PM of the CR Mirek Topolánek´s speech at the Opening of the X. Anniversary Congress of the Union of Towns and Municipalities on Thursday 24 May 2007

Dear Mayors, Lord Mayors, colleagues, Father Bishop, dear friends,

I am very glad that I can greet you in person at your X. Anniversary Congress here in Hradec Králové. If I wanted to be funny I would say I am glad, although I know that you will want something from me. In reality, I am here just because of that and I am glad just because you will want something. The last mayor who did not want anything from the government was shot while poaching at the end of the 18th century. A mayor who does not want anything from the government is a bad mayor or rather a dead mayor.

It is natural that the Union of Towns and Municipalities defines its claims – as does everyone. First of all I am happy that, thanks to your organization, the government has a partner with whom it has a subject to negotiate, with whom it can come to an agreement. And in this sense I completely respect the agreement between the government and the Union of Towns and Municipalities signed by Jiří Paroubek. Considering the fact that the Czech Republic has more municipalities than France - by the way, this is also a theme for discussion - it would not be possible to negotiate individually.

You know about me – or at least you will know it from now on – that I have always promoted principles of decentralization and subsidiarity. They are two ugly words but we have all learned to use them. Neither the European Committee nor the Czech government is supposed to solve problems which can be solved in a much better and more effective way by local or regional government.

Subsidiarity is not a swearword and it does not only mean the right to make decisions. It also means taking responsibility for the decisions. And it is the Union of Towns and Municipalities which has shown a responsible attitude towards public administration. It is a voluntary organization, created from below and truly self-governing. I can hardly promise you now that I will agree to all your claims. A prime minister who would is a bad prime minister or at least a politicaly „dead“ prime minister. But I can promise you that the government will always treat you with full respect – and I know many of you personally.

There are reforms beforeus. This is the first short step, so that we could, with others, withdraw the European money which is often discussed. We are only at the beginning, yet some – including you – express their misgivings. They are afraid that the reforms will take something from them and will not provide them with anything in return. Experience speaks for itself. After the last „deformation“ of public administration when duties poured down on you without the vision that you would recieve money to do them, I understand your misgivings very well.

What do we want to negotiate and communicate about? What will we want to agree on? Briefly, in a nutshell, as the negotiations have not yet occurred, we will definitely want to think through the impacts of the reform, or the stabilization of public finances, on the budgets of municipalities. We anticipate that in 2008 nothing extraordinary will happen; for 2009 we must prepare together, within the framework of the evaluation of the fiscal tax, as well as within the framework of any changes related to it.

We will definitely want to discuss the village development programme, structural politics, and operational programmes. We have inherited 24 operational programmes, the most in Europe. Unfortunately, there is nothing we can do about it. But of course, in terms of management and monitoring we can and I promise you that this is a step we will definitely take.

We must solve – and the government has the will – church restitutions. One of the reasons is to stop the blocking of decaying property which is under the administration of the Land Fund. We want to focus on reducing the burden of the municipalities from social transfer and on a whole range of related measures. We want to focus on incremental changes in subsidies for municipalities per capita which has caused the absurd endeavours of some towns to increase the number of inhabitants. We have it prepared.

We want to focus on the tax yield of municipalities and on a return, at least half way, to what used to be here. Already in this first package of arrangments we have given the municipalities greater power to make decisions regarding immovable property tax, namely for buildings as well as for farmland. One thing I came across last week while taking part in a talk as chairman of the Council for the Physically Handicapped is the mobility programme. We want to consult with you on such details, as to why municipalities and towns do not make withdrawals from the mobility programme.

I think we can all agree that a whole range of changes is necessary. In the best case a good change is for the better. To briefly quote from the words of Winston Churchill – „There is nothing wrong with change, if it is in the right direction.“ The improvement and functioning of public administration is my personal priority. We want to go in the right direction, we want to change for the better, and, together with you, we can realize these changes.

Thank you for your attention.