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The President of the Republic met with parties to the discussion concerning rent ceiling12.07.2004
President Arnold Rüütel today at Kadriorg met with parties to the public discussion about rent ceiling.
In the meeting took part: the Minister of Economic Affairs and Communications, Meelis Atonen, the Deputy Chairman of the Riigikogu's Economic Affairs Committee, Sven Sester, the Chairwoman of the Riigikogu's Centre Party Faction, Vilja Savisaar, the Chairwoman of the Board of the Union of Estonian Tenants Associations, Helle Kalda, and the Chairman of the Board of the Estonian Association of Owners by Title, Pärtel Tõnsberg.
The President of the Republic at the meeting explained his views, which had led to his resolution not to promulgate the Act on Amendments to the Dwelling Act and to § 12 1 of the Republic of Estonia Principles of Ownership Reform Act passed by the Riigikogu on 15 June 2004.
The following discussion focused on diverse options to abolish the maximum rates for rent, not on the question how to preserve them. The discussion participants agreed that the current law empowering local governments to introduce maximum rent rates for dwelling units returned to their owners would not produce a solution to the problems, which had risen in the course of the ownership reform.
Professor Arno Almann representing a commission of legal experts that advises the President of the Republic explained the objectives of the ownership reform and the interplay between the acts regulating the reform in our present legal system. The President's resolution not to promulgate the abovementioned law amendment was also based on an analysis carried out by members of the commission.
Arno Almann in his presentation highlighted two central objectives of the Principles of Ownership Reform Act passed by the lawmaker in 1991. The first objective had been to rearrange property relations so as to guarantee inviolability of property and free enterprise, to right the wrongs caused by violating property rights and to create preconditions for transition to market economy. The second objective had been to prevent the restitution of property or compensating former owners or their legal successors for it from violating interests of others protected by law and from causing new injustice.
"That is what the obligation the state thirteen years ago took on by law is like. In respect of both of the objectives enshrined in law, our legal system including also the law amendment under discussion must guarantee all parties legal certainty for their activities, which characterizes the rule of law, said Professor Almann.
The meeting on top of that addressed various measures, which would enable to bring our housing market into proper order and, thus, to conclude the ownership reform in this respect. President Rüütel underscored the importance of the role of the Government and Riigikogu in working out and implementing relevant measures. The President of the Republic also emphasized that it were in the interests of Estonia as a whole if all parties showed willingness to cooperate.
President Rüütel called on all parties to assemble again before the Riigikogu started to reconsider the issue in order to jointly identify solution options acceptable to both tenants and landlords as well as to both the state's central authorities and local governments.
Public Relations Unit of the Office of the President
Kadriorg, July 12, 2004
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