Belarus President calls for effective measures to make more innovative products

The Belarus government should take comprehensive and effective measures to develop the production sector and raise the output of innovative products. President of Belarus Alexander Lukashenko made the statement at the session of the Council of Ministers held on 1 March to discuss the social and economic development of the country in 2012 and goals for 2013, BelTA has learned.

Alexander Lukashenko remarked that the production sector in Belarus determines the development of the entire economy in many aspects.

“I am worried that our main economy branch is yet unable to reverse the trend of the output falling every month that emerged in H2 2012,” said the head of state. “Why do we make less exports such as grain harvesters, machines for road work and construction work, steel wire, bearings, metal cord, trolleybuses and other ones?” wondered Alexander Lukashenko.

“Don’t invest in walls but in equipment! We have an extremely dissatisfying technological structure of investments at that,” added the President.

The head of state said that several enterprises had reduced their output and export by 20-30%. “If foreign markets favor our conventional products less, where are your innovative products?” the President asked those present. As an example he referred to the critical situation in OAO Lidagroprommash, which output has been halved, the shortage of turnover assets is dire, with workers retiring and the social tensions on the rise. “Did the government and the governor set out to bankrupt the enterprise? We expect the enterprise to make machines for the country’s flax-growing industry, a priority industry for our development. Where are those machines at all?” the head of state was displeased.

“It is obvious that comprehensive and effective measures are needed to recover poorly performing enterprises,” believes the President. “Starting with basic order and discipline and ending with the implementation of modernization projects”.

Alexander Lukashenko remarked that things turn out to be a bit different in practice: “You are accustomed to promising mountains and then asking to shift the deadline”.

According to the President, the retooling and modernization of the woodworking industry is a vivid example. “Modernization projects have not been implemented at eight out of the nine Bellesbumprom enterprises, which are subject to modernization. The construction readiness of new production facilities did not exceed 50% as of the beginning of the year. Meanwhile, the state support poured into the modernizing enterprises in 2010-2012 alone has exceeded Br800 billion,” said the head of state.

“The establishment of the enterprises to make fiberboards and chipboards, which sell well on the home and foreign markets, has been delayed by more than three years. Meanwhile, more and more of the merchandise is imported every year due to the rising domestic demand. If you had commissioned these enterprises on time, we would have already recovered the investments collected by the state from various sources for these enterprises. But we haven’t done that yet,” remarked Alexander Lukashenko. “The backbone enterprises of the Bellesbumprom concern, which are subject to modernization, had nearly $100 million worth of imported equipment in cold storage as of the beginning of the year. The equipment was bought back in 2010-2011. Today the $150 million in foreign currency is just dead weight,” added the head of state. He reminded he had had to personally interfere in order to give a nudge to the implementation of these projects.

Alexander Lukashenko quoted another example. “Due to the choice of an unsound supplier of energy equipment the implementation of the project to modernize the Bereza state district power plant has virtually failed. The delivery of a steam turbine and a turbine generator was scheduled for 2010 and has not been fully accomplished yet. Contrary to your promises that the problem will be resolved by the new year,” said the head of state. “Back in 2008-2011 the electrical company Brestenergo transferred nearly €20 million as an advance payment to the supplier”.

The President also drew attention to the situation regarding government purchases in the power engineering industry. “Proper order has not been introduced there yet. Abuse of office, straight embezzlement during tenders is frequent. I have to interfere every year”.