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STATEMENT BY H.E. MR. ENKHBOLD ZANDAAKHUU, CHAIRMAN OF THE STATE GREAT HURAL, AT THE OPENING OF THE 2014 SPRING SESSION OF THE STATE GREAT HURAL OF MONGOLIA

7 April 2014 Ulaanbaatar

Your Excellency, Prime Minister,
Honorable members of the SGH,
Distinguished guests,


Today, the State Great Hural is commencing its fourth regular session since the 2012 general election. The last autumn session had reached the recess without passing the agendas which to be discussed in this spring session. Therefore, this session will begin with adopting that list. Although there were 252 drafts and resolutions initiated by legislators, standing committees, party caucuses and coalitions for discussions at the spring session, only 52 have been officially submitted. By studying the drafts and resolutions that were initiated and submitted, only a few are appearing as addressed the pressing issues facing with the current state of affairs, produced with meticulous research and calculation, and have been well prepared for discussions to pass. Therefore, our primary responsibility is to prioritize those legislative documents with their utmost importance to the country's development and socio-economic life and to immediately discuss them for adoption. There is a great need to get rid-of the outdated practice of wasting time on processing and passing bills that are submitted incomplete and are not coherent with the current demand and the long term policy documents. Currently, the Government is drafting a bill of Law on Law. By adoption of this legislation, a certain measures to improve drafting and qualities of bills and heightening the responsibilities of the legislators will be in place. By law, the spring session is expected to discuss and ratify the following documents as the; Implementation of the 2013 general development framework of Mongolian economy and society, 2013 general financial report of Government of Mongolia as well as the following draft resolutions; 2013 budget performance of Mongolia, 2015 budget framework report and 2016-2017 budget assumption while to pass the 2015 general development framework of Mongolian economy and society. During the recess, the Budget Standing Committee had a discussion on the audit report which examined 272 so called “Corrupted budget” construction, equipment, and renovation projects, frozen by the 2014 Budget Law, in the capital city, aimag, sum and district level and analyzed their actual implementations. In accordance with law, the State Great Hural will give directions to the Government after discussing the audit report and the Standing Committee assessments. Consequently, the Government is required to urgently draft budget amendments and submit expeditiously to the SGH.

Despite the 11.7 percent increase in GDP and improvement in reduction of foreign trade deficit in 2013, the factors, such as depreciation of tugrug and export and import reduction that negatively affecting the country's economic development are still exist. The policy on stabilizing and sustaining the 2 digit economic growth rate is of utmost importance. There is a need for actively pursuing the major reconstruction effort and improving the legal environment that supports primary/real sectors of the economy.

Unless the Government urgently submits the debt management bill that was prepared at the time of issuing Chinggis Bond, the SGH will pass a bill submitted by members, who are mostly concerned about the debt, to immediately remove the hindrance by utilizing the major reconstruction and development loans.By amending the Law on Mineral Resources, a few years moratorium on exploration licenses will be eased to be issued only to permitted areas while the introduction of responsible mining principles will advance the environmental rehabilitation into the new step.

Besides discussing the submitted bill on the VAT threshold, there is a need for exploring possibilities to make decisions on introducing a flat rate corporate income tax in order to reduce burdens on other business sectors in comparison with the 2 level 25% tax which was due to the mining sector. I would like to highlight the senior citizens' requests, expressed during my meetings with them, to urgently adopt the bill on shared pensions which was discussed for many years and submitted by MP. Mr. S.Erdene and other legislators only before the Tsagaan sar. In addition to those submitted bills, the State Great Hural needs to establish an internationally compatible brand new legal environment on public property management and protection of private property as they play important role in ensuring the sustainability of economic development. We are, also, expecting the Government to present the list of state properties to be privatized in the year of 2014. In its spring sessions, the SGH must annually ratify the list of projects and programs to be financed by the Development Bank, in compliance with the Law on Development Bank. Hereby, I am ordering the relevant authorities and officials must pay a closer attention, in preparation of the list, to coordinate funding sources of projects that are vitally important to the country's social and economic development with the funding by the bonds through Development Bank. In doing so, we will avoid criticism and suspicion for squandering bond’s and other funds. It will, in return, create a structure for monitoring and holding relevant officials responsible. As a regulator, the state shall properly determine its economic principles to engaging in economic relations and it needs to optimize legal environment meeting with international best practices and lessons experienced.

