POLICY BOOK OF THE NATIONAL FEDERATION OF EMPLOYERS IN AGRICULTURE AND THE FOOD INDUSTRY (FNPAIA) by URMA ta

The National Federation of Employers in Agriculture and the Food Industry

POLICY BOOK

OF THE NATIONAL FEDERATION OF EMPLOYERS IN AGRICULTURE AND THE FOOD INDUSTRY (FNPAIA)

Approved at the council meeting on november 24, 2010 Updated and reconfirmed at the FNPAIA Council Meeting of July 03, 2013

the national federation of employers in agriculture and the food industry about the process The National Federation of Employers in Agriculture and Food Industry (FNPAIA) wrote the first page of its Policy Book in August, 2010 in Causeni, and a process started on discussing problems faced by Moldovan agri-entrepreneurs and identifying solutions. These problems and solutions proposed by FNPAIA member agri-entrepreneurs were noted, systemised and structured in a policy document. This writing exercise was done in a wide participative process, which started in Causeni where the FNPAIA invited member-employers to voice their concerns regarding issues pertinent to agriculture. These agri-entrepreneurs suggested many proposals aimed at improving the business environment, enhancing economic opportunities for agri-producers, and protecting property rights. The proposals received in Causeni were further discussed and improved with FNPAIA members from other regions: Orhei, Ştefan Vodă, Hînceşti, Edineţ, Cahul, Floreşti, Bălţi, Soroca, Criuleni, Ungheni, where agri-entrepreneurs from all over the country participated. In Orhei, Mr. Jean-Marie Standaert, Special Advisor at the Dutch Employers Cooperation Programme (DECP) who facilitated several roundtables, stated that „Employers’ organisations should have one voice, be representative and coherent in developing and implementing of policies which have an impact on national development, including in the agri-sector.” DECP has been for many years a permanent partner who assisted FNPAIA in achieving institutional growth and improving its capacities to act as an equal social partner and efficiently represent members. After discussions that lasted for several months, the Policy Book was approved by the FNPAIA Council on 24 November, 2010. The Policy Book was revised and updated during the months of April – June 2013 on meetings at regional level with the members of the FNPAIA, and the position of the FNPAIA was reconfirmed by the Council on its meeting on 03 July, 2013. The principles and ideas of the Policy Book will guide FNPAIA’s future activity and this will assist in solving efficiently many problems faced by private agricultural producers. The Policy Book will be an effective tool in building of a constructive social dialogue between the organisation of employers, Trade Unions and state institutions. The Policy Book contains principles and ideas that are contributing to the fulfilment of FNPAIA main scope and mission: creating of favourable conditions for agricultural enterprises and represent their interests in relationship with the public authorities and workers’ organisation.

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from the president This document represents the position of the National Federation of Employers in Agriculture and the Food Industry (FNPAIA) and it contributes to carrying on policies of the Republican Union of Agricultural Producers’ Associations „UniAgroProtect” – the organisation which served the structural foundation of the FNPAIA. The FNPAIA Policy Book contains the core ideas and suggestions of member entrepreneurs, initially collected during 11 round-tables organised in August-November 2010 across the country. These meetings have practically covered the participation and representation of agri-producers from all raions of Moldova. During April - June 2013 a round of consultations was held with members of the FNPAIA to discuss the current position of the organisation on all provisions of the 2010 Policy Book and to identify the priorities in stating the position on the situation of the agribusiness sector at present. The National Federation of Employers in Agriculture and the Food Industry would like to extend a special message of thanks to the Dutch Employers’ Cooperation Programme (DECP), for the assistance offered in implementing this project and for the close cooperation between our organisations, which originates in the years of 2007. This Policy Book contains and targets the most critical and important policies, which the FNPAIA will promote throughout its activities and actions. The Policy Book will be periodically revised to ensure that it always responds to needs of agricultural producers, concrete situations and requirements of the time. The FNPAIA will use its advocacy strategy and will promote the ideas contained in this Policy Book. The FNPAIA will also build a lobby approach and will request the discussion of the Policy Book in Parliamentary Commissions and in the Government, aiming at translating into reality those proposals made by the agricultural producers and creating a conducive environment for the agribusiness, and ensuring economic growth and social wellbeing in rural areas of Moldova. The experience and activity of our members offers us the needed mandate to launch this dialogue on agricultural policies in Moldova. Through working together, speaking in a unified voice and, as a representative group, it is possible to achieve what individual agri-enterprises could not. Therefore, the FNPAIA appreciates the support of its members who actively participated in drafting of this Policy Book and are active members of the organisation. The FNPAIA believes that this Policy Book can inspire the Government to be more open, to improve the policymaking process and build economic and social capital for the country. The existence of a functional dialogue with social partners can bring only benefits to the society. The FNPAIA will permanently inform its members about the progress in the implementation of this Policy Book though issuing periodic Advocacy Notes and sharing it with members. Alexandru Slusari, President

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the national federation of employers in agriculture and the food industry

Contents: I..Fundamental Policies...................................................................... 4 II..POLICIES ON SUBSIDIES IN AGRICULTURE........................................ 9 III..FINANCIAL MARKET POLICIES............................................................. 11 IV..POLICIES ON WATER MANAGEMENT FOR IRRIGATION PURPOSES... 12 V..FISCAL AND CUSTOMS POLICIES........................................................ 12 VI..POLICIES ON THE SOCIAL ENSURANCE SYSTEM AND MEDICAL ASISSTANCE............................................................................................ 15 VII..POLICIES ON PRODUCTION AND MARKETING OF AGRI-PRODUCTS................................................................................... 16 VIII.. COOPERATION OF AGRI-PRODUCERS ............................................... 17 IX..POLICIES ON PROTECTION OF COMPETITION AND COMBATING MONOPOLISTIC PRACTICES................................................................. 18 X..ENVIRONMENTAL AND RURAL DEVELOPMENT POLICIES.............. 19 XI.. LAND POLICIES...................................................................................... 21 XII..POLICIES ON THE LEGAL STATUS OF AGRICULTURAL ASSETS OF THE FORMER COLLECTIVE FARMS..................................................... 23 XIII..POLICIES ON OCCUPATIONAL SAFETY AND HEALTH...................... 23 XIV..POLICIES ON THE HUMAN RIGHTS AND THE WORKFORCE............ 24 XV..POLICIES ON AGRICULTURE EDUCATION, INNOVATION AND RESEARCH.............................................................................................. 26 XVI..POLICIES ON COMMUNICATION AND THE ROLE OF MASS-MEDIA.... 28

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POLICY BOOK Chapter I FUNDAMENTAL POLICIES The Constitution The Constitution is the supreme law of the state. Any normative act, which contravenes the provisions of the Constitution, has no legal force. We believe that the fundamental principles on property, work, entrepreneurship, free trade and protection of loyal competition, rationale use of land and other natural resources should be stipulated in other normative acts in conformity with the provisions of the Constitution and, in the spirit of the Constitution. We urge that the principles of the Constitution on fundamental human rights and liberties are strictly respected. We believe that the state should promote economic and social policies based on the principles of the Constitution, which affirm that Moldova is a market economy of social orientation, where the private and public property serves the basics of this economy and are in a free competition. We support the principle of separation of power in the state and believe that the branches of the power should cooperate only within limits provided by the Constitution. We think that any interference of the legislative or executive power into the judicial branch seriously affects fundamental rights and freedoms of the human that are secured under the domestic legislation and international agreements.

