Government is committed to keep freedom of press

The Cabinet, in its meeting under Prime Minster Atef Ebeid yesterday, stressed the government is committed to maintaining the freedom of press.

According to the Cabinet, the documents bill was not designed to prejudice the freedom of press. "But the bill was aimed at keeping the documents," the Cabinet said.

Meanwhile, the Cabinet discussed a Foreign Ministry report on issues of economic cooperation which will be referred to the Arab summit meeting at its meeting in Amman later this month.

Foremost among these issues are projects of Arab cooperation and infrastructure linkage projects at the level of electricity, gas, roads and communications in addition to a number of issues related to free trade zones.

Minister of Information Safwat al-Sherif said that the Cabinet discussed a bill on the preservation of documents and stressed that in its discussion and approval of the bill it did not aim at touching, from near of far, the freedom of the press.

The aim was to preserve and protect documents which are a record of history. The Cabinet recommended that the bill be reviewed in the light of views expressed in this connection.

The Cabinet reviewed a report by the Ministry of Interior on circumstances which led an Egyptian citizen to hold four Germans as hostages for family dispute. The issue was settled early Thursday morning.

The Cabinet expressed appreciation of the Ministry of Interior and its agencies which dealt with the problem with wisdom and patience and took into consideration the safety of foreign citizens.

The Foreign Ministry was asked to follow up the problem of the Egyptian citizen within the framework of mutual respect and the strong relations which bind the two friendly countries Egypt and Germany.

Al-Sherif said that the Cabinet discussed the economic and social plan for 2001/2002 and its main features.

The value of investments to be realized is 85.4 billion pounds. The government apparatus will use 20.8 billion pounds, about 30 %, and the private sector about 70 %.

The goal is to mobilize resources for investment from local sources to the tune of nearly 69 % of the finance required. External resources represent 4 % of the finance set as a goal.

Al-Sherif said that the government will continue to pay the dues of contractors and suppliers for previous periods in order to support local demand and vitalize economic activity.

Al-Sherif said that the Cabinet discussed means of pumping additional resources to strengthen what is included in the plan to confront the problem of unemployment which tops the government's priorities.

The Cabinet discussed pumping local and external resources with the aim of providing employment for Egyptians in addition to increasing the volume of exports and activating mechanism which realize more exports and take the side of local products.

He added that local resources of national economy are expected to amount about L.E 407.7 billion in the 2001/2002 plan, at the prices of 1996/97, compared to L.E 338.4 billion expected in this year's plan, a real increase of 19.3 billion pounds which presents a growth rate of about 5 %.

Al-Sherif said that the change of elements of these resources are as follows:

*An increase in Gross Domestic Product (GDP) in the cost of the elements of production from about L.E 296 billion expected in the plan of the present year 2001/2002 to about L.E 312 billion, an increase of 5.5 %.

The Cabinet recommended that meeting investment, auxiliary and consumer needs should be taken into consideration. The volume of goods and services imports in the plan amount to about L.E 74 billion which meets necessary needs of the main food commodities for local production in the light of positive indicators realized in the field of self-sufficiency of many of these commodities.

The aim is that net indirect taxes should grow at about 5.9 % over what is expected in the plan of this year to reach about L.E 21.6 billion.

Subsidization Continues for Low-income Brackets

The Cabinet stressed that this increase should not be realized at the expense of subsidy for the main consumer commodities for citizens of limited income and should not represent new burdens of citizens.

It should reflect realization of financial policies and the expansion of the tax community and raise the efficiency of collecting taxes in addition to taking effective measures to combat tax evasion.

Second: The use of funds aims at the following:

1-To raise total final consumer expenditure, both private and government, from about L.E 256 billion expected in the current year to L.E 268.5 billion in the year 2001/2002, an increase of 12.3 billion L.E at an increase rate of 4.8 % which is more than double the expected increase in the population growth rate.

2-To increase final private consumption from about L.E 265.7 billion expected this year to L.E 237 billion in the new plan, an increase of 5 %.

3-The aim is to increase government consumer expenditure from about L.E 30.4 billion this year to about L.E 31.4 billion in the new plan.

