The book of complaints-2016: what business Boris Titov will ask the President

Ombudsman for entrepreneurs Boris Titov on 26 may will present to President Vladimir Putin annual report on the problems of Russian business, said on Wednesday the Ombudsman. familiarized with 170-page draft of key sections of the report entitled “the Book of complaints and suggestions of Russian business in 2016.”

As follows from the document, in the “Book of complaints” was included 231 systemic problem and 460 proposals for their solution. The problems are grouped in 30 areas, including, for example — the fight against illegal criminal prosecution of entrepreneurs, combating corruption, protection of rights of foreign investors. Problems were identified after treatment 25.4 thousand applications from entrepreneurs, considered the findings of two Federal surveys among owners and top managers of medium and small companies” (in one of them participated 4,2 thousand respondents).

“We drew attention to the fact that the report is ready. Of course, it will be reported to the head of state, have very carefully to examine it,” said Wednesday the President’s press Secretary Dmitry Peskov.

identified several key proposals from different fields.

To expand the “regulatory holidays”

Business can not withstand the oppression of inspections and administrative control, oversight turned into a huge inefficient mechanism focused only on “self-reproduction”, therefore it is necessary to drastically reduce the control and supervising activities, according to the report. Official data on the number of inspections shall be submitted to the report’s authors underestimated: so, according to the Ministry of economic development, in 2014 was about 2 million inspections of businesses, and the results of the survey of small and medium enterprises conducted by the Institute of business Ombudsman, the number goes up to 9 million

The report proposes to reduce the number of inspections in half, and halve the size of administrative fines for small and medium-sized businesses. For Supervisory authorities are encouraged to set key performance indicators, and on supervisors to impose personal liability for illegal interference in the work of the companies. Mass unscheduled inspections is proposed to conduct only with the approval of the President or the General Prosecutor’s office.

2016 valid three-year moratorium on planned inspections of small businesses — it was the idea of Putin, who proposed “regulatory holidays” in the message to the Federal Assembly in December 2014. But the scope of the moratorium is severely limited: it applies only to small business and only in relation to planned inspections, also under the “holidays” are covered, not all types of entrepreneurial activities.

The authors of the report propose to “expand” the scope of “Supervisory holidays”: in particular, to extend them to medium-sized enterprises (this includes companies with annual revenue of up to RUB 2 billion). According to Rosstat at the end of 2014, medium-sized enterprises account for only 0.3% of the total number of subjects of small and medium enterprises (SMEs), although they account for 12% of the total turnover of the sector.

To reform the Railways

The authors of the report criticizing the activities of the “Russian Railways”: the tariff for transportation and the use of railway infrastructure significantly constrain the development of non-oil sectors of the economy, the problem is compounded by the slow pace of road construction.

The proposals of the authors of the report — to transfer part of the functions of planning, financing and implementation of projects from the Railways directly to the authorized authority. It needs to act as the customer of major projects and to assess the long-term business needs in goods transportation.

The Russian railway investment program for 2016 is 432 billion rubles., the largest projects monopoly the modernisation of the Baikal-Amur mainline. For 2015 on the Railways transported 1.2 billion tons of cargo, which is 1% higher than a year earlier. The President of Russian Railways Oleg Belozerov said at the beginning of may, gradually increasing the speed of delivery. In April 2016 it amounted to 366 km/day., that is 6% higher than a year earlier.

Investment programme and major infrastructure projects of Railways are discussed by the Council of the consumer market of the Russian Railways, there are the largest shippers and it’s all happy, reminds the General Director INFOLine Michael Burmistrov.

The CEO of First cargo company” (PGK) Oleg Bukin said that the Railways gradually improved the situation of transportation. For example, the speed of movement of the gondolas in 2015 increased by 10%, which allowed the ISC to increase the yield without increasing the tariff to shippers. RZD tries to compete with road transport, confirms Burmistrov.

In the Railways and the transport Ministry to comment on the possible reform refused. The officer of the government says that the proposals in the government Titov was not discussed. The sides I doubt they will be implemented. “The freight tariffs RZHD does not set, and the government, namely of the rate depend largely on investment opportunities of monopoly”, — said the official.

