First of all I would like to thank you all for coming to Rustavi to meet me. Rustavi is an exceptional city of Georgia. It is a city that has exceptional rights, traditions, it has great social live and very special and honored people live here. One thing I regret the most is that in 90ies Rustavi was in the heaviest conditions - practically everyone was left without a job and the most merited people found themselves in a greatest hardship.
I will not say that we have brought a star from the sky, but it is a fact that this city looks like a real city now. I often come here and it concerns not the major avenue only that looks so beautiful now, but I speak about everything.
Our major pain here was water supply system that is getting in order step by step and we will bring it to the end.
I am glad that the youth in some respect has more chance of employment here. By the way the rate or crime in the most difficult period was lower in Rustavi that in the rest of Georgia. Comparably low was the rate of drug abuse as well.
There is something in this city that makes it especially interesting for the rest of Georgia. However, I haven't come here today to speak about Rustavi.
I want to discuss social issues together with you and with the rest of Georgia, especially the pensioners.
Each of you is the an active member of our society and to be on pension it doesn't mean that you have to be old, because a person is young as long as he considers himself young, has thinking, act and takes care of its family.
Each of you are people, who works on the daily basis, takes care of its family, so pension do not refine an age, it is simply a social status. I know that the pensioners in Georgia are in greatest hardship and I permanently think about how should we improve their lives.
Georgia went through an open aggression, however I would say that war has not started in 2008 - a war declared against Georgia started rather earlier. There was a big hit of world crises that Georgia went through But now our country, as the rest of the world is getting through a new economic tornado that was caused by international inflation.
You can see it on TV that this problem bothers every country. Yesterday I was watching Chinese Communist Party session on TV and it was said there that the main challenge for China is inflation. US and Europe has the same problem, but when I speak about especially rich country we should envisage that it is less painful for them.
Prices firs of all increase on food. It is true that Georgia is no longe a poor country and it had reached countries with medium income, but of course we still are not there where we want to be. This is why our market basket of consumer goods mainly consists of food products. In US, Great Britain or Germany products occupy only 10-15 percents of it, in Georgia this indicator reaches 70-80 percents, in some cases even 100 percent.
Today prices increased not on houses, cars or on trips to some resorts, but what people need the most in their daily live. What do not represent some additional luxury, but is an issue of existence. You know it the best, because you prepare meals for your children and grandchildren; you go to the stores or markets and bring them products.
You know what does it mean when prices increase on potatoes twice or maybe three times, what does it mean when prices increase on cooking oil two or three times. You know what does it mean when sugar is extremely expensive, you know what it means when prices on bread increase by even 5 or 10 Tetry.
Such conditions have been established in Georgia, what is a big hit for our country for sure. Certain amount of money has appeared in country during last several years in Georgia, it means that country should grow. When I became a President a GDP per capita was about 1000 USD. Now this indicator reached 3000 USD, it means that it had tripled. Pension was 14 GEL, (you remember it pretty well that one GEL was even caught from this amount) and people weren't able to get this pension during several months. Of course pensions have increased since than even more than on GDp, because we take more care of pensioners, but prices increased as well. It is true that pensions have increased more than prices, but it is not a requirement - we would never reproach it to someone, that our country lives today better than in 2003. This is why the Rose Revolution had happened - to turn Georgia for better, this is why you voted for us during the elections, this is why we have stability in Georgia today. You have expected not only beautiful exteriors, new buildings, paved roads or even 24 hours of running water, but better live, improved conditions and more income,
Today we have such a situation.
We have several sources of income. We have no oil and gas, as many other countries have. Our main recourses are taxes, it means that people do business, they live on it and pay part of this money to the budget. We have one of the lowest taxes all around the world in Georgia. Later we divide the budget and construct our roads, hospitals, schools and pay pensions. During last several months the crises hit the business comparably less than in some other countries. This is why business grows more rapidly this year than we could imagine. We had 10 percent growth in January according to our annual calculations. It means that we will have a bit more revenue this year. A bit more revenue means that should spend more money on pensioners and social programs. This is one source where we should bring money.
On one hand we shouldn't terminate infrastructural programs, rehabilitation of tourism infrastructure, neither should we stop investing money in agriculture and on the other hand we should understand that all of this represents a source of employment. The source of employment today is creation of new industry in agriculture. We can minimum double production in year and a half. We have made a timeline up to 2015 to double production, but if we work hard, it is possible to increase it three or four times.
In general, if we will concentrate more on Georgia's agriculture theoretically it is possible to increase harvest 27-28 times, but in pretty short timelines it is possible 5-6 times. This is the second source of our growth.
The third source is to minimize state expenditures. We have reached one thing without any doubts in Georgia - the major thing we have abolished here is governmental corruption. It doesn't mean that someone is not cheating behind our back, but the major thing is to detect it and to request from them to take responsibility for their actions. Not only someone encourages this within the government, but our major principle is never to allow organized crime and corruption here in Georgia. These two things are in tight relations.
