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5/10/2006
Address by President Saakashvili at the government meeting

Welcome, everyone!

I would like to discuss a regulating system of winemaking and wine-production. The shelves in the supermarkets all over Europe where Georgian wines should be displayed are full of these "masterpieces" - fake wines.

In the supermarkets of the Baltic States the so called 'Georgian' wines - Kindmarauli [instead of the authentic Kindzmarauli], Svanchkara [instead of the authentic Khvanchkara], which are produced in Bulgaria are sold very enthusiastically. And the last "masterpiece" is the Spanish-produced Khvanjkara with a distinctive white colour. These wines have nothing to do with Georgian wines.

While the Georgian Agriculture Ministry and most of our winemakers are sleeping, smart Spanish, Bulgarian, Lithuanian, and Czech wine-producers or whatever they are, who know marketing very well but don't know the Georgian are successfully gaining access to markets and making hundred of millions of dollars while our real Khvanchkara, Saperavi and Kindzmarauli are rotting here.

I have heard a very stupid statement made by one of the chairmen of the association of wine-producers who said that the Georgian government, which is now looking for mythical new markets, was to blame for losing the Russian market. It would be better if any wine-producers association before starting accusing us begins exporting our wines to the Baltic States, to Poland, to Ukraine and offering supermarkets real Georgian wines instead of the fake ones.

The Georgian government has introduced direct flights to the Baltic States and Ukraine which has opened new markets and free trade opportunities. The last destination is Turkey and we have already finished negotiations with them.

We don't take bribes from anyone; on the contrary, we have greatly promoted Georgian wines. The country's president goes to the supermarkets himself and promotes Georgian wines. However, despite our effort the Spanish people and the Bulgarians are using our brand names and thus, earning money. I think that this is a serous shortcoming of the Ministry of Agriculture.

The previous Minister of Agriculture illegally sold the licenses, which equaled to treachery. However, I think that, even in this situation no one had a right to produce fake Georgian brands.

The Baltic States consume more wine than Russia. The bigger a country's population and its revenue is the bigger is the demand for wine. Until we are sleeping fake wines, instead of the popular real ones, are being sold all over Europe. I want you to take special measures against this.

We have decided to give wine-producing regions, mainly Kakheti, 500 tractors. We will not tolerate that people who grow grapes incurred great losses. However, the winemakers together with the government should do something about it. Only grumbling will not help. This is a classic example of inability, laziness and lack of vision. All the winemakers should gather once more and talk seriously about this issue. Georgian wines are of very high quality and we should make so that these people do not tarnish the name of Georgian wines.

This proves that our wines can easily be moved from the Russian market to other markets. Ten million bottles of wine can be easily sold in the world market. For that we need right promotion and delivery of our wines in the right place and in the right time.

The second issue concerns production of the Australian sausages. Each similar case should be studied thoroughly. I want everyone to understand one thing - Georgia is open for business.

Georgia, based on the corruption level, is the second to last in the list among 50 European states, while some time ago we were among the first three countries.

In the entire Europe, Georgia has the lowest taxes. Demand for licenses is the lowest in Georgia.

Each case, which raises certain questions about a specific business, should be thoroughly researched.

We want our [business] environment to be free and liberal so that we had no competitors in the region and subsequently, throughout the world. The improved business environment in Georgia is the main result of our achievement. We will not tolerate creating any artificial barrier to even the smallest business. This concerns not only a foreign business, but first of all the Georgian business. Even the smallest entrepreneur should not feel that there is a government official - a governor, who might create any problem to his business.

This is my strict instruction and I will study it thoroughly and will bring it to a logical end. Every moot question will become the subject of a discussion in the government. Everyone in Georgia knows that its government is not corrupt.

We also want to have a government which will work effectively in every direction. We want to have a smart government which promptly takes decisions, promptly reacts to moot questions, gives well-grounded explanations and which is a full partner of the Georgian business.

This is the core principle.

The third issue concerns detention of the Georgian citizen in Dubai who turned out to hold the Russian citizenship.

I can't explain why Russia shelters the escaped, wanted persons from Georgia, regardless of what these people might promise Russia to do. However, I know that these people promise Russia to topple Saakashvili and its government. I would like to explain Russia in a friendly and brotherly language that bandit remains to be a bandit and it does not matter where he is - in Georgia or Russia. In normal countries the place of these people is in prison.

We are successfully continuing fight against "legalized thieves". The fact that the Georgian thieves flee to Dubai, Spain and Moscow means that their place is not in Georgia any more. We successfully cooperate with international law-enforcement agencies.

This is already a great achievement.

Thank you very much.



Communications Office
of the President of Georgia




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