logo

Scrap metal exports cause argument among Economic Commission members


https://www.ipn.md/en/scrap-metal-exports-cause-argument-among-economic-commission-members-7965_990436.html

The Parliament's Economic Commission rejected a draft law proposing the liberalization of scrap metal exports after minutes of heated debates among Democrats and Liberal-Democrats. The Democrats opposed the bill saying that easing export rules in this area would be detrimental to state revenues and would only favor some companies “close to the Liberal-Democratic Party”. “We are advocates of statism and we want to hear a good reason why a state monopoly should be obliterated”, said Valeriu Guma, a Democratic MP. In response, the Lib-Dems said that the Democratic Party was interesting in preserving the monopoly status of the state-run enterprise Metalferos, and this would be detrimental to business. “Our interest is to allow not just one company of 'statists' to operate in this area, but seventy companies of true patriots. Let's not allow concentrations, let's open exports and allow in private companies which are more effective than the state-run ones”, argued Veaceslav Ionita. The Democrats said, however, that the measure would starve the state budget of 40 million lei annually, and there was a risk that it would trigger a rise in cable and manhole cover thefts. “We are not against the idea of liberalization in general, but we are against superficial measures, and we have the impression that behind [this move] are some interested businesses who are supporters of the Liberal-Democratic Party”, said Democrat Adrian Candu. Currently only the state-owned company Metalferos is authorized to export scrap metal, which is bought from 70 private collecting firms. The bill in question would allow more businesses to qualify for a license. Despite lacking the Economic Commission's formal approval, the bill will be submitted to the legislature. The Democrats said they could endorse it eventually, if sufficient evidence was brought that keeping Metalferos' monopoly was not financially reasonable.