The Cabinet recommended that government consumer expenditure should include the requirements of administrative development and provision of the necessary allocations for wages in a manner which should reflect a real raise in the standard of living of individuals, including continuation of the policy of activating expenditure in a manner which leads to improving the level of performance.

In order to continue the development process, the plan aims at raising the volume of constant investment to increase production capacity at the rate of 8.8 % in order to rise from about L.E 17.1 billion this year to 74.8 billion pounds in the new plan.

In the field of foreign trade, the plan aims at increasing the volume of commodity and services exports from about 56.7 billion pounds, within the framework of what is expected this year, to 62 billion pounds in the new plan, an increase of 9 %.

This trend shows that the private sector regains its distinguished position and realize the aspired expansion in industrial and agricultural exports.

The Cabinet stressed the export orientation of Egyptian economy and a commitment that imports should not exceed 2.8 % of exports.

This does not mean imposing restrictions contrary to requirements of the freedom of world trade. It means giving priority to local production to meet the needs of national economy and make use of stocks accumulated over the past two years and dealing with the negative aspects of the business cycle.

This should lead to an improvement in the deficit in the balance of commodities and services and reduce it from 15.3 billion pounds this year to 12 billion pounds which is the set target in the new plan.

Minister of Information said that the Cabinet set priorities of the plan as follows:

-To provide job opportunities and employ manpower.

-To complete projects for and provide pure drinking water and sanitary drainage in deprived areas.

- To develop and modernize squatting areas and to complete urban plan.

- To complete projects to provide electricity in all villages and hamlets.

- To develop and modernize education institutions.

- To improve public transport services.

- To develop youth centers and activities.

- To renew and repair all mosques.

- To give priority to projects which should be completed in the new plan so that they may be carried out in full and service.

- To make optimum use of available foreign loans and grants.

A1 Sherif said that Minister of Planning Ahmed A1 Darsh made it clear that total investments carried out in the government and public sector indictate that investments spent in 19 years amounted to about 295 billion pounds. The share of commodity sectors was 26 %, the infrastructure sectors 67 % and social services 17 %.

The Cabinet gave a great attention to policies of employment in all discussions which took place to discuss additional resource which should be utilized and that the motto of the plan should employment and manpower and transformation and investment should for employment.

The Cabinet discussed a number of policies related to women, childhood and motherhood and local and rura1 development and some policies of scientific research on a wide scale in addition to policies in the sectors of oil and gas and the promising future which could be realized from addition to support future resources of the State.

Prime Minister Atef Ebeid said that pumping new additional resources will turn the wheel of economy and remove some causes which resulted in stagnation in the markets.

He stressed that Egyptian economy has all potentials and is based on sound foundations. It enjoys all elements of movement and success through financial and currency policies and ability to deal with the outside world.

Ebeid stressed that efforts should be made to carry out investment policies considering that investment has an immediate role in realizing development.

Ebeid said that the remarkable rise in local and foreign private investment alike needs an overall economic strategy which the government will seek to realize.

This strategy will rest on the overall existing institutional policies based on real considerations which realize stability at home and integration at world level.

The Cabinet stressed that investment will continue in major national projects and urban development projects outside the Valley.

The Cabinet discussed means of increasing the rates of government savings with the aim of increasing revenues and also restructuring economic organizations and the Public Business Sector and dedicating the credit policy to encourage investment with the aim of increasing production.

A1 Sherif said that in compliance with the directives of President Hosni Mubarak, the Cabinet set mechanisms to activate working papers related to resolutions adopted by the Council of Arab Foreign Ministers with the aim of creating common Arab action particularly in the fields of opening "Arab markets and activating commodity and services exchange.

The Cabinet approved the holding of an Arab economic conference with an international character.

The conference will include businessmen, public and private organizations from all Arab countries and international organizations. It will activate Arab cooperation in the field of information technology and communications.

It will lay down strategies, policies and executive programmes in the field of education. This will include development of Arab curricula, training of teachers, and unification of publication of textbooks at the level of the Arab nation.