Yeda launches an attack against Tarso Genro.

Carlos Rollsing

carlos.rollsing@zerohora.com.br

Blamed by the governor Tarsus-in-law, along with Antonio Britto, by the current state financial crisis, Yeda Crusius He countered the criticism and stated that "more achievements" were not possible during his administration because the PT (Workers' Party) and the federal government had sabotaged programs such as Duplica RS, the construction of the ERS-010 highway, and the adoption of a new prison model in Canoas, always through Public-Private Partnerships (PPPs).

The former governor, a member of the PSDB party, defended the zero-deficit policy, revealed that she is finishing a book to detail the behind-the-scenes events at the Piratini Palace during the crisis triggered by corruption allegations against then-Vice-Governor Paulo Feijó, and, ironically, stated that the current government needs to take responsibility for its actions without "transferring blame," referring to Tarso's withdrawal of R$ 4,2 billion from the judicial deposit account to fund the state apparatus.

Also quoted by Tarso, Antônio Britto told ZH, via email, that he will not comment on "debates that are specific to the election period." The former governor claimed to have abandoned party politics 12 years ago.

Check out Yeda's interview:

ZH — How do you assess the withdrawal of R$ 4,2 billion by the Tarso government from the state's judicial deposit account?

Yeda Crusius — This is a government decision, a matter of global policy. I can only say that it is unnecessary. In our government, we proved that it was possible to have balanced public finances and pay the bills. It's not necessary to spend more than you collect. The so-called zero deficit, which people are gradually understanding, is a way to invest, to implement social and economic policies. It's not necessary to blow up public finances again. We achieved a zero deficit in the second year of government, in December 2008, and after that, Rio Grande do Sul grew significantly. We took over a state that couldn't even pay its payroll. From the moment we took office until the moment we left, with R$ 9 billion in the coffers, whether from the general treasury or judicial deposits, we proved that it was possible to invest in all areas. We had never spent as much as we did, but we spent according to what we collected. That's the first rule. As soon as we took office, we made an adjustment to operating expenses, which is what drains the public coffers. Investment was almost zero, and we're returning to that level. We made adjustments by cutting 30% of the appointed positions, and they weren't missed. And we cut 30% of operating costs. No other state in Brazil had ever made an adjustment of this magnitude. We did this as a first act, stating that we would spend on the core activities of the state government, not on support activities. We restructured the debt; we pay much less today than we did in the past. Don't talk to me about debt. That's nonsense. That's just stalling. There was a debt restructuring that allows the state to pay less. We did this with the global debt; the World Bank allowed us an innovative and unique restructuring. We exchanged seven-year debt for 30-year debt, with an infinitely lower interest rate. The problem is that they are creating debt again. Every time there's an annual deficit, someone covers it, and debt is generated. These R$ 4,2 billion are debts. Someone will have to pay one day. This is a structural problem that we changed. With sound financial management, the state truly became known as Rio Grande do Sul to Brazil and the world.

ZH — Do you believe that your government's financial policies have been overwhelmed by current circumstances?

Yeda — But that was the purpose. The purpose was to try to erase the statistics of good management. In four years, they didn't believe it was possible. We showed that it was possible. The future will tell. Our option was for cost-cutting. The evaluation comes from indicators of violence, crime, education, health. And, unfortunately, these indicators are getting worse. GDP has decreased.

ZH — Due to salary adjustments for civil servants, the payroll will grow by 15% in 2013, while inflation will be 5,5%. Do the low salaries of certain categories justify the risk of this disparity?

Yeda — This single statistic won't explain the model being applied. The current model involves spending more than it collects. The clear fact is this government's proposal to spend more than it earns. Judicial deposits alone will amount to R$ 4,2 billion. And it won't be for investment. They've already stated that the state budget isn't for investment; it's only for paying personnel.

ZH — The PT (Workers' Party) says that the zero deficit was achieved due to a lack of investment. How do you respond to that?

Yeda — I don't need to analyze this. History has already recorded it. We spend more than any other government. This is a diversionary tactic. They make claims to get someone to respond.

ZH — Yesterday, Governor Tarso Genro blamed his government and that of Antônio Britto for the current crisis.

Yeda — But I felt one thing was missing: Dom Pedro I was absent from his criticism. Dom Pedro I was absent from his provocation.

ZH — Should the current government promote structural reforms to reduce the debt?

