At the sitting held on 9 December, the Industry Committee discussed the Republic of Serbia 2010 Budget Bill, focusing on the sections pertaining to the development of industry and energy production.

The sitting was attended by representatives of the Ministry of Energy and Mining, Ministry of Finance, Ministry of Economy and Regional Development, Serbian Chamber of Commerce, Union of Employers, Union “Independence”, Independent Trade Union and Public Procurement Directorate.

The representatives of the ministries briefly outlined the main characteristics of the 2010 Budget Bill pertaining to the development of industry and energy production, stressing that in the drafting of the Bill investment into the economy received special attention considering that it is the only way one can expect a rise in the GDP. Section 17, Ministry of Economy and Regional Development, position 410, represents the funds intended for industry. These funds are intended to assistance domestic companies and infrastructural projects that attract direct investment. Within position 410, classifications 451 and 621 relate to subsidised credits for big systems, foundation role, special importance investment, consumer loans for the purchase of domestic products, start up loans etc. Section 18, Ministry of Energy and Mining, position 430, secures 234 million EUR worth of funds for the functioning of the Ministry itself, while the remaining amount is intended for the functioning of the mining industry in Serbia.

The discussion focused on the issue of public procurement and funds that would be allocated for the purpose. The officials stressed the need for legal change in the area so as to enable domestic companies to be the contractors, not only sub-contractors. It was estimated that in the public procurement process, particularly in the case of public enterprises, there is no clear control over the preparation of tender documentation, clearly defined standards, demands and payment deadlines. The representatives of the Serbian Chamber of Commerce briefed the Committee members on the initiative that the Chamber had forwarded to the Government of the Republic of Serbia pertaining to the proposed measures to be implemented in the public procurement process and to boost economic development. The proposed measures request: that the Government should legally define a measure to obligate the budgetary beneficiaries to stipulate conditions that domestic firms can fulfill when calling a tender; that foreign bidders be obligated to present and offer with a domestic partner whose share of the business cannot be lower than 40% and that SCC representatives be included in the work of public procurement commissions with the task of monitoring the correctness of the public procurement procedure. They deemed that the 2010 Budget Bill is an improvement to last year’s, also making numerous objections about the manner of financing the budgetary deficit, allocation of funds from the positions of the Ministry of Economy and Regional Development, etc. They stated that the economy requests subsidised company credits, appealing for closer cooperation between the Government and National Bank on the issue of securing macroeconomic stability.

The sitting was chaired by Milorad Buha, Chairman of the industry Committee.