Ágnes Molnár: Everyone can be a Winner2011. január 19.
In the 17 January issue of Világgazdaság an interview was published with Ágnes Molnár, State Secretary for Development Policy Coordination of the Ministry of National Development, on the occasion of the announcement of the New Széchenyi Plan and the priorities of the revised development policy.
‘What is the current status of this year's tender schedule?’
‘We kept our promise: on 14 January 2011 New Széchenyi Plan's 93 calls for tenders were launched involving EU funds of HUF 1,100 billion.’
‘What can potential tenderers expect from the new calls for tenders?’
‘The New Széchenyi Plan has benefits for each member of the society. Tenderers can access sources in a fast, flexible way, using simpler processes, in the form of both funds and credits. However, for the society as a whole the New Széchenyi Plan is more than the actual calls for tenders. The Plan is a philosophy of economics that focuses on two issues: preservation and creation of jobs and strengthening of small and medium-sized enterprises. We can reach our goals only if we can link community and individual interests. What is good for an individual, for example the prosperity of the company they own, is also good for the society, because it means jobs, development or taxes paid. If the remainder of EU sources available for the 2007–2013 budget period can be made available for the economy through funds and other means, we can generate such economic growth that will help Hungary regain its leading position in the region.’
‘In your opinion what is the main strength of the recently opened tenders?’
‘From the HUF 7800 billion available as the national budget for the seven years EU fiscal period, we found EU sources of HUF 2000 billion still uncommitted when the new government took office. The secret of the New Széchenyi Plan is to concentrate these funds on developments that constitute breakout points for the Hungarian economy. These breakout points are the following: business development, health industry, green economy, home building, science and innovation, employment, and transportation. It was clear for us, and the concerned parties also indicated it that sources cannot be committed as before. The process was slow, overcomplicated, involved a heavy administrational burden and tenderers were at the mercy of decision makers. We had to reorganize the system. Fundamental changes had to be implemented both in the development policy and in the institutional system. One of the strongest pillars of the new system is that available sources can reach beneficiaries in a fast, uncomplicated, effective and maximally transparent way.’
‘This promise was made to tenderers numerous times and by many. What is the guarantee against another disappointment?’
‘The guarantee is the government itself. In the framework of the national consultation on the New Széchenyi Plan numerous comments were received about the strategy, the strategic goals, the breakout points and the system of tendering. The dialogue resulted in common knowledge, and we built on this knowledge when the strategic or the tenders guide was compiled. With the cooperation of market players, besides simplification and acceleration, the system of institutions, the regulatory environment and the entire support process were also changed.’
‘What are the most important actual changes?’
‘Regulations were simplified through stronger guarantees. So far 24 legislations have been applicable to the support process. These were replaced by one government decree that regulates the entire support process. This ensures that New Széchenyi Plan's sources can be committed easier and also serves as a means to end legal uncertainty: in the past it was not possible for tenderers to take legal remedy and to appeal. For example, tender applications were simply rejected based on formal errors. This will not be possible in the future. Tenderers can take legal action by filing objections to the decisions. The evaluation period was shortened; the order of procedure was simplified. The new automatic procedures offer the possibility of almost instant decision making. The priority for payments is quickness.’
‘Do calls for tenders use a generally understandable language?’
‘Read them to see the change. Let me give you some examples. Forms were at least 60 pages long, now this is shortened to 20 pages, while the number of data fields forms contained was reduced from 750 to 150. Their text is just as understandable as the tenders guide that contains a short description of the 93 calls for tenders. So far the number of annexes has not been limited. From now on, instead of unnecessarily submitting annexes, tenderers give a declaration that they will attach all necessary documents if they win. There is a regulation now for the process of providing corrections. Corrections can be provided once for each tender. Authorities have often requested useless status reports about projects, now only one report is requested close to the end of the implementation phase. All in all, we tried to implement practical solutions to the new regulation of the support process, and our aim is to make the system work, instead of generating lots of paperwork. As a general complaint tenderers told us that the previous system was unfamiliar, costly and unreasonable.’
‘As State Secretary for Development Policy Coordination are you satisfied with the current situation?’
‘I can only be satisfied if tenderers are satisfied.’
‘A stable, predictable system is extremely important for tenderers. Constant changes are undesired...’
‘I do agree. Stable regulation, calculable conditions, quick and flexible decision making process, shorter waiting period for payments, less paperwork. These are the requirements of businesses and tenderers. And this is the direction we have chosen. This is the exact goal of the new regulation. Let me give an example for the stability of the system: it will be stable, if we give tenderers enough time for proper planning. Previously the situation was different: they were forced to hurry and it resulted in badly planned, unsustainable proposals that did not work for the goals of economic development, neither regarding the creation of jobs, nor the strengthening of small and medium-sized enterprises.’
‘Who can be a winner in the revised new system?’
‘Everyone can be a winner. However, businesses have a priority as they are the engine of the Hungarian economy. Along with this the development of the public sector is equally important to ensure that Hungary has impeccable and high level public services.’
‘However, the largest amount will be spent on transportation development...’
‘Surely you are familiar with the state roads and railway stations are in. And this is just the tip of the iceberg. All priority transportation development projects contribute to the development of businesses and the creation of jobs. First during the building, then in the operation and the maintenance phase of the new system. This is what I call linked individual and community profit. This is equally true for the healthcare industry, tourism, green economy and business development. I say this because New Széchenyi Plan's ultimate goal is nothing less than the recovery of Hungary.’
(Interview by Margit Kocsi)