The Private Property The private property lies at the basis of the economic, social and political system, therefore persistent protection of the private property is one of the fundamental obligations of the state. The private property implies the exclusive right of the title-holder to hold the object of property in his/her interests and benefits. We believe that land-owners, as holders of property-rights, are obligated to use their farmlands efficiently and in conformity with agro-technical norms. We think that any limitation of property rights or any withdrawal of such rights can be applicable only in cases of public utility with equitable compensation, or when rights of a third party are violated. We urge that legal provisions which regulate the limitation of property rights should be in accordance with the Constitutional norms and should not follow the loosing of property rights or unjustifiable limitation of such rights. It should be based on a justifiable public interest. We believe that sanctioning for incorrect utilisation of farmlands, according to practices of other countries, shall imply that certain punitive measures are applied to persons who have an incorrect management of the land property. In this context we think that the legislation on administrative contraventions should be amended to include sanctions for such damage.

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the national federation of employers in agriculture and the food industry We believe that penalties should be applied gradually, with consideration of the gravity of each separate case and the damage that has been caused.

The Market Economy The present economic system is based on a market economy with respect of human and social rights, protection of environment and unexaggerated burden on enterprises. It is an economic system based on market economy of social orientation and it is based on private property and private initiative of property rights beneficiaries. Entrepreneurs are granted under the law the full right to develop entrepreneurship activity based on their own economic interests. No laws or legal provisions should exist, which would limit the rights of entrepreneurs to act freely for obtaining profit. At the same time, we urge rural entrepreneurs to conduct their business in the spirit of high social responsibility. We urge the state to not introduce new requirements or limitations (licences, formalities, etc.) to private entrepreneurs. We urge the state to not undertake restrictive actions to impede competition and to not support enterprises with state-owned capital in the detriment of private capital enterprises. We urge the state to not interfere through administratively set prices, except for several agriproducts of major social importance. The intervention policy can serve as an efficient tool to influence agri-food products prices. We support the economic-administrative interventions of the state in the price-setting process, especially through improving of the approach on combating of anti-monopolist practices, and in specific, combating and sanctioning of anti-competition agreements (cartel).

Combating corruption We think that corruption is one of the main factors which impede sustainable national development, and in specific the development of agri-business. We urge the implementation of an administrative reform that would reduce the number of state authorities which regulate the entrepreneurship activity, and that would increase significantly wages of public officers and sanctions for corrupted officers. We propose that a comprehensive analysis of the legislation in force is made to remove any ambiguity from normative acts which regulate the entrepreneurship activity. We support the extension of the one-stop-shop system for the process of entrepreneursâ&#x20AC;&#x2122; licensing, authorisation and certification. We think that the procedures on liquidation of enterprises should be simplified.

Investments and security of investments The main goal of investments is job creation and growth of welfare. The investments in agriculture represent a reflection of the general picture. This refers to all types of investments (domestic, foreign, public or private) which are far below the prospective and needs of the sector.

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We think that investments in agriculture should enjoy legislative preferences while rights to the object of investments should be guaranteed, as well as profits made there from. We consider that private investments is not likely to grow without investments projects from the state, in specific in the infrastructure of the agri-business such as roads, irrigation systems, water pipelines, telephone lines and Internet. The public investments in the infrastructure can play an important role in enhancing of private investments and can solve many social problems of the rural population. We urge the state authorities and non-governmental organisations to actively participate in attracting of foreign investments, which are needed for the improvement of infrastructure and for launching of public-private partnership projects. We think that the increase of the investments flow depends on an improved investments environment, non-involvement of the state in organising of private businesses and the creation of strong competition. We believe that a frequently amended legislation is discouraging investments in agriculture and generates insecurity of investments both for domestic and foreign investors. We plead for equal treatment of all investors in granting of fiscal indemnities or allotting of subsidies, independently if they are foreign or local investors, whether of rural or urban origin. We are in favour of more fiscal indemnities or allocation of subsidies for investors from rural areas, aimed at contributing to a dynamic development of rural localities.

The civil society, transparency and participation in decision making The civil society is an indispensable part of a democratic society and it should serve in maintaining stability and strengthening the political and social system. We consider that the legislation should guarantee and ensure that the civil society fully carries out its social functions. We plead for discussing with non-governmental organisations all normative acts which may affect members of these organisations. In specific, we urge that all draft laws pertinent to agriculture are coordinated with the National Federation of Employers in Agriculture and the Food Industry. We ask that the candidature for the position of Minister of Agriculture is coordinated with the specialized non-governmental organisations from the agri-food sector. We plead for an efficient social dialogue in the Republic of Moldova, in specific we plead for an improved social dialogue at sector level between the National Federation of Employers in Agriculture and Food Industry, the National Federation of Agri-food Trade Unions â&#x20AC;&#x17E;Agroindsindâ&#x20AC;? and the Ministry of Agriculture and Food Industry. We plead that important laws such as the Budget Law and the Law on Social Security Budget has public access to ensure that interested stakeholders have a possibility to comment on it. We urge that any initiative associated with fundamental rights and freedoms (property rights and rights to entrepreneurship activity) is offered for public debate and discussion with representatives of the civil society. Therefore, organisations or groups of citizens should have access to all draft laws and normative acts. We think that it is crucial to guarantee the constitutional provisions on having meetings of the Government and Parliament open for the public.

