The Meeting of the Government of Georgia was held on 9 August 2008.
Before the commencement of the Meeting, Prime Minister of Georgia Vladimer Gurgenidze asked Minister of Labour, Health and Social Affairs of Georgia Aleksandre Kvitashvili to inform the audience about the number of the dead in the conflict region.
Minister of Labour, Health and Social Affairs of Georgia Aleksandre Kvitashvili to informed the audience: by now, 55, including 15 civilians and 40 militaries have died. It is very concerning that for the last 18 hours or so the number of those wounded or killed outside the conflict zone is rising. There is a large influx of the wounded from Senaki and other regions that came under bombardment. This morning, an urgent medical care point was destroyed in Gori by air strike. One of the doctors serving there has been transferred to Tbilisi in a critical condition. It is outrageous to see that medical facilities are targeted despite their unique distinguishing mark. I'd like to express my appreciations to the doctors who have been working very effectively, though, said to say, the number of the dead is 55.
Asked by the Prime Minister of Georgia, those present at the Meeting observed a minute of silence to honor the memory of the dead.
The Prime Minister of Georgia asked the Minister of Labour, Health and Social Affairs of Georgia to inform the public from time to time through the media on the number of the dead and wounded. He stressed that the medical system was working very effectively though it had been under a lot of stress for the last two or three days. The Prime Minister thanked medical workers for their civil commitment and heroism and expressed hope that the number of the dead and wounded would gradually decrease, and that would happen soon.
He also underscored the unprecedented heroism of the armed forces and police units, emphasizing their endurance, firmness, professionalism and motivation that they had repeatedly demonstrated for the last two days and wished them a peaceful and triumphant comeback soon.
Then the Prime Minister of Georgia said: we have called the Government Meeting today to discuss the efforts to be made in the state of emergency and marshal law to make sure that all the chains of our economy work effectively despite the large-scale Russian aggression. Our power grid is operation without interruptions. This holds true with both electricity and gas supplies. Of course, we have adequate calculations and plans as to how to act if the energy infrastructure comes under Russian air strikes. No such fact has occurred yet but we do have the information that the Russian aircraft have bombed our strategic pipelines. The pipelines escaped unharmed but the bomb dropped nearby, which leads us to believe that they have determined to knock out our strategic facilities. The pipeline has no military-tactical importance whatsoever other than its global significance. This is yet another glaring testimony to the barbarous campaign that Russia is waging against us. I'd like to assure you that all the facilities are in good operating shape and the entire system has been mobilized, and we have specific action plans to follow should these facilities be damaged.
The transport system operated without interruptions yesterday. It has been operating effectively today, too, except where a small section of the infrastructure was physically damaged. The Russian air force did make such attempts and we can't rule out that they won't repeat the same. The transport system is operating. As for the damaged infrastructure, it will be repaired as soon as possible. The Ministry of Economic Development and its relevant agencies are developing action plans to prevent such damages promptly and effectively.
Then the Prime Minister of Georgia emphasized the effective work done by the Ministry of Agriculture, Ministry of Economic Development and Ministry of Finance, thanks to which several months of reserve of the main strategic food products and of fuel for civil consumption has been formed. It is necessary that our citizens know about it. It is worth mentioning that yesterday we did not seen and for the most part today we have not seen any massive panic purchases of food products. I am sure that the trend will continue along the same lines, as there is no reason for panic. There are the reserves and, calling our strategic location to mind, looking at the map and considering the stability of out transport infrastructure that I have just informed you about, we can conclude on your own that there is no reason for any suspicion, to say nothing about panic, that these reserves may run out for the next few days. These three ministries have been working very hard in this area. The Government Meeting of today will discuss the opportunities for a special procurement regulation in the current state of emergency. The proposal will be tendered by Minister of Finance Nika Gilauri. This is provided by the Hostilities Law of Georgia. The Minister of Finance will wield special rights to make such procurements. For this purpose, eight million Lari will be allocated from the Government Reserve Fund on the first stage. In the future, we'll allocate as much as may be necessary.
In the extraordinary and hard situation, in which we are, it is particularly worth mentioning that despite the current condition in terms of information, the Ministry of Economic Development has worked effectively, and in the meantime the investors' interest in Georgia has not waned. 14 different facilities were sold at the privatization auctions yesterday. One facility subject to bankruptcy regulations was also sold. The privatization proceeded amounted to 6 million dollars and 3 million Lari.
Another very important fact that everyone should know about and properly realize. I'd like to thank the relevant agencies of the Ministry of Finance, the Minister of Finance. Yesterday, we reached an unprecedentedly high influx of taxes in the amount of 24,7 million Lari. For information, the average amount of taxes paid in a typical working day ranges from 15 to 20 million Lari. For instance, in contrast with the yesterday's figure, on the peaceful days of August, we did not collect more than 17 million Lari. But yesterday, 24,7 million Lari, i.e. almost 50% more, came in. All the agencies of the Ministry of Finance have been mobilized and put on a 24-hour working regime and I am sure that they will continue work just as effectively.
I'd like to address all the taxpayers in Georgia, all the citizens of our country, legal entities, whether local or foreign, who conduct business and pay taxes here. For the last two days you have clearly seen how important each Lari of the taxes that you pay is. You know that the Government of Georgia is for low and simple taxes, that we have one of the lowest and most effective fiscal systems in our entire neighbourhood, in the whole East Europe. The taxes that are collected are used not only on the efforts to curb poverty, develop the country, create and enhance its infrastructure but also, as you see, to form an effective, professional, highly skilled and well-equipped armed forces. You all have contributed to it. I am sure that despite the rough time, tax collection in these days will continue just as effectively as has been the case until now.
Then the Prime Minister of Georgia asked Minister of Finance of Georgia Nika Gilauri to provide information on the work of the customs authority.
The Minister of Finance of Georgia said that the customs authority worked just as effectively as it had done in the last period. There were no delays in the customs points, everything went peacefully, and there were no problems in the customs and fiscal areas.
The Prime Minister of Georgia thanked the Minister of Finance of Georgia for the information and said: I'd also like to touch upon the performance of the Georgian banking system that worked effectively yesterday and has worked so today. I never doubted that but now it has become abundantly clear that the stability of the system is high enough to withstand problems and work without interruptions even in times of war. By the way, National Bank took an important, timely and effective step, holding Tbilisi Exchange bidding today, too. To my surprise, perhaps partly owing to a grim background, the rate of Lari even improved slightly by 0.03 at the currency bidding today. I'd like to state that National Bank's currency reserves actually make up 1,5 billion US dollars that has remained intact for the last two days unlike the end of the previous month. Besides, you know that this spring a Stable Development Fund and a Future Generations Fund has been formed in Georgia and there is an additional 370 million US dollars there. The country is enjoying stability, sustainability, reserves of strategic food and fuel, money, stable transport infrastructure, with the competent authorities ready to respond to any damage in the infrastructure as soon as reasonably practicable. All the government agencies are working effectively. High tax collection level and culture have been achieved, and our economy is ready in all terms to face the challenge.
I wish all of you success in your future work. Thank you.
Organizational Department of the Chancellery of the Government of Georgia