Márki-Zay is attacking the overhead cost reduction with the left’s perennial, unfounded arguments


The left-liberal candidate for prime minister has repeatedly stated that the overhead cost reduction introduced by the civilian government, which has prevailed since 2013, is unsustainable. In this context, Péter Márki-Zay came up with a proposal to introduce a “smart” or a “real overhead cost reduction”, giving the impression that he represents a different concept compared to the previously voiced political ideas of left-wing parties. However, there are signs that the criticisms of overhead cost reduction made by the mayor of Hódmezővásárhely are an integral part of the series of attacks the left-liberal bloc has carried out over the past 9 years against this government action. The new series of analyses made by Századvég, in the light of the current policy statements made by Péter Márki-Zay and his left-liberal allies, retroactively up to 2013 reveals and refutes misleading left-wing allegations, deceptive statements and misunderstandings related to overhead cost reduction.

Márki-Zay is attacking the overhead cost reduction with the left’s perennial, unfounded arguments

Márki-Zay expresses a well-established left-liberal stance

In November 2021, Péter Márki-Zay, the candidate for head of government of left-wing parties, said that “the overhead cost reduction introduced by Fidesz is unsustainable”, giving voice to the necessity of a “real overhead cost reduction”, and, regarding the termination of the measure, he also said that “Fidesz itself is likely to be forced to do so because it is completely unsustainable”. Similarly, the mayor of Hódmezővásárhely came up with the promise of creating a “fair, smart and sustainable overhead cost reduction” and then stressed that “After the change of government, we will introduce a real overhead cost reduction that will be sustainable”.

The left has been claiming for 9 years that overhead cost reduction is unsustainable

It should be emphasised that left-wing views on overhead cost reduction being a short-term, unsustainable move, which later proved to be unfounded, coincide with the measure in question, as these criticisms have been a key element of left-wing political communication since 2013.

Among others, Nándor Gúr, on behalf of Magyar Szocialista Párt, said in 2013 that regarding the overhead cost reduction, “the end result will be that the burden will not decrease but increase in certain cases.” Gábor Vágó, a former member of LMP, stated that “The government’s measure will not work in the long run, overhead costs will not be lower,” while his former party colleague, András Schiffer, called the government’s measure “a short-term solution”. Also in 2013, on the part of Jobbik, Lajos Kepli “sealed” that after the 2014 parliamentary elections, the overhead cost reduction would be followed by “an increase in charges” in the event of a pro-government victory. From the ex-radical party, Sándor Kiss also envisioned that the population would have to repay the amount saved through the overhead cost reduction after the 2014 elections.


In contrast, the reality is that the government’s overhead cost reduction program has been running for 9 years without interruption. In 2012, the price of household gas in Hungary was HUF 136/cubic metre, and then, due to the overhead cost reduction, in 2015 and 2021, Hungarians had to pay HUF 101/cubic metre for gas.

Interestingly, in the European Union, the average price of the energy carrier in question was HUF 220/cubic metre in 2015 and HUF 242 in 2021. Before the introduction of the overhead cost reduction, the electricity tariff in Hungary in 2012 was HUF 48.5/kilowatt hour, but in 2015 and 2021 the Hungarian population only had to pay HUF 36.6/kilowatt hour for it.


In 2012, before the introduction of the overhead cost reduction, the electricity tariff in Hungary was HUF 48.5/kilowatt hour, but in 2015 and 2021 the Hungarian population only had to pay HUF 36.6/kilowatt hour for it.

The average price of electricity in the European Union was HUF 65/kilowatt hour in 2015 and HUF 79/kilowatt hour in 2021 (source: CSO for Hungarian data, Eurostat for European data).

It is clear that


the statement of Márki-Zay mentioned are not new in terms of content compared to the overhead policy standpoint taken by the left for many years.

The mayor of Hódmezővásárhely merely “recycled” the criticisms of sustainability related to the overhead cost reduction made by left-liberal forces, which he had previously promised his supporters to replace.


