A working group on migration headed by Justice Minister László Trócsányi has been set up within the Government with the participation of the Ministry of Interior and the Prime Minister’s Office, in addition to the Ministry of Justice, János Lázár, the Minister heading the Prime Minister’s Office announced at the press conference Governmentinfo 54 which he held jointly with Government Spokesperson Zoltán Kovács.
The three ministers taking part in the work of the working group are required to prepare a report for the cabinet meeting to be held next Friday regarding the latest situation related to the legislative regulation of immigration in the context of the European Union and Hungary. They will look into the EU’s relevant legislative process – regarding the mandatory quotas, inter alia –, the V4 cooperation and the prospects of the referendum, Mr Lázár informed the press.
„We shall not take anyone in in Hungary, we do not need immigration in Hungary”, the Minister reiterated the position of the Government.
Regarding the European Football Championship currently taking place in France, he confirmed the communication of the Ministry of Foreign Affairs to the effect that there are no specific threats attached to the events related to Hungary. At the same time, the Championship as a whole is a major source of risk.
Concerning the summer schedule of the Cabinet, Mr Lázár said: the Government will not be on leave, and is not planning to go on leave.
Further pay rises expected
In answer to a question regarding the pay of general practitioners, the Minister said: they will increase the allocation of general practitioners also this year. HUF 10 billion will be available for this purpose. Negotiations between the Ministry and the chamber of medical practitioners are about whether general practitioners should receive a rise on a standard scale or in a differentiated manner, while the parties are further conducting talks as to how to provide a pay rise for dentists working in state dental surgeries and health visitors.
The head of the Prime Minister’s Office said in answer to the question of whether a decision has already been adopted regarding the rate of the pay rise intended for crèche workers with secondary qualifications: a decision has been reached on a pay supplement amounting to HUF 7 billion nationally.
Simplification of taxation will form part of autumn legislative programme
The Minister heading the Prime Minister’s Office described the simplification of taxation as an important part of the autumn legislative programme. Mr Lázár said: they will consult with the Hungarian Chamber of Commerce and Industry regarding this issue, and in this context they will also seek their opinion on how to accelerate the disbursement of EU funds.
He further reported: they will initiate the amendment of some 80 laws in the autumn with a view to the reduction of bureaucracy.
He reiterated: the Government adopted a decision last week in connection with some 40 support institutions within the framework of the reduction of red tape. The Minister described the merger of these institutions with the relevant ministries as a major challenge for the summer, pointing out: the ministries will have to reckon with a 20 per cent cost reduction. This, however, can be achieved through savings in both material and personnel expenditures. He stressed: the Ministers are free to decide how to implement this scheme, but he personally deems expedient the dismissal of three thousand people.
As Mr Lázár said, the relevant legal rules provide maximum six months’ pay as severance pay for the dismissed personnel, and additionally the employers who offer jobs to these people may also be eligible for contribution benefits. He said: his proposal to provide higher severance pay for those who agree not to return to public administration and to become self-employed was turned down.
Hungarian processing industry and retail to be reinforced
He also told the press: the Hungarian processing industry and foodstuff retail must be reinforced, and to this end, the Government will initiate a consultation with the chambers of agriculture and industry as well as with other interest representations in the sectors concerned regarding the implementation of this plan.
Mr Lázár said: it would be time for some multinational corporations to leave the country, instead of „dumping Europe’s food industry rubbish on Hungary”.
The Minister takes the view that agricultural production in Hungary could find better advancement if the processing industry were in Hungarian ownership and the criteria of Hungarian processing businesses were enforced in retail. He believes that one of the country’s gravest competitive disadvantages is that agricultural producers are exposed to retail, given that the processing industry itself is exposed to „multinational retailers in foreign ownership”.
He said: the Government will set aside HUF 100 billion for the reinforcement of the processing industry in EU funds allocated for economic and innovation purposes, and HUF 20 billion will be made available for medium-sized and large businesses as part of the rural development operational programme.
The Government will also discuss the situation of the dairy sector, he added, remarking: there is intensive lobbying to achieve a reduction in the VAT on UHT milk as well.
This year’s budget stands test of time
Mr Lázár also spoke about this year’s and next year’s budgets. He said: this year’s budget will stand the test of time, while next year’s important goals include the reduction of the sovereign debt, in addition to the growth of the economy.
He further reported: the bill which will decide on the revenues derived from the sale of state-owned land will be presented to the House in September. As he said, according to one concept, these funds would be used for the reduction of the sovereign debt.
