ARACO: State Needs To Make Massive Investments

A.N.
Ziarul BURSA #English Section / 14 ianuarie 2009

Several ministries have set up working groups with the unions and the employers" association to create a crisis management plan. The Romanian Contractors" Association (ARACO) has presented authorities with a set of measures for the Romanian construction industry.

"It is clear that the State needs to be a strategic investor in the economy during times of crisis. The builders are proposing a solid infrastructure investment plan, the assurance of co-financing for projects based on structural funding and the allocation of substantial funding for the thermal insulation of homes. Also part of the crisis management plan, ARACO are proposing a VAT reduction for social housing construction and for projects that improve energy efficiency, such as thermal rehabilitation," ARACO President Laurentiu Plesceanu told a press conference yesterday.

Another key point in the crisis management plan proposed by the builders is that the VAT should be paid only after the collection of the invoice for the construction works, and not before, as it is currently done. Builders are saying that they can no longer "lend" money to the State in the form of the VAT, especially considering that it is more and more difficult and expensive to borrow from banks. Bureaucracy linked to the tenders for EU-financed projects needs to be simplified, while the works performed under public contracts must be paid for promptly. According to ARACO, public institutions have been largely delaying payments since October.

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