PARLIAMENT

Govt to encourage exports of local products - Minister Nimal Siripala de Silva

Parliamentary Corr.

Speaker Chamal Rajapaksa presided yesterday when Parliament met at 9.30 am.

After the presentation of papers Parliament took up the Order under the Sri Lanka Export Development Act for debate.

Irrigation and Water Resources Management Minister and Leader of the House Nimal Siripala de Silva : With this order under the Sri Lanka Export Development Act, the Government expects to encourage exports of local products. The export of local products will immensely support the country's economic development.

I request for your support to pass these Orders.

Ranil Wickremesinghe (Opposition Leader): The sittings of Parliament was interrupted last week as the ground floor of the Parliamentary complex went under water due to the torrential rains. We supported the conducting of Parliament sittings on that day properly with the permission of the Speaker. We have to thank all those who supported to conduct Parliamentary functions on that day.

Dinesh Gunawardena (Water Supply and Drainage Minister): The Opposition Leader's speech is not relevant to the debate today. What is the connection between export development and the facts he is discussing now.

I request them to speak about matters relevant to the debate. I also request the Speaker to expunge all the matters that are not relevant from the Hanzard. This is a bad precedent.

Speaker Chamal Rajapaksa: Opposition Leader, you have to speak matters that are relevant to the debate. The matters you are speaking now are what you have discussed earlier as well.

Opposition Leader Ranil Wickremesinghe: I am talking of the powers vested in Parliament.

Wimal Weerawansa (Housing Construction, Engineering and Common Amenities Minister): As the Opposition Leader is talking of other things I would like to ask him will there be any problem with his party leadership at the UNP party convention which is to be held within two months.

A H M Azwer (UPFA): The Opposition Leader is flouting the standing orders. All speakers should abide by the Standing Orders.

Ranil Wickremesinghe (Opposition Leader): I have to raise another problem. One of our members Handunnetti and a journalist were assaulted in Jaffna. The police have questioned and released them. This matter should be investigated.

Industry and Commerce Minister Rishad Bathiutheen: The Government under the leadership of President Mahinda Rajapaksa has created a conducive environment to expand the local manufacturing sector and also to ensure their competitiveness. Our industrialists are very confident that our Government is on the correct track to improve infrastructure facilities, which are essential for accelerated and sustainable industrial development.

Development projects such as the part of Hambantota, Colombo, South Harbour, the second International Airport at Mattala, highways network and hydro project will soon change the island's economic landscape.

These development projects will generate a wide range of opportunities for foreign and local investors. The Industry and Commerce Ministry has taken steps to prepare a policy document which addresses the issues faced by our industrialists including the SME sector in particular.

Further, the Ministry has established a number of Advisory Councils for allmost every industrial sector with the participation of all stakeholders including the private sector.

Lakshman Kiriella (UNP):

The Minister said that new apparel industries will be started in Vavuniya and Mannar but I request him to safeguard the existing apparel industries in the country. It is reported that the export of apparel industry has decreased significantly.

This is even before we were deprived of the EU GSP Plus relief. Today, the USA is also discussing to terminate their GSP relief to us.

The minister said that industries will be opened in Vavuniya. But how are they going to do this? Is there peace in these areas? I request them to take action to regain the lost GSP relief.

In 2004, we exported apparels worth Rs. 1297 million to the USA. This has decreased to Rs. 945 million today. The Government is attempting to raise foreign investments. But foreign investments have decreased.

Even though we say that the problem in Sri Lanka has ended, foreign countries are not ready to accept it. Many people in the North told the LLRC that there is no Civil law in these areas, but only the army law is operating.

Sri Lankan courts are good for land, divorce and financial cases. But a judgement against the government cannot be expected from them.

Wasudewa Nanayakkara (UPFA):

I would like to point out some mistakes in figures in Kiriella's speech. He said that our exports rate has collapsed. Both 2008 and 2009 were difficult years where a global economic crisis prevailed.

The export growth rate in China also declined during this period. According to World Bank statistics were experienced 5.6 percent decline during 2008 and 2009. But we could reduce this to 2.5 percent within the first nine months of 2010. Therefore, the figures in Kiriella's speech are misleading.

