On October 24, 2007 was held the Meeting of the Government of Georgia presided by the Georgian President Mikheil Saakashvili.
In the beginning of the Meeting the Georgian President Mikheil Saakashvili asked the minister for labor, health and social affairs of Georgia Davit Tkeshelashvili to inform the members of the Government and society about the course of the presidential subsidies program.
According to the minister's information, the presidential subsidies program started on October 15. He noted that within this program nationwide the allowances of individual nature will get 2.8 million persons, where 50-lari vouchers will be distributed for coverage of electricity cost and 50-lari vouchers - for the gas cost. 700000 families countrymen irrespective of the attributed category will get the family allowance in kind of 50 kg flour. The residential subsidy per family shall amount to 100 lari.
When speaking about the individual allowance, or vouchers, said the minister, it will be got nationwide by 1.2 million persons, where 800000 are the pensioners of various categories. Those are: the age pensioners, disabled persons, invalids, veterans of II World War, members of families of the fallen for the territorial integrity of Georgia, victims of the 9th April and Chernobyl tragedy. These 800000 pensioners are added with 330000 socially vulnerable families. Such allowance will not be given, for example, to the former MPs-pensioners.
Currently, in Tbilisi out of 225000 vouchers are distributed 135000, or about 60%. The process goes without interruptions, however, we have some defects connected with the database but we are working to eliminate these defects, stated the minister.
In connection with this program the Georgian President stated that there shall be put focus not on the improvement of the database but on the establishment of the real number of pensioners as due to the doctored records their number has been artificially increased. In Tbilisi and other parts of Georgia are registered rather more pensioners than in reality and that is the "service" of former managers of the pension fund, namely, Sopromadze and others. Now they are arrested and these "sneak-thieves" will respond in due manner. Unfortunately, continued the Georgian President, in spite of my instructions the former minister for labor, health and social affairs could not solve this problem. This is the administrative work and I ask to identify the number of pensioners in the country and to channel the released sum for rise in pensions, stated the Georgian President.
Regarding distribution of flour the Georgian President stated that the work in this direction shall be reasoned and anticipated in order to prevent the effect of extended purchase of flour on the problematic flour market and the increased price of flour. He asked the Prime Minister of Georgia Zurab Noghaideli to inform the members of the Government and public about the situation in prices nationwide and the reasons of their rise.
The Prime Minister of Georgia noted that, unfortunately, the prices for many products had risen in October. Anyway it took place due to the external factors. He mentioned that Georgia does not produce wheat, flour and imports those products from Ukraine, Kazakhstan where like in other countries the rise in prices was fixed. However, the prices rise is the same as in other countries such as Ukraine and the inflation on one and the same product is equal. We have no factors of influence. The rise in prices for milk and diary products prices as well as for other products have been caused by external factors. We have the sugar mill where we produce sugar but only 4% with the local raw material and the main part of sugar is produced from the imported raw material.
As to flour, continued the Prime Minister, under the instruction of the Georgian President the minister of agriculture Petre Tsiskarishvili is sent to the business trip to Baku. We are holding negotiations with Ukraine, Kazakhstan on purchase of flour and wheat and, consequently, the flour distribution process will go in slow pace in order not to create in the local wheat and flour market the excessive disbalance and extra growth of prices. Everything shall be subjected to this goal and as it is planned, flour will be distributed to 700000 families and this process shall be under the strict control.
"Do you want what is our advantage? - stated the Georgian President, - The first one is that our Government does not make money: the second is that we do not enable anybody to arrange any fakements. This is very important and we will bring this matter to the end, even if somebody does not like it.
I really understand that the process of prices growth takes place in Russia, Ukraine and other countries as well but we are also informed that there are attempts to appropriate and control some spheres and industries. We have succeeded to make some people to give up such a wish, In this way we will create a healthy competition. Where the healthy competition is the prices are regulable. We can see that a customer is offered higher quality and better price. Therefore, it is necessary to consider all issues on the regular basis in order to ensure market diversification, customer's satisfaction and good choice. This depends on the quality of our work.
The existence of the competition agency in this country is insignificant. In position of the Ministry of Economic Development I would cancel this structure. I think this agency does nothing. The function of the competition agency is Georgia is performed by the Georgian president because I have held personally the meeting on the problems of meat and salt, while this agency has written to the Government any notice. It's O.K. that you have informed me about the existence of this agency but it will not exist from now. This issues shall be covered by the Government in full. The problems of the iodized salt shall be also considered by chairpersons of some parliamentary committees who are submitting the bills on concrete issues but are failing to forecast the results of the bills adopted anyhow. If somebody thinks that I do not see how and what they are lobbying, how are some mechanisms arranged, they are erring deeply. Everything shall be accountable, - stated the President finally.
Organizational Department of the Chancellery of Government of Georgia