The reduction of public utility charges is set to continue: the Government is committed to cutting overheads by another 10 percent, Minister of National Development Mrs Zsuzsa Németh announced at a press conference in Budapest on Tuesday where she gave an overview of the Ministry’s work in the past three years.

The primary goal of the Government is to create an opportunity for long-term cooperation with foreign-owned energy suppliers, the Minister underlined. The cabinet believes these companies should also have their share of the burdens involved in Hungary’s stabilisation and are free to decide “whether or not they wish to come along the path that we have taken”.

In response to a question, Németh revealed that two companies have so far announced their intention to negotiate with the Government on the conditions of further cooperation. She added that one of them offered to perform other investments in Hungary if the Government bought out its loss-making division. The Minister called the overhead cuts one of the greatest achievements of her ministry.

Between 2002 and 2010, the gas price tripled while electricity charges doubled, she recalled, creating difficult conditions for families in Hungary. She also mentioned she had high hopes of the negotiations with the Russian partner, which could contribute to the reduc-tion of public utility charges.

The Minister said the Government would involve all players in the energy supply chain in the discussions on further reductions. Summarising the Ministry’s activities in the past three years, Mrs Németh underlined 2010 opened up an opportunity for a significant change in Hungarian economic policy, and the Ministry of National Development (MND) set the goal of working to make the operation of Hungary more competitive and fair. The Ministry is responsible for over one fifth of state responsibilities, she pointed out, adding that the MND had successfully implemented its share of the Government’s comprehensive economic policy and would continue doing so.

Hungary is in a good position before the completion of the EU development period of 2007-2013, she said. Figures and achievements speak for themselves: 95-97 percent of the available budget has been announced for tenders, and decisions are made at the right pace. A total of HUF 475 bn had been paid by mid-May and the Minister expressed optimism that Hungary would be able to draw down the HUF 1500 bn still planned for this year.

Considering the coming period of 2014-2020, she said there was a good chance for the European Commission to endorse the new structure of the operative programmes, which could encourage economic growth. In the next development period, the Government wishes to use 60 percent of the funds for direct economic development and 40 percent for infrastructure, environment protection and human resources development purposes.
The Minister recalled that tendering procedures had been simplified, with the related documentation reduced. In summer 2012, the Government Committee for National Develop-ment was set up to ensure fast decision-making. The Minister said it is now possible to ap-prove overcommitments for every operative programme for more secure fund management.

With reference to the faster use of EU funds, the Minister underlined that advance to suppliers had been made available and an Own Resources Fund had been set up for tender winning organisations in the budget sector to launch development projects.

Németh also mentioned that Hungary would have access to a total of HUF 7080 bn of EU development funds, i.e. HUF 712 thousand per capita in the 2014-2020 period.

The Minister mentioned there had been major changes in the asset management policy recently: privatisation had been completed and the state reinforced its engagement in strategic companies. This is why it acquired Rába’s and Mol’s share packages, she said. The Minister noted that the acquisition of the gas division of E.On would be completed in late summer or early autumn this year, making Hungary less dependent in terms of gas supply.

Even the state can be a good host, the Minister said, mentioning the example of Hun-garoControl, which had used its own funds to finance 80 percent of its latest development projects, added to the 20 percent covered by the EU. Hungarian Railways (MÁV) also ac-complished a great achievement by staying within its budget last year, she added.

In response to a question, Mrs Németh said the Hungarian Development Bank extend-ed and opened a preferential credit line for the acquisition of Volán buses.

MND State Secretary Pál Völner added that the public procurement procedure for the purchase of 150 vehicles had been launched at Volánbusz Transport Co. already. As regards the introduction of fast train surcharges, he noted that the planned revenues had been paid to the budget so far and the refurbishment plans for fast train carriages were thus not in danger.

In relation to the railway communications GSM-R tender, State Secretary Vilmos Vályi-Nagy revealed that the result of the public procurement tender could be announced at the end of this month.

Answering questions on the tobacco shop tender, Mrs Zsuzsa Németh said the tobacco shop contracts had already been signed with winning applicants and the shop licensing proce-dure was in progress. They will disclose information to the public in compliance with the Concessions Act and the recommendations of the Data Protection Commissioner, she added.

In response to a question on the enlargement of the Paks Nuclear Plant, Mrs Németh said that an international tender would be announced at the end of this year to launch the pro-cedure.

(Ministry of National Development)