We have earned US $ 35 million by exporting minerals. This is 53.3 percent as a rate. We have earned US $ 112.5 million by industrial exports and this is a 28.2 percent rate. This is during our regime. Today what we impose is the cess for exported bulbs. This was not included earlier by a mistake and we hereby corrected it. The Opposition killed the local industries with overwhelming exports. This is what the Minister is attempting to recover now. Today the USA is trying to raise the value of Chinese Yuan currency. From that they hope to uplift their products' competitiveness in the market.

In this way, they try to reduce the Chinese exports to countries like us and to increase their exports by using this opportunity. We should not be caught to this strategy.

The promoters of globalization are collapsing. These countries also try to protect their own properties. Earlier they said that all the doors of the country are open, but now they try to close them step by step.

We should also develop the internal market. For that people's ability to purchase should be developed. We then have to think of an agreement to create a regional market in the South Asian region for economic cooperation.

Not only the GDP, but the Human Development Index is also rising in the country.

A H M Azwer MP takes the chair

Sritharan Sivagnam (TNA):

When we look at Sri Lanka, the agricultural and industrial sectors have not developed. We have to accept this fact. Sri Lanka is an agricultural country.

We see that the service sector has improved rapidly in the country. Priority has been acquired by the banking and insurance companies. It is seen that these companies exploit the people.

The Tamil persons in the North and East should be provided with much facilities and a political solution.

Sarath Amunugama (Finance and Planning Deputy Minister): Laxman Kiriella of UNP who talked earlier argued that the economy of our country has completely collapsed. But it is a myth.

We have to consider to which period those statistics were related to. Those statistics were related to years 2008 and 2009. During that period not only the Sri Lankan economy but the Global economy faced turmoil due to the global economic recession.

We faced difficulties but many developed nations suffered minus development growth.

You, in the Opposition, always expect the economy of Sri Lanka to go bankrupt. It is your Opposition Leader's wish which will never come true.

None of the Opposition Leader's predictions came true intern that led to the Opposition's failure. He is the only Opposition Leader in the world whose predictions never came true.

But the other thing is that Kiriella distorted facts. There were many areas we developed during 2008 and 2009 but he only highlighted the data pertaining to the affected areas.

The other matter is that there are many developments taken place in our economy. When a foreign country agreed to construct a hotel complex in Sri Lanka, we cannot have it here the following day. It takes few years.

What is the biggest wish of your Opposition Leader. Nothing but the failure of the Sri Lankan economy.

Today even the United States does not accept that by privatization the economy could be developed but the UNP still holds it in high esteem. We always maintain that we have to uplift the local producers. We hope to strengthen them by encouraging export development.

Akila Viraj Kariyawasam (UNP): Today we don't have the GSP plus facility, so the garment factory owners are facing many difficulties. They are shifting their factories to India. Today the price of electricity is very high.

Sarath Amunugama (Finance and Planning Deputy Minister): When you talk of electricity I would like to say that Sri Lanka is the only country in the region that provides electricity without interruption.

Susil Premajayantha (Petroleum Resources Minister): The imposition of a cess tax is common every where in the world to provide security to the local producers. It is not special to Sri Lanka. Akila Viraj stated that we toppled their government. No, it was the people's decision.

Whatever the UNP said our government resettled all but 18,000 IDPs. The clearing of landmines is still going on.

Your Leader Ranil Wickremesinghe recently said, talking about Pasdun Rata said that Polonnaruwa does not have a harbour. He might have thought the Parakrama Samudraya (sea) is a real sea. No it is a very big tank. No body can make a harbour there.

Akila talked of Electricity bills.

When Karu Jayasuriya attempted to initiate the Upper Kotmale project your people, UNP politicians did not allow him to do it. But we have initiated the Norochcholai and Upper Kotmale projects. In future we have decided to shift from LNG to CNG to be more environment friendly.

Petroleum Resources Development Minister Susil Premajayantha: When the Government came to power, the Ceylon Petroleum Corporation was facing privatization. It was proposed to be sold to a foreign company but we stopped it.

Today the CPC has been revived. Today under the President's leadership the Government is strong enough to purchase the Shell Company and the Sugar corporation in Kantale.

Though world oil prices were increased we did not increase the price of oil in the local market, A special program has been put in place to streamline the repayments of loans obtained from foreign companies.

We have provided a lot of relief to the people. We always follow the right policy to impose or remove the taxes based on economic fluctuations.

Dr. Harsha de Silva (UNP): The Government has increased all taxes, the import tax for sugar has been increased by 500 percent, while a 300 percent tax increase reported on potato imports. The import tax on B-onions has been increased by 500 percent. So how can the ordinary people consume these items?

