In the next few years, provided that political stability is maintained, the country will enter a phase of dynamic development which may result in major technological advancements, pay pressure and social changes, the Minister heading the Prime Minister’s Office stated on Monday in Hódmezővásárhely.

János Lázár said at the meeting of the local organisation of the Csongrád County Chamber of Commerce and Industry that the economy and businesses have a vested interest in finding a common denominator and enhancing the culture of cooperation.

The government may help businesses by improving vocational training, with a favourable tax policy and by supporting technological developments, said the politician who is also Member of Parliament for the constituency.

While major steps have been taken, the needs of the labour market are still not sufficiently tied to training, the Minister said. He added that, in his personal opinion, it would be necessary for grammar schools to introduce mandatory entrance examinations in order to ensure that those will opt for this form of education who wish to continue their studies at university later. This would spare students who are barely able to complete their grammar school studies the disappointment at the age of 18 years that they should have gone to vocational school.

Due to demographic processes and Hungarian workers seeking employment abroad there will be ongoing pay pressure in the next few years. Pay rises are in everyone’s best interests and are inevitable; the government should make efforts to find ways to promote this process through the reduction of the contributions payable on wages, Mr Lázár stressed. He added that at a municipal level the reduction of the local building structure tax – a measure that Hódmezővásárhely has already implemented – could facilitate this.

In the area of technological development the state has significant scope for intervention. However, the relevant bureaucratic processes are laid down in the regulations of the European Union, the politician said.

The Minister highlighted that during the compilation of the EU’s next seven-year budget Hungary will fight for the survival of cohesion funds as well as for an increase in the grants intended for disadvantaged regions.

The government would like to pursue a “business-oriented grant policy”; however, the percentage of non-repayable grants will decrease as expected, and primarily those will be eligible for such grants who use them for the purposes of innovation, the politician said.

Zoltán Hegedűs, Deputy Mayor of Hódmezővásárhely stressed businesses are the municipality’s most important partners. He highlighted that the basis of the local trade tax has increased from HUF 57.6 billion by 75 per cent in ten years.

The city looks upon vocational training as a particular priority, and therefore as part of the Modern Cities Programme all institutions in the settlement will be refurbished and the equipment schools have at their disposal will be upgraded, the Deputy Mayor said. He added that the renovation of a student accommodation facility will also begin.

From among measures which directly assist businesses the politician made specific mention of infrastructure developments. The ring road bypassing the city will be completed by the end of the year, and the accessibility of the industrial park will also be improved. The government decided on the enlargement and development of the industrial park where, according to plans, a facility available for rent will be built as well.

The municipality wishes to open an office serving to encourage and boost investment so that businesses planning to carry out developments in the city receive all assistance they need, Mr Hegedűs said.

(MTI)