Budget gives priority to local production - PM

Sandasen MARASINGHE Irangika RANGE and Disna MUDALIGE

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 a.m. yesterday. After presentation of the papers and Oral questions Parliament took up the Second Reading of the Budget 2010.

Power and Energy Minister Patali Champika Ranawaka told Parliament yesterday that a feasibility study is in progress to connect the power grid systems of India and Sri Lanka.

The frequencies and power sub-station technologies used in the two countries are different and there will be a common frequency of the power transmission, if supplies were connected between the two countries.

Minister Ranawaka was answering a question raised by UPFA MP Victor Anthony.

The Minister also said that arrangements have been made to implement the power transmission uplift project from Vavuniya to Chunnakam in Jaffna. Under one of these projects, the construction of a transmission line from Vavuniya to Kilinochchi and the Kilinochchi Grid Sub-station have been scheduled. The total estimated cost for this project is Rs 3,100 million. This project will be financed by Japan International Cooperation Agency (JICA).

The construction of the transmission line from Kilinochchi to Chunnakam and the Chunnakam Grid sub-station will also be undertaken.

The total estimated cost for this project is Rs 3,276 million.

This project will be financed by the Asian Development Bank (ADB).

The distance of the transmission line from Vavuniya to Kilinochchi is 73 kilometres and the distance from Kilinochchi to Chunnakam is 68 kilometres.

Accordingly, the total distance of the transmission line from Vavuniya to Chunnakam is 141 kilometres.

The Vavuniya-Kilinochchi project is expected to be completed by the end of 2012 while the Kilinochchi-Chunnakam Grid sub-station is expected to be completed by August 2013.

Economic Development Deputy Minister Lakshman Yapa Abeywardene yesterday said in Parliament that the Government would spend Rs 1,600 million for the 500 acre Safari Park at Ridiyagama in Hambantota.

The Minister said that the Government plans complete work of this Safari Park by December 31, next year.

Minister Abeywardene said that the Government had earned an income of Rs 212,177,700 from the National parks in 2009.

There are 21 national parks in Sri Lanka, namely Horton Plans, Yala - Galge, Yala - Palatupana, Yala - Katagamuwa, Udawalawe, Minneriya, Kaudulla, Wasgamuwa, Bundala, Gal-Oya, Angammadilla, Lunugamwehera, Horagolla, Maduru Oya, Wilpattu, Kumana, Lahugala, Hikkaduwa, Pigeon Island, Ussangoda and River Villies of them four had not yet been opened to visitors. Yala - Katagamuwa, Yala - Galge, Wilpattu and Kumana were closed due to security reasons.

He said that these National Parks are being re-opened for visitors.

Rauf Hakeem (SLMC): Sarath Amunugama is not present here now, knowing that this is not a budget, but just an essay. A total of 40,000 hectares are expected to be cultivated in the North and East.

Farmers in the North are unaware of the availability of a guaranteed price for paddy. They are even unaware of the paddy storage facilities. The lack of storage facilities is given as an excuse not to buy paddy from the farmers. The Forest Department has also taken forest lands to the department, without allowing to take them for cultivation. These problems must be solved with the initiation of the Agricultural Ministry.

The budget this time is just a projection of the next six months. Even hours before the budget reading, the IMF has announced its approval for it. This shows the reality.

Yesterday, D.E.W. Gunasekera mentioned that the IMF is a lame duck institution. This has become a habit. The government goes after all the possible institutions for money, and then disregards them. People who said earlier that the GSP is the life line of our economy, are now criticizing it. They say one thing to the Western countries and another to the locals.

The easiest way to manage the economy is to allow the Provincial Councils to look after their own expenditures.

There had been various crisis situations in the world such as the oil crisis and the economy crisis recently. So, it is true that all the responsibility cannot be put on the government.

It is a pleasure to visit South these days. Ports and Highways are emerging, and large scale development projects are taking place. We are very happy about it. However, rather than concentrating on Hambantota, there are things to be looked at in Colombo.

Prime Minister D.M. Jayaratne: The Opposition seems to agree that we had been able to increase the paddy production. We have been able to produce the rice needed within our country.

But through these figures, we cannot make our people aware about it. What we need to show our people is the results we attained from these figures.

This budget has given a prominent place to the local production. We have the capacity to produce all what we need domestically within three months. Do we need wheat flour to make bread? Can't we try to make bread from maize flour.

