Former centrist and ex-vice mayor of the capital Vladimir Svet will become Minister of Infrastructure from the Social Democratic Party. How to build roads, ferries and stations in the absence of funds? What did the newly minted Social Democrat say in parting to the centrists?
- Supporting the debate on targeted taxes
- We need to find 400 million for the Rail Baltic project
- There were two reasons for changing the party
Former centrist and ex-vice mayor of the capital Vladimir Svet will become Minister of Infrastructure from the Social Democratic Party. How to build roads, ferries and stations in the absence of funds? What did the newly minted Social Democrat say in parting to the centrists?
Future Minister of Infrastructure Vladimir Svet , who switched from the Center Party to the Social Democratic Party, answered questions from Rus.Postimees live.
Excerpts from the conversation :
– Roads, trains, planes, ferries and train stations – this is all your area of responsibility. Where and how will you look for funds for problem areas in conditions of an acute budget deficit?
– The Minister of Infrastructure will also be responsible for separate waste collection, major reforms in the transport and construction sectors, as well as housing policy. We will have to act in conditions of increasing revenues and cutting government spending. There won't be enough money for everything.
One of my first tasks as minister is to understand what is already being built within the existing budget. This year, the state budget provides a little more than 150 million euros for road repair and maintenance, and next year – about 170 million euros. The question will be how to prioritize.
– You already mentioned somewhere that you will have to fight to ensure that funding for road construction is not cut…
– This is one of the tasks. I believe that road construction in the state is underfunded. At the upcoming budget negotiations in the second half of the summer, I will try to ensure that the allocated amounts do not decrease. Whether it will be possible to reach an agreement is another question. Let me remind you that the ruling coalition consists of three parties, and at the moment a collective decision has been reached to reduce all areas with the exception of defense, salaries of police officers, firefighters and teachers.
– That is, you will have to cut costs…
“Something will have to be cut.”
– How free will you be in your actions, given that finances and the economy are concentrated in the hands of the Reform Party?
– I think this is a rhetorical question. The Reform Party received 37 seats in the elections – an unprecedented majority. Recently, two more deputies joined her – Maria Yufereva-Skuratovski and Allar Laneman. The question is the negotiation skills of the partners. This is the only way to defend your position. I believe that the head of the Social Democrats, Lauri Läänemets, has so far defended the Social Democratic agenda quite effectively. It’s even surprising that this is possible in a right-wing parliament.
Of course, I understand that, most likely, I will not succeed. However, there are only two options: you can sit on the couch and argue with the TV, shaking your fist and criticizing everything, or you can go and try to do something. I decided to choose the second one.
– The excise tax on fuel, which is increased annually by 5%, is poured into the general budget boiler. What are you going to do about it?
– Once upon a time, it was the case that the excise tax on fuel went directly to road construction. During the financial crisis, this link was eliminated as a temporary measure, and this state of affairs has continued to this day.
Since I did not participate in coalition negotiations, it is difficult for me to promise that we will change this approach now. However, I will constantly raise the question of how to continue to finance road construction.
An addition to the coalition agreement, signed by the three parties, provides for the creation of targeted taxes. In this case we are talking about a defense tax. This is a departure from the principle of a common boiler. This precedent provides an opportunity to restart the discussion about linking taxes to specific expenses.
– Is auto tax also your area of responsibility?
– This is the responsibility of the Minister of Finance. These questions should be addressed to Jurgen Ligi. However, when he comes to the government with his plan, my colleagues and I will carefully study the document.
– How to restart the economy by increasing taxes?
– I think that taxes do not restart the economy. The government program includes a number of measures aimed at supporting entrepreneurship and investment outside Tallinn, Tartu and the “golden” parishes. This is a reduction in bureaucracy, acceleration of detailed plans and national planning, and an increase of 20 million euros in investments in road construction next year.
– Many entrepreneurs did not notice the support measures in the coalition agreement, which cannot be said about the income tax…
– Listen, when it is necessary to find 1.6 billion euros for defense, the government needs to get it from somewhere. We cannot say, let only people pay. In fact, the Reform Party, as one of the options, proposed completely shifting the increased tax burden onto the shoulders of the working population. The Social Democrats insisted on sharing responsibility between individuals and businesses. The question here is one of compromise and balance.
The business support measures listed above are not a contribution of money, but assistance in improving the business climate, accelerating the adoption of detailed plans and the implementation of investments.
– What will happen to the Rail Baltica project? Will we have to reduce or stop construction?
– This project has already created and will continue to create hundreds of jobs. We are talking about mid- and higher-qualified specialists, tenders won by Estonian companies, etc.
– But there is no money in the budget to continue the project…
– It is not true. The only question is that the government does not fully understand how to cover our share of self-financing. In three years, about 400 million euros will need to be found. Finding this money will be one of my tasks, as well as the Minister of Finance.
The Rail Baltic project optimization plan will reduce some of the costs. In addition, the European Union recently allocated an additional tranche of 1.2 billion euros. This will allow us to move forward with this project and look for additional sources of funding. We will also have to ensure that each euro invested returns more to the economy.
– And a pressing question of the last day. What caused you to leave the Center Party?
– In a broad sense, there are two reasons. The first is that, as a result of the changes that have taken place in the ranks of the centrists over the past year, the party has begun to shift to the right. If previously the Center Party was the main force on the center-left, over the past year the Social Democratic Party has taken on this role. Under Lauri Läänemets, the Social Democrats moved to the left; for them, the agenda of protecting ordinary workers, cooperation with trade unions, and issues of rural life became more important. SDPE has become the locomotive of the values that I share.
The second reason I accepted the offer to become Minister of Infrastructure is that this portfolio is very similar to the work I have been doing in Tallinn in recent years.
– Do you consider the processes taking place in the Center Party to be irreversible?
– You speak as if you are talking about a patient. Irreversible processes? Changes in batches are normal processes. As a former centrist, it is not appropriate for me to comment on the future of the party. I am confident that the Center Party has a future in Estonia. They have a chance to grow. I personally think that the party is not changing towards more progressive and center-left policies. However, the above does not mean that there is anything bad in this game.
More details in replay!
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Postimees studio: what will Minister Vladimir Svet build? / Presenter's clothes: Tallinna Kaubamaja / InWear Photo: Eero Vabamägi
- Where will the new minister look for funds for roads, trains, planes, ferries and stations?
- What does he consider the most problematic area in his area of responsibility?
- What are the prospects for the Rail Baltica project: cuts or suspension?
- Does the future minister agree that the excise tax on fuel is being dumped into the general budget cauldron?
- Auto tax – whose area of responsibility is this?
- How to restart the economy with tax increases?
- Will the former vice-mayor of the capital be able to influence the fate of Tallinn road projects?
- What caused the politician to leave the Center Party?
- Will the drain of personnel from the centrist ranks continue?
Presenter's clothing: Tallinna Kaubamaja / InWear
