First reading of the Draft Act on the Repeal of the Act on the Use of Funds Received from Privatization and the Amendment of Other Acts in connection therewith (Bill 693 SE)
Session: 15th Riigikogu, Sixth Session, Plenary Sitting
Date: 2025-10-21 14:14
Participating Politicians:
Total Speeches: 14
Membership: 15
Agenda Duration: 13m
AI Summaries: 14/14 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Today's agenda item concerned the first reading of Bill 693, initiated by the Government of the Republic, regarding the repeal of the Act on the Use of Funds Received from Privatization and the amendment of other related acts. Minister of Finance Jürgen Ligi introduced the bill, the main objective of which is to liquidate the Property Reform Reserve Fund, which was established in 1996 to cover costs associated with property reform. The Minister explained that the fund's objectives have mostly been met, as land reform is essentially in the final stages, with only about a dozen disputes remaining unresolved. Going forward, activities previously funded by the fund whose connection to the original objective is indirect (e.g., employment programs and business development) must be financed through the standard state budget procedure. The fund is planned to be terminated as of December 31, 2025. Riigikogu members Peeter Ernits and Arvo Aller asked questions regarding the remaining unresolved cases and the legality of using the fund to pay merger grants to local governments. The Minister answered negatively, emphasizing that Estonia is facing a budget deficit and money must be planned honestly within the state budget. Marek Reinaas, Chairman of the Economic Affairs Committee, confirmed that the committee supported the termination of the bill, having also consulted with the Association of Estonian Cities and Municipalities, which is aware of the changes.
Decisions Made 1
The first reading of Bill 693 was concluded. The deadline for submitting amendments was set for November 4th at 5:15 p.m.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the third item on the agenda was the first reading of Bill 693, initiated by the Government of the Republic, which concerns the repeal of the Act on the Use of Funds Received from Privatization, and he asked Minister of Finance Jürgen Ligi to introduce the bill to the Riigikogu.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is introducing a draft bill from the Government of the Republic that will repeal the Act on the Use of Funds Received from Privatization and liquidate the Property Reform Reserve Fund. This action is being taken because the fund's original objectives—namely, carrying out land and property reform and covering associated costs—have been almost entirely fulfilled. Furthermore, the financing of remaining activities and programs indirectly funded through the reserve will henceforth be transferred to the standard state budget procedure. The fund is scheduled to terminate its operations by the end of 2025.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the esteemed minister and subsequently gave the floor to Peeter Ernits so that he might ask him a question.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits recognizes the substantive completion of the land reform as a landmark event, but asks the minister to clarify the nature of the cases represented by those roughly ten applications for illegally expropriated property that remain unresolved to this day, like the last of the "Mohicans."
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi pointed out that although there are still about ten unresolved disputes on the table, he does not consider it necessary or substantively significant to present them to the audience at this time.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker and then gave the floor to Arvo Aller.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller asks whether funds collected from privatization could be used to pay the legally stipulated merger support to newly merged local governments, such as Jõhvi and Toila, provided the state budget allows for it.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi sharply criticizes the amendments made to the law, which are contrary to the fund's original purpose, emphasizing that Estonia is facing a budget deficit and that simply renaming the sources of funding does not create new money, thus demanding an honest and transparent description of the budget.
Esimees Lauri Hussar
AI Summary
After a brief introduction, Chairman Lauri Hussar handed the floor over to the next speaker, Peeter Ernits.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits views the land reform reaching its final stage as a landmark event and requests an assessment and summary from the Minister of Finance regarding the substantive completion of the reform. He also inquires about the future use of the remaining financial resources associated with the reform, the volume of which appears to be increasing.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasizes that the land reform was a historically justified and necessary step in restoring Estonia's freedom, as it annulled illegal Soviet-era decisions and met the high expectations of the people regarding the country's liberation, while noting that he himself is not a specialist on the topic.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the round of questions to the minister, thanked him, and subsequently gave the floor to Marek Reinaas, Chairman of the Riigikogu Economic Affairs Committee, to present the discussion that had taken place in the committee.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas reports on the meeting of the Economic Affairs Committee, where the discussion focused on transferring the activities of local governments—funded by the property reform reserve fund (including the development of entrepreneurship and the demolition of Soviet-era buildings)—to state budget funding. He noted receiving confirmation from the minister that these activities would continue, along with the support of the Association of Cities and Municipalities for the draft bill, the first reading of which was concluded by consensus.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, closed the debate due to the absence of requests to speak, and concluded the first reading of Draft Bill 693, setting the deadline for the submission of amendments as November 4th at 17:15.