The Opposition always tries to let the country down. They don't encourage the efforts to develop and improve the local economy.

We can only build a strong miraculous nation by joining hands towards self-sufficiency. I believe that the price of the exported goods must be increased to encourage the local products.

Today, we have emerged as a nation that foreign countries cannot interfere with.

We have to use words to encourage our farmers and labourers. Nobody should let them down. Let us all join hands for the strengthening of our economy. We can have our own ideologies when it comes to politics. But to rebuild our economy all should get together.

This budget has paved the way for a strong budget in 2011. This will strengthen the spirituality and humanity of our people. We can create a just religious minded country by following these principles. We should announce to the world that we are all one nation. We have a long valuable and proud history. We have to take those examples. Today, we have excellent leadership capable of achieving these goals.

Gamini Jayawickrama Perera (UNP):

We as UNPers always thought of the progress of the country. We stand for the development of the country.

We are people coming from rural areas. We don't eat flour. We eat rice.

We have to end corruption in this country. Otherwise, we cannot develop the nation. Although President Mahinda Rajapaksa promised to put a full stop to corruption what has happened to the Bribery Commission.

Today the Government has presented a document drafted by the IMF as a budget. It is a disgrace to Parliament.

This Government has not allocated adequate funds for education. You are trying to sell the universities.

This budget has not made sufficient allocations for the health service. Twenty three percent of the people are suffering from anaemia. Most of the population are suffering from malnutrition. There is no solution to those health problems.

Construction, Engineering Services, Housing and Common Amenities Minister Wimal Weerawansa:

Normally this is not the period of the year when we present a budget. But due to the General Election and Presidential Election, we had to present a budget for six months.

The Government had two options. One to put forward a Supplementary Account for the next six months or to go for a budget.

The Government selected the latter. So that this budget has only the essential expenditures. Again, we have to present another budget in November for 2011. That is the budget the Government give relief to the people. So, the Opposition does not need to misinterpret this budget.

The spirit of the Mahinda Chintana is re-emphasised in this budget. This Government has not taken any steps through this budget to sell Government institutions.

The UNP's vision was to sell all these Government institutions. Our Government has not sold any of them during the last five years.

You criticize this budget as an IMF drafted one.

It is the UNP that presented IMF created budgets. The 'Regaining Sri Lanka' of the UNP was designed by the IMF.

Our Government has never presented IMF designed budgets. If it were an IMF proposal, it should have proposals for privatisation, curtail the concessions.

There should be proposals to weaken the Government.

But there are no such proposals in this budget, but, proposals to strengthen the Government.

There is no base for the opposition's slogan that this is an IMF drafted budget. Come with facts for your slogan.

The UNP's slogan is to reduce the price of sugar, bread and milk powder. If the prices of the commodities decrease, you don't have slogans. You should know the prices of commodities fluctuates. So you should have a practical vision.

The UNP is guided by the Multi National companies.

Now you voice the need of the Prima Company in the guise of standing for the poor people. You ask us to reduce the price of flour but never asked to give a good price for the paddy farmer.

On the other hand you are voicing the need of the Nestle Company is the guise of standing for the poor people.

You ask to reduce the price of milk power but never asked to give a good price for the local milk producer.

We can consider such proposals if made by the Opposition.

Dayasiri Jayasekara (UNP):

This is the budget which has shattered the people's hopes. People today blamed and cursed the budget which has not given any relief to the people. You have danced to the tune of the IMF.

The Government has signed an agreement with the IMF. Today, the IMF has changed its conditions on granting loans to countries.

It has influenced the Government to move toward the reforms instead of privatizing State institutions.

We have already lost our economic sovereignty due to this agreement. Now the Government has to implement the IMF's recommendations of reforming State institutions. The budget has been prepared in a hurry on the instructions of the IMF.

You cannot achieve anything through this budget. These allocations are not enough to carry out the development activities as well as providing a better life to the people.

We can see the collapse of the economy within the next few years due to these type of decisions

Dayasiri Jayasekera (UNP) continues: All what presented is not Budget proposals. These are just money allocations. These figures were taken from the Ministry books. There is no point in calling it a Budget.

What the Government is planning to do is to add a tax on the salary of the Government employees. The Government has promised Ban Ki-moon to accelerate the resettlement. But no money is allocated to do it properly.

The President said to the Buddhist monks that he is doing what is said. But has he given the promised Rs 2,500 salary hike?

