The Source: Hromadske Radio
Tetyana Troschynska: What the adoption of the draft Law on Liberalization of state supervision will change for business in Ukraine?
Oleksiy Honcharuk: The inspections will be conducted more rarely. The amount and duration of inspections will be reduced. But it is not a main achievement, as the planned inspections are not the things that the business was concerned about the most. The business was concerned about unscheduled inspections, when regulatory authorities come suddenly and try to find something.
This legislative package reduces the amount of reasons for inspections. And now it makes a main reason for regulatory authorities – at the request of an individual – more complicated. Previously, if tax service representatives wanted to inspect the enterprise urgently, it had organized that the anonymous complainant wrote some cavil and as if by this reason it had come and inspected. Now this mechanism got a filter. There is the State Regulatory Service that is independent and isolated from the ministries. To get the right to inspect the business, now it is needed to prove for an independent body that it is necessary.
The mechanism of implementation should be made as much transparent as possible. We will attract the public, the organizations of business associations, so everyone can understand that fake applications should go into the past.
The third point is the information transparency. We will create a common system to make it possible to see who will inspect, who will be inspected, observe the statistics and dynamics. We still have the Soviet system where the efficiency of inspector’s work measures by how many business entities he punished and how many penalties he imposed.
And, by the way, as this system has not been still reformed, the Verkhovna Rada decided to put a moratorium on inspections. This means that till the end of 2017 the pressure on businesses from regulatory authorities will be reduced.
Vasyl Shandro: So, regulatory authorities will not have right to come to the business unscheduled at all, will they?
Oleksiy Honcharuk: There will be four reasons. The first one is an accident, some terrible event, when it is clear for everyone that something is wrong. The second one is on the initiative of the subject. Sometimes the business needs to show his investors and counterparties that everything is okay. The third reason is at the request of an individual. As I explained, there are significant changes, and the State Regulatory Service will be the filter. Moratorium is an ambiguous decision. However, it can exist as a temporary measure, as a kind of anesthesia.
Tetyana Troschynska: Let’s say, there are many small food industry enterprises that produce sausages or creamy cakes – something that can stand too long and become stale. Won’t this moratorium lead to the situation when companies, which are not afraid of reputational losses, will feed the customers anything during the moratorium?
Oleksiy Honcharuk: The Law on Control and Supervision will cover all inspecting bodies. But the moratorium will not cover the food industry enterprises where the absence of control and supervision can lead to serious consequences. However, the activity of inspecting bodies still comes within the provisions of the law.
Tetyana Troschynska: Does the integrated inspection datebase unify the criterions upon which inspections are conducted?
Oleksiy Honcharuk: Every inspection has to determine why it exists and for which risks it is monitoring. But the integrated inspection system is a source information for citizens about who, where, how much and whom inspects. There is a quite big amount of parameters. The availability of this information allows us to analyze.
Of course, nothing will change tomorrow. We will need a few months to launch this system. The Tax Service will try to avoid the implementation of the law. But every day the dozens of young motivated people are working for its realization. If you have ideas, experience, observation – join us. Your help will be needed.
Vasyl Shandro: How will you fight against the resistance of regulatory authorities?
Oleksiy Honcharuk: It is impossible to change quickly something that has been built for years. Many things begin with the self-consciousness of the business and the decision not to give the bribes. Be strong to fight! While you’re cooperating with corrupt officials, they will always be there.
Vasyl Shandro: Is the business ready to work by fair rules?
Oleksiy Honcharuk: I must state that the business does not always trust the state. If the business understood that rules were stable, but not they work in this way now, and in another way tomorrow, it would be ready to play by them. The rules must be stable, simple and clear and executable.
The main problem in Ukraine is that Ukraine does not record its measures. Sometimes you take a resolution and don’t understand why it was adopted at all. All rules, which are being adopted, must be explained in details to the public. That is why this habit “When I want your opinion, I will rattle your cage” leads to the fact that the rules are not fulfilled.