To solve the problem of real estate investors

The main problem of the construction industry, according to the Ombudsman, amendments to the law on joint construction providing for the transfer of funds to buyers of apartments on special accounts in the credit organisations. Under the bill, developers would not be able to use these funds before delivery of objects. “The mechanism of transfer of funds of shared construction participants on account of ecsro in banks will lead to reduction of volume of investments in the construction industry and reduce competition”, — stated in the report.

According to Titov, it is necessary to defer the adoption of the draft law regarding the introduction of escrow accounts to create effectively operating system of insurance of risks of creating a centralized insurance institutions. In addition, the draft law on joint construction should ensure that the developer trust loan for the construction of apartment buildings, said Titov.

“To date, developers not available project funding because the interest rates on loans is 15% and higher, — says the President of the group “Morton” Alexander Brooks. — We propose to adopt a program of national credit, through which the developer could take a state loan in the amount of 7-9%”.

Brooks also proposes to expand opportunities of the program of military mortgage loans providing for the repayment of the mortgage at the expense of the state. “It would be good to expand this program by employees of the interior Ministry and the emergencies Ministry, public sector employees,” says Brooks.

The most pressing issues for the industry today connected with shared construction and construction of social facilities, says CEO “, Regiondevelopment” Olga Valchuk. “According to regulations, the developer must build a certain number of schools and kindergartens on the basis of built square meters of housing,” she explains. — But in fact this school or kindergarten are not needed, since in some cases the city is able to provide the area of these objects. This garden is a real headache for the developer.”

To reduce the burden on retail

The retail business has faced major financial and time costs during the implementation of the state automated accounting systems — unified state automated information system for control over the circulation of ethyl alcohol), “Plato” (for levying tolls on Federal highways), the system of electronic veterinary certification and other. Titov proposes to legislate the mechanisms of the tax deduction of the full cost of companies on the introduction of systems, to synchronize the reports prepared in the framework of these systems, set testing and transition periods.

Chairman of the coordination Council of the Union of independent networks of Russia and the owner of the network “the Family” Oleg Ponomarev says that although business and “humbled himself and endured these innovations, important any suggestions that will help to reduce the tax burden on the industry.

Top Manager of one of the major Russian networks believes that the problem for business is not even how much the company paid for the introduction of new systems, and technical reliability of these technologies. “We scan [in USAIS] the bottle and the system shows that this brand was already sold. Where to run? What to do with regrading, which is each trading company?”, — he complains.

The report proposed to introduce a trial period for “Plato”, the introduction of which, according to the estimates of the Ombudsman, resulted in the increase of retail prices by 2-5%. In addition, it is proposed to retain the current tariff until January 1, 2019, and to prevent the spread of the system on the roads regional significance.

“The policy of mutual sanctions and a high rate of inflation associated with rising costs of producers, has led to a substantial increase in the prices of consumer goods. This, in turn, caused a wave of checks of trade enterprises: the Federal Antimonopoly service, Rospotrebnadzor, Rosselhoznadzor, the Prosecutor General and others”, — the report says. Titov insists on “hard termination of growth of the number of inspections.

To revise the copyright

The report’s authors are sure: the current Russian system of management of copyright and related rights is “a high risk of violations” because of its opacity and contrary to international practice and WTO rules, a member of which Russia is with 2012. It is necessary to review the current system of collective management: in particular, to abandon the non-contracted management rights to inspect the current “bonded” versions of the agreements with the sponsors and schemes of allocation of payments, as well as to overcome the current market monopoly.

Now the rights of authors “automatically” protect mainly three accredited government organization Russian authors ‘ society (RAO), Russian Union of rights holders (RSP) and the all-Russian intellectual property organization (WIPO).

The authors of the report propose to replace the current model of management rights or the system by which the authors will compensate for damages after the harm, or “insurance” future liability — similar to the existing collection system 1% with manufacturers of audio – and video equipment (the “tax blanks” collects RSP). For the right to collect this fee on the market have to compete with many organizations.

The issue of intellectual property regulation and reform of the copyright system is relevant, says Director of strategic projects of the research Institute Irina Levova of the Internet. In the current legislation there is “much conflict” that “do not enhance transparency.” Levova considers that the rights management should deal with private organizations — “according to the rules of capitalism a business has to fight for customers”, that is, of authors and rights holders.

