Enterprises in the PER is listed needs modification of the law in order to comply with EU legislation and its directives. We do not deny that it is necessary to harmonize, but we have a need for urgent amendments to the PD in terms nesaglasnoti shareholders. The existing provision is intended to protect small shareholders, and turned into a speculative intentions of individuals, which the stock market buy shares when they have information that the general meeting of shareholders to be making the commitment asset of great value for investment or refinancing loans, express their disagreement , which allows them to block decisions or to be paid at book value, which is much higher than the price on the stock exchange. This practice is increasingly common, sends a very bad message to investors that are unprotected and subject to blackmail. Courts adjudicate in favor of dissenting shareholders, although the law provides that the provision can not express disagreement in cases where decisions are made that are in the interest of society and business. Therefore, we ask that in this part of approaches to amending the law, and that in the future preparation of the changes that would be agreed upon with the provisions of the European directives.

 

The reforms in the Public Employment Service and the labor market must be carried out more quickly than envisaged in PER. Time is not our ally in the region. The labor market is already in a very difficult situation and there is a trend by lack of manpower for the purposes of the processing of industry. On the job advertisements from the Department appear persons who are not looking for a job, but kept in the records of due certain rights, particularly health insurance. Thus, eg. in District Varos for years at the Institute for Employment of 2,200 applicants. We all know that in the municipality of economic activity is very intense, and that in most of companies has a permanent need for labor that can not be achieved.

           

Businessmen have great expectations for 2017 especially as a year in which there is no choice and gives hope that we will be able to begin the process of comprehensive reform. A good example is the leather industry, textile and footwear, which in 2008 was in a very difficult situation and thanks to the initiative of the Chamber have been provided incentives of 50 KM per worker. This made it possible to preserve jobs mjeseta, and in 2010 a special system of calculation of taxes and contributions to the industry created the conditions for development. Today we have:

 

·         Annual investments in this industry between 15 and 18 million, and in 2008 we had 9 million KM.

·         Employment is constantly growing and today we have about 10,500 employees,

·         Net profit in 2008 was 6.7 million. KM, and in 2014 amounted to 22.8 million. KM, 2015 was 19.5 million KM.

·         Arrival of 2008 amounted to 106.3 mil. KM, and in 2014 228.8 million. KM, 2015 248.2 million. KM,

·         Equity in 2008 was in the amount of 106 million. KM, and now stands at 138.95 million KM.

 

Today, it is very well organized and equipped area within the manufacturing industry. If this principle is applied in other areas of the manufacturing industry, we are convinced that we had the same results. The development of the manufacturing industry and strengthening its capacity is best models prescription for improving the trade deficit. Knowing that in the structure of export processing industry participates 88.5%, while that in the structure of imports with 80% clear our needs and waking orjenatacije in economic reforms.

 

We need systemic solutions, or in some cases, and simple solutions significantly improve the business environment, for example. ban on export of round logs and firewood, missing our wood processors.

 

             

                We expect that all the time, on a monthly basis we are working on the implementation of the PER with the responsible ministers, understanding of our proposals and acceptance of our requirements in terms of the dynamics of the implementation of certain reforms.

 

Thank you for your attention.