Government of Georgia – Appearance 2016

Meeting with the Small and Medium Business Print Version

2016-08-30

I would like to listen to you and hear recommendations from persons with relevant experience and see what shall be done to alleviate activities of SMEs, - Prime Minister addressed Georgian businessmen.

Giorgi Kvirikashvili conducted a meeting with the representatives of SMEs. In the beginning of the meeting he presented the Government's 4-point reform plan and noted that the Government has a specific plan of rapid development of the country that may lead to a major breakthrough in the economy of Georgia.

"We believe that 4-point reform plan of the Government may bring qualitative changes in the development of the country. Focusing on selected directions will enable us to introduce some serious qualitative changes in development of the country. This includes program of accelerating economic growth. Parliament has already approved the package of amendments that envisage abolition of corporate income tax in the country. Only distributed income will be taxable. The package also provides for abolition of seizing of bank accounts without relevant court orders and even this will be possible only in cases of urgent need. We are working on additional amendments, including on regulation of the term of inspection of the companies and usage of pretrial detention for economic crimes only extraordinary situations," - Giorgi Kvirikashvili noted.

According to him, element of funding of startups is a component of economic growth direction that will continue not only in the area of innovations, but in the area of startups as well. According to the Prime Minister, the Government is also working on the pension reform.
"Next year we will be ready to launch cumulative pension schemes. Unfortunately, we have lost quite some time after regaining of independence. During the last two years we have put some great efforts to develop model with reference to the world standards and now we are working on legislative amendments necessary to implement pension system," - Prime Minister noted.
Giorgi Kvirikashvili elaborated on fundamental reform of the education system. According to him, implementation of German dual system has already started in the field of professional education, which implies retraining of students and middle-aged persons with the participation of the private area. This will have a direct impact on the level of unemployment. Head of the Government also touched upon the governance reform that provides for creation of unified state service system.

"This system will be based on the principle of one-stop-shop. In a few days we will have the presentation of the plan of "Business House", which will unite services provided by various ministries. We have also set up an Investment Council and it will be a welcoming fact if at least one representative of small business is engaged in the work of the said council to avoid negative surprises," - Prime Minister indicated.

Giorgi Kvirikashvili put an emphasis on spatial development of the country and elaborated on infrastructural programs the Government plans to implement within the next 4 years.

"Within the timeframe of the next 4 years we plan to finalize construction of the East-West highway from Sarpi to the Red Bridge (Tsiteli Khidi) and Sadakhlo. We will also construct highway from Tbilisi to Lagodekhi that will connect us with Azerbaijan," - Giorgi Kvirikashvili explained.

Prime Minister put an emphasis on construction of Mtskheta-Larsi road and noted that partnership will be essential to ensure that the highway leads to Vladikavkaz. According to him, construction of the road from Kutaisi to Svaneti through Tsageri and Lentekhi, and with assistance of tunnels is planned.

"Construction of the bypass road from Lentekhi to Mestia through Ushguli will be launched in the near future, however, this road will be not enough for the development of Tetnuldi resort. Hence, it is essential to build tunnels. We also consider building of the road from Kutaisi to the South Georgia in 4 years. Drafting of project has already been launched. It will be essential to make Kutaisi a national hub," - head of the Government noted.
Giorgi Kvirikashvili outlined importance of the involvement of the private sector in the process of implementation of the plan of the country's rapid development. Head of the Government responded to the questions of the representatives of SMEs and listened specific ideas about ways of amelioration of the business environment and production processes.

Meeting with the Prime Minister held at the Austrian warehouse Gebruder Weiss was attended by around 100 representatives of SMEs.