PARLIAMENT

Considerable improvement in foreign reserves- Minister Dinesh Gunawardena

Parliamentary correspondents

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 am yesterday. After the presentation of papers and oral questions the House took up the second reading of the Appropriation Bill 2011 for debate.

Karu Jayasuriya (UNP):

The people who suffered for three decades due to war had high hopes about this budget. The fact that we do not understand is why the Government spends more money for defence even after the end of the war. The money allocated for defence from this budget has increased.

The government attacks those who engage in rallies against it.

Today the people living in difficult conditions. There are a large number of families who barely have three meals a day. Today 1kg is about

Rs 50 - 60. Powdered milk is Rs 240 today. The Government has imposed unlimited taxes for essential items such as dhal.

Most of the Government institutions are running at a loss. The public have to pay for these things.

We wish the best for the development proposals presented by this budget. We have obtained many foreign loans for higher interest rates.

Water Supply and Drainage Minister Dinesh Gunawardena:

This is the first budget after the President’s assumption of his second term of Office. This is presented to carry forward the victorious journey that we started.

I would like to quote the President’s speech at the opening of the Ruhunu International Port Complex. “Our aim is to build our future. Development is not just physical development, but it must also accompany a knowledged economy.”

Nobody can deny the fact that the living conditions of the people have improved.

Modern technology has reached the rural villages.

The President took over a ruined and divided nation when he first assumed duties. He was able to defeat terrorism with the heroic Security Forces and thwart any attempt to divide the country.

You are talking about Fonseka, But I would like to point out that my father was imprisoned with no reason due to political hatred. The law should be equal to all disregarding the position.

The President could ensure law and order in the country after the defeat of terrorism.

The agricultural policy that we follow is that we must be able to produce the food that we need for our consumption. Banks in the USA are still going bankrupt even today. The policy that we are following is to improve national production.

The country’s exports have increased from the agricultural sector there is a 10 percent growth in exports. Our foreign reserves have improved considerably. The foreign currency flow into the country from Sri Lankans working abroad has increased. The rubber sector is showing great improvement. The President has made necessary provisions from the budget to facilitate the production and exports of value added rubber products to further strengthen the rubber industry.

Milk production has increased and this money flows into the villages. Farmers have been given a new lease of life and new avenues of income by the measures taken by the President.

Prof A V D S Indraratne has spoken about the country’s economic revival. This person is an economic specialist who knows how the economic growth rate was achieved and how the cost of living was reduced.

The President has initiated to provide more income avenues for the poor in the country. He knows that for a greater economic revival all aspects should be upgraded. About 300,000 youth will be facilitated to acquire skills development.

About 10,000 graduates will be provided jobs. About 1800 will be recruited to the banking sector. We have given a five percent salary hike and a large sum of money has been allocated for this task. All this money will flow into the hands of the public. Introducing a pension scheme for the private sector is a great achievement in Lanka’s history.

We have proposed to cultivate about 50,000 acres of abandoned estates in the plantation sector. Our youth will engage in this work.

The G20 countries attempted to control the global finance but all this was in vain. These countries have been unable to face the economic crises successfully. India and China are the rising powers in the world. The President never described our country as a small country, which shows our capability to reaching the top in the world.

Around Rs 29 billion has been allocated to provide drinking water for the people.

This figure was Rs 25 billion earlier I would like to point out to the TNA members that this is the only budget presented to uplift the conditions in the North and the East.

Harsha de Silva (UNP): I want to constructively criticize the this budget. I think that is the responsibility of Opposition members.

I can remember the days when I was a schoolboy we had to endure hardships during a particular regime. We did not have food or clothes. But the situation has changed since 1977.

Today I appreciate the great services rendered by President Mahinda Rajapaksa.

Sri Lanka has a population of 20 million. The economic recession is over now.

We must cultivate a better understanding between the Sinhala and Tamil people. The relief being provided by the Government to the people of the North and East is not sufficient.

You say that poverty has been reduced by 50 percent but as an economist I cannot understand how poverty has been reduced. Sri Lanka is not the second fastest growing economy in Asia. I urge the Government to reconsider the these statistics.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

S B Dissanayake - Higher Education Minister: Harsha de Silva mentioned in his speech that the statistics were incorrect. But how is it possible to change these statics when ILO, IMF, the World Bank, ADB and the Statistics Department of the UN is involved in formulating statistics.

