János Lázár takes the view that the agreement between Hungary, Russia and the EU may be regarded as a milestone towards cheaper electricity. At the press conference conducted under the title Governmentinfo 5, the Minister tackled the case of Altus, the brokerage scandal, the Kaposvár homicide, and the 2016 budget.
The Government requests a State Audit Office inspection at investor municipalities
The Government requests the State Audit Office to conduct immediate inspections at municipalities which invested funds with brokerage firms, the Minister heading the Prime Minister’s Officer said at his press conference. János Lázár also stated that the Fiscal Council will receive the main figures of next year’s budget by the end of April.
János Lázár told the press that there were 24 municipalities which had invested funds with the brokerage firms Quaestor, Buda-Cash and Hungária Értékpapír Zrt. From among them, the municipality of Százhalombatta ventured the largest sum of money, some HUF 3.5 billion, he said.
Based on the Cabinet’s request, the Minister heading the Prime Minister’s Office said, the State Audit Office is required to conduct an audit for compliance at these municipalities in order to determine under what circumstances these local governments deposited funds with brokerage firms.
In answer to a question, the Minister described the Karcag Kun-Mediátor case as a simple criminal fraud, and pointed out that the business engaged in financial activities without a licence.
Brussels consent a milestone
The nuclear fuel supply agreement relating to the enlargement of the Paks atomic power station was also mentioned at the press conference. In this context, Mr Lázár said that the agreement between Hungary, Russia and the European Union may be regarded as a milestone, and a step forward in the efforts of the Government to reduce the price of electricity.
In his view, Brussels’ consent is proof of the fact that it is no longer an open question for the European Commission whether new atomic power station blocks will be built in Paks; the only question is how these will be implemented.
János Lázár also informed the press that the Government will decide shortly on the foreign managers it wishes to invite to head Paks 1, i.e. the current power station. He pledged that a minimum three-member international team of managers will come to Paks. He further added that the Government will also decide in May as to who will be in charge of Paks 2, the company dealing with the new blocks, after the departure of Sándor Nagy. In this case, too, the involvement of Western-European experts is a possibility, the Minister remarked.
Fiscal Council to receive main figures by end of April
The head of the Prime Minister’s Office said in connection with the draft of next year’s budget, the first version of which was also discussed by the Government on Wednesday, that Minister for National Economy Mihály Varga will disclose the planned main figures of the 2016 budget to the public by 30 April.
Mr Lázár confirmed that the proposed budget will be submitted to Parliament by 13 May. He takes the view that, in contrast to the passage of the budget by Parliament at the end of the year, a fiscal vote brought forward to mid-year reinforces transparency and results in a more predictable fiscal environment.
In the context of fiscal plans, the Minister highlighted the contemplated reduction of the personal income tax, the reduction of the VAT on pork, and the increased rate of the tax benefit granted to families with two children.
János Lázár pointed out in connection with fiscal affairs concerning the Prime Minister’s Office that civil servants working in regional public administration will receive a minimum 30 per cent pay rise as of 1 July 2016 in the magnitude of some HUF 25 billion in total. The Minister proposed to launch a social consultation regarding the precise content of the planned reduction of state duties and charges, and described this measure as a reduction of household expenses in public administration.
In answer to a question, he also told the press that the Government does not wish to change the rate of the telecommunications tax; however, the rate of the bank levy will be reduced gradually. At the same time, the Government requests the banking sector to boost lending, he added.
Hungary will not sustain a loss of a single euro in EU funds
Mr Lázár also stated that the Government had reviewed the status of EU development affairs. He highlighted that Hungary had received some HUF 8,200 billion in EU funds between 2007 and 2014; more than 60 per cent of this sum was disbursed after the dissolution of the National Development Agency and projects were transferred to the supervision of the Prime Minister’s Office. Hungary has already drawn 81 per cent of the available funds, thereby overtaking the Czech Republic, Romania and Slovakia in the rankings, the Minister said, who also pointed out that the country will not sustain a loss of a single euro.
The Minister said in connection with the suspension of the disbursement of certain EU funds that this measure affects less than 2 per cent of the allocation earmarked for the planning cycle. The EU investigated 53 out of the some 43,000 contracts for work and services, and found irregularities in the case of 19 programmes.
A member of the press also mentioned at the press conference that the European Commission opened anti-trust proceedings against Gazprom. In this regard, János Lázár said: one cannot rule out that Gazprom abused its dominant market position. He stressed at the same time that Hungary is at present reliant on Russian gas; no alternative to this source of supply has been built in recent years.
