BUSINESS CONDITIONS IN: |
STATISTICS |
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According to the respondents, in II quarter 2000 overall production output is expected to grow (+24%). 44% of the respondents report on production growth at own enterprise.35% expect to retain the output figure equal to that in I quarter. 20% expect the decline in the output. At the same time, 23% of the respondents expect increasing customer demand, which, however, was expected at the previous level by 56% of the respondents, and, besides that, there were 21% who apprehended that their customers would be as insolvent as before, if not worse. Expectations in respect of employment reduction are held by 40% of the respondents, of which no private enterprise can be found. 2% of the respondents plan to recruit new staff, and the other expect to keep stable their employment, e.g. at the level of I quarter. Each one of the two enterprises is tending to increase transport tariffs in II quarter. Actually, the increase is expected by 38% of the respondents and vice versa pricing policies - only by 1%. So, overall expectations in this regard are persisting upward, which may be related to certain expectations coming from a number of respondents in respect of price growth for fuels and lubricants born as a result to their deficit connected with the seasonal boosting of activities in agricultural sector. For the enterprises tending towards increasing of the tariffs, average growth rates can be distributed by transport category in the following way: 8,2% at air, 17,8% at railway, 12,3% at automobile, 21,5% at river and 10,0% at marine transport. For those who are intended to increase own tariffs, average growth rate makes 12,4%. 37% of the respondents expect growth in competitive pressure in II quarter 2000, against 3% who expect vice versa trend in this respect. The strongest growth in competitive pressure is expected in automobile (+37%), marine (+60%) and air (+30%) transport. In private sub-sector, the share of those who expect upward tendency in respect of competition makes 50%. Upward trend in respect of own financial & economic performance in II quarter 2000 is expected by only 16% of the transport companies. Nearly twice more (as exactly as 30%) expect aggravation of own financial & economic performance. In their questionnaires the respondents shared some of their propositions concerning improvement of business performance in the sector, which can be confined to the following: to cut tax rates; to exempt uptown transport services from VAT; to exempt from taxation out-of-business fleet; to set up fixed tax from the enterprises; to cut land tax; to enforce timely reimbursement (from budget sources) of losses incurred by transport companies on account of rendering services to the passengers entitled to favourable terms of payment for transport services, otherwise to abolish the terms, to cut prices of fuels and lubricants; to increase tariffs on passenger transportation; to grant loans given affordable interests; to improve control over private passenger transport businesses; to provide financial assistance and subsidies from budgetary sources for renovation of the available fleet, to abolish barter practice; to put all the enterprises in similar business conditions irrespective of an ownership category; to cut short the number of inspections. Air businesses complain about disparity of prices between them, on the one hand, and the airports services, the Committee on Waters and Weather Forecasting, on the other, since the latter represent natural monopolies that impose exorbitant tariffs on relevant services. Also, air business offer to revive the scheme of deductions to reserves fund so as to provide for motor tyres, as well as deductions to depreciation fund so as to provide for capital reconstruction (repair) needs, to abrogate administrative regulation of passenger tariffs. Many of these complain, that increasing of the tax on transport vehicles (3-7 times increase) but hampers effective business performance and push down their financial & economic performance. Airport services are forced to deduct actual taxes from expected returns. |