Reorganization of the State Enterprise "Novovolynsk Repair and Mechanical Plant" by merging it into the State Enterprise "Volyn Coal," as envisaged by Order No. 434 of the Ministry of Fuel and Energy of Ukraine dated August 15, 2003, may have negative consequences and worsen the economic condition of both enterprises. The low level of profitability and the inability to pay current obligations to both the state and other business entities of once-leading producers in the region may cause an aggravation of the socio-economic situation in the mining town. "The merger of the State Enterprise 'Volyn Coal' and the State Enterprise 'Novovolynsk RMP' will have as its primary result a decrease in the profitability level of the newly created legal entity and a reduction in the effectiveness of investing funds in the enterprise and the rationality of their use," believes People's Deputy Serhiy Slabenko. Given the existence in Art. 11 of the Law of Ukraine "On the State Budget for 2004" of a provision envisaging a ten-percent reduction in the level of tax debt during 2004 and with the aim of attracting this resource to cover the risks of lost budget revenues, as well as taking into account the quarterly tasks for ministries and other central government bodies, according to the government program for reducing tax debt, permanent debtors on payments to the budget, which both enterprises are, will not avoid additional close attention from tax service employees. Meanwhile, carrying out the reorganization of the enterprise will lead to losses of budget revenues and non-repayment of the debt of the State Enterprise "Novovolynsk RMP" and will increase the debt of the State Enterprise "Volyn Coal."