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Conversation with A.Ulyanova, Director of Yanishpole JSC, while driving around the farm
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On October, 15 Head of Karelia Andrei Nelidov has made a working trip to Kondopoga region of the republic to learn about the work of enterprises which set the budget of the region and substantially of the republic as a whole.
Head of Karelia has visited a cattle-breeding complex in the village of Yanishpole, Kondopoga Center of Grain Production, construction site of the pig-breeding complex in the settlement of Beryozovka, Porfirit mining enterprise, a brickyard owned by Kondopoga, Inc., and of course the pulp-and-paper plant itself which is one of the largest in Russia and in Europe.
At Yanishpole JSC
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The situation as a whole has produced a mixed impression upon the Head of the republic: obvious progress is found side by side with equally obvious problems. In Yanishpole new agricultural equipment has been purchased recently, but the boiler-house still has no connection to gas. The Center of Grain Production works trouble-free, but wouldn't achieve the level of positive profitability. The pig-breeding complex in Beryozovka is furnished with state-of-the-art equipment, but because of deterioration of market conditions it requires the state support. Porfirit has safely survived through the crisis, but experiences complications with transportation of its production by railway because of high tariffs and deficiency of rolling stock. The brickyard produces high-quality goods using modern Italian equipment, but cannot sell it: there's a year-and-a-half stock of bricks in the warehouse now.
A new tractor in Yanishpole
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"At any enterprise where we came the keyword was 'to help', – Head of Karelia summarized. – However, before we concider the issue of this help it is necessary to understand in what this help will result in the future. It would be absolutely senseless to take the budget of Karelia and spread it among private enterprises which owners, by the way, did not come to the meeting afoot, but drove expensive cars. It will be no help, but a waste of budgetary funds. I have instructed to reconsider all programs of the so-called assistance to enterprises and divide productions into perspective where there is a hope, and unviable which survive and intend to survive only at the expense of the state. In the latter case it is no business, it is social assistance, and there may be no social assistance to business, as it is for the poor, handicapped, elderly people, but in no way for businessmen. Perspective enterprises need assistance – and, perhaps, with a vengeance. As for the unviable, it is necessary to help not these enterprises, but people who work there. What job to transfer them to? What occupation would they have? What new workplaces should we offer? What social assistance should we render? It is more efficient and less expensive than to invest budgetary funds in the enterprise that will never be profitable. Business should raise money, become rich, pay taxes, and the state should use these taxes not to help the business, but to increase pensions and benefits."
At the Center of Grain Production
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At the same time Andrei Nelidov has explained, that, in his opinion, the number of perspective enterprises in Karelia surpasses the number of unviable. "Matters do not concern any crisis situation," – Head of Karelia has emphasized.
At the construction site in Beryozovka
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Besides, Andrei Nelidov considers that in the post-crisis conditions all enterprises in very short terms should get rid of non-core assets. "One enterprise cannot help another, a non-core one, and, thus, lose in the core production. As a result both close down, – Head of Karelia said. – Now we are at the brickyard which is a non-core asset of another enterprise. It does not need this brickyard, it was just necessary to help it. So they did – bricks have been produced, have not been sold, and the factory stands idle. It that a good help? It is necessary to have an effective proprietor, an expert in this direction to make production competitive, and in such cases we should help."
Despite of problems of which heads of enterprises have told the Head of Karelia, as a whole he has made a positive assessment of the situation in the region. "Without counting Kostomuksha, Kondopoga region is the most developed in the republic, both in the sphere of industry, and in the sphere of social security, – Head of Karelia said. After Petrozavodsk it is the second beautiful town in Karelia, there's the best pulp-and-paper plant, and the main thing is that its administration and business strive to achieve new qualitative marks. Most of products produced here – at successful enterprises – are world-class products. It not survival, it is development."
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