ANDREY TYSGANOV: FAS GIVES HELP AND ASSISTANCE RATHER THAN CONTROL AND SUPERVISION

Thanks to the National Competition Development Plan, violations by the authorities in the Stavropol region decreased, tourism is actively developing, urban environment is changing, but first of all, private business has benefited – its share on some markets has reached 100%

On 25 September 2019, Deputy Head of FAS Andrey Tsyganov and Governor of the Stavropol region Vladimir Vladimirov held talks on implementing the National Competition Development Plan and developing the economy of the Stavropol region.

“FAS objectives for executing the National Competition Development Plan is to be a helper and advisor and worth together rather then control and report “to the top” about the exposed shortcomings”, started his speech Deputy Head of FAS.

Andrey Tsyganov highlighted the control figures that regions must achieve [1] by 2020 and highlighted the results of the Stavropol region towards reaching them.  For instance, in 2018 antimonopoly violations by the authorities decreased by 19 %, which reduced the administrative burden upon business, the share of SME and socially oriented non-profit companies in procurement increased by 4 %, number of unitary enterprises reduced by 12 %.

“Reduction of violations in the Stavropol region is higher than in Russia on average. Decrease of unitary enterprises is also higher than in half regions of Russia. These figures are not just arithmetic. The target should be achieved in line with good investment climate and attracting new investors to the region. Priori to the today’s meeting, we had time to look around and see how Caucasian Spa is developing. I can say that it is a good example as to how such sector of the economy as tourism should be revived with attracting investments and active support by the authorities”, said Deputy Head of FAS.

Head of Stavropol OFAS, Sergey Nikitin added that according to OFAS analysis for the 9 months of 2019, the indicator for violations by the authorities corrected: from  19 % to 22 %.

Andrey Tsyganov pointed out that National Projects in Russia should be implemented in accord with the competition standards. He underlined that pursuing National Projects federal executive bodies and regional executive authorities are instructed [2] to ensure complete fulfillment of 2018-2020 National Plan for Developing Competition in Russia and Road Map on Competition Development.

To pursue precompetitive policy through national and regional projects, competitive mechanisms for involving economic entities in the National Projects should be introduced and each National Project integrated with the National Competition Development Plan.

“Any National Project starts with tendering, which is FAS powers, design and construction, connecting the head facility to networks and tariff-setting – also FASA functions. Observing competitive procedures and employing the antimonopoly enforcement resource, tariff regulation and public procurement law will enhance efficiency of National Projects and save public funds”, emphasized Andrey Tsyganov.

Minister of the Stavropol region for Economic Development, Sergey Krynin, presented the results of competition support in the work of all authorities. He stated that the first beneficiary of implementing the National Competition Development Plan in the region is private business.

Sergey Krynin informed that in accord with the Competition Development Standard [3] the Stavropol region chose 36 markets out of 41. On 16 markets рынках the target for private property shares set to be achieved by 2022 is determined at 100%. For 25 markets the target share of private companies is from 80 to 100%. The highest dynamics in increasing the share of private companies to reach the 2022 targets is observed on the markets of road facilities (20%), architectural-and-construction design (3%), urban amenities (3%), maintenance and repair of the common property of premise owners in apartment blocks (3%).

He informed that “in terms of competition, 14 regional markets are sufficiently developed, where in 2018 the share of private business reached 100%. These are markets of taxi, light industry, oil products, manufacturing of bricks, concrete, wood products, catching and processing aquatic biological resources, livestock breeding, and seed growing. We can say that over half of sectoral indicators already match the goals and objectives that we must by 2022. At the same time, competition is underdeveloped on such markets as education, children leisure and wellness, social services, psychological-and pedagogical support. We have things to work on”.

“Thank you for paying considerable attention to Stavropol. The outcome of implementing the National Plan is a growing number of holiday-makers, a growth of our experimental tax – resort fee, and increased GRP and much more. We are proud of our region and wish to further develop cooperation with the Federal Antimonopoly Service that stands upon competition protection, it is essential for us. We will endeavour to align with the big tasks set for us by the President of the Russian Federation”, highlighted Vladimir Vladimirov.

Reference:

[1] No. 618 Order of the President of the Russian Federation “On the main directions of the state policy for competition development” of 21.12.2017

[2] No. DM-P6-2pr Protocol of the meeting at the Chairman of the Government of the Russian Federation of 12 April 2019, Clause 14

[3] No. 768-r Order of the Government of the Russian Federation “On approving the Standard for Developing Competition in the regions of the Russian Federation” of 17.04.2019