As an important tool for fighting against corruption in all fronts and making open and efficient use of resources at all levels in public sector, the law on transparent account needs to be adopted immediately. The SGH has already adopted a judicial reform package law. We are continuing to adopt amendments to laws regulating legal institutions, revising the clauses and articles causing the obstacles in reform implementation and establishing legal environment necessary for its active applications. There may be some challenges in implementations of laws. However, the issues addressed to the SGH must be ration able, reasonable and real. There should be no reason with neither narrow interested condemnations, complaints nor counteracts against concepts and principles of reformations. That is why, to overcome challenges and swiftly introduce the new legal environment and to implement the new concepts and contents of laws in real life, the courts and legal institutions must support and flexibly coordinate each others’ activities in real life.

Most importantly, a care must be rendered so that there should be no nuisance created for the citizens and legal subjects in the process of the introduction of the new approaches in operations. I have no doubt that every judge, lawyer and law-enforcer will not only support the state policies and activities in this sector but also will work with its utmost dedication and initiative.

Honorable Members,

During the recess, I have paid an official visit to the Republic of Korea. As part of this visit, I had a courtesy call at H.E. Ms. Park Geun-hye, the President of South Korea. A meeting with my South Korean counterpart H.E. Mr Kang Chang-hee was also held. During the meetings, we have exchanged our views and opinions on both enhancing the comprehensive bilateral partnership and further deepening of the inter-parliamentary relations. Moreover, I have put forward a certain proposals on actions to be taken in visa regime, fees and monetary guarantee as well as to protect rights of Mongolian citizens working either for personal reasons or contract basis in Korea. It is my pleasure to inform you that the South Korean side has expressed their willingness to address the issues and to take relevant measures in every phase.

In my closing remarks for the autumn session of the State Great Hural, I have urged you all, the members of the SGH, to listen and learn public opinions regarding the Mongolia’s development policy at your meetings with constituents during the recess. For myself, I met with citizens of Bayan-Ulgii, Bayankhongor and Uvurkhangai aimags on my assignments. I have attended in the opening ceremony of the “New sum center” Bayanlig, Buu-Tsagaan sums of Bayankhongor aimag and the aimag diagnostic-clinic center of the, These centers were established in accordance with the action plan of The Government for Reform. I also, have visited many development sites including the Asgat silver deposit in Bayan-Ulgii, its newly built auto road from inland and the dairy goat farm in Uvurkhangai. The Government should pay special attention to start operations in Asgat for it will bring economic impetus to the economy of Western aimags. In Bayankhongor, I visited one of the 11 clinics that were furnished with modern equipments worth more than 1 billlion MNT allocated from the Prime Minister's budget as part of the initiative implemented in those aimags.The Ministry of Health should give a special attention on re-training of doctors and nurses who will work in those clinics. Although, the works of Parliament and Government are positively viewed in general, it advises, at the same time, that there are many important issues still exist to be addressed.

The general public is urging and asking us, in the spring session, to solve a number of policy issues aimed to steer the country to right directions in shortest period of time. The people wholeheartedly support the idea of having a more stable and long term policy that does not swings by elections. I am confident, that members of the SGH, standing committees, party and coalition caucuses, relevant authorities and officials keep these points in their minds and follow up in their commitments. With the best of a success to your endeavors, I hereby announce that the 2014 spring session of the State Great Hural of Mongolia is officially open.

Thank you for your paid attention.
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