I agree that the rice prices have gone down. Even though the Parliament is continuing until 9.30pm, the Parliament labourers and workers are not given any allowance.

The soldiers have to pay for the houses made for them by the funds collected by our people and foreign donors.

Even though the chicken produced in the country is enough for our consumption, chicken is being imported.

Acting Finance Minister Dr Sarath Amunugama: If the production in the country is enough we never import them.

Dayasiri Jayasekera (UNP) continues: Sri Lankan delegates agree to conditions imposed by foreign countries and organizations when they meet them, and criticise them after coming back.

Power and Energy Minister Patali Champika Ranawaka: There are only traditional comments against this Budget. Under JR Jayewardene rule, the country's debt, cost of living and inflation raised due to liberal economic policies.

The economic program initiated by the President is a strong and successful one. The rice production in the country has become abundant. Earlier we were importing 33 percent of our rice. But by strengthening the local farmers, we have been able to become self-sufficient in rice.

This Government does not enrich the foreign milk and paddy farmers, but we enrich the local farmers. If one thinks that the Government can be changed just by repeating about the selfish personal demands it is a total failure. We have approached a new era that the people think about the country more than their personal grudges.

We went to the IMF to get their support to increase the foreign reserves of the country. This was done at a time it was highly needed.

The next challenge the Government faces is the loss of Government institutions. Without just pursuing the profit, their service to the society should be ensured. We don't privatize Government institutions. We have prepared a plan to build a network among these institutions to make them profitable.

We attained the stability in defence and politics. We have the capacity to apply this stability in the economy as well. For that we all must join hands.

AHM Azwer takes the Chair

S Yogeshwaran (TNA): This Budget is not satisfactory for the expectations of the Tamils in the North and East. The allocations for resettlement is not sufficient. The Prime Minister pointed out that this country is for all regardless whether Sinhala, Tamil or Muslim. But the Government should practically show it.

Public Administration and Home Affairs Minister WDJ Seneviratne: This Budget is the preface of our future program. Today, the UNP and JVP are raising false criticisms.

The program initiated by the President has attracted the whole of Asia. It focuses on the infrastructure development.

Under the Mahinda Chintana - Idiri Dekma we wanted to distribute electricity for all, rather than pursuing the profit.

One of the criticisms of the UNP is that this Budget is presented after the IMF approval was granted. This is really a baseless allegation. Our Government has a remarkable economic policy so that the number of families below the poverty line has reduced to 15.2 percent from 22.7 percent. This improvement we received as a result of our independent economic policy.

The Budget 2010 has no proposal that is harmful to the nation.

When we think of the Budget deficit, the period when the Budget deficit was too high was between 1978 and 1982. The Budget deficit in 1978 and 1983 as a proportionate to the GDP was 14 percent and 23 percent. But our Government has been able to reduce the Budget deficit as a percentage to the GDP is 8 percent. This is a positive change for the country. Even when the share market is concerned it is not able that it is appreciating.

The development in the share market is a clear indication that the country has a conducive environment for investments. On the other hand the Opposition has failed. The country today produce 400,000 metric tons of rice during one season. So that the people should be encouraged to consume rice and rice based products rather than imported wheat flour products. Then only the paddy cultivators would earn profits. During the UNP regime the paddy cultivators abandoned their paddy fields as they were not paid a good their for this paddy. But today the situation has changed.

The paddy cultivation has resumed with thousands of more hectares being cultivated.

Although the UNP complain that the Government has not increased the public servant salary, it is this Government that granted an unprecedented salary increment to the government servant.

The Government has decided to grant the Rs. 2,500 promised salary increment through the 2011 Budget that is to be presented this year.

Eran Wickramaratne (UNP): This Government has presented a Budget for the year 2010. But it has nothing for the ordinary people. The Government has included the pensions under the heads of welfare. The pensioners pension is not a welfare but it is a right of the workers.

External Affairs Deputy Minister Geethanjana Gunawardene: We to accept that we have a Government have buys the paddy harvest from the paddy cultivators at a good price. That is whey more than 850,000 paddy cultivators casted their votes to re elect this Government.

We have to remember that this Government led by President Mahinda Rajapaksa has eliminated terrorism as promised enabling the Sinhalese, Tamils and Muslims to live together in the country.

Suresh Premachandra (TNA): This Budget has nothing for the people in the North and East. This Budget has been designed without a vision to develop the North and East. This Budget will put the Tamil people into difficulty.