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the national federation of employers in agriculture and the food industry We consider that the civil society should be permanently informed about credit conditions offered for Moldova by the IMF, World Bank and other international financial institutions and participate in the negotiations with these institutions on all problems related to agri-policies. We consider that the right of non-governmental organisations to have access to any information regarding the legislative process (initiatives, draft laws) and their rights to participate in meetings of the parliamentary commissions and to express views on the discussed draft laws should be guaranteed. We propose that the main non-governmental organisations specialised in agriculture sign, in proximal period, a strategic agreement with listing the problems that exist in the agri-food sector, and for which they have common solutions. By signing such an agreement, the organisations undertake the responsibility to coordinate activities for the implementation of solutions. We consider appropriate to organize peaceful and authorized protests in situations when all means of negotiation in the framework of social dialogue have been consumed. Effective law enforcement and access to justice An independent and professional judiciary system is the institute which has the scope of guaranteeing patrimony rights and business interests of people from rural zones. We consider that access to justice and the right to an impartial justice is one of the fundamental rights of the human. It is a guarantee that excludes any abuse and a strict guarantee of the rights and liberties of the citizen. We consider that access to justice should be real and effective and it should guarantee a possibility to satisfy rights of persons who appeal to the court, in a correct process and in reasonable terms. An extensive term for the examination of cases is associated with lack of access to justice. We consider that at present, the judiciary power does not fully meet the criteria of independence and professionalism, given the interference in the judiciary process, corruption and lack of professionalism of the persons who are involved in the judiciary process. We consider that the establishing of such a judiciary system, which would meet these criteria, should be the most important objective of the state. We think that the enforcement of these fundamental rights, which are provided for by the Constitution and the European Convention on Human Rights is not possible without constituting of judiciary entities which would be competent, impartial and independent of any outside pressure, while their activity should be guided exclusively by the law.

Alternative Dispute Resolution Alternative resolution of disputes between enterprises, using such tools as arbitrage and mediation, is an effective way in solving disputes related to patrimony, including land disputes. We believe that arbitrage and mediation is a simple and inexpensive tool which contributes to establishing of good agreement and cooperation in communities between agri-entrepreneurs. We support a continuous advancement of the institute of arbitrage and mediation, as an effective tool for dispute resolution. An amicable dispute resolution is a factor which determines the establishment of a strong business environment which would be based on trust. We think that the arbitrage and mediation institutes should be promoted through information and

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education of agri-enterprises, through offering of documented attestation about arbitrage. European Integration The statement that integration into the European Union is a priority of the Moldovan policy has a decisive significance for the economic, social and political development of the Republic of Moldova. We think that European integration implies modernization of all state institutions and their compatibility with European institutions and all reforms in this sense should be made in consensus and with support of the civil society. We urge the Government to offer exact and complete information about the EU policy (acquis communautaire) and any commitment related to implementation of EU regulation, reform programmes and approximation to the EU standards. World Trade Organization We think that the WTO can be an efficient tool of protection against non-tariff measures and other trade barriers, given the fact that non-tariff barriers, such as expensive transition or long customs procedures reduce access to new markets. At the same time, Moldova joined the WTO in the most disadvantaged conditions, with keeping of reduced tariffs on import of agri-food products. In this context, we request that measures in support to the agriculture sector that were provided in the WTO Accession Agreement are used to a maximum extent possible. We urge the Government to lead a proactive external trade policy to facilitate access for producers and service providers to other markets. We think that all tools offered by the WTO should be used to protect trade interests of Moldova, both through countering of non-tariff barriers imposed on the Moldovan goods and through initiating and supporting of anti-dumping measures. At the global level, the sugar market is not free, taking into consideration what protective measures are applied and the level of subsidies for sugar-beets production. Under such circumstances, the production and sale of sugar in a free trade regime (with no protection for the domestic market) is practically impossible. Therefore, we request that protection measures are maintained, and agreed with the WTO on the import of sugar. The Deep and Comprehensive Free Trade Agreement (DCFTA) between the Republic of Moldova and the European Union We think that the Moldovan agriculture sector is not prepared for initiating, starting with 2014, of the Deep and Comprehensive Free Trade Agreement with the European Union, which will reduce even more seriously the competitiveness of the national agriculture sector. At the same time, we understand that Moldova cannot integrate into the European Union without signing of the Free Trade Agreement and this also translates into impossibility to benefit from European funding support to the agriculture sector. We plead the maintenance for a maximum possible period, after signing of the Free Trade Agreement, of existing custom fees on the import of agri-food products. We also plead for significant increase of subsidisation in the agriculture sector and offering of fiscal privileges to agricultural producers aimed at partial mitigation of the negative impact on

Updated and reconfirmed at the FNPAIA Council Meeting

the national federation of employers in agriculture and the food industry the agriculture sector, resulting from the signing of the Deep and Comprehensive Free Trade Agreement (DCFTA) between the Republic of Moldova and the European Union.

Agriculture and the Food Industry in the Governing Act Agriculture and the food industry contribute directly with 20% to the Moldova GDP and indirectly contribute with approximately 40% to the national GDP. Agriculture is the most important sector that maintains the livelihoods in rural areas. More than one third of the total number of officially employed people work in agriculture. Approximately 400,000 persons who live in rural areas in Moldova are farming their land individually. In this context we insist that the agriculture and food industry sector is declared a priority sector in the Government Program and in the Development Strategy Moldova 2020. We think that the Ministry of Agriculture and Food Industry should be renamed into Ministry of Agriculture, Rural Development and the Food Industry. We request that the Minister of Agriculture, Rural Development and the Food Industry holds concurrently the position of prime-deputy Prime Minister.

chapter II POLICIES ON SUBSIDIES IN AGRICULTURE subsidies in agriculture The direct support through monetary assistance to agricultural producers within years 2006-2010 contributed to development in agribusiness. We believe that it is hardly possible to get increased profits and increased competitiveness of Moldovan agricultural products without significant subsidisation. We think that it is inadequate subsidisation of the agri-sector that led to low competitiveness of the Moldovan products on the international and regional markets. This contributes to decreasing of agri-producersâ&#x20AC;&#x2122; incomes and a low interest of foreign and local businesses to investing in this sector. We plead for a gradual increase of the share of subsidies from the state budget, which should reach 15% by year 2015 of the total amount of budget expenditures. We think that maximum transparency should be ensured to the process of subsidization by publishing the statistic data related to the allotted subsidies on the website of the ministry, including gender disaggregation of this data. We express our support for agricultural enterprises managed and owned by women and we offer our informational support in applying for subsidies. We think that the agricultural sector should have a permanent support from the state, considering that the increase of incomes in the agricultural sector impacts the quality of life, number of jobs,

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and agri-food industry development as such. We would like to prompt that a substantial increase of subsidies is a vital need for the Moldovan agriculture in the context of the recently signed by the Republic of Moldova of the Deep and Comprehensive Free Trade Agreement with the European Union, which will reduce even more the competitiveness of the national agriculture sector. We will cooperate in any way possible with the Government of the Republic of Moldova in accessing ENPARD funding in support to the agriculture sector. We think that two types of subsidies are needed: general subsidies, offered to the majority of agricultural producers and special subsidies, offered for production of high value agri-products.

Categories of Subsidies We think that the following categories of subsidies can influence the development of the agricultural sector: I.

GENERAL SUBSIDIES

Subsidies for every farmed hectare of agricultural land

Partial compensation for costs of fertilizers and plant-protection products;

Partial compensation for costs of diesel used to carry out farming works;

Partial compensation for costs of elite and super-elite seeds;

Subsidizing interest rates on loans paid by farmers;

Subsidizing insurance premiums to insure production risks in agriculture.

