28 September 2007, 09:51
Having examined the Bill (Reg. No. 4000), submitted by the Cabinet of Ministers, the Committee indicated a number of positive provisions, in particular the increase in the growth rate of basic social standards and guarantees (subsistence wage and minimal wage).
Another positive aspect, in the Deputies´ opinion, is abandoning by the Government of its practice of suspension for year in question of the social clauses in Ukrainian legislative acts, among them the Law of Ukraine ‘On the Social Security for War Children' and ‘On Rehabilitation of the Disabled in Ukraine´.
The Committee remarked that this Bill includes no clauses specifying - contrary to the Laws of Ukraine ‘On the Status of War Veterans; their Social Security Guarantees´, and ‘On the Victims of Nazi Persecution´ - arbitrary levels of annual financial support for War Veterans prior to Victory Day, which used to be much lower that those provided in above Legislative Acts.
The Committee approves the increase in the level of Retirement Benefit based on the insurance length of service of the individual, calculated for each year in excess of 25 years for men and 20 years for women (Clause 90).
The Committee also supports the simplified purchase procedure for rehabilitation equipment and other custom-made Living and Mobility Aids for the Disabled from Budget funds, as laid down in Clause 68 of the Bill.
The People´s Deputies also approve the provisions (Clause 89) concerning the introduction, as of 1 November 2008, of the 3rd Stage of the Single Tariff Scale of ratings and quotients for remuneration to employees of budget-funded establishments, organizations and institutions.
At the same time, the Committee has criticized several of the provisions in the Bill, which therefore now necessitate essential amendment.
For example, the current legislation relating to the addition of the obligatory State Retirement Insurance payments and other types of insurance to the State Budget Revenue has, in their opinion, been once again infringed.
The People´s Deputies are deeply concerned by the relatively small increase in expenditure (UAH 22,300,000 only) proposed in the Bill for annual one-off payments to War Veterans and victims of Nazi persecution, thus rendering it impossible to effect the said payments in amounts as laid down in existing Legislative Acts. Therefore the Committee calls for urgent revision of the allocated sum, in order to bring it up to the level necessary to meet in full the requirements of the existing legislation.
Noting the growth in expenditure (UAH 100,000,000 more than in 2007) for the gradual compensation to citizens for losses resulting from the devaluation of monetary savings, the Committee is still of the opinion that the total sum allocated for solving this urgent social issue should be increased, taking into account the considerable growth in the Gross Domestic Product (GDP), together with other macroeconomic indicators as predicted in the Bill.
The Committee draws attention the fact that despite the minimum wage level, as envisaged in the Bill, approaching in the next year the subsistence wage level for able-bodied workers (predictably, the minimum wage will total 89.9% of the subsistence wage as of 1 October 2008), this correlation between basic social standards is not yet in line with the Law of Ukraine ‘On the State Social Standards and State Social Guarantees´ and the International Covenant on Economic, Social and Cultural Rights ratified by Ukraine.
The Committee demands a dramatic increase in the subsistence wage for those incapacitated. This wage is currently used as the basis for the calculation of Retirement Benefits and Social Security payments for Pensioners, Veterans and the Disabled. The Committee calls for an increase in this subsistence wage for the incapacitated up to UAH 500.
The Committee disapproves of and calls for exclusion of the provision laid down in Clause 81 of the Bill, entitling the Cabinet of Ministers to establish in 2008 the levels of social payments, which should be defined, according to the Legislation, on the basis of the minimum wage.
The Committee members have also expressed criticism of several other clauses of the Bill, and in particular they disagree with the expenditure level towards implementation of the Social Security Programme for the Disabled, considering it wholly insufficient; with the amount of funds allocated by the Government towards motor vehicle costs for the Disabled, preservation of the 2007 funding level for health improvement for the Disabled in sanatoria and spas, and compensation payments for Disabled Veterans for unused sanatorium vouchers.
The Committee wishes to draw attention to the funding unaccounted for in the Draft State Budget expenditure for the coming year under the ‘Plan of Action towards improving the quality of life of War Veterans for 2007-2010´, and suggests an allocation of UAH 50,000,000 towards implementation in 2008 of the measures laid down in this Plan.
The Committee has forwarded these proposals to the Budget Committee for consideration prior to the collating of the Bill in time for its first reading.