During a public audience on Brazil’s Growth Acceleration Program (PAC) at the Senate Plenary on Tuesday (13), senator Marconi Perillo (PSDB-GO), president of the Committee on Infrastructure (CI) and one of the meeting’s petitioner showed concern over problems that may compromise the federal government plan announced in January.

Among the main obstacles, Marconi Perillo mentioned the energy production problems the country will go through by 2009 and the high taxes, that, according to him, are damaging competition in important economic sectors, as the agrobusiness. Perillo also criticized the rise in current expenditures, as well as the non-existence of vital reforms, including those on political system, taxes and labor.

Both senators from government supporter’s bench, as Wellington Salgado (PMDB-MG), and from the opposition, as Kátia Abreu (PFL-TO) and Eliseu Resende (PFL-MG), were also apprehensive about possible lack of energy that, according to them, may affect the PAC.

Dilma Roussef, chief of the President’s Civil Cabinet, tried to reassure the senators by ensuring power supply will “be enough until 2010”. She also affirmed current government has improved all predicting mechanisms of the sector, “in order to deliver real energy, not the written one”. In addition to that, she highlighted the increase of 7% a year in power investments – including the construction of new power plants. She also explained that new transmission lines were extended.

Senator Francisco Dornelles (PP-RJ) criticized the use of R$ 5 billion from the Time-in-Service Guarantee Fund (FGTS) to finance infrastructure projects set by the PAC. According to him, if the program fails, it would damage workers.

Guido Mantega, minister of Finance, replied workers would not be damaged since the investment will be corrected in 3% a year, with differential interest rates added. This rate is used, among other things, in adjusts in installments of real state financing contracts.

Senator Eliseu Resende (PFL-MG) said that any developing program, as PAC, is important, but asked the ministers for “massive investments” in highways’ revitalization. Senator Renato Casagrande (PSB-ES) demanded the adoption of a limit to Brazilian taxes and senator Sibá Machado (PT-AC) stated PAC seeks sustained growth along with fiscal balance.