There is no proposals for the economic development. A. Lot of money allocated under the Head of Defence.

Higher Education Minister S. B. Dissanayake: The budget has allocated a huge amount of money for the public welfare and post war development activities. Today a massive development drive is taking place in the North and East. There are many problems with regard to the university system.

We are making arrangements to increase the university lecturers' salaries. We will be working closely with the Salary's Cardre Commission in this regard.

Prices of essentials were gone up during the war. Now the situation has been changed. People purchase them at a reasonable prices.

They enjoy a better living condition. Roads have been reconstructed. Houses for the displaced people are being constructed. Indian Government had shown its firm confidence in us and granted Rs. 250 million to construct 50,000 houses for the displaced people in the North.

This is a logical and methodical Budget. We have provided facilities, protection and better living to the people while ensuring a massive development drive in the country.

Though the world economy was collapsing due to economic crisis, we have been able to maintain a strong economic position.

We have undertaken a massive airport, harbour, roads and electricity projects. Therefore, we will be able to convert Sri Lanka to one of the best service providers in the world in coming years.

Rosy Senanayake (UNP): When the Budget deficit is in the balance sheet, the country has to maintain foreign reserves in a stable level. The Budget shows the Government's pledges to the IMF. The IMF may be happy with this Budget, but none in this country are happy with this Budget.

Ninety percent of the Government income has been used to pay back loans today. It utilises only 10 percent of allocations for the development activities.

The Budget has allocated very limited amount of money for the Health and Education.

The country is suffering due to poverty. Our children are affected with malnutrition. None of the Government pledges have been fulfilled so far.

Petroleum Industries Minister Susil Premajayantha: If you visit the North and East, you can see that huge development is taking place. The Jaffna hospital is being refurbished while the Kilinochchi hospital has already been reconstructed.

Deputy Speaker Priyankara Jayaratne takes the Chair.

We lost the biggest income generating avenues due to the war. Almost all economic sectors were affected by the war in the past few decades.

Today the entire country is being developed after a lapse of 30 years. Take the budgets of any other country. They all do not show the exact situation. During the global economic recession, many companies had to be closed in the USA and UK. But none of our companies was affected.

Our literacy is 96 percent between the age group of 18-26 years. This is higher than India and many other countries. We have raised the number of higher education institutions, giving opportunities for a large number of students.

The Opposition Leader said that we did not give the relief of ending the war to the people. But where the operations were going on he criticised it.

We opened new schools in the North and East spending large sums of money.

From the 300,000 displaced only 40,000 are remaining. Still the demining process is continuing. We invite the Opposition to come with us to visit Jaffna, Nagadeepa and other important places in the North to understand the real situation.

It is Ranil Wickremesinghe who divided the Petroleum Corporation into three sections. But President Mahinda Rajapaksa was able to protect it again.

According to the Global Competitive Report, we have come forward in all figures within the last three years.

Buddhika Pathirana (UNP): I cam to the House going through many hardships. After I came here, I had to question from my own conscience. We have to represent the innocent villagers of our seats and their problems.

What the country needs today is a leadership with local thinking combined with the universal perspective. National leaders in the present era are like frogs in a well. They cannot move the country forward.

National Languages and Social Integration Minister S. B. Navinna: We see that Buddhika Pathirana has accepted the Budget.

The President won the election with a record, and it shows that people have approved the Mahinda Chintana Idiri Dekma policy. During the past few years, there was a big change in the country. The fertilizer which were about Rs. 2,000, were given to the farmers at Rs. 350. This helped the country's agricultural development.

Today, the duty of education is not fulfilled as well. It is not going in the right direction. The people values have decreased. We have to give prominence to make worthy citizens. People visiting major cities should be limited by delivering modern technology to the village. For that, the Transportation and Energy Ministries should get together. But these things are not discussed in this House. We still argue over the old topics.

Members of this Parliament do not get an opportunity to work for the country.

For the last 23 years, we had only seven years without elections.

So, how can the Members of the Parliament work for a mission of developing the country?

After the war, there is a higher interest and enthusiasm for agriculture in the North and East.

We have to work with Provincial Councils and Urban Councils to improve the conditions of the people.

Achala Jagoda takes the Chair

Anoma Gamage (UNP): This is my maiden speech in Parliament. I pay tribute to my parents who taught me to a veterinary surgeon.

