Business in the web of state monopoly

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The tendency of the state to create state-owned enterprises in competitive business causes legitimate concerns amongst Members of the Parliament

Transition to mandatory insurance of liability of tour operator and travel agents is the right decision. But why do these tourist companies have to pay a single state enterprise, the tour operator, which is created under the Department of Tourism Industry of the Ministry of Investment and Development of the RK?

This question was put at the plenary session by the Mazhilis deputy Azat Peruashev. During the discussion of the draft law "On amendments and additions to some legislative acts of Kazakhstan on issues of industrial and innovation policy," he voiced a number of problems.

A. Peruashev noted that "in fact insurance of liability - is a business activity that is why there are insurance companies for this purpose".

"We have created the single pension fund, which accumulates all pension contributions. We also discuss the creation of the Health Insurance Fund - again not the market player, but under the government agencies. Now we have travel insurance - and again through the state agency", - complained Mazhilisman.

Azat Peruashev is sure that "we actually displace market mechanisms by replacing them with state monopolies".

"Moreover, this mechanism of creation of funds under government agencies with the right to levy any required fees on market participants - raises some doubts regarding corruption of such decisions", - said A.Peruashev.

The MP called on the Minister for Investment and Development Asset Issekeshev, "not to forget the market mechanisms" and take into account in the second reading of the draft law article by article.

Zhanar Serdalina