I state with responsibility that the statistics are accurate. He said flour consumption is reduced by a insignificant amount. But he did not concentrate on the fact that when the economy of a particular country is developed fish and egg consumption etc increase. He did not focus on those statistics.

Karu Jayasuriya stated that our Government is weak in financial management. What I tell him is that under trying circumstances we have been able to reduce the level of poverty, increased foreign reserves, developed infrastructure etc. in the country.

This budget is not a fairy tale. It is designed to develop the nation. This budget is not an election promise. The wish of President Mahinda Rajapaksa is to increase the per capita income to Rs 460,000 which is double the today’s amount.

This promise is given to the people by a leader who always keeps his promises. Sri Lanka for the first time in its history has recorded an economic growth rate of 7.8 percent which is an increase. Is it not a wonder in Asia?

Harsha de Silva appreciated President Mahinda Rajapaksa as a leader who defeated strongest, most powerful and ruthless terrorist organization in the world.

That is the same person who promises his people to make his Motherland the wonder of Asia and develop the economy by two fold by 2016.

For the first time, as a solution to unemployment this budget proposes to grant skill development for 300,000 youth about 10,000 graduates will be provided direct employment.

Labour and Labour Relations Minister Gamini Lokuge: I have a doubt whether the Opposition has given up the budget debate. This is a development oriented budget.

This is the initial step towards making Sri Lanka a developed nation. Today Sri Lanka has become self-sufficient in rice.

The President took measures to increase the local production while providing leadership to the war. The fertilizer subsidy helped a lot in this endeavour. But still some opposition members say that the price of bread is high. They rely on bread at a state where the country has become self sufficient in rice production. Improving agriculture means bettering the lives of the farmers.

Today a pension scheme has been introduced for the private sector. A monthly pension will be granted for a person with 10 years minimum service according to this scheme.

The Bill in this regard will be presented in Parliament within two to three months. Even self employed people will be strengthened under this. It has also paid attention towards those who migrate overseas for employment.

The President has initiated the necessary action to put the country back on the development track. The conscience of the opposition member is playing on them over the comments they made in the past about the terrorist war. They thought the war would never end.

Gayantha Karunathilake (UNP): Disregarding party affiliations, we all appreciate that the war was ended. But when considering the situation after the war we cannot be satisfied. No benefit was given to the people.

Those days the Government said that the oil prices were increasing and this in return affecting all our goods. But when Global oil prices were rapidly decreasing this benefit was not given to the people. Many unfair taxes were imposed on them. The President asked to give him a stable Government. So that he would reduce the number of Ministers to 35 and would give this benefit to the people. Only a five percent allowance is given to the people.

Deputy Speaker Chandima Weerakkody takes the Chair: This is a minute addition to the salary. The people who hoped for a Rs. 52,00 increment have been disappointed. People after hearing the illusionary stories of the Ministers thought that a new era would dawn in the country.

Eventhough the Government claims that inflation has gone down, the prices of goods are very high when people go to the market.

Human Resources Senior Minister DEW Gunasekera: The Opposition approached the budget with venom malice and jelousy. None of the Opposition members touched on the budgets in aspects of our economic strategies and our story of success with fast performances.

When most of the developed countries registered minus growth in economy, we could secure an average growth of about 6 percent from 2006-2008.

In the current year, we have come nearer to 8 percent. These are massive economic and development achievements that we have recorded.

We shifted our focus to the rural economy and SME sector of the country. This is how we succeeded in economic achievements. We concentrated on developing the infrastructure of the country by utilizing our own resources and with the assistance of friendly countries.

We maintained our foreign policy in a prudent way. We did not become afraid of international threats of sanctions, pressures and blackmail we took bold steps at the right time.

Our aim was to develop a knowledge based economy and society. We are concerned with the quality of our university products. We do not want mere factories that produce graduates for employment.

They should be innovative and creative in their thinking. We want to upgrade the quality of university education. Accumulation of human capital through education is imperative. In this context, the university is the centre of generating and disseminating knowledge.

As President Rajapaksa said, we want our graduates to see the world beyond their horizon. Thus, the entire university system needs a complete overhaul a change and revamping.

S.B. Dissanayake Higher Education Minister: The Need of the hour is an ideological change in the people to lead the country towards development. Commitment, determination and ability of taking their own decisions without any fear should is vital to become a successful and strong people.