The Government has also imposed a new import tax on dhal and canned fish.

As a result of these tax impositions, the consumption by the people has reduced. Ordinary people are unable to purchase these essential items and they are suffering from poverty. According to the survey of the Statistics Department, the consumption rate of the people has gone down. The per capita rate of a person has also come down.

Harsha de Silva (UNP): I ask what is the tax policy of the Government Due to Capital Gains Tax, the price of sugar increased.

We also talked about the Casino Bill. We see that although there are eight gaming spots, only four have maintained files.

Technology and Research Deputy Minister Lalith Dissanayake: MP Harsha de Silva said that the Government passed Acts on the day of floods. But even the Opposition Leader was there that day. All agreed to pass them. Therefore, criticizing it now is not ethical.

When we take the export growth rate it is high as 10.5 percent in September. We earned US $ 1,440 for agricultural exports from the industrial exports we earned US $ 4,000.

About five Special Economic Zones have been initiated today. Therefore it is seen that the country's exports have significantly increased.

We have reopened the apparel garden in Dedigama, which was operated in Thulhiriya and was closed by the previous Government.

Ravi Karunanayake (UNP): We arrived at Parliament last Thursday with tears in our eyes. We thank all the people who contributed to bring the activities of the House back to normal. It is said that the Kotte area is two and half feet below sea level. Various discussions have been conducted regarding this even before. We do not want to see such a situation recur.

It is over 18 months since the ending of the war, but where are the benefits for the people.

People are waiting for the benefits.

We see that the Sri Lankan rupee is in a strong position today. Then why does the apparel industry does not earn profits? From the labour GSP we got about Rs 26 billion per year. If the Government says that it does not want it, there is a some kind of problem.

The Government came to power saying that they would increase the salaries. But they have been unable to do it. There is a few days to go before the budget. So let us think differently. The absence of war is not peace and this is the danger.

A H M Azwer (UPFA): I wholeheartedly support the move of the minister to impose a cess on incandescent bulbs.

A H M Azwer: To the friend who talked earlier I would like to say that this Government could have ended the war in 1989. I still remember the words of Mahinda Rajapaksa as a member of the Opposition who said don't sell these lands in Colombo without a plan.

Spare 75 hectares, otherwise the Parliament complex would someday go under water. The situation we faced last Thursday in Parliament was foreseen by President Mahinda Rajapaksa as far back as in 1989. He also asked not to reclaim the canal areas in Colombo. He made these demands from the UNP which was in power then. The Opposition Leader is always talking of common wealth we are talking of common man.

Sunil Handunnetti (DNA): Today, the people in South and North do not have democracy. They don't have the right of expression. The common people and students don't have the right to use their mode of expression, the poster campaign.

We went to Jaffna to strengthen the friendship between the North and South. I request to take democracy beyond Omanthai.

Nishantha Muthuhettigama (UPFA): It is the UNP which privatized many State institutions during their regime. Therefore, it does not have any right to talk about the GSP Plus.

It is the current Government which has created a conducive environment for enterprisers, specially SMEs.

The agriculture sector has seen a boom under the "Api Wawamu Rata Nagamu" Program. Though today MP Handunnetti talks about great pain, it is the JVP which burnt down many tea factories during the 88-89 period.

Today the entire Southern Province is in the process of massive development. Today people have a faith in the Mahinda Chinthana Idiri Dekma. Tea small holders and tea factory owners are very happy due to the fertilizer subsidy.

Wijayadasa Rajapaksa (UNP): The Parliament Complex was inundated as a result of passing the Casino Act the previous week. The activities of Parliament which is supreme in approving legislation in the country. JVP MP Handunnetti was attacked. If any MP cannot hold discussions with the people, what is the use of the powers given to police. There is no law prevailing in the country.

Earl Gunasekara (UPFA):

The Government always thinks of the local producers. That is why such measures have been taken to protect them. Nearly 80 percent of the contribution to development is made by SMEs and MMEs.

Today our local producers have hope about their future. A kilogram of tea is around Rs 60. A kilogram of rubber is Rs 500. Even our producers obtain such a stable market, the Opposition sheds crocodile tears over the loss of GSP Plus facility.

But I can remember how those people talked at Cambridge Terrace to forcibly deprive Sri Lanka of the GSP Plus. Today a large number of tourists come to Sri Lanka.