 

The full list of left-wing criticisms of the sustainability of overhead cost reduction from 2013 is summarised in the table below:

Who said it?

What did he/she say?

When did he/she say?

Gábor Vágó (LMP)

“The government’s measure will not work in the long run; overhead costs will not be lower.”

19.03.2013

Dr. András Schiffer (LMP)

“According to LMP, the 10% overhead cost reduction agreed by the government as part of the election campaign is only a short-term solution […]”

19.03.2013

Gábor Vágó (LMP)

“Without meaningful, real energy efficiency investment, this whole media circus that has been created here in connection with overhead cost reduction is nothing more than something thrown to the citizens to chew on, because unlike the solution, the demand is real.”

19.03.2013.

Nándor Gúr (MSZP)

“If this 10% overhead cost reduction is already in place, it would be worth thinking about what my fellow Member Gőgös mentioned that is not direct passing-on, obviously not, but in the second stage, in the third stage these costs will re-emerge on the part of companies, so they are doing nothing more than fooling the people. People are being lied to! They say: “We’ll reduce it”, while the end result will be that the burden will not decrease but increase in certain cases.”

19.03.2013

Lajos Kepli (Jobbik)

“However, as long as there are no real measures in place to guarantee that this system is sustainable in the long run and this reduced sum will not only be possible to be charged until the elections, and then service providers will collect it with an interest […]

23.05.2013

Lajos Kepli (Jobbik)

(about overhead cost reduction)

“[…] necessarily, and here I seal it, if you win the election, there will be an increase in charges after the elections. You can refute me here now, and you probably will, but I am sealing here for you that, in the long run, this system does not have the potential to reduce overhead costs. Other solutions must be found.”

28.05.2013

Lajos Kepli (Jobbik)

“So we think that this 10 percent overhead cost reduction in this formless content can only be sustained temporarily, and we have to see it as a kind of campaign measure.”

28.05.2013

Lajos Kepli (Jobbik)

“[…] we do not want these overhead cost reduction promises to remain mere empty election promises, we would very much like the government to fill them with real background content in the future, so that it would not be necessary that a higher rate of price increase would follow these overhead cost reduction measures after the election. Because as long as there is no real content behind them, this danger unfortunately exists.”

03.06.2013

Dr. Sándor Kiss (Jobbik)

“I think, you should pay as much for everything as it costs. I am afraid that this overhead cost reduction will not continue after the elections but will actually have to be repaid, I do not know the amount that the population is probably saving now. […] So, I think this overhead cost reduction or reduction of the overhead element is by all means either little or further overhead cost reduction is needed, or it may be much.”

30.09.2013

Lajos Kepli (Jobbik)

(about overhead cost reduction)

“[…] the question arises as to how you will be able to ensure this after the election, years in advance, because it will certainly not work, you can machinate with cushion gas and carbon fillér for a while, but we all know that carbon fillér must be removed from the support system of the Hungarian energy industry by 2018, and in the meantime the amount will gradually decrease from year to year.”

30.09.2013

Dr. András Schiffer (LMP)

“[…] in such an international environment, beguiling people with reducing overhead costs is the same as if you were trying to drain seawater with a leaky bucket, because what people save by reducing overhead costs will then be taken out of their pocket with interest by the various regenerating financial crises.”

07.10.2013

Gábor Vágó (LMP)

“Regarding overhead cost reduction, it is obvious that a reduction on one side on the part of the state will be an increase in the medium term, because these companies and organizations will inevitably have to balance at zero and these burdens will be placed on ordinary citizens.”

24.10.2013

Dr. Sándor Kiss (Jobbik)

“So, I think we may have a bad feeling about this overhead cost reduction, as it is only temporary. So, it may be good in the election year, and as it is written in tabloids, in 2014, the year of the election, we can go big, but I am afraid we will go smaller after a Fidesz victory.”

29.10.2013

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