Then only we can make this country into the Wonder of Asia. We have ended the war.

The time has come for us to stand on our own feet. Then we can easily reach the target of becoming a powerful nation in the world. This is our Motherland and we must dedicated ourselves to uplift the country.

That is why the Government has undertaken a massive development drive to rebuild the country in the aftermath of the war. Higher education has been given priority in this budget. Rs. 600 million will be provided to upgrade university facilities to international level.

SM Sumauhiram (TNA): The appointments of Senior Ministers by the President is inconsistent with the Constitution. Appointment of senior Ministers by the President is consistent with the Constitution according to Article 45/46. The President is given powers to appoint Cabinet Ministers and Ministers outside the Cabinet from Members of Parliament.

The priority vision of the country always is reflected through the financial policies of the Government. But this budget did not consist of the foremost priorities of the Government so this is not successful budget.

The main priority of the Government should be the resettlement of the people in the North.

But nothing is mentioned in the budget in this regard. The promise given by the Government to reduce the number of Cabinet Ministers have not been kept with the appointment of 10 senior Ministers and 49 Cabinet Ministers. If the reconcilliation and resettlement of the displaced people are the major concern of the Government, please take immediate action to resettle these people.

Susil Premajayantha Petroleum Industries Minister: As a whole, the budget was prepared focusing on a set of targets to be achieved within the next five years. It has been targeted to increase the per capital income to US$ 4,000.

This move will help overcome poverty in the coming years. The UNP can not blame us regarding the salary hike of public sector employees. I would like ask the UNP as to how many jobs were provided to youth under the UNP regime of 2001-2004.

E. Saravanpavan (TNA): Nearly 300,000 people were settled in North and East but they are living without any facilities.

The water in the Iranamadu Tank is not adequate to provide water to Jaffna. The tanks that were used to store the rain water is used now to dump garbage. The problems in those areas have to be addressed.

The Tamils in the North and East are neglected. You have only earmarked plans but the people are still suffering.

Ajith P Perera (UNP): When the tourism industry is developed, the bio diversity of the country has to be given priority.

The Government has to preserve the forest reserves as well as wild animals. But it is pathetic to see a large tusker dieing in an accident when it was transported in a lorry by the Wild Life Department authorities. The allocations made for these areas through the budget is inadequate.

Ven. Ellawala Medananda Thera (UPFA): We know there were a large number of Sinhala families. There was a conflict raging in our country for three decades.

After the elimination of terrorism the Government’s aim is to develop the country.

Most of the people expect the prices of foods and beverages to be reduced and the salaries to be increased. But Government has focused through this budget to develop the country.

During the reins of King Parakramabahu the Great large scale developments took place in the country. We specially developed an irrigation culture to uplift agriculture. Even this Government is attempting to develop agriculture.

Ajith Kumara (DNA): This Government has taken an excessive amount of loans since 2005.

Elections for local Govt bodies in single day

Local Government and Provincial Councils Deputy Minister Indika Bandaranayake stated in Parliament yesterday that elections for all the local Government bodies will be held in a single day.

The Deputy Minister further said that the Town Council and Pradeshiya Sabha elections cannot be held separately due to practical reasons. Separate elections could be held for the Provincial Councils but as there are Local Government bodies throughout the country, it is practical to hold elections in a single day, he said.

Deputy Minister Bandranayake said that Provincial Chief Minister can call for a special election for the Colombo Municipal Council which is currently under a Special Commissioner but it was the intention of the Government to hold elections for all local Government bodies in a single day.

The Deputy Minister said this in response to a question raised by UNP MP Ravi Karunanayake.

New Deputy Speaker assumes duties

Parliamentary Corrs

Newly-elected Deputy Speaker and Chairman of Committees Chandima Weerakkody stated that he would committed to maintain the supremacy of the Parliament with the Speaker Chamal Rajapaksa.

He made this observation after officially assuming duties at his office in Parliament complex at 8.42am yesterday.

UPFA Galle District Parliamentarian Chandima Weerakkody was unanimously elected as the Deputy Speaker Tuesday.

The post of Deputy Speaker fell vacant after the then Deputy Speaker Priyankara Jayaratne was appointed as the Civil and Aviation Minister.

Speaker Chamal Rajapaksa, Chief Government Whip Dinesh Gunawardena, Minister Priyankara Jayaratne, Deputy Minister Geethanjana Gunawardena and many others participated at the occasion of Chandima Weerakkody assuming duties in his office. He assumed duties amid the Maha Sangha chanted Pirith.

