The Government has decided on the introduction of the e-card which may combine a number of personal documents in the future, János Lázár announced at today’s session of Government Info. At the press conference reporting on the results of the Wednesday cabinet meeting, the Minister spoke about the pay rise of public administration workers, the reduction of procedural fees, the measures taken with a view to rescuing foreign currency debtors, the new regional development programme, the development of the Paks atomic power station, and the improving demographic indicators.

The Government has decided on the introduction of the e-card

Mr Lázár told members of the press that, pursuant to the decision adopted by the Government at a twelve-hour-long cabinet meeting held on Wednesday, the new document will be introduced in a gradual system and will combine the identity card, the residence card, the tax card, the social security card and the passport. The e-card may also function as a replacement for cards verifying eligibility for travel discounts or student cards. The e-card will carry electronic administration and electronic signature features as well, the Minister added.

Introduction of the card will begin this year, and will be provided free of charge or at a reasonable price, the Minister said, underlining that the goal is to enable citizens to take care of all their affairs in any scenario with a single document.

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Pay rise for non-senior public administration workers

Mr Lázár also announced that, effective as of 1 July next year, 35,000 non-senior public administration workers will receive a pay rise, and funds in the magnitude of some HUF 25 billion will be allocated for the purpose next year.

According to the Minister’s account, the Government also decided to reduce the fees of public administration procedures by HUF 10 billion. János Lázár pointed out that, based on more than a thousand proposals and recommendations received from district offices and the chambers concerned, the Government wishes to significantly simplify the various planning permission and construction procedures of the authorities, the old-age pension procedures, the procedures related to the option of early retirement available to women, and the proceedings which concern employment-related support. He added: they would also like to open a consultation with members of the public regarding the reduction of red tape with the assistance of the government offices.

State and municipal funds placements to be regulated by law

In reference to the fact that a small locality in Nógrád County placed savings worth HUF 21 million in diamonds, Mr Lázár told the press that the Government discussed the options of safely tying up temporary and long-term state and municipal funds. This issue will be regulated by law in the future.

The Minister pointed out that the fundamental objective is for the stakeholders concerned to place their savings in government securities, with the Hungarian State Treasury, and the Government also wishes to enforce this arrangement in the case of state-owned companies. “We must significantly reduce the scope for peddling also in the state and municipal sector”, Mr Lázár said.

The Minister also told the press that 60 mayors had had their salaries increased by 30 per cent unlawfully; the government offices concerned will be required to look into these cases.

Mr Lázár announced that the Ministry of Interior will submit a proposal regarding the supplementing of the salaries of mayors in 990 small localities. Those will be eligible for the supplement who are involved in the organisation of public works.

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Treasury Legal Directorate may be re-established

According to the Minister, the Treasury Legal Directorate may be re-established with a view to representing the State in local and international legal proceedings. This proposal was tabled by Minister of Justice László Trócsányi at the Wednesday cabinet meeting. Mr Lázár remarked that, other than rare international cases requiring specific expertise, there will be no more engagements awarded to law firms or lawyers: state employees will proceed on behalf of the State. The system will have to be put into place in 2016, the Minister added, indicating that there were periods in the past when governments engaged lawyers for fees totalling up to HUF 10 billion.

Proposal regarding introduction of new public administration regulations

János Lázár also informed members of the press that the Justice Minister proposed the introduction of new public administration regulations. This means that Hungary will have a package of new procedural rules in public administration as of 1 January 2017, the Minister explained, and added that they intend to implement a separate system for public administration awards, and the new legislation will serve as a guarantee for people that their cases will be closed within maximum two months. There will be clear responsibilities without ambiguity, there will be appeal options, and procedures will be simplified, the Minister said.

At next week’s cabinet meeting, the Justice Minister will render an account of the consequences of the introduction of more stringent regulations in the Penal Code after 2010, including the fact that while five years ago 12,000 to 13,000 people served their sentences in penal institutions, this number is some 18,000 at present. László Trócsányi will also make a proposal regarding the related tasks, Mr Lázár added.

Immigration quota out of the question

The Minister was also asked about the immigration quota. He stated that Hungary receiving immigrants on the basis of a quota is out of the question. Mr Lázár remarked that the Government is opposed to the relevant proposal of the European Commission as the asylum-seekers dealt out among the Member States “did not want to come to Hungary”.

The Minister disputed the Commission’s data used for the quota calculations, reiterating that while in 2012 2,700 asylum applications were submitted in Hungary, in just three months this year 43,000 applications were received. Minister of State for Government Communication András Giró-Szász added in this context that the figures of the European Commission are based on a pool of 20,000; at the same time, more than half a million migrants arrived in the territory of the EU last year.

In answer to a question concerning the possible suspension of the national consultation, János Lázár refused this eventuality, highlighting that it is a worthwhile endeavour to ask the people what they think about this issue.

Demographic indicators may be further improved

The Minister also told the press that demographic indicators may be further improved through standard and thoroughly-considered family and health policy measures. Mr Lázár, who believes that new governmental measures are required, spoke about the importance of screening tests which may save the lives of 3 to 5 thousand people annually. He also rendered an account of the positive effects of the measures adopted to date, including the fact that the number of births has been on the rise for twenty consecutive months, while the number of deaths is on the decline.

