09.02.2012
Lukashenko: Household income will reach pre-crisis level
MINSK, 9 February (BelTA) – President of the Republic of Belarus Alexander Lukashenko is convinced that household income will be as big as before the crisis. He made this statement at the government session held on 9 February to discuss the current social and economic situation in the country, BelTA has learnt.
The head of state said, “I have emphasized the need to reach the pre-crisis level; there is no doubt, household income will be as big as before the crisis.”
Alexander Lukashenko, however, expressed concern about a significant difference in salaries at big enterprises. “I am concerned about the salary gap at major exporting companies: from $800 on the average at Belarusian Steel Works, oil refineries to $480 at Keramin, and so on, almost two times at the leading companies,” the head of state said.
“It is ok if this money has been earned. If companies fulfill their growth targets, not only consumption targets, I am fine with that, I do not mind them paying one thousand dollars or two thousand. However, if companies are not efficient enough, if they survive only through loans, salaries are not earned,” the President said. “Of course, salaries should be raised. Population income is not so big here on the average, especially in the public sector. We should learn from the recent financial crisis,” Alexander Lukashenko warned.
The President emphasized that the price rise needs to be carefully studied. “Although one of the priorities of the government is the fight against inflation, the inflation rate made about 2% in January 2012. A 0.9% growth in prices for alcohol and tobacco is no big deal. If people still want to smoke, they will find the money. Actually, tobacco and alcohol are cheaper in Belarus compared with other CIS member states. If not the price rise for these products, the inflation rate would stand at 1%. It is not bad,” the head of state believes. “However, we cannot ignore the fact that food became 2-2.2% more expensive,” the President said. He pointed to an appreciable price difference across various regions. In Brest Oblast, for example, milk became 0.3% cheaper, while in Gomel Oblast 5% more expensive. The price for potatoes grew by 3.5% on the average, while in Mogilev Oblast by almost 6%. “The same pertains to other products. Why so?” the President asked the attendees.
“If prices continue to rise at this pace, I am afraid we may go beyond the price growth band of 19%. We have projected inflation at 19-20%, but 13-15% will be better. Therefore, let us not lose sight of the issue,” said the head of state. He recalled that last year food prices increased almost 2.5 times, while wages fell by almost a quarter.
Alexander Lukashenko noted that the coming months will show if the Government’s analysis of the situation and the measures undertaken were right. “The Prime Minister has recently briefed me that the main results and activities correspond to what we planned last year. The results are even a little better than we hoped,” the President said.
Another theme of the meeting, according to Alexander Lukashenko, is current problems caused by cold weather. “These are purely routine issues. But, as you can imagine, they are very important for ordinary people,” said the head of state. He expressed interest in the operation of industrial enterprises, particularly in small towns, livestock farms, forage supplies, export of products. He also inquired about the progress in the implementation of his instruction to upgrade dairy farms. He recalled that this year 1,200 farms should come on stream after upgrade that was carried out using their own resources, which, in the opinion of the President, will be a breakthrough in the dairy industry. Addressing the Governors, the President stressed that he expected objective reports from them on the situation in the regions and on the measures to support rural and urban residents.
The head of state said, “I have emphasized the need to reach the pre-crisis level; there is no doubt, household income will be as big as before the crisis.”
Alexander Lukashenko, however, expressed concern about a significant difference in salaries at big enterprises. “I am concerned about the salary gap at major exporting companies: from $800 on the average at Belarusian Steel Works, oil refineries to $480 at Keramin, and so on, almost two times at the leading companies,” the head of state said.
“It is ok if this money has been earned. If companies fulfill their growth targets, not only consumption targets, I am fine with that, I do not mind them paying one thousand dollars or two thousand. However, if companies are not efficient enough, if they survive only through loans, salaries are not earned,” the President said. “Of course, salaries should be raised. Population income is not so big here on the average, especially in the public sector. We should learn from the recent financial crisis,” Alexander Lukashenko warned.
The President emphasized that the price rise needs to be carefully studied. “Although one of the priorities of the government is the fight against inflation, the inflation rate made about 2% in January 2012. A 0.9% growth in prices for alcohol and tobacco is no big deal. If people still want to smoke, they will find the money. Actually, tobacco and alcohol are cheaper in Belarus compared with other CIS member states. If not the price rise for these products, the inflation rate would stand at 1%. It is not bad,” the head of state believes. “However, we cannot ignore the fact that food became 2-2.2% more expensive,” the President said. He pointed to an appreciable price difference across various regions. In Brest Oblast, for example, milk became 0.3% cheaper, while in Gomel Oblast 5% more expensive. The price for potatoes grew by 3.5% on the average, while in Mogilev Oblast by almost 6%. “The same pertains to other products. Why so?” the President asked the attendees.
“If prices continue to rise at this pace, I am afraid we may go beyond the price growth band of 19%. We have projected inflation at 19-20%, but 13-15% will be better. Therefore, let us not lose sight of the issue,” said the head of state. He recalled that last year food prices increased almost 2.5 times, while wages fell by almost a quarter.
Alexander Lukashenko noted that the coming months will show if the Government’s analysis of the situation and the measures undertaken were right. “The Prime Minister has recently briefed me that the main results and activities correspond to what we planned last year. The results are even a little better than we hoped,” the President said.
Another theme of the meeting, according to Alexander Lukashenko, is current problems caused by cold weather. “These are purely routine issues. But, as you can imagine, they are very important for ordinary people,” said the head of state. He expressed interest in the operation of industrial enterprises, particularly in small towns, livestock farms, forage supplies, export of products. He also inquired about the progress in the implementation of his instruction to upgrade dairy farms. He recalled that this year 1,200 farms should come on stream after upgrade that was carried out using their own resources, which, in the opinion of the President, will be a breakthrough in the dairy industry. Addressing the Governors, the President stressed that he expected objective reports from them on the situation in the regions and on the measures to support rural and urban residents.