13% of Soviet Industries Lose Money: Premier

Premier Nikolai I. Ryzhkov told the nation’s Parliament today that 13% of Soviet industries are losing money and warned that they will be liquidated unless their performance improves.

In a two-hour speech on the economy, Ryzhkov told the 1,500 members of the Supreme Soviet that industries have wastefully accumulated vast stocks of raw materials and have not produced enough goods to meet consumer needs and that “some ministries have been sinking into a sea of paper.”

In addition, state enterprises have accumulated $64 billion in debt, making money-losing industries a major problem, Ryzhkov said. He called on the Supreme Soviet to approve on Tuesday Soviet leader Mikhail S. Gorbachev’s plan for a radical reorganization of the nation’s economy.

The number of money-losing industries has reached 13%, and “this is a heavy burden on our economy,” Ryzhkov said. “We have to do everything to fight for the elimination of these enterprises.”

Ryzhkov warned that if efforts to resuscitate the industries--such as through state bank loans or direct government infusions of new capital--”are in vain, then such enterprises will be liquidated.”

Ryzhkov, however, echoed Gorbachev’s assurance that workers displaced from one failing industry would be provided with other jobs, maintaining the Soviet promise to provide employment.

The Supreme Soviet session focused on the new law to reorganize state industry, but also discussed other laws, including one to protect individuals against abuses by bureaucrats.