II.

SPECIAL SUBSIDIES

Encouraging the procurement of modern equipment, especially the procurement of irrigation equipment;

Subsidies for planting of orchards;

Subsidies for planting of table-grapes vineyards;

10.

Subsidies for sugar-beets production;

11.

Subsidies for procurement of equipment for vegetable-growing on protected sites;

12.

Subsidies for post-harvest infrastructure;

13.

Subsidies for equipment and technological renovation of livestock farms;

14.

Subsidies for organic farming.

Updated and reconfirmed at the FNPAIA Council Meeting

the national federation of employers in agriculture and the food industry

chapter III FINANCIAL MARKET POLICIES agricultural loans Agribusiness loans at present are characterized by unbearable interest rates and difficult procedures. Collateral requirements are exaggerated. We support the adoption of legal rules which would not allow commercial banks increasing the interest rate 4% higher than the refinancing rate of the National Bank of Moldova, and higher than the average interest rate on deposits. We support the amendment of the legislation aimed at simplifying the formalities and reduction of collateral-related costs (cadastre, notary), as well as internal formalities of banks which are credit-obstructive. We propose that collateral assessment is conducted exclusively by independent companies, which are part of the Specialised Evaluation Chamber under the National Bank of Moldova. We require commercial banks to cease their practice on assigning material responsibility on the evaluation company.

state budget support for crediting agribusiness We request subsidies aimed at covering the interest rates on agricultural loans.

external donors We believe that the technical assistance offered by external donors can be an important source in support of the agriculture sector and structured administration of the main value chains. We urge the state institutions to adopt an active approach in attracting external technical assistance. We propose the adoption of a legal norm which would create a conducive environment for attracting external projects and investments grants for domestic agricultural producers. We urge the Government to attract more external projects similar to the Moldova â&#x20AC;&#x201C; Japanese 2 KR Project. We affirm our openness and request that the representatives of the FNPAIA, including representatives of other NGOs involved in agriculture, should be invited to participate in the administration of the external projects.

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POLICY BOOK chapter IV POLICIES ON WATER MANAGEMENT FOR IRRIGATION PURPOSES We think that in the context of climate change in Moldova and insufficient natural resources of water, a correct and efficient management of water resources in our country is a strategic objective for the development of the agricultural sector. We suggest the following reforms in the system of irrigated water management: a.

Allowing the use of artesian wells for irrigation purposes;

Ensure access for agricultural producers to lakes, and the use of water for irrigation, regardless of who is the possessor of the hydro-technical system of these lakes;

Create a network of water storage with canal infrastructure;

Efficient storage and utilization of pluvial and underground water in the irrigation process;

Decrease by 50% the water fee for irrigation.

chapter V FISCAL AND CUSTOMS POLICIES Fiscal and Customs Policies We think that the fiscal policy of the state should consider the real situation in the agrarian sector and its development needs. We plead for stability in fiscal policies for at least the following five years. We think that the number of duties and taxes should be reduced to the minimum, while their administration and control should be simplified to the maximum. This will enhance investments into the sector and will lead to significant reduction of the shadow economy. We request equal treatment of all economic entities in the agri-sector in fulfilling fiscal obligations. We support an increase of administrative and criminal responsibility for those working in the informal sector. We think that the state should not establish instantaneous increase in duties and taxes without prior consultation with organisations representing this category of tax-payers. We urge the Government to develop and approve simplified regulations on customs procedures, following the Community Customs Code. We urge the exclusion from the legislation of all penalties for unintended actions which did not cause any damage to the public budget.

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the national federation of employers in agriculture and the food industry We propose the incorporation of a special norm into the fiscal legislation prohibiting the sequestration by the territorial fiscal office of bank accounts owned by agricultural enterprises, in the period of 1 March – 1 November, because this obscures the harvesting of agricultural production and contributes to shifting into the shadow economy and threatens the food security of the country.

Single Tax System in Agriculture We propose the setting of a single tax system in agriculture, calculated per exact area of farmland, taking into account land fertility. This tax will include the income tax, land-tax, road fees, fees for natural resources, fee for water and land-planning. This tax will be paid by all land owners and users registered as legal or physical entities. The amount of the tax will be collected fully into the budget of the administrative-territorial units of level one. We think that this tax will contribute to: 1.

Equity in distribution of the fiscal pressure among all agri-entrepreneurs;

Significant reduction of tax evasions in the agricultural sector;

Significant restriction of the informal sector in agriculture;

Increase in budget revenues of administrative-territorial units of level one;

Reduction of number of fiscal verifications in agricultural enterprises;

Simplified fiscal administration in the agricultural sector;

A new incentive for agri-entrepreneurs to improve their economic activity;

Reduction of number of unfarmed land plots.

Income Tax Paid by Individuals – Physical Entities We affirmatively support the setting of a single income tax for individuals, in amount of 10%. We believe that the individual exemption should not be lower than the subsistence minimum, calculated in conformity with the legislation in force. We affirmatively support the offering of essential fiscal indemnities to young employees who work in rural places.

Value Added Tax We claim the substitution of the current mechanism of partial VAT reimbursement from sale of agricultural products with a mechanism similar to Ukraine, which keeps the entire VAT quotes on the bank account of agri-entrepreneurs; We request a reduced quote of VAT for sugar. We are against practices of delayed reimbursement of VAT on exports and investments and we suggest the introduction of penalties paid by fiscal authorities for such cases.

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POLICY BOOK Tariff and Non-tariff Customs Policy in the Context of Protecting Interests of Local Agricultural Producers We request to keep the existing customs fees on import of agri-food products, after signing of the Deep and Comprehensive Free Trade Agreement, for a maximum possible term. We request to keep a 75% customs fee on sugar imports for an extended period. We suggest removing of customs taxes on imports for any element used in the construction of infrastructure for cold-storage, processing, freezing and commercialisation of agricultural products. We are in favour of a more rigorous control by the state of the quality of agri-food products imported into our country.

Customs Procedures We urge the Government to reduce the terms related to satisfaction of customs procedures on all agricultural goods from 10 to 3 days, while for perishables from 3 days - to 12 hours. We urge the simplification and reduction, to the extent possible, of exports documentation (dossier). We request computerisation and automation of customs procedures and training of customs officers in using modern computerised technologies. We think that the customs and fiscal authorities which are involved in trade regulation should improve the level of cooperation and communication.