Asset manager’s funds to be boosted

The funds available to the National Asset Manager Entity must be increased in the years to come, and its scope for intervention must also be extended, the Minister heading the Prime Minister’s Office said, citing the recommendation made by the Minister for National Economy at the cabinet meeting.

The law on the settlement of foreign currency loans has resulted in an improved situation for everyone, compared with the situation they were compelled to endure before the passage of the law, Mr Lázár pointed out.

A few thousand people have to date contacted the competent arbitration board with complaints concerning their settlements after having been unable to resolve their disputes with their respective banks, János Lázár said. The deadline for these procedures will expire at the end of June. Banks have credited or paid debtors HUF 744 billion to date; from this amount, debtors have collected HUF 181 billion in cash and have used another HUF 563 billion for the reduction of their outstanding credit debts. The final total may amount to as much as HUF 1,000 billion.

According to the Hungarian Postal Service, 1.9 million foreign currency loan-related mail consignments have been posted to date, debtors have already taken delivery of 1.5 million letters, and another 200,000 will be posted by the first week of June.

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Regional development, agricultural policy

The Minister also informed the press that the regional development operational programme for the period between 2014 and 2020 will be submitted to the European Commission on Thursday. The programme will serve the development of the provinces in Hungary with funds worth some HUF 1,200 billion, with special regard to job creation and the promotion of family and other small businesses.

Mr Lázár told the press that the list of one hundred who received the largest grants during the previous planning period has already been published, while a list of five hundred will be released on the website of the Prime Minister’s Office next week. This will demonstrate that 80 per cent of grants were previously awarded to large landowners, and only 20 per cent of the total grants were received by small farmers. However, the Government wishes to reverse these ratios.

The Minister also said that the Hungarian National Trading House will procure some 1,500 tonnes of milk powder to the value of HUF 1.5 billion in order to help the dairy sector.

The Mayor and population of Várpalota must also be involved in the consultation regarding the removal of asbestos from Lőrinci and Zagyvaszántó with a government grant worth HUF 1.3 billion to the town’s waste disposal site, János Lázár said, stressing that the cabinet tackled this question at the request of Mr Károly Kontrát, Member of Parliament for the region.

Parliament may debate the Christian Democrats’ (KDNP) proposal regarding personal bankruptcy protection, which the Cabinet repeatedly discussed on Wednesday. The smaller government party has yet to consult with the Banking Association with respect to its proposal which is designed to improve the situation of some 150,000 families and which the Government supports, the Minister added.

Social council to scrutinise considerations of localities in the vicinity of Paks

The Government has decided on the establishment of a social council in connection with the enlargement of the Paks atomic power station with the involvement of the councillors and Members of Parliament of forty-one municipalities in the vicinity, to be headed by the Mayor of Paks, Mr Lázár said.

The Government will provide HUF 1 billion for the development of the settlements concerned this year, the Minister said. Mr Lázár also told the press that the first international hearing to be conducted as part of the planning permission procedure necessary for the implementation of the project will be held on 10 June in Kiev. The first local public hearing, which was conducted with a view to obtaining the required permits and authorisations, was held in Paks a week ago, the Minister added.

A debate will also be launched regarding capacity maintenance at the Hungarian Academy of Sciences which will be chaired by Professor Attila Aszódi, the government commissioner responsible for maintaining the performance of the Paks atomic power plant.

The Minister also informed members of the press that a decision has been reached on the construction of a new Danube bridge in the area of Kalocsa; the construction project may provide jobs for 6 to 8 thousand people.

Tamás Bán to be appointed as new Chief Executive of Paks II

The selection of the new Chief Executive of the Paks II project has been closed; Prime Minister Viktor Orbán, too, has approved Tamás Bán’s appointment, János Lázár said.

Tamás Bán previously worked as secretary for the President of the Constitutional Court, as a judge at the Central District Court of Pest, at the state financial supervisory authority, as state secretary at the Ministry of Transport, Communication and Water, for the Hungarian electricity company MVM Magyar Villamos Művek and the Paks Atomic Power Station. He was also a member of the Board of Directors of Kész Holding, and acted as a former head of the Centre for Budapest Metropolitan Operations, the Minister said. Tamás Bán will replace Sándor Nagy.

The Minister told the press that they are currently looking for three international managers – a finance manager, an HR manager and a chief executive – for the transparent and more economical operation of Paks I; the executive search and leadership consulting firm Spencer Stuart will make recommendations to the Government at the end of May. The hope is, Mr Lázár highlighted, that this measure will yield a result which will be equally acceptable for the Government, the budget and the international public.

In answer to a question, János Lázár told the press that the Ministry for National Development had dissolved the construction contracts of the M4 motorway. The Government will hold consultations by 31 May regarding the route by which to connect Szolnok to the motorway system. Prime Minister Viktor Orbán will have talks with Mayor Ferenc Szalay and Members of Parliament for the county regarding the future continuation of the construction of the road between Szolnok and Fegyvernek at the beginning of June in Szolnok, the Minister said.

(Prime Minister's Office/MTI)