27 June 2008

Meeting of the Council of Ministers on 25 June 2008

The Council of Ministers meeting is held this Wednesday, June 22, 2008, in the Meeting Room of the Council of Ministers, at the Government Palace in Dili, and adopted:

Decree Law Amendment to the regime of General Supplies and Public Procurement This law, which the Council of Ministers approved in its meeting today, is changing the Legal Regime on Public Procurement and Supply, defining, in particular, what are the competent authorities to authorise the start and award procedures in supply.

It is understood that it is important to implement some measures of decentralisation of the Ministry of Finance to other ministries and other entities, allowing them to promote some of the procedures already in the supply of their own service.

Resolution on Supply of Essential Goods The supply of food from local production in

East Timor is clearly insufficient to meet domestic demand, so it has come to rely on imports of large quantities of basic foodstuffs, particularly rice and cooking oil to meet the needs of consumption of the population.

In this context, the Council of Ministers approved in its meeting today a resolution to elect as effective measure to combat rising prices on market intervention by launching significant quantities of basic goods, capable of meeting the immediate needs and cover stocks that families and traders are as a precautionary measure, the reduced or subsidized prices.

The Government is aware that the market should operate freely, adjusting prices through the mechanism of supply and demand, and the administrative practice of fixing prices or establishing a mechanism of price caps limited to extremely difficult situations. The goal is the state bear the high costs of financial assets related to the acquisition and maintenance of stocks, not substitute for the traders.

Decree-law approving the System Utilities, and Key Assets Control Prices The Council of Ministers approved in its meeting today a decree-law establishing the System of Public Supply of Goods and Control of Key Rates.

East Timor is a net importer of basic foodstuffs, particularly rice and cooking oil, given the lack of domestic production to meet the consumption needs of the population.

This law considered the need to create and maintain a stock of food security and others, particularly those that are essential to the construction and public works crucial in the reconstruction and development of the country, and ensure proper management of market intervention , Capable of correcting the deficiencies and risks of supply and prices.

The bill was still under consideration the specific case of prices in public transport of passengers, where there is an economic situation of generalised rise as a result of the persistent rise of fuel prices. In that sense, this Decree Law establishing a transitional measure to prevent the uncontrolled increase in prices and distortions in public transport of passengers.

Decree of the Government that regulates the intervention in UtilitiesThis regulation applies to procedures to be followed in the systems of market intervention of public supply of essential goods through the establishment of stocks security and stabilization of prices, with and without recourse to subsidies.

Resolution that approves the creation of the National Commission on Prevention of Avian Disease The Council of Ministers approved in its meeting today a resolution that creates the National Avian Commission, being appointed its fifteen members. It is for members to disclose information, epidemiological research, surveillance and reporting of disease outbreaks of bird flu that might occur in the territory of East Timor, within an integrated communication system.

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