Government discusses situation at Rysbnitsa Milk Factory

04/14/16 20:50

Government discusses situation at Rysbnitsa Milk Factory

The factory is standing still at the moment with over 2.5 million roubles in tax arrears

Tiraspol, 14 April. /Novosti Pridnestrovya/. The current situation at Rybnitsa's milk factory (RMF) is still difficult. This was voiced at a government meeting.

According to the head of the Rybnitsa State Administration, Andrey Kirsta, if in 2013 it was one of the biggest food processing enterprises in the district, one of the ten major taxpayers, by the end of 2014 the factory's losses had exceeded 6 million roubles. In the following two years RMF has accumulated 2.6 million roubles in tax arrears only (besides salary debts and existing loans). Now the factory is standing idle with only several dozens of its 300 employees still working.

The irregularities in RMF's work began in 2013 due to violations of the country's veterinary legislation. For the same reason the factory stood idle throughout 2014 and manufactured only 2 million roubles' worth of goods.

In January 2015 in order to support the factory, the government made an agreement with its management to grant six-month delay in tax payments to launch production. In return, RMF had to eliminate violations revealed by the agricultural ministry, provide an in-depth business plan and fulfil other terms of the agreement.

The factory undertook certain efforts and in March 2015 resumed its work. However, because of Russia's embargo on Ukrainian goods (butter was made from Ukraine-imported cream), only a small batch of goods was sold.

«In august 2015 the factory produced and exported about five tonnes of butter, but the money received from the sale of these goods has not been allocated for the repayment of the indebtedness up to now. Afterwards the production process was not carried out," noted Andrey Kirsta.

«Everything that was within the jurisdiction of Rybnitsa's local council and state administration was done: delay in payment, etc. We even proposed that the state administration purchase the butter which was not sold," said the chairman of the local council, Vadim Lozovsky.

«All the issues we have raised today were discussed a year ago, when the agreement was signed. The agreement allowed for the factory's tax burden and the share of tax payments and energy carriers in the cost composition of output. We granted a delay in tax payments, introduced special customs duties for import milk goods to back domestic manufacturers. A year has passed, a batch of goods has been produced, but unfortunately the government support has not yielded results," added the first deputy prime minister, Alevtina Slinchenko.

In May 2016 RMF' issues were discussed at a round table meeting with the involvement of representatives of relevant ministries, Supreme Council deputies and local councillors. Among difficulties preventing the resumption of the factory's work, RMF's owner and director Yury Kuzmenko pointed out the lack of raw materials and market outlets, as well as heavy debts on taxes.

«He was proposed to prepare and produce to the government his understanding of a problem solution, specifying concrete terms and executives," said Andrery Kirsta.

«A road map has not been produced. Instead, the owner has sent a letter to the government requesting income tax allowances," noted the minister of economic development, Dmitry Boltrushko.

«We have proposed to revert to the issue of government support, but on mutual liabilities. However, the factory has preferred being provided direct support through working capital loans and without any liabilities on the part of the enterprise, such as launch of production, increase in tax receipts, reinstatement of workers, etc. We have proposed to consider the possibility of investments, the government's role as a manager, but these proposals have been turned down," added Andrey Kirsta.

The government discussed the situation at RMF and highlighted the importance of the factory for the Rybnitsa district. It was also decided to continue elaborating measures which would preserve the factory and resume its work.

 

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