#7 - RW 261
BBC Monitoring
Russian PM addressed Duma on contract army, wages, debt payment
Source: RTR Russia TV, Moscow, in Russian 1000 gmt 11 Jun 03

[Presenter] Stability in the country and improved living standards are the priority tasks for the Russian government, Prime Minister Mikhail Kasyanov said today addressing the State Duma. He asked the deputies to pass a package of tax laws before the current session ends even if the Duma had to extend its work to do this. Igor Kozhevin reports.

[Correspondent] The State Duma has been waiting for Mikhail Kasyanov for a long time. It wanted to put so many questions to him that the topic of the Government Hour had been altered several times. Finally, a general wording was agreed upon: the tasks of the country's sociopolitical policy. Ten issues were raised within an hour - about the army, public-sector wages and tax reform, among others.

Mikhail Kasyanov started with priority issues. The social sphere is the chief among them. It's about raising the wages of public-sector employees.

[Kasyanov] We have set the task of raising wages of public-sector employees in 2004. As I said in my address, we have found the opportunity of putting this increase into effect not from 1 January 2004 but from 1 October [2003]. Therefore this year we have to find additional funds to cover the three months of the current year in which the increase will become effective. Next year the rise will amount to 33 per cent throughout the country and throughout the budget-funded sector as of 1 October.

[Passage omitted]

[Correspondent] Most of the Government Hour was given to answers to questions from deputies. The first was from the Unity faction about a contract army.

[Passage omitted]

[Kasyanov] In order to reduce the term of service in the near future, within three or four years, we need to set up units of high combat readiness exclusively on a contract basis. This will make it possible to rule out the theoretical possibility that citizens who are drafted may be sent to any of the hot spots.

[Correspondent] The right-wingers asked the premier about reform of Russia's political system. They proposed that the posts of president and head of government be combined.

[Boris Nemtsov, head of the Union of Right Forces] I think that many of the problems that you are facing in your work and the problems in the State Duma would be resolved if we had a consolidated responsible government led by a person who enjoys a level of trust exceeding 70 per cent.

[Kasyanov] Of course this issue is for the entire people to decide. If you ask my personal opinion as a citizen and not as a prime minister, I believe that it's simply harmful and dangerous to change anything in the constitution today, especially such fundamental things as you have mentioned.

[Correspondent] All branches of authority should work constructively, Kasyanov said. As an example, he says that the government has agreed to help the regions to prepare for winter. This was a proposal from the centrists.

[Kasyanov] The government is planning, it is taking the decision, within this year's budget, to allocate up to R5.5bn for targeted three-year loans to the constituent parts of the federation, to the regions to carry out repairs of public utilities which are in a parlous condition. This is a hard decision but the situation calls for it.

[Correspondent] The left-wingers prepared a question too. Earlier, together with Yabloko, they made the State Duma to agree to debate the no-confidence vote in the government next Wednesday [18 June]. They are in a very sceptical mood.

[Valentin Romanov, member of the Communist faction] The government is paying out a huge foreign debt to the detriment of its own population. Is it because it's short on professionalism or because corruption is stronger than the government?

[Kasyanov] There is a clear explanation for this question. The government is paying back foreign and domestic debts to its own population and foreign citizens and companies. It is returning the debts that were given to the Soviet Union and the Russian Federation for the purpose of improving the quality of life in the country today and tomorrow.

[Correspondent] Incidentally, the no-confidence vote wasn't mentioned in the conference hall at all. After the Government Hour, Mikhail Kasyanov said that he understood the deputies' motivations.

[Kasyanov in the lobby] We have to show understanding for the deputies' striving to invigorate the political process. We have to show patience or, I'd say, tolerance with regard to many pronouncements. Although the elections to the State Duma have not started officially, the mood in society, especially among groups of deputies, their parties and associations, is such that certain things are being singled out already today

[Passage omitted]

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