The accounting system We support a maximum simplification of book-keeping for agricultural enterprises and applying of computerised accounting systems by all agri-entrepreneurs. Inspections of agricultural enterprises We think that it is necessary to reform the fiscal inspection system, aiming at transforming fiscal inspectors into fiscal auditors, who should assist tax-payers instead of penalizing. Economic entities working in agriculture do not benefit from informational support and satisfactory logistics offered by the state, while the relationship with the state is limited to periodic or instant inspection by various controlling authorities. Often inspections are not justified and lead to blocking of entrepreneursâ&#x20AC;&#x2122; activity. We propose the introduction of three- years moratoria on fiscal inspections of enterprises which passed control over the past three years and no significant violations were found, as compared with the turnover of the company. We request equal treatment by the state (including fiscal) authorities for all economic entities working in agriculture.

Updated and reconfirmed at the FNPAIA Council Meeting

the national federation of employers in agriculture and the food industry

chapter VI POLICIES ON THE SOCIAL ENSURANCE SYSTEM AND MEDICAL ASISSTANCE Contributions to the State Social Insurance Fund We think it is reasonable to keep for the following three years a maximal fee of contributions to the social insurance budget for agri-enterprises - 16% of the salary fund, while the difference to be paid from the state budget. We insist on applying this norm to all enterprises where at least 80% of employees are involved in farming activities. We suggest that all agricultural producers, independent of legal form of the enterprise and area of farmed land, pay their contributions to the social insurance fund.

the Ensured Risk and Its Re-distribution Between The State, Economic Entities and Employees We think that the system of paying employee’s medical leave from employer’s account is an unofficial tax added to the state social insurance payments, which in fact covers the risk of employees’ sickness. We request that this norm is removed from the legislation while the respective risk is assigned to the Medical Insurance Company for its financial and administrative management. We think that the management of the ensured risks, including balneology and medical treatment of employees, can be transferred directly to the enterprise, with concurrent reduction of such payments to the state social insurance fund.

Retirement of Agri-employees We request an equitable retirement system in agriculture which would consider the amount of work and impact it has of health, as well as profits in agriculture. We propose that the state budget and/or the social insurance budget co-finance social insurance payments, at least for the next ten years. We request the setting in the Republic of Moldova of a non-state retirement fund.

Obligatory Medical Insurance System We claim an urgent revising of the existing obligatory medical insurance system and removing of medical insurance fees. However, for the time-being, we propose that for agricultural workers, in the non-farming season, the effect of the medical insurance policies is extended to cover the non-farming season, up to 150 consecutive days per year.

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POLICY BOOK chapter VII POLICIES ON PRODUCTION AND MARKETING OF AGRI-PRODUCTS High Value Agricultural Products We think that agricultural policies should aim at increasing competitiveness of Moldovan agri-food products and therefore it is necessary to stimulate those production sectors which are competitive on the export markets. Having analyzed the current conjuncture of the international agri-food markets, we think that a priority is production of high value agricultural products (HVP). High value agricultural products are the agricultural crops which have a high value (horticulture products, viticulture and others) and offer an advantage on the local or international markets (first of all fruits, vegetables and viticulture and organic agriculture). We call for providing of maximal subsidies for the construction of infrastructure for storage, sorting, freezing, packing and sale of high value agricultural products, and the use of modern equipment to reduce spoiling during handling and transportation of fruits and vegetables.

Actions Needed to Improve Sales of Agri-Food Products We think that competitiveness of Moldovan agricultural products can be improved on all markets through improved quality and yields, adjusting of production processes to European quality and management standards, creation by the state authorities of conducive conditions for trade, and financial interventions within limits admissible in the market economy. We propose the following actions to be implemented in the next 3 years aimed at improving the marketing of agri-food products: �

Create a state system of interventions, which would guarantee partial procurement of certain agri-food products in unfavourable years, at prices which would ensure a minimum capital return for agri-producers and processors;

�

Provide conditions for free exports of agri-food products;

�

Maximal increase of subsidies for procurement of agricultural machinery and equipment that would increase profits in agriculture;

�

Create and decentralize state laboratories on quality verifications and phytosanitary and veterinary services for control of quality of exported products;

�

Allocate funding for promotion of Moldovan agricultural products on external markets and subsidise costs related to applying of European standards by agri-producers;

�

Create regional agri-food centres, under a public-private partnership, to allow agricultural producers sell directly their agricultural production and benefit from necessary services for export of products;

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the national federation of employers in agriculture and the food industry �

Improve the activity of the Councils on produce, aimed at negotiating agri-products prices between producers and processors. In specific we request a higher transparency from processors related to their expenses along the value chain on each agricultural product received after processing.

�

Adopt a special law on the national brand for agricultural products „Made in Moldova” and promote the quality of Moldovan agricultural products under this brand on external markets.

chapter VIII COOPERATION OF AGRI-PRODUCERS Agri-business development implies an extensive cooperation of agri-entrepreneurs, aimed at accessing resources and services. To this ends, entrepreneurs’ cooperatives, that have been founded over the past years, demonstrated profitability and contributed to economic and social development of many rural places. Experiences from countries with developed agri-sectors have proved the efficiency and large possibilities of this type of enterprises. We believe that the legislation on the entrepreneur’s cooperatives should be adjusted to the situation of Moldova to facilitate the functioning of this type of enterprises and to encourage entrepreneurs in founding of new cooperatives in various sectors of the agri-business. We think that this type of cooperation can be used with a greater success in such sub-sectors as marketing, resource-procurement, creation of post-harvest infrastructure, and marketing of agricultural products. The FNPAIA encourages the creation of such cooperatives in a greater number. We support the granting of permanent fiscal incentives to entrepreneurs’ cooperatives. The development of the agri-business requires a better cooperation among agri-entrepreneurs on resources and services. The experience of countries in high value agriculture shows efficiency and extended possibilities of operation of this type of enterprises. We think that the legislation on entrepreneurs’ cooperatives, in specific the fiscal legislation, should be amended to needs and realities of Moldova, to simplify the operation of this type of enterprises and give incentives to entrepreneurs for creation of cooperatives in various agri-business sectors. We think that this form of cooperation can be successfully used in such sectors as marketing, resource supply (fuel, fertilisers, pesticides, seeds etc.), creation of post-harvest infrastructure and trade of agricultural production etc. FNPAIA encourages agri-producers to create such cooperatives. We are in support of incentives, such as subsidies and preferential grants for entrepreneurs’ cooperatives and groups of producers. We support the attracting of financial resources from different international donors to stimulate the creation and development of entrepreneurs’ cooperatives in the agriculture sector. We support the incentives and permanent fiscal indemnities for entrepreneurs’ cooperatives.

