Business news

MINSK, 17 November (BelTA) – The utilities industry cannot be split into individual pieces for the sake of consequent privatization. Belarus President Alexander Lukashenko made the relevant statement while talking to representatives of Russian regional mass media in Minsk on 17 November, BelTA has learned.

“I believe that the utilities industry cannot be broken into pieces and privatized for now and in the foreseeable future. Private companies will not be able to achieve the desired results if they work honestly and with tight oversight and you know perfectly well that it is necessary to keep an eye on all these problems because they affect every one of us,” noted Alexander Lukashenko.

The President stated that Belarus had not chosen the way of privatizing the utilities industry and had started improving the system instead. A working group was created to take care of verifying the cost of services. “We calculated the average price and I signed the decree to approve the cost of services. And no one but the president of the country can change that. It turned out that in the past people used to pay 30% of the cost of utilities and the state budget compensated for 70% of the costs. Right after these calculations were made, it turned out that people pay 52%. A nearly two-time increase. Can you imagine how private companies would be able to fiddle with these prices? Who controls them?” wondered the head of state. Alexander Lukashenko did not rule out the possibility that the approved prices may be changed but it will be done on the basis of precise calculations and taking into account the situation.

“The IMF wants people to pay 75% of the utilities cost today and 100% tomorrow. Then the IMF promises it will lend us money. But if we force Belarusians to pay 100% today, tomorrow we will see tremendous arrears because people will just be unable to pay up. The situation will start destroying those, who provide these services. This is why a very measured approach to these matters is in order,” believes the President.

Alexander Lukashenko reminded about the decision to raise the cost of utilities by the equivalent of $5 at most per annum. “I know precisely and the nation knows it that prices for utilities will rise by $5 next year. Then people will pay for 58% of the costs instead of 52% maybe. We will proceed in this manner little by little. If some unexpected slump happens, if inflation skyrockets and so on, we will make these calculations and the head of state will sign the relevant decree. No charlatanry will be tolerated,” assured Alexander Lukashenko.

The head of state also said that a new housing and utilities service system is being tested in Minsk. “We’ve borrowed some practices from Germany and other countries. In Germany one professional called a house master is employed to provide services in several houses. Every tenant knows who is responsible for it. We are keeping an eye on the reform now. We will see how things turn out and will spread some elements to the rest of the country. We need a system and order,” stressed the President.