Kremlin concedes economic failures

Press, 23 October 1980, Page 7

Kremlin concedes economic failures

NZPA-Reuter Moscow The Soviet Parliament (the Supreme Soviet) has assented to approve economic plans for next year in the light of an expected disappointing grain harvest and evidence of failings in several branches of industry.

The Supreme Soviet is meeting a day after President Leonid Brezhnev, in an address to the central committee of the Communist Party, indicated that this year’s spring grain crop would fall well short of the 235 million tonne target.

; The 73-year-old Kremlin ’leader also, complained of shortcomings in the chem[ical industry, transport, and :food distribution. : Mr Brezhnev said that improvements in the production of consumer goods was of paramount economic and political importance. “Many goods are still of poor quality. The supply of some other products that are much in demand is quite often erratic,” said Mr Brezhnev, whose speech was reported by Tass yesterday.

Today the Communist Partv agricultural secretary. Mikhail Gorbachov, will attend the Supreme Soviet as a full member of the ruling Politburo having been elected to the position vesterdav in a move which! appeared to reflect growing! concern about the agricul- 1 turn) problems. Mr Gorba-! chov, who is 49. is the; youngest member by far of; I the Politburo. ‘ It is still uncertain wheth-l ier the Prime Minister (Mr! I Alexei Kosygin) who has not I ;appeared in public’ since] I early August and is widely; reported to be ill, will: attend the Supreme Soviet; gathering. The State planning committee chairman. Nickolai; Baibakov, who will probably! address today’s session, isj not expected to give a pre-; cise figure for this year’s: harvest. i However, it would have; serious repercussions for the] Soviet economy as a whole, if the crop is as low as the! 190 million tonne's predictedtwo weeks ago by Soviet; agricultural sources. Agricul-i

ture accounts for a quarter of all Soviet investment. President Brezhnev, said yesterday that the average; annual grain crop for the i present five-year plan would i exceed 200 million tonnes.! J This would appear to set the ;|I9SO harvest at somewhere 'between 164 million tonnes and 215 million tonnes. •| One of the Soviet Union’s main problems is to sustain iecomomic growth, despite a ■ 'predicted slowing in the expansion of energy production. , The United States Central Initelligence Agency has predicted that Soviet oil production will peak and decline in the 1980 s. Official -(Soviet statistics suggest that iithe country is unlikely to 'achieve its planned jtion of 606 million tonnes of! (oil this year. ! It seems probable the Su-i interne Soviet will reveal j 'details of plans to increase ‘the exploitation of oil, gas, land other fossil fuel resources in Siberia. The SoIviet Union also has a long- .! established commitment to ‘develop nuclear energy.