GRANTS VS. PRIVILEGES: RUSSIAN SENATE PASSES DISPUTED BILL

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MOSCOW, August 8 (RIA Novosti) - In this morning's session, the Federation Council, parliament's upper house, approved a much-disputed welfare grant bill. The State Duma, lower house, passed it Thursday, August 5.

The federal bill needs the President's signature now to enter into force, as the Constitution stipulates.

The bill amends 155 federal laws and cancels another 41 to bring the acting legislation into conformity with a law on competence and budgetary obligation delineation between administrations of all levels.

Money grants will replace welfare privileges except reduced rents and public utilities fees, starting next year. It is up to the federal Cabinet to determine the sums and payment arrangements.

The labour legislation retains a clause on minimum wages. A new clause prohibits reducing salaries in government-financed companies and offices below a threshold for December 31, 2004.

The bill confirms federal guarantees of social welfare privileges for persons affected with the Chernobyl nuclear disaster and residents of arctic areas. It specifies appointment techniques of arctic labour remuneration and welfare grant coefficients.

A federal tripartite commission of government, parliament and labour is to offer recommendations on minimum wage calculations, says the bill. Regional administrations will proceed from them where government-financed companies and offices are concerned.

The bill establishes a "welfare package" of monthly per capita 450 roubles-reduced suburban train fares, medicine grants, and spa treatment. Every person entitled to welfare grants, with no exceptions, will be entitled to the package, starting next year. From 2006 on, a personal choice may be made between money grants and privileges in kind.

An amendment for federal grants to victims of past political reprisals was torpedoed, however heatedly parliamentarians had been insisting on it. The debaters met each other halfway, in the long run, to shift the payments to regional budgets. The federal purse will subsidise them for such grants and other welfare services.

Clauses on privileges of Heroes of the Soviet Union and Russia, and persons awarded the Order of Glory and the Order of Labour Glory left the original bill, each to make a bill on its own.

The house approved an amendment on federal allocations to local budgets for free primary and secondary tuition on national educational programmes.

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