Metro Threatens to Slash Service Over Cuts
29 December 1994
Moscow metro officials warned Wednesday that the city's underground transportation system -- one of the few efficient and convenient creations of the Soviet economy -- could become a victim of the Russian government's policy of cutting spending and taming inflation next year.
Dmitry Gayev, first deputy director of Moscow's metro system, told a news conference that as many as 24 escalators and a number of trains could be withdrawn from operation in 1995 unless the State Duma changes its decision to sharply cut down on the budget allocations for the metro.
Another metro official said the cuts could result in the layoff of up to 15,000 construction workers.
But Mikhail Zadornov, head of Duma's Budget Committee, said the metro threats were "blackmail" in an attempt to lobby for more funding.
He said a 3.8 trillion ruble ($1.08 billion) funding request for 1995 by metro officials is "totally absurd," given that the budget allocations for 46 investment programs throughout Russia amount to only a total of 16 trillion rubles.
"They are trying to blackmail the government," he said in a telephone interview. "I'm sure that we will soon hear similar warnings from different sectors of the economy, whose financing was reduced."
The angry comments of the metro officials came a few days after the Duma passed the first reading of an austere 1995 budget, in which the government has committed itself to tight spending in a bid to curb inflation.
Under the budget, which must pass three more readings in the Duma, no separate allocations are made for the Moscow metro, which is for the first time to be financed with a portion of the budget allowance for the city of Moscow, said Zadornov.
It will then be up to the city to decide what share of its funds, which total about 3 trillion rubles, should be given to the metro, Zadornov said.
No matter how generous Moscow Mayor Yury Luzhkov will be to the metro, the underground network will receive much less than its 3.8 trillion ruble request. The metro officials warn that this could result in layoffs and a quick decline of the metro network.
"In two years, you'll probably see announcements hanging on the closed doors of metro stations: 'Closed for technical reasons,'" said Gayev. "We cannot let passengers ride trains and escalators that need repair."
Ezar Sandukovsky, deputy director of Mosmetrostroi, the city metro construction company, added his company will be forced to lay off as many as 15,000 construction workers if the financing is cut.
"If we have to lay off well-trained and experienced workers because of the lack of funds, it will be a crime," Sandukovsky said, adding that funding is due to run out by Jan. 20. "There is not a line about us in the budget."
Moscow city officials confirmed the fears of the metro directors, saying the city will not be able to provide for the metro's funding needs next year.
"I know that Luzhkov has asked the government to allot special funds to the metro because the city does not have enough money," said Svetlana Gubanova, head of the construction unit at the Moscow city Finance Department.
"Our total allowance has barely risen compared to last year, even though we have high inflation," Gubanova said.
In previous years, construction and modernization of the metro system has always been financed by the federal budget, while the city of Moscow and fares covered operational costs.
Russian politicians have a strong tradition of treating the metro as a top priority. President Boris Yeltsin last March ordered Prime Minister Viktor Chernomyrdin to provide funds for metro development requested by Luzhkov.
"We cannot allow the decline of the Moscow metro. Please, solve the problem," wrote Yeltsin, after which the metro received a total of 806 billion rubles in state financing in 1994.
The metro officials argue that the lawmakers just do not realize the scale of the problems that will result from the reduced financing.
According to Gayev, it will ruin the metro expansion program, under which 48 new stations and 63 kilometers of new tracks are to be constructed by the year 2000.
He added that the lack of funds could force the metro to hike fares to over 1,000 rubles.
Dmitry Gayev, first deputy director of Moscow's metro system, told a news conference that as many as 24 escalators and a number of trains could be withdrawn from operation in 1995 unless the State Duma changes its decision to sharply cut down on the budget allocations for the metro.
Another metro official said the cuts could result in the layoff of up to 15,000 construction workers.
But Mikhail Zadornov, head of Duma's Budget Committee, said the metro threats were "blackmail" in an attempt to lobby for more funding.
He said a 3.8 trillion ruble ($1.08 billion) funding request for 1995 by metro officials is "totally absurd," given that the budget allocations for 46 investment programs throughout Russia amount to only a total of 16 trillion rubles.
"They are trying to blackmail the government," he said in a telephone interview. "I'm sure that we will soon hear similar warnings from different sectors of the economy, whose financing was reduced."
The angry comments of the metro officials came a few days after the Duma passed the first reading of an austere 1995 budget, in which the government has committed itself to tight spending in a bid to curb inflation.
Under the budget, which must pass three more readings in the Duma, no separate allocations are made for the Moscow metro, which is for the first time to be financed with a portion of the budget allowance for the city of Moscow, said Zadornov.
It will then be up to the city to decide what share of its funds, which total about 3 trillion rubles, should be given to the metro, Zadornov said.
No matter how generous Moscow Mayor Yury Luzhkov will be to the metro, the underground network will receive much less than its 3.8 trillion ruble request. The metro officials warn that this could result in layoffs and a quick decline of the metro network.
"In two years, you'll probably see announcements hanging on the closed doors of metro stations: 'Closed for technical reasons,'" said Gayev. "We cannot let passengers ride trains and escalators that need repair."
Ezar Sandukovsky, deputy director of Mosmetrostroi, the city metro construction company, added his company will be forced to lay off as many as 15,000 construction workers if the financing is cut.
"If we have to lay off well-trained and experienced workers because of the lack of funds, it will be a crime," Sandukovsky said, adding that funding is due to run out by Jan. 20. "There is not a line about us in the budget."
Moscow city officials confirmed the fears of the metro directors, saying the city will not be able to provide for the metro's funding needs next year.
"I know that Luzhkov has asked the government to allot special funds to the metro because the city does not have enough money," said Svetlana Gubanova, head of the construction unit at the Moscow city Finance Department.
"Our total allowance has barely risen compared to last year, even though we have high inflation," Gubanova said.
In previous years, construction and modernization of the metro system has always been financed by the federal budget, while the city of Moscow and fares covered operational costs.
Russian politicians have a strong tradition of treating the metro as a top priority. President Boris Yeltsin last March ordered Prime Minister Viktor Chernomyrdin to provide funds for metro development requested by Luzhkov.
"We cannot allow the decline of the Moscow metro. Please, solve the problem," wrote Yeltsin, after which the metro received a total of 806 billion rubles in state financing in 1994.
The metro officials argue that the lawmakers just do not realize the scale of the problems that will result from the reduced financing.
According to Gayev, it will ruin the metro expansion program, under which 48 new stations and 63 kilometers of new tracks are to be constructed by the year 2000.
He added that the lack of funds could force the metro to hike fares to over 1,000 rubles.
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