Responding to a question about the government's plans to limit the impact of subsidy cuts on citizens, the Deputy Crown Prince said that this is a difficult challenge citing the failure by the Ministry of Water in restructuring subsidies in water as an example. Q: Does that led to the dismissal of the Minister of Water? A: Yes,. but this does not mean we are not working. We must work. When we open the statements in 2015, about 70 percent of the subsidies go to the rich. Is this permissible? The subsidies must target middle-income and low-income citizens, who make up 30 percent. Q: Do wealthy people are the ones who benefit from the subsidies, and how? A: Because the wealthy person has a bigger house, he consumes more electricity and more water. The wealthy person may has five or six cars and consumes more gasoline. He also may have a farm, therefore consumes more electricity and water. He may have a house in another city and consumes more water and electricity. the rich man consumes water and electricity more than ten or twenty other families, this is not permissible. Our goal is to restructure the subsidies, free the prices and make another program that does not affect the 30 percent category and compensate them by other means. Q: Who are the 30 per cent? A: They are people with middle-income and low-income. They must not be affected by the restructuring of subsidies, and the impact should only affect the seventy percent. Q: Do you have, Prince Mohammed bin Salman, special government support programs for this class, the low-income category, in petroleum products and in water and electricity? A: The challenge is very difficult, and we spent a whole year in how to operate these programs. We expect late 2016. the vision has become clear in a very great way. So, there will not be any major floating of energy prices except in the presence of a clear program that covers low-income people. We do not also need to target middle-income: we protect middle-income and low-income people in the subsidies program. Q: In your statements, Prince Mohammed, you said more than once that government support in the water, electricity or oil derivatives benefits the wealthy, who are not supposed to benefit from it. Do you not fear that this influential group show anger over this policy? A: By God, I will apply it to myself; anyone who is not pleased will clash with street. Q: Will it be applied to all groups? A: Yes. --More 00:13 LOCAL TIME 21:13 GMT www.spa.gov.sa/w
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