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POLICY BOOK chapter IX POLICIES ON PROTECTION OF COMPETITION AND COMBATING MONOPOLISTIC PRACTICES Unfair Competition in Agriculture We think that the shadow economy in agriculture (tax-avoiding, salaries “in envelope”, conducting entrepreneur activity without accounting, and the government tolerating such violations, conducting of controls exclusively at legally registered large and medium enterprises, etc.), has serious financial effect on the state budget and negatively affects social protection of those workers who work illegally. This also creates unfair competition to legally working enterprises, which are forced to choose “shadow” schemes in their activity. We urge the State Fiscal Inspection, with support of the civil society, to combat any activity in the shadow economy, at the same time, ensuring a liberalization of the fiscal legislation.

Monopolistic Practices and Prices Monopolistic practices have a particular influence on the relationship between producers and enterprises that buy agricultural products and deliver production resources. We think that in the agriculture sector there is a huge pressure on behalf of monopolist enterprises (oligopolies) and the state at present does not apply efficient protective tools, moreover, it often it contributes to perpetuating this pressure. We are against intervention of the state authorities in unofficial limitation in exporting of agricultural products by the majority of economic entities, while at the same time certain enterprises are favoured; this leading to artificial decrease in prices for agri-products.

Combating of Anti-Competition Agreements We acknowledge the recent adoption of the law on competition which provides: 1.

The definition of the term „anti-competition agreement” without limiting of this definition to the number of companies involved in cartel agreement or their market share;

Setting of administrative and penal responsibility for cartel agreement;

Authorizes the National Agency for Protection of Competition with powers to apply administrative sanctions to combat anti-competition agreements, including the function to carry out criminal investigations and support the allegation in court;

Development and applying a methodology in the activity of the National Agency for Protection of Competition aimed at identifying of anti-competition agreements, similar to developed countries, through using of a methodology of price comparison on regional and international markets.

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the national federation of employers in agriculture and the food industry At the same time, we express disapproval of non-enforcing this law in practice. We disapprove the way of operation of the National Energy Regulatory Agency (ANRE), which in fact detached itself from combating of anti-competition agreements on the fuel and oil market. We think the oil importers openly abuse the process of price setting and apply unjustified increase in prices indifferently of the situation on the international markets. We insist on an urgent amendment of the law on oil-market regulation, which will set: 1.

The development and adoption of a new methodology of assessing prices for imported oil products with the following provisions: a) Interdict the import of oil products procured from firms that are registered in off-shore zone; b) Calculate the trade margin from the price of gasoline and diesel on the Platt’s Mediterranean market, and not from the price declared by importers at the customs’ office; c) Authorize ANRE with the right to reject requests from oil importers for modification of prices of these products (at present importers only inform ANRE about eventual modification of prices);

Modify the requirements to operators on the oil markets through decreasing: a) The amount of the share capital from minimal 8 to 1 mil. lei, b) The amount of minimal oil storage from 5000 to 1500 m3 c) The license fee, from 260000 lei to 100000 lei;

Issue licenses free of charge to agricultural producers for production purposes.

chapter X ENVIRONMENTAL AND RURAL DEVELOPMENT POLICIES We request that the name of the Ministry of Agriculture and Food Industry is changed to Ministry of Agriculture, Rural Development and Food Industry.

Protection of the Environment The condition of the environment and efficient use of natural resources directly influences economic growth and the level of people’s life. We think that environmental protection is a major objective for sustainable development of agriculture and safety of the rural population. We declare that the environmental should be protected through constant actions aimed at improving the normative basis, training of persons from rural area on how to implement these norms. It is necessary to undertake measures on conservation of biodiversity along rivers.

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We think that agricultural producers and other entrepreneurs from rural areas should assess the impact which their operation has on agriculture and understand their responsibility to protect soils and aquatic basins. They should undertake all necessary measures for environmental protection, including planting of forests and protection woodlands, rehabilitation of pastures and undertake any anti-corrosion measures. We urge the relevant institutions of the state to use all measures for combating actions which may produce damage to the environment and peopleâ&#x20AC;&#x2122;s health. The Government should create financial incentives to encourage investment in procuring of environmental friendly equipment and technologies.

The state of farming lands The state of soils is a major ecological issue and this can have a serious impact on agricultural profits. The degradation of soils, especial in certain zones, can threaten development opportunities in the agro-industrial sector. We believe that soil protection can be achieved through improving administrative, economic and financial tools of environmental protection and through sustainable management of natural resources. We think that the local public administration can play a significant role on soil protection and should undertake all administrative measures, inclusively informational roles. We think that the main reasons for soil degradations are: use of inadequate technologies, lack of a comprehensive state programme on soil protection, limited access of the rural population to information about correct use of soils, illegally cut protective woods, insufficient forest protective belts. We support actions which can urge agri-producers in undertaking protection and anti-corrosion measures and in rehabilitating lands both through economic and administrative tools.

Development of Rural Localities We think that it is strategically important to launch various projects and funding of rural localities from public, private and donorsâ&#x20AC;&#x2122; sources, which would significantly improve the infrastructure in villages, will contribute to the development of non-agricultural business, create new jobs and services in the rural area. This will result in decent living conditions in rural areas, reduced migration from villages and shifting the labour force from agriculture to rural non-agricultural business. We underline the following actions that need to be taken in the following 3 years on development of rural localities: 1.

Create an enabling environment for new jobs in rural places in the non-agricultural economy;

Rehabilitation of a large number of local roads to the maximum extent possible;

Provide at least 2/3 of villages with drinking water and sanitation facilities;

Renovate the medical centres in rural localities at a minimum ratio one medical centre to 4-5 villages;

Provide access to Internet in all schools from rural localities;

Updated and reconfirmed at the FNPAIA Council Meeting

the national federation of employers in agriculture and the food industry 6.

Provide educational institutions in at least 50% rural places with boilers on biomass energy;

Achieve equity in the amount of pensions for agricultural producers and other categories of population;

Allot additional subsidies and provide fiscal incentives to returning migrant workers to invest in businesses in rural areas;

Offer fiscal privileges to enterprises offering services on rural tourism;

10.

Offer fiscal privileges to economic entities who invest in the rehabilitation of infrastructure of educational institutions and social buildings in rural places and provide incentives to public-private partnership for social projects in villages;

chapter XI LAND POLICIES Land Market We claim that the procurement of farming lands by foreign individual entities and enterprises with foreign capital is prohibited, except unproductive agricultural lands. We request prompt decentralisation of notariesâ&#x20AC;&#x2122; services through massive training of Secretaries of local Councils on authentication of land transactions. We request the removal of all obstacles that impede a dynamic development of the land market. The fees for this kind of transactions (notary, cadastre) should be reduced. We request that the Land Code has an imperative norm clearly fixing the depth of the land-layer owned by the landowner, which will contribute to solving the problem of natural resources ownership rights. We request that the Land Code has an imperative norm which would eliminate any uncertainty and ambiguity in solving the problems related to existing and designed roads in cases when the farming land is consolidated through sale, purchase and exchange.

