About position of MPP faction and discussion of investment law

Ulaanbaatar /MONTSAME/ A plenary meeting of the irregular spring session of parliament discussed Wednesday draft amendments to the laws on investment, on prohibiting mineral exploration and extraction near/at water sources and forests. The debates were complicated between the Democratic Party (DP) and Mongolian People's Party (MPP). The MPP said they do not back a discussion of the draft law on prohibiting mineral exploration and extraction. “The agenda should not include this draft because it was considered at meetings of a working group and Standing committee without our participation,” the MPP's faction head N.Enkhbold said. A chairman of the Standing committee on economy B.Garamgaibaatar denied this statement, “two your members took part in the meeting." After many inquiries it was "revealed" that Ts.Dashdorj MP attended it. Justifying himself, he complained that the matters were discussed under domination of the DP and advised N.Enkhbold to take a break. However, the MPP did not do so, and Enkhbold stated that the MPP will decide whether to discuss this draft law. After this he repeated the statement made yesterday. “More than a year passed since the establishment of the cabinet for reforms. This time is enough to judge, and we say that the country is already facing problems and negative indicators, for instance, the state budget had a deficit of 1.5 trillion togrog. This is a consequence of avoiding to set up a coalition at the cabinet,” N.Enkhbold said. According to him, the ruling DP is concealing the truth about the "Chingis" bonds and other matters. The MPP faction requested parliament to investigate the Bank of Mongolia several times, but it has not been done yet, Enkhbold went on. “The DP blames the previous parliament for all problems, but we are sure that the BM is the guilty one," he stressed. Then the session started discussing the agenda. The Minister of Economic Development N.Batbayar explained a content of the draft law on investments, emphasizing that it reflects a system of regularizing the tax in a specific period in order to attract both domestic and foreign investments based on effectiveness of projects. For example, the size of some taxes will be regular for 5-10 years for those investments with a financing of above MNT 15 billion, they must be environmentally-friendly and in harmony of the country's economic development, must introduce new technologies and augment new jobs. During Q&A times, J.Batzandan asked the Minister to make clear a difference between contracts on stability and on stabilization and criticized that this draft means a support for the mining-based economy. In response, N.Batbayar said the understanding “Contract on stability” only belongs to the law on minerals, whereas the “Contract on stabilization” is wider and is used for any spheres. Generally, the new law on investments equally treats foreign and domestic investments, he emphasized again. Other questions were put by G.Uyanga, M.Batchimeg and B.Bat-Erdene, for example, about a reason of abolishing an understanding “Strategic sector” in the new law. Majority of MPs criticized that the draft law mainly supports big companies, ignoring small businessmen. To this the Minister said the session will discuss soon a policy on specific advantages for small- and middle-sized businessmen and productions.