In a radio interview, Minister of Interior Sándor Pintér explained that the Ministry is investigating the status of indebted companies owned by local governments.

According to the Minister, by 2014 they will have enough information to assess whether the help of the Government is needed in these cases or not. He added that it must be determined if their income and funding provided from local taxes are enough to cover all their expenses.

The Minister explained that state ownership of these companies is not always the best solution to the problem, adding that local transport issues cannot be coordinated from Budapest. In case of other companies such as waterworks or waste management, which will fall under the scope of authority of the Ministry from next year, management by a central organisation that is larger than local government is a suitable solution, he said.

Minister Pintér emphasised that the Ministry is currently collecting information determine the most cost-effective solutions that generate the most profit for citizens. The Ministry will be sending a multiple page, “personalised” questionnaire to each local government.

(Ministry of Interior)