To free business from red tape

There is in the report proposals concerning the interaction of government agencies and businesses. Now, the authors point out, when applications need to use paper versions of documents, although in the daily operations of the company work with their electronic copies. The costs of all economic entities on the storage, handling and destruction of paper documents is estimated by experts at 300 billion rubles. per year, stated the report.

The authors propose to prohibit the storage of physical copies after the appearance of their digital versions and to oblige government agencies to accept electronic business documents. Such a measure will help the Russian companies to reduce costs up to seven times, according to the representative of MTS Dmitry Solodovnikov, clarifying that the operator supports this initiative. For production, signing and transfer of one paper set of documents, an average enterprise in Russia spends about 30 rubles, while the electronic kit usually costs from 4 to 7 rubles, while for the year this company draws about 1-1,5 million documents, says Solodovnikov.

With the participation of Irina Uzbekova, Elizabeth Arkhangelsk

As Vladimir Putin promised to help business

In 2016

At the Congress of the Russian Union of Industrialists and entrepreneurs (RSPP)

“Russian business has become more responsible and Mature, a growing number of domestic companies that operate on a transparent and civilized rules, fulfill your obligations to government, to society, and most importantly commitment do pay taxes”.

“I want you to know that we are constantly thinking of how to reduce the fiscal burden. It’s true, it’s not a joke”.

At the meeting of the business forum “Small business — the national idea”

“The last two years were quite challenging for the economy. Objective difficulties affected almost all the sectors. But it should be noted that, in General, the business survived, including small”.

“We will naturally continue to shape the mechanisms which will allow us to continue to move forward (entrepreneurs), and in particular, how does the development of small and medium-sized businesses. At its base is concentrated all the instruments of business support — funding, legal assistance, information marketing.”

In 2015

At a meeting with business leaders within the Russian business week, organized by RSPP

“Greater freedom for business is the best response to all external challenges and constraints”.

At the meeting of the state Council

“The state and all levels of government must do everything possible to make your business attractive, accessible and prestigious. To create equal conditions for all entrepreneurs to follow the rules and laws were stable and clear, to ensure fair and open competition, and no one bothered to work, not climb with a protection racket that extorted bribes, extortion, did not offer so-called imposed services”.

“I ask the heads of regions with the responsibility to approach this task is to configure their teams on productive work, don’t shrug this off as something minor. You know better what should be done to establish on its territory a more comfortable business climate. Need such work to close, to take the initiative to be in constant dialogue with the business community. I’ll tell you about that later, but it is clear that the need to create non-corrupt and transparent mechanisms of influence on the business. To be honest, without reference to objective difficulties, to analyze the situation in each region, and not in the report, and for business, for country and for people, to remove all obstacles that hinder the business. Must be assigned to specific people responsible for the decision of this problem. Moreover, I will emphasize again, all these mechanisms should be transparent, no need to create any structures that they are business worked, asking for something or putting someone in a difficult situation”.

“We need to work on such problems as attraction of investments and loans, provision of access to orders of state companies. To start your business should be easy, and the risk and everyone makes mistakes. No need to spend time and effort on collection of certificates, it will be enough to buy the patent and get to work.”

In 2014

At a press conference

“What does the future of our economy? We need to create favorable conditions for doing business, to ensure freedom of entrepreneurship, you need to guarantee the property, you need to stop using the police to chase anyone who does not like it. And use these tools to competition”.

In the message to the Federal Assembly

“We are talking about the need for new approaches in the work of Supervisory, control, law enforcement. But changes happen very slowly. It is necessary to maximally remove restrictions from business, to free it from Intrusive supervision and control. I said it Intrusive supervision and control. Every inspection should become public. Next year for this special register will be launched with information about what organ and for what purpose initiated check”.

In 2013

In the message to the Federal Assembly

“Special attention is required control system supervisors. In such structures we have employed, according to various estimates, about one million people. You must enter the public accountability of the regulatory bodies about the results of inspections, and also about spent on their execution of financial and human resources.

In 2012

In the message to the Federal Assembly

“Still a sensitive subject for businesspeople is excess attention from various inspectors. <…> work to change the principles of the regulatory and Supervisory agencies should be continued. I propose to create a unified Federal portal, where every check and inspection will have an individual room.