First Deputy Prime Minister N.Altankhuyag answers questions on a wide range of subjects.

Let’s begin with Government decision of last week. The MNT 1.5 million will be given in three years. How?

The decision was finalized last week after being discussed many times. We set the time frame so that the money is distributed by this Government, before the next election.

What did you discuss  about Tavantolgoi?

Some principal decisions were taken at the Government meeting. First, the deposit will be fully owned by the state. Second, it will be divided into two and the operating contract will be awarded to two companies. Third, we shall work according to the product sharing system with foreign and domestic companies operating there.

How will the money distribution affect the economy? Will it not trigger a price rise?

Campaign promises have to be fulfilled. I think giving one third of the MNT1.5 million in cash is the right decision. Public discussions may be organized.

It is right and beneficial to pay apartment loans, and spend on health and education. Our coalition came in handy as, we reached a consensus soon, instead of criticizing each other.

How exactly will the non-cash MNT1 million be given?

This is a very complicated matter and no final decision has been taken. The Finance Ministry has been asked to suggest different ways of how this can be done.

The parties’ campaign promises also included job creation, improving health and education services, encouraging industry etc. Why did you begin with the one that is least productive?

We have already started work in the other areas. For example, in education, we are using USD60 million of the Millennium Challenge money on more and better vocational training. State owned universities and institutes will be merged with each other and their number will be brought down. I used to teach in a university so I know how significant this will be. Teacher will now be able to teach better. The courses offered will also become more relevant. The Mongolian University of Science and Technology will concentrate on what it is good at and not train social workers. Private schools say they will train economists, accountants, lawyers and teachers and let State schools with special laboratories train engineers and technical workers. This is a good idea.

The Government’s decision to give the MNT1.5 million was quite a surprise, after repeated declarations that this would not be possible in the present economic circumstances. People are wondering if this had to do with the civil movements joining forces and announcing a protest march. Did you feel threatened?

I would not say we feared the Government would be toppled. After the 2004 election, we gave the Child Money. I began the scheme with MNT3,000 when I was Finance Minister. Since the, the Government changed several times but the program continued. The same goes for the MNT1.5 million issue. It is not that the people’s demand suddenly reminded us. We have always been exploring sources for the money. We have already passed the Human Development Fund Law. One positive impact of the promise has been that it made all of us work harder.

How true are fears of another economic crisis?

The present crisis happened because we spent all the money we made when prices of mining commodities were high and then found, when the prices fell, that we had nothing left. Things will be different this time. We have a copper deposit that has six billion tons in reserve. Yes, global copper demand may fall. But let’s do something today when there are people who want it.

There was only one Mongolian company among those Oyutolgoi introduced as its supplying companies, and even that company is a television channel that will do the advertising work. Where are the domestic companies that are supposed to profit from the project?

There will be. The work has not started yet. USD780 million will be spent this year. Mongolian companies will have to compete with foreign companies. They must improve their management and technology to be successful bidders. We are thinking of using more Mongolian companies in the mining and infrastructural work related to Tavantolgoi. There will also be oil refineries, copper smelters and coking coal factories.  Mongolians have to prepare themselves.

What do you say about the civil movements’ demand for dissolution of Parliament and resignation of the Government?

These days, people are more interested in money. That’s how I see the protest. Our protest of 1990 was different. People had other goals then. I am not blaming those who are protesting. Who can criticize them when they call for development of Mongolia? The Government and Parliament have a duty to do this. But every time we do something we are called names such as “76 stupid people” or the “76 corrupt people”. Why must they make the Mongolian polity look bad?  Who needs this? You can change the 76 present MPs and bring in a new group of 76. They will be again blamed for everything after three months. What does this ultimately achieve? I am a Mongolian citizen, proud and happy to be living in Mongolia with my children. Why should I not be interested in national development?

Whose hand do you see behind the criticism? N.Enkhbayar’s? M.Enkhsaikhan’s?

To tell you the truth, M.Enkhsaikhan is behind all this. Why is he complaining? He was the party leader, PM and vice PM. Why didn’t he do the things he is talking about now then? N.Enkhbayar and M.Enkhsaikhan are the masterminds. It is possible for people to differ. But the differences between a few people are now destroying the country.  It is wrong. Whose money are they using? I don’t support this.

Is it right to blame the three ministers for making the Oyutolgoi contract?

You have to accept that Rio Tinto has no interest in harming Mongolia. It is a public company and its operation is open in financial markets. Maybe Chinese companies give bribes. This is different. To whom else could we give the mine? The Chinese, of course. Can Russia compete with China and take it? It can’t. I have said  this at the Government meeting and I repeat it,  “These three members are being blamed. But I am the fourth one. I will not run away from responsibility because my name was not mentioned. That is my philosophy.”

Mongolia has to take 34 percent of Oyutolgoi because Ivanhoe Mines was the one that made the exploration. But N.Enkhbayar has said he would’ve taken 51 percent if he was in charge.

He can say so but there is no way he could. He is just making claims that cannot be verified. If he really could, why didn’t he do so when he was in power? The mining law was made when he was in power. He behaved like a king, with none to oppose him when he was Parliament Speaker, Prime Minister and then President. I want to ask N.Enkhbayar and M.Enkhsaikhan to stop making irresponsible claims and baseless allegations. Maybe N.Enkhbayar has a grudge against S.Bayar but that is no reason why he should attack the whole government? They are angry for not being in Parliament, but it is wrong to act like this.

Why are these two quarreling so much?

This is the MPRP’s internal issue and I shall make no comment. We worked together with S.Bayar for more than a year and saw that his heart beat for Mongolia. I felt it. We had no problem working together.

When M.Enkhsaikhan was the Deputy PM, he also said this about N.Enkhbayar.

Let me tell you what Enkhsaikhan said. M.Enkhsaikhan was included in the working group to investigate the annulling of the great debt to Russia. As soon as he came, he signed the document saying there was nothing wrong with the negotiation. You should understand that he became N.Enkbayar’s man since then.

How is your statement about S.Bayar different then?

M.Enkhsaikhan was a man who once used to distribuite posters with N.Enkhbayar’s picture and a slogan “We will punish the corrupt people”. We all know how he is like now. I don’t have that kind of relation with S.Bayar. I did not know him before. That is the difference. But I realized that he works for the interest of Mongolia. Nothing more. His decisions and actions will bear me out.

There are people who say you have stopped listening to voices in your own party and listen to only what the MPRP head says.

S.Bayar has been absent for months. That has not affected my performance. When we worked together I listened to S.Bayar just as he listened to mine. We did not interfere in each other’s party matters but developed a good political relationship.

But we have MPs who blame you for placing MPRP interests ahead of your own party’s.

I know there are people who see things like this. But I also know that I meet and consult with our party group every day. I am not a person who dictates decisions. Everybody is mature and wise and I respect this.

Why haven’t you expressed any opinion about the Election Law? Wasn’t the proportional system the DP’s final decision?

I don’t believe the party leader should express his opinion of everything. That will be like putting pressure on others. Everybody must develop their own understanding of a situation. That is my way of doing things.

As for the election law, we’ve talked about it in the party. The present system of 76 small constituencies is not right because this allows too much money influence. The enlarged 26 constituency system is also defective because there will be too much competition in the parties and will hinder development. So, only the proportional system and a mixed system are the options left. We will take s decision only after discussing about it more.