The Government has contacted the European Commission on account of Altus’ engagement
The Government has contacted the competent authorities of the European Commission on account of the engagement worth HUF 1.5 billion awarded to Altus Zrt., a company which has ties to former Prime Minister Ferenc Gyurcsány. According to the information provided by János Lázár, the Government seeks to receive information regarding the circumstances and procedures in which the firm was selected for the audit of the development programmes between 2007-2014. The Minister remarked that the European Commission had not previously resorted to using the services of subcontractors; staff members of the European Commission themselves performed the relevant responsibilities.
In his opinion, given that the European Commission awarded an audit job worth one and a half billion forints to an active politician, a former and “an aspiring future” Prime Minister, the job in hand cannot be performed impartially, without regard to political considerations, and this harms the Commission’s prestige and trust in the institutions of the European Union. He added: people in large numbers have doubts as to the sort of advice that Ferenc Gyurcsány and “his family business of four” may give regarding, for instance, the audit of the EU tender proposals of Hungarian entrepreneurs.
The Minister takes the view that this non-transparent aid on such an unjustified scale may give rise to the issue of prohibited party-political funding.
“We sincerely hope that the left-wing leaders of the European Union do not wish to assist Ferenc Gyurcsány’s DK movement in this manner and form, through Altus Zrt.”, Mr Lázár said, adding that this warrants an investigation.
The Kaposvár homicide cannot go unpunished
At his press conference lasting for more than two hours, the Minister heading the Prime Minister’s Office condemned the Kaposvár homicide, and stated that if there is any connection between the physical appearance of the tobacco shop, for instance, the dark, covered-up shop-window, and the crime, he will initiate a legislative amendment. János Lázár told members of the press that the Minister of Interior was requested at the cabinet meeting on Wednesday to find the perpetrator or perpetrators, if necessary, with the deployment of a special police force unit.
The Minister pointed out that there was no homicide in Hungary in 2015 whose perpetrator was not found by the police. The Government expressed its condolences to the victim’s family as the most important gesture, and stressed that such brutal cruelty cannot go unpunished.
Prime Minister Viktor Orbán has no official political advisor
János Lázár made it clear in answer to a question concerning Árpád Habony’s role: Prime Minister Viktor Orbán has no official political advisor. Consequently, neither is Árpád Habony employed in that capacity. The Government engaged the Századvég Group to provide expert and advisory services, and many people are consulted as private individuals before each decision is taken.
The Minister was also asked about the criticisms levelled at the Government from right-wing circles. Regarding these, Mr Lázár said that neither he, nor any other fellow-politician should feel hurt or insulted by these criticisms as, in his opinion, there is much more at stake for the right in the present cycle of government than there was during the term between 2010-2014. It would be a historical achievement, he continued, if after two terms of government, Fidesz-KDNP and their allies were repeatedly able to retain the trust of their electors in 2018. He takes the view that “this would not just determine the fate, structure and future of the Hungarian right wing for a mere four years but for decades”.
Given the high stakes, every right-wing opinion-maker and every right-wing voter feels compelled to state their opinions in order “to win in 2018”, the Minister argued his case, and added: “some of us, in the front line of the Government are tasked with the duty of resolving very serious matters on a daily basis”.
He mentioned as an example the criticisms levelled at his person regarding his choice of advisors. In this context, the Minister indicated that it is one of his duties to find a common denominator with every single member of the Jewish community in Hungary, also including those who organised demonstrations against the Government, those who were in the Workers’ Guard during the communist era, those who were members of the Hungarian Socialist Workers’ Party and those “who were promoting the cause of (the liberal) Free Democrats”.
Consultations to be held before planned changes in higher education
Concerning the planned changes in higher education, Mr Lázár said that the Ministry of Human Resources will table a proposal regarding the modernisation of higher education after a series of consultations. However, this process has not even reached the stage of public administration consultations yet. In answer to a question regarding the consolidation of hospitals, the Minister confirmed that this measure will equally extend to teaching hospitals and church institutions; the Government will not allow a single medical establishment to go under due to unpaid bills or for other reasons.
The Minister was also asked about his previous statements regarding sports financing. He is convinced that state companies have no business in the financing of professional sports, and this is a view that the Prime Minister also shares, he said, adding that professional sports clubs which do not receive funding are at a disadvantage in open competition.
Speaking about the Modern Cities programme, János Lázár said that Prime Minister Viktor Orbán will visit Pécs next Tuesday.