Government's Policy Statement to the People's Assembly

Egypt's Prime Minister Atef Ebeid Monday delivered the government policy statement before a special session held by the People's Assembly for this purpose.

The statement defines four sets of social and economic programmes that aim at strengthening national economy and improving living standard of the citizens.

Ebeid reviewed accomplishments achieved as regards the programme that the government presented last year to the People`s Assembly.

Egypt managed to secure an annual growth rate of about 5.5 percent, Ebeid said.

The government was also committed to continue to subsidize basic commodities, he said. The government's subsidies to basic requirements totalled LE 7980 million, he added.

The government managed to solve the problem of depositors` funds in capital investment companies, said Ebeid, adding that popular soft loans institutions and labour offices in the ministry of manpower provided job opportunities up to 365,655 in addition to 6,000 opportunities for top graduates in all colleges.

Ebeid said that cashing a monthly social security pension of LE 50 already began for families without supporters, noting that 600,000 families began to receive the pension and the door is open for applicants.

The government accelerated execution of potable water projects in 213 towns and 3975 villages, said the Prime Minister.

A sum of LE 1.2 billion was earmarked to refurbish basic utilities towns and villages to the tune of L.E 250,000 for each village and district, he added.

The government came up with genuine resources to repay state arrears, which hit L.E 8 billion until June 30, 1999, and the extra resources of LE 7.5 billion will be managed in the next three months, Ebeid said.

Imports rose in the past five years from $ 14.11 billion to $ 17.80 billion and the trade balance deficit decreased by $ 2.053 billion while exports grew by $ 1.9 billion.

"The government maintained a strong monetary reserve and the citizens` deposits are safe and growing," said the Prime Minister.

The inflation rate dropped to 2.8 percent while foreign debts decreased from $ 27.78 billion to $ 26.05 billion, he noted.

Ebeid further pointed out that tourist revenues in the first quarter of this year, reaching $ 1 billion and the oil revenues yielded $ 2.2 billion during the same period.

Ebeid, in his statement spoke of the government's full commitment to meet the requirements of the armed forces and bolster their plans, which aim at maintaining and strengthening Egypt's capability to defend itself.

The government is also committed to supply necessary funds to help update different police institutions and judiciary auxiliary bodies, he said.

The government will adhere to its commitments to provide equal opportunities to all, protect the public purse, hunt down corrupted people, maintain the unity of the national fabric of state, strike with an iron fist against whoever who tries to undermine the national unity and attack his own people, he said.

The government also pledges to give top priorities to investment in the field which serves the have-nots, he said adding that the government will also give attention to programmes which serve motherhood and woman and preserve heritage and arts.

The government will also give due attention to discover art creators and boost research and knowledge in all fields.

To provide job opportunities in the sectors of oil, electricity, tele-communications and military production four training centers were set up, Ebeid said in his government policy statement.

We accelerated our efforts to finish water projects, which have been under construction for several years.

Up to 213 towns and 3975 villages have been supplied with drinking water, according to the statement.

Ebeid noted that the Ministry's programme of action includes pursuing projects and programmes implemented during president Mubarak`s rule to secure a decent life for the low-income citizens and providing direct subsidy on prices of some basic commodities and services.

The programme will also allow the government to up the number of people who benefit from social insurance to reach 1 million families, he said.

An additional programme is underway to provide insurance for families of all government, public sector and public enterprises sector employees, Ebeid added.

The premier referred to addition of two new projects to stretch the base of health insurance, adding more clinics will be set up to provide health services for government employees and their families.

A programme to build health complexes containing all medical specialties will be launched in rural areas, starting this year with 30 complexes, he said.

Nearly 11,800 houses of worship will be restored in addition to 49,400 mosques in the five years to come, at a rate of 5240 mosques annually, he added.

Ebeid said the government will be committed to provide electricity for all 17 cities in the new urban communities in 11 governorates, which cover 623.8 square kilometers, adding there will be no further increases in the prices of electricity.

On education, Ebeid said the government has a programme in the pipeline to build 30,000 new schools during the next 10 years, at a rate of 3,000 schools annually, noting the government aims at achieving a tangible modernization of universities.

The premier referred to incessant improvement in communications and information as well as transport services for citizens.

"This year will also see renovation of the railway wagons, said Ebeid."

He also referred to development of youth centres and activities as well as cultural centres, adding activities of youth camps will return once again in accordance with plans.

"The financial market was shaken by the disproportion in supply and demand, a matter that had to be faced with calm and patience given the criticism that was levelled at the government", Ebeid said.

"Haphazard decisions cannot activate the market, which can only be done by reaffirming the trust in the Egyptian economy's potential for growth and learning from the lessons of the past," he added.

"The facts in Egypt are: real growth, modest inflation, limited foreign debts and an average balance between resources and their use, he said." "Egypt grows despite difficulties at a rate of 5.5 percent, a rate double the ratio of the population growth," he added.

"It is also a rate that only Egypt and only a few other developing and average income countries have reached, he said." "Egypt is smoothly proceeding towards a breakthrough, which has already started," he added.

"The inflation rate has dropped to 2.8 percent, registering the lowest rate in 30 years," he said.

Our problems lie in energies that seek demands and a stock that needs activation, and this has to take place in the world markets, said the premier, adding it is incumbent on us to imitate countries of the free world.

Ebeid urged increase of demands on the national production, adding a plan is underway to give a shot in the arm for the state`s annual investments and channel them into urgent and necessary projects in villages, hamlets and densely populated areas.

Small development projects will be spread in villages and residential communities, elaborated Ebeid.

He added that the market activities will be fine-tuned via provision of information for investors and banks on the market, noting a draft law was prepared on the exclusive economic zones (EEZS) which allows manufacturers to work in areas that are not much different from similar areas in world countries.

He said the government managed to secure $ 315 million in additional finance from the Arab development funds for the Egyptian exports programme.

"A programme was hammered out to achieve an increase in the state revenues and to keep the volume of public debts within acceptable frontiers," said Ebeid.

He pointed out that wages and pensions climbed from L.E 9,183 billion in 1991 to L.E 36,957 billion in 2000.

"Our revenues from taxes, the Suez Canal and petroleum do not cover our expenses and that is why we resort to internal and foreign debts after the People's Assembly approval," he said.

Ebeid said that the government has got an ambitious programme to open new markets exporting tourism to Egypt and establishing new tourism attraction areas in Egypt, diversifying tourist products and modernizing the serving infrastructure.

"Joint efforts are underway between the foreign and manpower ministries to review agreements on Egyptian labour in Arab countries," he said.

On petroleum, Ebeid noted that the oil sector is retrieving its ability to realize a surplus of foreign funds, adding that this ability will grow with the start of exportation of natural gas to adjacent markets.

"The Government's programme also includes modernization of the Egyptian society to achieve a sustainable development via a larger ability to compete and prove the distinction of national production," Dr. Ebeid said.

Dr. Ebeid said that there are five basic programmes to realize Egypt's great progress in the 21st century: upgrading industrial facilities, establishing basis of production depending on up-to-date technology, developing educational institutions and research centers, enhancing the performance of the government machinery and setting up an export-serving infrastructure.

A national technological base will be established in four domains, namely information and communications, petrochemical industries, agricultural and animal products free from chemical or artificial substances and manufacture of components of power, water and communications networks.