Rent in Agriculture After privatisation, rent in agriculture turned to be the most effective tool in setting of compact landshares and for running of organised agricultural operations. We think that rent of farming lands can be an efficient way in the land-use, both from economic perspectives and social equilibrium, through paying of an equitable amount to land-owners and involving entrepreneurs in social projects in the benefit of the community. We support equity and stability between landowners and renters, promoting medium and long term rent (over three years). This will facilitate a wise use of lands, in accordance with agri-technical norms, and will encourage entrepreneurs to invest in their agribusiness. We ask a reduction of fees that is presently requested by cadastre authorities for registration of rent

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contracts. We support the offering of authorities to Mayorâ&#x20AC;&#x2122;s office in registering contracts of rent for a term of up to 6 years. We think that the most effective rent is for a period of 5-10 years; while one of impediments in setting such terms is caused by the extremely high prices of the cadastre authorities. We propose to amend and nullify the legislative norm stipulating that the private land rent fee should not be lower than 2% of the normative price of the land. We think that this fee should be negotiated between the owner and the lessee.

Cadastre System We think that the procedure of registration of fixed assets should be applied uniformly to the entire territory of the Republic of Moldova. We urge the simplification of the cadastre system in the part which relates to registration of fixed assets and the reduction of registration fees. We support the idea of connecting all Mayorsâ&#x20AC;&#x2122; office cadastral engineers to the cadastre system and gradual decentralization of cadastre services. The size of farmed lands Privatization was followed by an extended process of setting of agricultural enterprises based on a free consent of land-owners. We think that consolidation of compact land-shares should take place strictly upon consent of landowner and only on their request, based on free agreement and economic interest. We think that association of land-owners should involve their participation, and follow interests related to their property rights and based on economic analysis and specifics of the respective zones. We think it is not correct and reasonable for the state to financially support the creation of certain types of enterprises, depending on the farmed area and believe that any support should be equitable, stable and should consider the effectiveness and well-organisation of agri-producers in a respective zone. We think that the size of farmed lands is not a determinant factor for profitability in agriculture; medium-size and small-size farmed lands can be equally profitable when correctly used and with applying of a proper land management.

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the national federation of employers in agriculture and the food industry

chapter XII POLICIES ON THE LEGAL STATUS OF AGRICULTURAL ASSETS OF THE FORMER COLLECTIVE FARMS Fixed Assets Received on privatization During the privatization process a series of assets were divided into shares and distributed to the workers of the enterprise, pensioners and former workers, including workers from the social sphere who lived in the respective locality. We believe that failure to register assets is a serious violation of property rights. This means that the respective goods are not in civil circulation, while its owners cannot use their legal rights to property. We urge an equitable and complete solving of the issue related to assets received during privatization. This can be achieved by enforcing the existing laws on massive registration of patrimony received during privatization, through a simple procedure and by paying all the implied fees to the state or local budget. Once the problem is solved, any incertitude would be removed and assets returned into the civil circuit. We think that solving of this problem will positively influence the process of rent of agricultural assets.

chapter XIII POLICIES ON OCCUPATIONAL SAFETY AND HEALTH The FNPAIA is concerned about the issue of working condition and this has both humanitarian and economic reasons. Safe and healthy workplaces represent an essential element in ensuring quality of work and increasing productivity. On the other hand, occupational safety and health constitutes one of the most important and progressing components of the social policy of the European Union, a structure where Moldova wishes to become part of, while European Commission defines new actions aimed at securing new safer and healthier jobs all over Europe. We urge the Government of the Republic of Moldova to be proactive in benefiting from assistance from the European structures in promoting European policies on occupational safety and health and practices of the European Community. At the same time, the adoption and enforcement of Law 186-XVI as of 10.07.2008 (Monitorul Oficial No.143-144/587 of 05.08.2008) on occupational safety and health (in force as of 01.01.2009) should be supported with dynamic activities and actions aimed at raising awareness of employers on the importance to promote occupational safety and health, eliminating and reducing consequences of labour accidents and occupational sicknesses, as well as about the

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benefits received from reduced costs for compensations and from an increased productivity at the enterprise. We think that dynamics of activities and increasing the level of implementation of the Law on Occupational Safety and Health should be supported under several measures: We think it is necessary to create incentives for employers aimed at encouraging the establishment of funds necessary to conduct measures on improving work conditions; We think the state should create incentives and should support the acquisition of equipment needed for assessing the noxious level at the work-place; We urge the cancellation of obligatory contributions to the medical insurance fund and re-directing of these amounts to a special individualised fund which would be available every time when the enterprise needs to pay for medical treatment and services of its employees; We think it is necessary to establish a concept of â&#x20AC;&#x153;labour medicineâ&#x20AC;? and conducting of training courses for medical doctors on the issue of labour medicine, who should afterwards provide medical services for the enterprise; We urge the development of needed legislative framework related to the assessment of risks at the workplace by authorised evaluators; We are in favour of a higher involvement of employees in applying of decisions on occupational safety and health; We support the reviewing and improving of punitive measures for bribing labour inspectors (for both parties involved); We think it is necessary to organise and conduct activities related to development and distribution of books, journals, studies, videos and various publications about occupational safety and health, with public or donor funding.

chapter XIV POLICIES ON THE HUMAN RIGHTS AND THE WORKFORCE Human rights from the business perspectives The society expects modern businesses to demonstrate its implications in respecting general human values, and the FNPAIA is promoting such values. Enterprises have an important impact on the wellbeing of the humans. The FNPAIA has a straightforward interest in the human rights issue and will promote it from the business perspectives. The opinion of our organisation is that when enterprises are aware and tackle the human rights issue, this contributes to the growth of such an enterprise. The due diligence in promoting human rights can assist in managing risks: this assists in protecting business values and the reputation of the enterprise, in avoiding boycotts and protests,

Updated and reconfirmed at the FNPAIA Council Meeting

the national federation of employers in agriculture and the food industry in preventing disputes and a negative image for the enterprise. The tackling of the human rights issues can help enterprises in better understanding the needs of employees and it makes the company more attractive to investors.

Salaries in agriculture There has been a positive tendency over the past years to increasing salaries in agriculture and this was determined by increased investments and productivity in the sector. At the same times, we think that the present level of salaries is not consistent with needs and high prices. We think that growth of salaries in agriculture is impeded by certain legislative measures, such as the present system of social insurances and the high rate of shadow economy, which is not practically combated. We think that using of labour in agriculture in conditions of informal employment creates unfair competition to those economic entities that have a transparent and legal approach in their operations and incur higher expenses on the legal employment of its workers (taxes, payments for social insurance fund). We stand for a full and complete legalisation on work in the agri-sector, which should be supported with realistic fiscal state policies. We stand for increasing salaries in agriculture by applying fiscal incentives.