Weerakkody is an Old Boy of St Alloysius College, Galle and Nalanda College, Colombo. He commenced his career as an Attorney-at-Law and later worked for five years as a State Counsel. Then he switched to politics and was appointed as a Member of the Director Board of Sri Lanka Rupavahini Corporation during 1999 and 2000.

He was elected as a Councillor in the Southern Provincial Council. He recorded the seventh highest number of preferential votes from the Galle District at the 2004 General Election. He was sworn-in as a Parliamentarian in 2009 with the death of Minister Amarasiri Dodangoda. He was again elected to Parliament at the 2010 General Election from the Galle District. After six months of his election to the Parliament he was unanimously elected to the post of Deputy Speaker.

Drilling for oil to be completed by Oct 2011

Parliamentary Corrs.

The drilling of oil wells in the Mannar basin will be completed by October 15, next year according to an answer tabled in Parliament yesterday. There is an agreement with Cairn Lanka (Pvt) Ltd and the Government in this regard, the answer said adding that the company is expected to drill three exploratory wells during the first phase of exploration asked to inform the House of the extent of land given to Cairn Company out of the total land explored, the reply said 3,000 square kilometers will be given to the company keeping accounts of the contractor company engaged in drilling are carried out under the Government of Sri Lanka.

Petroleum probe:

Positive results -Minister

The investigations carried out to find out the petroleum potential in the two sedimentary basins in offshore southern Sri Lanka have revealed positive results, an answer tabled by Chief Government Whip Dinesh Gunawardena stated.

”The satellite gravity data showed two negative anomalies and among them more westerly anomaly could be due to the presence of thick sedimentary rock according to investigation results. The presence of thick sedimentary rocks is a prerequisite for the occurrence of petroleum accumulations,” it stated.

It also stated that Petroleum Resources Development Secretariat was assigned the investigation and that there are Sri Lankan Scientists who take the responsibility of the information provided by the Secretariat.

This answer was tabled in response to a question raised by DNA MP Ajith Kumara.

We have simplified the tax policies - Minister Anura Priyadarshana Yapa

Ajith Kumara (JVP): The per capita debt has increased within the past five years. This is due to obtaining unlimited loans lcoally and internationally. Have you reduced the cost of living as a result of obtaining money? Have you given any jobs to the youth? Most of the State organizations incurred losses today.

Achieving development goals for this country is a miracle.

The people specially the Tamils have been oppressed. Today the Government is afraid of facing demonstrations and protests and they are being suppressed.

But you cannot hide the truth from the people. Please do not lead the country towards dictatorship.

Athauda Seneviratne (Senior Minister of Rural Affairs): Former General Sarath Fonseka was found guilty by Courts of law. That is why he has been imprisoned. There were certain demonstrations taking place urging amnesty to Fonseka. But how can amnesty be given him since so many prisoners are in the jail. Our economy was hampered due to the war for the past 30 years. But gradually the country is being developed due to the accurate and proper policies of President Mahinda Rajapaksa. The per capita income is rising while the economic growth rate is maintained at 7.8 percent.

Mohan Lal Grero (UNP):

Our Ven Medananda Thera mentioned about five pillars of comforts. The fifth pillar was not being indebted to others. Getting loans for development work has no problem, but the country should be able to endure this amount.

According to the agreement the Government signed with the IMF, the budget deficit in 2010 should be reduced to 7 percent and to 5 percent in 2011. This means that benefits given to the people and their welfare work should be curtailed.

I think we should consider more about education. I participate in a regional education summit in Indonesia. In this summit all countries agreed to allocate 20 percent of budgetary allocations for education. Today this amount is 1.5 percent in the country. I think we must take measures to achieve this rate.

Fisheries and Aquatic Resource Development Minister Rajitha Senaratne:

Bangladesh allocates more money for their education because the literacy in the country is low. We have a high rate of literacy and therefore we need not to spend that amount on our education.

Mohan Lal Grero continues (UNP):

Yes, I agree to that point. There is no need to allocate a large amount as in Bangladesh when considering our literacy. But there are so many improvements that should be made in schools.

Environment Minister Anura Priyadarshana Yapa:

Grero, MP said that the money allocated for education is not sufficient. The amount of money we spend on education is more than the amount mentioned in the budget. Various organizations are also giving us assistance for education. Those are not mentioned in the budget. Therefore, I would like to remind him that more money is given to education.

