Tiraspol, November 19. /Novosti Pridnestrovya/. President of the PMR Yevgeny Shevchuk held a number of meetings with residents of the capital on Wednesday, November 18. One of the most sensitive issues for the citizens concerns the Kirov Plant situation. Staff of this enterprise hasn’t been payed salary for more than a year. The President noted that the plant was a private property.
«I am worried not only about the situation at the Kirov Plant, but also at the other enterprises transfered to private sector earlier. On the one hand, difficult situation in markets, economic instability in Ukraine and in other countries, lack of former spending power and demand for end products. On the other hand, we carried out privatization expecting that a new investor would come and employ modern technologies, competitiveness and outputs would increase, wages to be raised also," the President's Press Office quotes the Head of state.
However, according to Yevgeny Shevchuk, privatization results didn't worth it disregarding few exceptions. The state has supported the enterprises including commercial ones and provided energy carriers at below-market prices for 10 years. In particular, the state provided Kirov Plant with such support twice.
The President emphasized that a plant owner is responsible for running of financial and economic activity including salary payment to employees of the enterprise.
«Protection mechanisms of salary payment should be involved when obligations exceed the overall cost of this enterprise. It is established by laws. We have excessively liberal legislation in this issue," it was emphasized by the Head of state. He also added that revision of privatization results becomes more and more topical.
«Unfortunately, 30 percent of our enterprises have been closed after privatization; at 40 percent, any mutual obligations between the state and owners haven't been established, other 30 percent have been sold to the offshore companies. Since 2012, the state hasn’t privatized any enterprise. Formerly, revenue received from privatization was one of considerable sources for filling up budgetary gaps. Because of the debts, a number of enterprises were returned in state property including the Moldova Steel Works», Yevgeny Shevchuk told.
The Head of state ordered the Government to organize a common meeting with the management and staff of the Kirov Litmash Plant in order to discuss solutions of the existing problem.
