Memorandum of Cooperation Between the Government and the Construction Industry
On Tuesday, May 31, 2016, Prime Minister Māris Kučinskis, Deputy Prime Minister and Minister of Economy Arvils Ašeradens and Finance Minister Dana Reizniece-Ozola signed a Memorandum of Cooperation with Construction Industry organizations. Its goal is to halve the shadow economy in the construction sector over three years while stimulating the development of qualitative, safe, and sustainable construction in Latvia.
How Is It Planned to Implement the Memorandum of Cooperation?
Within the framework of this Memorandum of Cooperation, the Latvian Government and Latvian construction companies agreed on:
- An annual action plan for reducing the shadow economy in the construction sector, which would become an integral part of this memorandum.
- An annual assessment of the shadow economy for the construction industry, which is committed to finance by the Partnership of Latvian Construction Entrepreneurs.
- Permanent cooperation to reduce the shadow economy and increase quality, safety, and sustainability in the construction sector, through constant coordination of proposals and, as far as possible, joint action to achieve these goals.
- Constant cooperation in the process of drafting the regulatory framework, in a format where industry organizations can effectively deliver their opinion and proposals.
Priority tasks for 2016-2018 for implementation of the Memorandum of Cooperation between the members of the Cabinet of Ministers and representatives of the construction industry:
- Improving the Investment Environment
The target is to increase the growth of the construction industry market by 20 % by the beginning of 2019 compared to 2015.
- Restrictions on Shadow Economy
The target is to reduce the share of the shadow economy in the construction sector by at least a half by 2019 compared to 2015 and reach the average wage in the industry to the level of the average wage in the country.
- Increasing the competitiveness of the industry
The target is to increase the export volume of the construction sector by 20 % compared to 2015 by the beginning of 2019.