MOSCOW, November 24 (RIA Novosti) - Igor Artemyev, head of the federal anti-trust service, believes that government participation in the commercial sector adversely affects competition and development of the small and medium business. He said this on Wednesday at a session of the council for competitiveness and entrepreneurship of the Russian government.
According to Artemyev, governors and local self-government bodies often open numerous companies and provide them with many privileges. Such measures lead to "unfair competition," said Artemyev.
According to him, the state should now withdraw from the commercial sector. He thinks that this can be done if the laws on executive, representative and legislative branches in constituent federation members and on local self-government are reviewed and amended.
Artemyev believes that this would be a key decision and another step of the administrative reform.
Moreover, Artemyev formulated a few proposals of his department for improving competitiveness of the Russian small business.
In particular, he suggested that a base of family enterprises employing only family members be formed. They would be banned from trade, including excisable goods and foreign economic activity. These companies will be able to provide everyday services, including tailoring and shoe repair. They will purchase a patent and transfer part of the sum to the Russian Pension Fund to provide them with pensions.
Moreover, Artemyev believes, ways should be worked out for employing idling production units and lands of large companies. As for natural monopolies, the government should work out directives for them to develop a system of contracting and subcontracting commissions in the interests of small business.