He said the government will 'review the regulatory régimes and the contracts, in such a manner that we will continue to attract investment while enjoying rates compatible [with the country's economic situation].'
At present, the rates for public services such as telecommunications, electricity and rail travel, as well as fuel prices, are pegged to a wholesale prices index that is greatly influenced by the exchange rate -hence the talk of 'dollarised' rates.
According to Dirceu, 'the government is interested in [attracting] investment in infrastructure, because the privatisations model has failed.'
Some courts appear to share the view that the current rate adjustment régime is unfair. Last week fixed telephony rates were raised by an average 28.75% -which was actually less than the variation of the benchmark IGP-DI index over the past year.
This notwithstanding, the federal tribunal of Belo Horizonte granted an injunction suspending the application of the new rates. The federal tribunal of Ceará went further: it ordered the rate increase to be based on the variation of the IPCA index, much less influenced by the exchange rate. This effectively halved the increase imposed by the utilities.
Communications minister Miro Teixeira has endorsed the proposal to establish a congressional commission of inquiry (CPI in the Portuguese acronym) to look into the contracts signed with the private telephone companies five years ago.
Finance minister Antônio Palocci has been trying to tone down the statements of his colleague, reassuring operators that the Lula administration will honour the contracts signed with the telephone companies -while seeking to negotiate better ones and ensure their 'proper fulfilment'.
End of preview - This article contains approximately 299 words.
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