I must also note that, if the President did not follow a steady policy with regard to the war, today we would not be able to talk about any development work.

I pursuit of development, we have to increase our foreign investments. We have been able to create a clear change in the rural sector. We have improved the infrastructure of the rural areas. We have seen how the life conditions of the people improve when the road network improves and when the electricity reaches those households.

During past regime there was a plan to reduce public servants to 600,000. About 1.2 million public servants were there at that time. It is this Opposition that shouts saying nothing has been granted to the public servants in this budget. This Government is a people-friendly Government. We care about our people more than any thing else.

We are in the 21st century. At budget debates, nobody talks about the price of a kilogram of rice or sugar. Those are controlled by the market behaviour.

We have simplified the tax policies. We have also initiated environment-friendly approaches. The tax on hybrid vehicles has removed. These vehicles are free of environment pollution.

Lakshman Wasantha Perera (UPFA):

We must be thankful to the President for presenting such a people-friendly budget. This is a special budget that aims public welfare. Measures to strengthen local production, agricultural sector, university education and plantation sector are taken by this budget.

This budget has taken all aspects of the country into consideration. We have taken steps to improve our peoples computer literacy through 'Vidatha' centres 'Nenasala' centres.

Today Moragahakanda reservoir has reached its completion. This will be larger than the 'Parakramasamudraya.' The pride of this project goes to the public.

I think the workers in the apparel industry should be trained before they are employed. The President has also understood the importance of this move. That is why he has proposed to give vocational training to our growth. A large amount is also allocated to renovate our tanks and irrigational system. These moves will ensure a proper development.

Today the quality of the university education has been upgraded. Our Higher Education Minister endeavours a lot towards this. We have to appreciate those attempts without criticizing all the time.

P Rajathurei (UPFA):

The plantation workers have contributed immensely to earn a considerable foreign exchange to the country. They were not treated well in the past. I hope that they will be paid more attention by the Government.

The budget has increased its allocations for education and health. More priority is also given for infrastructure development. This is presented to make this country the Miracle of Asia. The facilities in schools and hospitals should be upgraded in estate areas. There is a gap between the poverty rate in estates and the whole country. Measures should be taken to reduce this gap.

Vijayakala Maheshwaran (UNP):- There are more than 86,000 widowed women as a result of the war. Thousands of people rendered disabled due to the war. The Government should provide facilities to those men and women. They are unable to earn their living and the Government should provide them with self-employment.

The resettled people have less facilities. The High Security Zones in Jaffna is a problem to the civilians.

Ramesh Pathirana (UPFA):- In response to Vijayakala Maheshwaran I have to say that President Mahinda Rajapaksa is striving to develop the North and East to provide better facilities to the people living there.

If you pay your attention you could see the A-9 road is opened and all the road network, are being developed.

There are mega projects launched in the North and East to pass the benefits of development to the people living there.

One challenge before us is to provide employment opportunities to the youth who complete their education. Rs one billion is allocated to provide the youth with computer and English knowledge to enable them to develop this nation.

Hunais Farook (UPFA):- This budget has plans to provide a large number of employment opportunities to graduates and nurses. In addition this budget has created an environment to encourage self-employment and also foreign investors to initiate their companies here.

Lalith Dissanayake (Health Deputy Minister):- Today when we consider the increase of payments to the employees in the public sector, around Rs 1,450 is increased nearly to all employees. Today the UNP request a salary increase of Rs 10,000 for the public sector employees but they sacked public servants who asked for a meagre salary increment.

Rajitha Senarathne (Fisheries and Aquatic Resources Development Minister):- We have to consider the situation today and those days to understand the reality. The Wall Street Journal stated that Sri Lanka has changed world public opinion that the terrorism cannot be militarily defeated. The "Mahawansaya" has it that King Parakramabahu fought the longest war in Sri Lanka for 14 years and won. President Mahinda Rajapaksa ended the 30 year terrorism.

The Opposition asks how would the loans that were taken from China to construct Hambantota Harbour settled. There are 100,000 ships pass 10 miles off Hambantota in the sea every year. If 10,000 ships of them come to Hambantota Harbour to get fuel the income will be US $ 500 million. Within three years we can settle the loan and the interests. Then the rest is the profit to our country.