The labor collective of OJSC "LuAZ" sent an appeal to the President of Ukraine in which it expresses its "premonitions" that "arose in connection with the appearance of the draft Law of Ukraine 'On Amendments to the Law of Ukraine "On the State Budget of Ukraine for 2005" and Certain Other Legislative Acts', which was submitted by the Government for consideration by the Verkhovna Rada of Ukraine.
\n \nThe appeal, in particular, notes that among the changes proposed to be introduced to the budget is the abolition of the minimum necessary conditions for the development of priority sectors of the economy, including the automotive industry, which were introduced by the relevant laws on stimulating their development.
\nIn this regard, the labor collective of LuAZ appealed to the President of Ukraine, in which, in particular, it is stated: "We address You with a question of strategic importance for OJSC 'Lutsk Automobile Plant' — the question of development and, if one looks realistically at the state of affairs, the question of the enterprise's existence in general. The Law of Ukraine 'On Stimulating the Production of Automobiles in Ukraine' adopted by the Verkhovna Rada of Ukraine provided an opportunity to attract investments for enterprises in the sector whose specialization is the production of passenger cars, trucks, buses and spare parts for them.
\n \nIn accordance with this Law, an investment program for the production of automobiles and buses of OJSC 'Lutsk Automobile Plant' was developed and approved by the Cabinet of Ministers of Ukraine. The program provides for technical re-equipment and reconstruction of the plant, which will make it possible to provide carriers with vehicles and buses of Ukrainian production that meet European and world requirements in their technical level and have no analogues in Ukraine. Implementation of the program will allow creating capacities for the output in 2008 of 6.5 thousand light and medium-duty trucks, 3.4 thousand small, medium and large class buses and almost 50 thousand passenger cars. In accordance with the investment program of OJSC 'LuAZ', a share issue has been registered in the manner established by law, investment agreements have been concluded under which almost 120 million US dollars of investment will be attracted."
\n \n"Attempts to abolish the incentives for the development of the priority sector of the economy — the automotive industry — will lead to a violation of the conditions for fulfilling the investment obligations undertaken, concluded contracts, causing significant losses, reducing budget revenues, and liquidating the enterprise," the appeal states.
\n \n"In 2003-2004, fighting for survival under conditions of fierce administrative pressure from the authorities and tax pressure, the labor collective believed in fair, favorable conditions for its development, defending on the Maidan and near the Presidential Administration its rights to work and its program. If today, without taking into account the specifics of the development of the automotive industry, the aforementioned changes to the tax legislation are adopted, a similar situation may develop in other sectors for which the automobile manufacturer is one of the main consumers of their products.
\n \nWe appeal to You, highly respected Viktor Andriyovych, taking into account the above, to unblock this situation and instruct the Cabinet of Ministers of Ukraine to return to constructive systematic work on finding additional sources of budget revenue, taking into account the need to ensure favorable conditions for the operation of the enterprise," the appeal says.
\n \nSimilar appeals have been sent to the Chairman of the Verkhovna Rada of Ukraine, people's deputies of Ukraine, the Ministry of Economy and the Ministry of Industrial Policy.
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