I earned my degree from the Peradeniya University. I have two brothers, and one of them is an engineer and the other is a doctor.

I thank my parents for bringing up us to be respected citizens.

This Government is unable to reduce the prices of essentials. How could this Government provide the GSP+ facility if it cannot give any concession to the people. Today, the farmers are in a position to commit suicide. So I request the Government to buy paddy at a good price.

Perumal Rajathurai (UPFA): This Government has taken steps to solve many problems in the Estate sector. So many hospitals are established in the Estate sector. More than 3,000 teachers were recruited to the schools in the Estate sector. I suggest that those teachers should be provided with a good training.

Lands and Land Development Deputy Minister Siripala Gamlath: I have to thank the people in Polonnaruwa for voting me. This Government eliminated the three-decade terrorism within a short period of four years.

This Budget has allocated Rs 35,000 million for the fertilizer subsidy. Not only that there are so much of relief for the people in this Budget.

The 2011 Budget will be presented in another four months. The Government has decided to provide more relief for the people through that Budget. This Government has initiated cultivation of many thousands of acres of abandoned paddy fields.

Navin Dissanayake (UPFA): Today we are facing a different situation. The LTTE threat is no more.

The Central Bank figures were accurate for last 50 years. And it should be so now. The UNP have agreed that. The Government has not taken popular measures in this Budget.

AHM Azwer takes the Chair

The Government has taken only measures to consolidate the economy through the Budget. The economy had a growth rate of seven percent.

The private sector has more opportunities out of 100 rupees the Government earned it has to spare 85 rupees for debt related matters. The rest 15 rupees is utilized for the welfare and other things.

We have to develop the country as an economic hub, education hub as well as medical hub. It's really important to make it an education hub as much money flown out of the country when students go for foreign degrees.

The development is centred around the city. Twenty three percent of the rural population is below the poverty line.

Environment Minister Anura Priyadarshana Yapa: Terrorism was defeated under the bold leadership of President Mahinda Rajapaksa. The people of this country accepted the Mahinda Chintana - Idiri Dekma by giving the biggest mandate. We took a decision that we will not privatize any State property. We also decided to implement a national program to strengthen the State properties. Following the correct financial policies, the Government has been able to increase the per capita income and the foreign reserves. We achieved all the victories at the previous elections when the country was involved in a war.

Ashok Abeysinghe (UNP): The Budget consists lots of disparities. The allocation made for nutrition programs through this Budget is commendable. But the allocations have not been increased and it is only the repeat of last year's Budget. No action has been taken by this Budget to increase the national productivity. Tough terrorism was defeated by the war heroes, no action has been taken to uplift their welfare and well-being in this Budget.

Technology and Research Minister Prof Tissa Vitharana: In preparation of the Budget, we are happy that the Government has discarded neo-liberal policies and not fallen a prey to IMF conditions. We are glad that the IMF is acting in a more rational manner and it is on the basis of the Government's good management of the economy.

No Budget has followed the line of economic development of the UPFA Government under the President's leadership.

The Government has instituted direct and selective measures to establish and promote industries of its choice. The Budget has identified ICT as the technology to be selectively developed.

Deputy Speaker takes the Chair.

Hareen Fernando (UNP): The Government members did not participate in a Budget speech in reality.

They went on about irrelevant matters.

The Education Minister says that Fifth Grade scholarship, O/L exam and A/L exams are overcompetitive. What they are going to do is to curtail the education received by our poor people's children.

Deputy Chairman of Committees, Murugesu Chandrakumar (EPDP): The main purpose of this Budget is the development of the country. The rehabilitation work is given a prominent place in the Budget. The Government is considering the development of the North and East provinces. At the same time, the environment should also be given consideration. Because of the war, people have lost their cultivation in those areas. In the past, Kilinochchi was considered as the paddy store in the North. Employment opportunities in these areas must be created. They do not have sufficient facilities as well. About 500 tractors are needed, but only 50 are available at the moment.

Some people are still waiting to be resettled in their homes. The Government has to look into these issues.

A. H. M. Azwer takes the Chair.

Kanaka Herath (UPFA): This is my maiden speech in Parliament as a newly elected member from Kegalle district.

We have to support the effort by President Mahinda Rajapaksa to develop this country. The President has the capacity to uplift the country's economy. He has so much of plans to develop the harbours and tourism industry.

The Budget debate was put off for today.