Attracting of labour Lack of labour in agriculture in Moldova is a challenge, especially for enterprises that cultivate intensive crops. Labour emigration from rural zones is a consequence of low living standards and poor infrastructure in villages. We think that keeping the labour force in rural areas should be an important component of Governmental policies in agriculture and it should change the general attitudes to rural areas. We stand for encouraging the rural population to choose their village and create conditions conducive to starting an agri-business or non-agricultural business. We stand for establishing incentives and supportive fiscal privileges for the youth in starting rural businesses. We propose the school curricula to cover a subject about basis of entrepreneurship. We stand for improving the unemployment indemnities system by reducing the indemnity term to three months, should vacancies for the respective kind of work exist.

Seasonal works Work in agriculture has a seasonal character, while the number of permanent workers decreases. This creates a series of problems related to the stability of the work relations, social and medical insurance and work conditions. We think that the legal framework that regulates the specifics of work relations in agriculture is imperfect and unfinished.

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We request the adoption as a matter of urgency of the law on “day workers”, similar to the practice of Romania, which will lead to more flexibility and transparency in the employment of seasonal workers. We stand for improving the Labour Code by incorporating a special chapter on work relationship in agriculture which would contain norms to consider the specifics of the respective relations and would respect legal interests of both employers and employees and guarantee equitable payment and decent work conditions.

Work of women and children We think that women should benefit of protection as regards hard and hazardous work conditions and handling of various loads, without obstructing their right to work. We stand for including women into the assessment of risks at the enterprise and that any assessment takes into consideration gender differences, in cases when women are exposed to higher risks related to reproduction. Occupational safety and health should ensure a gender sensitive approach. Ways to encourage women to participate in occupational safety and health committees should be identified. We stand for strictly following provisions of the law and international agreements on the work of women and children, where Moldova is part of. FNPAIA and its members will promote the Code of Conduct for Employers on the Elimination of the Worst Forms of Child Labour in Agriculture and the Food Industry, approved under the decision of the Council of the Federation on December 19, 2007.

chapter XV POLICIES ON AGRICULTURE EDUCATION, INNOVATION AND RESEARCH We are concerned about the existent situation in the applied agricultural science and urge the Government to focus its priorities on policies on inventions, innovation, science and technologies in agriculture. The opinion of our organisation is that science and technologies are essential in propelling progress in the agricultural sector and increasing productivity and competiveness of agri-food production. Research and technologies should have a productive use and the Government should offer the infrastructure, management capacities and political support aimed at efficient use of innovations, inventions and technologies in the agricultural sector. We express our openness for a constructive dialogue aimed at developing of a normative framework and an applicable mechanism to transfer such scientific research to practical use. At the same time we oppose the applying of technologies and innovations “per se” without a due mechanism to control what kind of innovations can be disseminated to agri-producers. A lack of control can generate threats to soils, environment and human health. We stand for developing of a National Concept on the role of agricultural science, the link between science and technologies, research, education, agricultural extension and identification of needs.

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the national federation of employers in agriculture and the food industry Inventions should create knowledge, while innovation should go beyond any factor that impedes the usage of this knowledge in a innovative and useful way. The Ministry of Agriculture and Food Industry should support the setting of economic entities such as clusters, holdings, etc., for the production of seeding and planting materials and cattle breeding, for the purpose of efficient implementation and putting into practical use of the scientific research. We think that research units in Universities can have a crucial role in propelling the agricultural science and we stand for the creation of such units in Universities. We are open for a dialogue between business communities and scientific research institutions aimed at enhancing the scientific activity. Ultimately this is aimed at creating conditions for development of agricultural applied innovations and inventions and for discussing options of direct financial support from the private sector. At the same time, we think that there should be a high transparency in the management of public funds allocated for research and innovations, which should include a public reporting in this sense. We believe that businesses can have an important role in gradual “privatization” of the scientific domain. We stand for developing of a comprehensive legislative framework that would stipulate conditions for financing of scientific research by private enterprises, and explain that the funding depends on the final applicability and on the clear result of such research. We think that research should be internationalised to allow penetration of the newest scientific achievements and for international scientific cooperation in the agri-food sector. We stand for setting of a direct link between science and agricultural education. Businesses can play a key role in increasing educational performances and in particular for the transition from education to work. Partnerships between educational institutions can be powerful catalysers in improving the academic achievements of the youth. Such partnership can have a positive influence in taking informed decisions at important stages of educational transition; it can help young people develop capabilities they need in searching for a job, and it can help in obtaining of those qualifications that are recognised and valued by the business world. On the other hand, such partnership can generate a consistent support for academic and scientific activity of young scientists. We stand for reforming the endowment fund of the agriculture vocational training and general schools. For this, the support of the Ministry of Education, local public authorities and agricultural enterprises are needed. We stand for the creation of a good national system of rural consultations and services, which would be able to offer assistance to all categories of agri-enterprises, with focus to young entrepreneurs who are about to start a business in the rural area. We stand for improving the professional level of agri-consultants by ensuring access to new extension-related information, knowledge and methodologies, taking into account the educational needs, and through implementation of training programmes for providers of consultative services, at least at every 4-5 years. We believe that the extension system needs support from the Ministry of Agriculture and Food Industry, which should get involved in developing of training and informational materials and new consulting methodologies. We think that initiation and development of links between state structures and research institutions, Agrarian University and agriculture colleges, NGOs is needed to solve the problem related to education in agriculture and improving the quality of education. July 03, 2013 - ChiŞinău

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We believe that it is necessary to implement specific programmes that would develop new methods and possibilities for the farmer families, young farmers, to improve their agriculture knowledge. We believe it is necessary to set a national system of consultant services in agriculture, which would be able to cover the informational and training needs of agri-producers by providing comprehensive training at the national level.

chapter XVI POLICIES ON COMMUNICATION AND THE ROLE OF MASS-MEDIA We think that the success of agriculture development programmes depends to a high degree on the way in which mass-media contributes to creating awareness and mobilisation of agricultural producers. Radio and TV are the fastest and most efficient means of dissemination of scientific knowledge and communication between agri-producers. Taking into account that the majority of the population is actively engaged in agriculture, Television can be an appropriate tool in disseminating information and technological knowâ&#x20AC;&#x201C;how. Agriproducers need such information, which can be easily understood from TV. Newspapers and journals, which are less expensive than Television and Radio, have a crucial role in communicating agricultural information, however, these should come closer to agricultural producers. The Agriculture Journalism should be promoted more for the purpose of attracting more professionals in this sector. We will enhance efforts of our organisation to maximally disseminate success stories of agricultural producers-members of FNPAIA regional employersâ&#x20AC;&#x2122; associations, using the mass-media as a communication tool.

Updated and reconfirmed at the FNPAIA Council Meeting