The public auctions of state-owned landed areas offered for sale will begin on 16 November, János Lázár, the Minister heading the Prime Minister’s Office told the press at the press conference “Governmentinfo 27 – What does the Government do and why?” which he held jointly with State Secretary for Government Communications András Giró-Szász.
The Minister said: auctions will begin in six counties, and the details of the plots of land to be sold in these counties – such as the topographical lot numbers and the initial asking prices – will be published on the website of the Land Fund as early as Thursday evening as expected.
Mr Lázár stressed that the Government would like to achieve the best possible prices at the auctions. He pointed out that any sale below the market price is inconceivable; as he said, “we shall not squander Hungarian state assets”. The Minister remarked that the proceeds of the sale will be transferred to an investment fund.
He further informed the press that the Hungarian Development Bank (MFB) will provide credit facilities worth HUF 150 billion in total for the land acquisitions. In the first ten years of the preferential facility offered for a term of twenty years – as part of the central bank’s growth credit programme –, the rate of interest will be 1.95 per cent, and also during the second ten years, MFB will provide an interest-subsidised facility at the rate of around 2 per cent. The minimum amount of the loan is HUF 3 million, while the maximum is HUF 300 million. The rate of the required own resources will be 10 per cent in the case of those who have leasehold agreements in respect of the land offered for sale, while it will be 20 per cent in the case of everyone else, he told the press.
MFB engaged Budapest Bank to make the land credit facility available to all land purchasers, the Minister added.
Mr Lázár repeatedly stated in explaining the reason for the land sales: there is a threat that, in a few years’ time, foreigners will attempt to acquire land in Hungary via Brussels. The Government takes the view that one way to protect our arable land is by creating the opportunity for Hungarian farmers to buy land, he said, stressing that “Hungary must engage in a battle against the acquisition of land by foreigners”.
Government may soon decide on Croatian border closure
According to the information provided by Mr Lázár, what decision the Government will adopt regarding this issue depends on the outcome of the talks to be conducted by Prime Minister Viktor Orbán in Brussels on Thursday and the consultations of the next few days.
In citing migration figures, the Minister said: up to Wednesday, 378,647 illegal immigrants arrived in Hungary. Only a few hundred of them have entered the country via the Serbian section since the closure of the Hungarian-Serbian border, while some 180,000 migrants have arrived from Croatia in the past month. As he said, there is a realistic danger that the number of illegal border-crossers will reach 600,000-700,000 by the end of the year, which may warrant the implementation of the Croatian border closure.
The Government is ready and able to close the green border, and to deploy legal and live force protection on the Croatian section as well, the Minister said, and thanked those who participated in the construction of the fence as well as the V4 countries for the assistance they provide in the protection of the border.
A decision may be adopted regarding any action to be taken against the EU quotas by mid-December.
Government is ready to help University of Physical Education
Mr Lázár also spoke about the athletics hall of the University of Physical Education which burnt down in the early hours of the morning, stating: the Government is ready to help with damage control, the replacement of the hall and the development of the institution. He indicated that they will invite Rector Lajos Mocsai to the government meeting to be held next Tuesday.
He also added that the financial losses caused by the fire are significant, and are expected to amount to billions of forints.
Only repayable grants will be available for household energy upgrading
Speaking about the EU fiscal cycle extending to 2020, Mr Lázár said: only repayable grants will be available for household energy upgrading in the next few years. In reasoning this decision, he pointed out that the new rules of the European Commission (EC) do not permit non-repayable grants in this field.
The Government will make available HUF 100 billion in total for repayable – but interest-free – grants, and loans will be placed by the development bank, but subject to the availability of own resources.
Regarding the Bonyhád church ruins, the Minister told the press: a site visit will be held on Monday with the participation of archaeologists, the heritage protection agency, the municipality, the local government office and other stakeholders.
At the same time, the Minister indicated that the Government regards the energy upgrading of communal facilities – such as hospitals, schools and kindergartens – as an important goal, and a top priority in order to reduce maintenance costs.
Mr Lázár additionally informed the press: in the next two weeks they will conduct a social consultation regarding the calls of the cycle extending to 2020.
At the same time, he confirmed the intention of the Government to designate Budapest and Pest County as separate regions for the purposes of the distribution of EU funds in the interest of the localities of Pest County. A task force will be appointed to explore the issue, and a decision will have to be adopted in 2016, at the latest, as to whether Pest County should be independent or the localities should join other counties for the purposes of the EU development funds.
In answer to a question, he further said: despite selective waste collection, the quantity of waste has increased in Hungary, and we therefore need new sources of utilisation. The Government is looking into Austrian and German models; the incineration of waste in Austria greatly contributes to the operation of large cities as it is used to generate distance heating, he added.
Comprehensive tax administration reform to be implemented
The Minister also informed the press that the Government is planning to implement a comprehensive tax administration reform. A proposal regarding the organisational and personnel restructuring of the tax authority will be submitted to Parliament shortly, and a reform which will result in tax content changes as of 2017-2018 is also being prepared. He pointed out: it is a significant change that, according to plans, the tax authority will be required to prepare tax returns in 2015. There will be positive changes for hauliers regarding the local tax regime and the duties on the acquisition of vehicles, and the Government further decided that no registration tax, duty, automobile tax and company car tax will be payable on hybrid or fully electric cars.
Mr Lázár stressed that the introduction of a service provider tax regime – which does not view the taxpayer as an enemy but as a partner – is also essential with a view to improving competitiveness.
The Minister pointed out: it is a breakthrough that, as of 1 January, with the introduction of the e-card, it will also be possible to administer affairs electronically, and they may issue as many as 200,000 of these cards a year. He further informed the press: the closure of document offices may only be contemplated in localities where government windows have already been opened.
Government requests publicity for Altus case
The head of the Prime Minister’s Office further told the press that the Government will request the disclosure to the public of the documents related to the Altus case, and is opposed to closed committee hearings. He reiterated that Walter Deffaa, Director General of DG Regional and Urban Policy of the European Commission will be heard in a closed meeting on Thursday. The Minister found it strange that the European Commission regularly calls Hungary to account on the score of transparency, and it is the EC itself now that is being secretive.
The Government has not even been granted the possibility of viewing the relevant documents, he said. In the Minister’s view, the awarding of funds to Ferenc Gyurcsány’s business is an intervention in Hungarian domestic politics, and this is contrary to the EU’s fundamental documents. He added: he sincerely hopes that the EC will pay due attention to this consideration.
Also in answer to a question, he pointed out: it is a great error that the immunity case of MEP for Jobbik Béla Kovács has taken this long. There is a serious national security interest in clarifying what ties Jobbik has with an MEP accused of spy activities as well as with his principals or the presumed power groups behind him, he said.
Mr Lázár was also queried about the fact that, according to sound recordings released in the press, the Prime Minister listed the criteria applicable to his possible successor at the Bibó College in the spring. The country, his family and his party, too, may set their minds at rest, he replied, and added in explanation: “I cannot play ulti [a Hungarian card game], do not speak foreign languages, and neither do I fit the rest of the potential criteria, (…) so I am not among the favourites”.
(MTI)
