São Paulo, 7/4/2003 (Agência Brasil - ABr) - Minister of Finance, Antonio Palocci, referring to injunctions against telephone fee increases, declared that "court orders are supposed to be obeyed." The minister said that from the government's point of view, public utility or infrastructure problems, such as telecommunications, depend on "respecting contracts that have been signed." He added that the in the medium-term the government intends to "reconstruct these contracts," so that they are more efficient for both companies and the consumer.

As for the impact of the fee increases on inflation, the minister said it had already been factored into inflation calculations because the contracts were public knowledge.

With regard to fuel prices, Palocci said the government is on alert. "Fuel prices are an important item in the inflation index. We want to keep them at a reasonable level because that will make it easier to control future inflation," he said. (AB)