By the way, the main thing together with a fact that an inspector never takes any bribes today on the street is that no one humiliate you any more, you do not have to stand in long lines, no matter where do we get everybody meets us in a normal way and there is no corruption on the upper levels.
We all know that fish smells in the beginning and if we would have corruption on the high level positions - you cannot request honesty on the lower levels. It is impossible. Corruption either exists or not. Especially we are not defining someone on high or low levels - we all are equal and are serving one common job.
The next stage should be minimization of state expenditures more and more, in order to have more possibility to increase pensions in Georgia this year.
We were meeting experts in economic sphere during last several days and we made all the calculations. By the way we have good news in the sphere of taxes, but we have some changes in the management of revenue service. We were doing good before as well, but now we need a different approach. New management should be at most fair in order for people to have sense of injustice and pressure. It is very important.
Everyone must pay taxes, economy should become white and nothing should happen in avoidance with the budget. This is pretty painful process and this is why we shouldn't exceed in being strict. The state apparatus mustn't have a sense that we are fair, strong and we are not taking bribes, we may oppress our citizens. The major threat after corruption is this and we will overcome it as well. I want to increase pensions soon very much, but we should get there stage by stage.
After we calculated everything envisaging several factors and mobilization of finances in first part of a year (improving taxation system, saving resources, farther growth of economy), the country will have a chance to increase pensions up to 100 GEL starting from September 1.
You know that pension in Tbilisi is more than 10 GEL and starting from September it will be 100 GEL. Due to experience and merit 7 GEL will be added to this amount and in total it will be 107 GEL.
Of course, those who are below the edge of poverty and unfortunately 30 percent of pensioners in Georgia are below this edge, they will have 30 GEL of aid in addition. 15 GEL insurance added to it and the final amount would be 152 GEL.
So, we assume that we will get over our market basket of consumer goods. I once again repeat that minimal market basket for us consists of food products. There will be no one left in Georgia, who will have less then market basket - it is an important support to pensioners and it will happen until September 1.
At the same time we mustn't forget our pre-election promise regarding 100 USD pension package. I permanently recall pension package and it means base pension that has appendages due to experienceand medical insurance. By the way insurance works well and we need it for people to have access to the medical treatment at hospital.
By our concentrated attempts, after our strict requirements, the business has stabilized prices on drugs.
In order for us to transfer on 100 USD pension package from next year we should carry out huge pension reform. This is a full plan.
Pension reform doesn't mean means that your pension should change (it should increase of course) but it means that pensioner gets advantage as a result of collecting taxes, dividing budget and relations formed between a taxpayer and state.
I hope that starting from the first half of upcoming year we will come closer to this package in Georgia - 100 USD equivalent and it will be guaranteed for the major part of pensioners. But we need a serious pension reform for this.
We have sent the Minister and several deputies in Chilefor this, also we have sent several MPs, who work on this issue to Singapore, in order for them to see the pension model of those countries.
So, we have sent the groups in those countries that have started from the lower level then us, but because of the right pension policy of our country neither their pensioners are unsatisfied and their economy develops as well.
There is no more important priority than social security. Neither government nor me have more important objective than taking care of potentially the most unsecured and at the same time loveliest, most merited and most special part of our society.
You have brought us this country up to here on your on shoulders and finally this political government is here in their offices because of you. No one should forget to whom they are accountable first of all and who are those people, to whom they owe.
We will pay our debt to the end.
The purpose of our meeting was once again share with you this plan and once again the government to listen from me what our priorities are. However I tell them this every day.
At the same time I wanted to share with you a specific plan of this year and I want you to know that it is minimum of minimum what we do.
We work a lot in order to improve health system; we work very hard in order to make sure that those people, who have no insurance and no money shouldn't remain without treatment. However, we still have such people in Georgia.
There is no longer situation in Georgia that was in 2003 - if you showed money to the personnel of ambulance no one would treat you; Now more than million people have insurance that covers many expenditures, but I know it very well that there is a category, which do not belong even to the category below poverty edge - and they could easily found themselves absolutely undefended in many situations.
During closest months and this year our major objective is to take care of exactly that category. We must carry out very serious pension reform and serious insurance reform, otherwise if people couldn't use this chance those 150 hospitals would remain empty.
We are not constructing facades and monuments, but what should remain in people's service and what people should use in Georgia.
This is what I wanted to tell you.
I know that they are expecting you to get back to your houses and you have many other things to do, but it was a great honor for me and it was very important for me to meet you.
I want to tell you that us and personally me have great hope in you and you must have hope in me. We must support each other and could manage to bring our country to a peaceful end.
Thank you very much!