MOSCOW, October 19 (RIA Novosti) - The Russian government said Thursday it was unhappy with the way the regional development ministry has been handling the reform of the housing and utility sector.
Regional Development Minister Vladimir Yakovlev delivered a report at a government session Thursday on the reform of the housing and utility sector.
The outdated housing and utility sector inherited by Russia from the Soviet Union has been a major stumbling block to the modernization of the Russian economy.
Yakovlev also said the government should amnesty the larger part of rent arrears, which total 70 billion rubles (about $2.59 billion).
"It is understandable that debts which have accrued over the long term cannot be returned and should be pardoned," Yakovlev said.
But, the minister said, about 20% of the debts belong to people whose incomes are not low, and that those debts have to be recovered through the courts.
Prime Minister Mikhail Fradkov said the government was dissatisfied with the minister's plan to reform the housing and utility sector, and instructed him to draft a comprehensive plan within a month, including top priority measures.
Finance Minister Alexei Kudrin proposed using the experience of Eastern Europe to stop the financing of the housing and utility sector's losses.
According to Kudrin, budgets at all levels allocate about 450 billion rubles (about $16.7 billion) a year to finance the housing and utility sector, including about 200 billion rubles (about $7.4 billion) as subsidies to enterprises to cover operating losses.
Kudrin said budgets could have an extra 200 billion rubles if the government stops financing losses, and that this amount could be used to repair and modernize the housing and utility infrastructures.
"Over a period of about eight years, this sum would make it possible to modernize all equipment and replace it with energy-saving technology," Kudrin said.