The Opposition members specially Ravi Karunanayake asks us to make development felt by the rural people. I ask you, the Government provides fertilizer at Rs 350. When Ranil Wickremesinghe went to Polonnaruwa, a farmer leader asked him to give fertilizer at Rs 500 if not possible to give it at Rs 350. But he chased him away.

S Yogeshwaran (TNA):

A large number of factories have been established with foreign funds. But I question as to how many factories have been established in the North and East.

Girls from North and East have been brought to the Western Province to be used as housemaids. Farmers in the North and East are unable to sell their paddy harvest.

Shantha Bandara (UPFA): The Government will provide incentives for local entrepreneurs a number of opportunities have been created in the country due to economic friendly policies. We have given priority to SMEs by providing financial assistance.

Once the Moragahakanda irrigation project is completed farmers in Polonnaruwa will be provided with sufficient water.

R Yogarajan (UNP): Although the war is over, peace has not come yet. Mothers in Jaffna so desperate, due to deaths of their children at the war.

Export earnings of the people dropped within last two years. No incentives or tax reliefs were granted to industrialists in that region.

Education Deputy Minister TB Ekanayaka: President Mahinda Rajapaksa is a leader who did not privatize any institution. He is of the view that he will not sell Government properties at any cost.

Today, the international community has a high consideration for Sri Lanka. When the Chinese President became the most popular person, the Western World and those who go after Western countries expressed various ideas.

Social Services Minister Felix Perera: I would like to draw my attention to the financial situation over the world. It is said that the next war would be fought over money. This is called 'currency war'. A debate took place over the GSP+ relief. We obtained the GSP+ only after the tsunami. It was given as a small relief to countries like us.

The Apparel industry did not collapse. It is improving step by step. Eventhough there was some decline, it has raised to 4.9 percent growth. The cess tax helps to revive local producers. We can increase local production.

China becomes the most powerful nation by 2012. By 2020, 24 percent of world production will be from China. The contribution of the USA will be only 14.8 percent. China reached these achievements because of the low production cost.

Foreign investments of the country are improving day by day with proper guidance.

If standard goods are produced using modern technology, the withdrawal of GSP+ cannot affect us.

Industry and Commerce Deputy Minister Jayaratne Herath: A great loss was experienced by local industrialists due to the removal of cess tax. We hope to encourage local producers by imposing it again.

The industrial sector improved rapidly during 1956, when foreign companies were taken under the Government.

But later when a new Government was formed in 1977, the situation changed. Today the Government is taking efforts to uplift the industrial sector. Today, peace has dawned in the country and the people formed a stable Government. Investors have kept faith upon us.

The Government will create a great revival in the industrial sector with the inauguration of the President's second term of office.

Order under the Sri Lanka Export Development Act was passed.

Parliament was adjourned until November 22, 1.35 pm.

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Speaker says 'thank you'

Speaker Chamal Rajapaksa expressed his gratitude for all who contributed with special dedication to resume all activities in Parliament after it went under water last Thursday following heavy rains.

He made this announcement when Parliament met yesterday.

"The situation would have been more serious if not for the dedication of everybody. I express my gratitude to the Parliament staff who gave their fullest support," he said. The speaker also thanked the Ministers and MPs who participated in the sittings last Thursday enduring many difficulties.

He also expressed his appreciation for the Defence Secretary, Army Personnel including the Army Commander, UNICEF, Navy Personnel including the Navy Commander, Parliament Police, Ceylon Electricity Board, Water Supply Board, Colombo Municipal Council and Sri Jayawardenapura Municipal Council officials, Telecom Chairman and other officers and the management and employees of various private institutions for providing essential services and flood resistant vehicles.

Eventhough the Parliamentary complex went under water it was able to hold Parliament sittings under difficult conditions and could renovate and recover all works within a short period due to the dedication of time and labour of everybody.

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Move to save Parliament from rainwater

The party leaders yesterday decided in Parliament to appoint a special committee to make recommendations to prevent the Parliament complex being inundated with rainwater hereafter.

According to a suggestion made by Irrigation and Water Resources Management Minister Nimal Siripala de Silva to the party leaders meeting they have requested Speaker Chamal Rajapaksa to appoint the Committee.

The party leaders have decided that the committee should take views of the experts in this regard and the reports on previous experiences that the Parliament went under water.

The party leaders have also decided to debate the Local Authorities (Special Provisions) Bill and the Local Authorities Elections (Amendment) Bill on December 13 and 14.