Yeda — Their goal is not to implement reforms. And the structural problems are present in all states; they are typical of Brazil, such as the pension system. The reason for the withdrawals is not due to any structural problem. It's a spending decision. It's different. In part, they inherited the structural problems already resolved. This is the case with the overall debt.

ZH — Have you decided whether you will run again in 2014?

Yeda — No, not yet. First I need to finish writing my two books, which are almost complete.

ZH — What are the books about?

Yeda — The first is more of a personal nature, stemming from a lifetime of experience that contributed to the government's success. We were recognized by Rio Grande do Sul, Brazil, and the world. The rest is politics. The other is a set of innovations implemented during our time in government. One of them is the zero deficit, which needs further clarification. But most importantly, the Transition Cabinet that I created to address the crisis surrounding the presented recording. (Vice-Governor Paulo Feijó recorded the then Chief of Staff, Cezar Busatto, saying that Banrisul and Daer were financing political parties) In the CPI (Parliamentary Commission of Inquiry). The first book contains topics explaining that the innovations implemented over four years account for the government's success. We started with zero funds and never blamed anyone. When we decided to run for office, we knew what we would find. Don't come now trying to blame someone. Let them answer for what they do, just as I answered for what I did.

ZH — What do you intend to tell us about the Transition Office set up at the time of the Feijó recording crisis?

Yeda — As governor, I lived through a period of "news of the world." They released 15 seconds of a recording and decapitated it, threw it on the bonfire, paralyzed everything. Scandal has value. They sold many scandals. There were 15 hours of recordings, and 15 seconds were handpicked. When part of that recording of Feijó with Busatto was presented, the state came to a standstill. It was unbelievable. Action was needed. The vice-governor was recording the Chief of Staff and editing tapes to present to the CPI (Parliamentary Commission of Inquiry). As a parliamentarian, I decided to create a Transition Cabinet until the CPI was over to show the population that there was a government, that the base parties were supporting it. I asked each party for a representative, and in an open manner, we held a hearing with all of society, with teachers' unions, workers' unions, figures like Paulo Brossard, the think tanks of the political parties. It was a period in which we listened to society to analyze ourselves. There was no problem with governability. There was a very critical and sad period of selling scandals, one after another, always the same thing. And, when the Parliamentary Commission of Inquiry ended, we reopened the Piratini Palace. But, during this period, the Transition Cabinet was responsible for the major decisions. In reality, it was a council that operated. It wasn't just there for show. Regarding the Transition Cabinet, I spoke with Fernando Henrique the other day. He said: "You have to publish this."

ZH — Do you maintain the conviction that connections in Brasília conspired against your government, or were the crises motivated by real causes?

Yeda — No, that was the least of it. What happened was that the government stopped going to Brasília begging for money. That period is over. We ran a government focused on balancing the books, and we stopped going to Brasília begging for money, which promised and didn't deliver, promised and didn't keep its promises, but we delivered. We built the Arruda bridge in ten months, the ERS-471 highway, we paid court-ordered debts, we did everything. During that period, Brasília ceased to have the importance of the central power that prevents Rio Grande do Sul from doing things. Nobody stopped us from doing anything, despite the political games. We could already have 360 ​​kilometers of dual carriageways, with a reduction in accidents, with tolls 30% cheaper since January 1, 2009. Why did he... (Tarsus) Are you paying this toll? Why did they prevent us from paying 30% less with Duplica RS? We wouldn't have any more debt with contractors. They prevented Rio Grande do Sul from doing even more, but they didn't prevent us from growing. I think we grew 10% in 2009, I don't remember exactly, but it was Chinese-style growth. What we showed is that it's important for Brasília to follow the rules. And even when state leaders politically tried to prevent things from happening, we were the majority, we were a group of parties that carried forward our government plan. It could certainly have been even better if they hadn't prevented some programs to transform the cost of doing business in Rio Grande do Sul, like Duplica RS. That's the clearest example. Or if we had managed to change the prison system model, with that PPP in Canoas that would already be operating with three thousand spaces.

ZH — When you say that your policies were thwarted, are you referring to the PT (Workers' Party) or the federal government?

Yeda — The federal government simply serves the interests of its allies. I'm not naming the PT (Workers' Party). The Minister of Transport, who was from the PR (Republican Party), not even the PT, and was later ousted, said he wouldn't accept the Duplica RS project based on a law passed in the Assembly. It's the allies who serve their interests. Rio Grande do Sul has fallen behind. They prevented a new prison system and also the ERS-010 highway, things that a developed country would do.