Regarding the easing of construction-related restrictions, he highlighted: the construction of 13 thousand homes was reported to the authorities by May this year, while only seven thousand projects were filed with the authorities in the whole of last year. The contract portfolio is increasing continuously, he added.
Government to decide on major transport developments next week
The Government will finalise the range of public roads and railway lines to be built or developed up to 2022 at its meeting to be held next week. He said: the goal is to achieve that motorways extend all the way to the state borders, in addition to connecting county-ranked cities to the most important road networks. Mr Lázár also spoke about the development of the most significant transport hubs and junctions.
He further mentioned the construction of suburban railway lines and the refurbishment of metro line 3 as some of the more momentous issues to be resolved upon.
The Government will also adopt a decision on the construction of a Balaton circuit railway line, he added. They would modernise the networks on both the northern and southern shores from an allocation of HUF 500 billion, he pointed out.
At the same time, he mentioned that the Government approved a bus manufacturing strategy last week, the purpose of which is to help Hungarian bus manufacturing back on its feet and to reinforce economic growth with a new segment of the vehicle manufacturing industry. All state-owned and municipal companies which operate buses in Hungary should give Hungarian bus manufacturers a chance, he said.
Mr Lázár also told the press: the Government has not decided on the issues of transport in Budapest. They are expecting Mayor István Tarlós at the meeting of the Cabinet to be held next week or in July.
Foreign nationals cannot acquire Hungarian land with fictitious contracts
In response to the news that the European Commission filed a lawsuit against Hungary due to its land legislation, the Minister said: a dispute has evolved between the Brussels body and Hungary regarding the legislative elimination of usufruct attached to land. The story behind the lawsuit, he said, is that Austrian farmers in the vicinity of the Austrian border „attempted to acquire title to Hungarian landed areas with fictitious contracts and through usufruct manipulation”. It was in response to this that Hungary’s legislature declared these invalid. The court proceedings involve the cases of some 200 farmers – quite evidently, in response to Austrian claims, he added.
He believes that the Hungarian position can be defended. He indicated at the same time that they are ready to come to a settlement arrangement with the farmers concerned, but there is no scope for foreign nationals to acquire land in Hungary.
Hospitals debts are on the decrease, but are continuously regenerated
In answer to a question regarding the state of health care, he said: it is important that the issues of funding and monitoring should be in the hands of the minister responsible for health care.
Mr Lázár repeated: as part of the simplification of the structure of government, the ministries adopt strategic decisions and prepare legislative proposals, while the execution of those decisions must be left to the competent „government agencies”, such as the Hungarian State Treasury which will be in charge of all payments, from pensions, through benefits, to EU funds. The responsibilities of the authorities are fulfilled by the district and government offices.
In answer to a question, Mr Lázár estimated this year’s debt portfolio of hospitals to be around HUF 50 to 60 billion which indicates a declining trend, but these debts are continuously regenerated, he remarked. He stressed: the State agrees to pay these debts, but it is important to look into their source.
Government Spokesperson Zoltán Kovács said in reply to a question relating to Brexit: all measures which may be necessary for managing the consequences of the decision can be covered from the reserves of the budget. Mr Lázár added: Hungary respects the decision of the British people, whatever that may be.
The Minister confirmed: Prime Minister Viktor Orbán will visit every county-ranked city as part of the Modern Cities Programme as his schedule permits.
He also stated: the building currently accommodating the Museum of Ethnography, but which was originally designed to house the Curia must be given back to the Curia. There are ongoing negotiations regarding the relocation of Institute of Political History, but these have not yet yielded a result.
In response to reports related to possible ownership changes in the case of some press outlets, Mr Lázár said: the Government does not concern itself with the fate of Hungarian press products. This is a free media market, everyone is free to do what they like.
In answer to a question enquiring about the proceedings instituted against FHB executive Zoltán Spéder, he said: he does not wish to comment on ongoing investigations and criminal procedures. He said, however, that the Government regards the integration of savings cooperatives as an important and successful measure.
In answer to another question, he said: he is aware of three cases in which there are ongoing investigations and in which FHB interests have emerged. He is aware of these, he continued, because data was requested from the Hungarian Postal Service which comes under the supervision of his ministry. The police requested documents related to the sale of the money transportation company of the postal service, he informed journalists, pointing out that the company was sold in compliance with the statutory regulations.
„Anyone is free to investigate anything regarding the state-owned companies coming under the auspices of the Prime Minister’s Office or the Hungarian Development Bank. Whenever measures of an economic nature were taken, the staff members working there took those measures with the authorisation of the Government and in compliance with the laws of Hungary”, he said, stressing that they are ready to take responsibility for all their decisions.