The effect of cost reduction by public utilities in the Vitebsk region in the first half of the year exceeded Br20 billion.

August 25, Vitebsk / Diana Kurilo - BELTA/. The economic effect from the implementation of cost reduction programs at public utilities in the Vitebsk region in the first half of the year amounted to over Br20 billion, said Oleg Matskevich, Deputy Chairman of the Regional Executive Committee, at a meeting of the Vitebsk Regional Executive Committee today, BELTA correspondent reports.

Organizations of communal ownership are implementing sectoral and regional measures to reduce costs by changing the structure of manufactured products, saving fuel and lubricants, and feed, introducing energy-saving equipment and technologies, and saving all types of energy. Thus, at the enterprises of the Vitebsk concern "Meat and Dairy Products", the economic effect from the implementation of cost reduction measures reached Br8.4 billion in six months, at enterprises subordinate to the housing and communal services department, it is estimated at Br8 billion.

At the same time, Oleg Matskevich stated that the measures taken to reduce costs are insufficient. According to operational data, for the first half of the year, the overall material intensity of industrial products in the region decreased by 1.8% compared to January-June 2010, while in enterprises of communal ownership it increased by 1.9%.

According to the Deputy Chairman of the Regional Executive Committee, the increase in costs is due to the use of intermediary services by organizations for the purchase of components, raw materials, and materials.-0-