PARLIAMENT

Budget designed to encourage investments - Minister Wimal Weerawansa

Parliamentary correspondents

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

John Amaratunga (UNP): Government members asked to appreciate government measures as well without being pessimistic. But the one of the main functions of the Opposition is scrutinizing the operations of the executive.

Today, there are no employment opportunities for the youth. The number of Cabinet Ministers are increasing day by day. In the United Kingdom, the population is 61 million but the number of ministers is 23.

There are a new type of ministers appointed as senior ministers. They can attend Cabinet meetings only once in three months.

Water Supply and Drainage Minister Dinesh Gunawardene: This Opposition member is misleading the assembly. Senior ministers can attend Cabinet meetings at any moment.

John Amaratunga (UNP): The appointment of senior ministers are not consistent with the constitution.

Construction, Engineering Services, Housing and Common Amenities Minister Wimal Weerawansa: John Amaratunga talked of the Cabinet. The UNP Government had appointed a cabinet of 60 on December 19, 2001. There were 24 non Cabinet ministers. There are no provisions about non Cabinet ministers in the constitution. Do you say what Ranil Wickremesinghe did in 2001 was wrong?

The percentage of the ministers out of UNP members was 52.6. Now you are talking about relief measures in the budget and criticize it.

There are no relief measures granted for the public. This is the 65th budget presented after the independence. If the UNP could proceed with its policy in respect of the LTTE and if President Mahinda Rajapaksa could not win in 2005, today, the topic of 65th budget debate is entirely different.

There were budgets that abused the nation. But this budget is designed to encourage the nation to invest. In respect of the fiscal policy it is obvious where this budget direct the nation. The government imposes a CESS on all exports in raw and semi processed material to encourage value added exports.

The budget proposes to exempt high-tech equipment and machinery from duties and VAT at the Customs as industries depend on them.

the budget proposes to increase foreign exchange allowances granted to import raw gem stone from US $ 16,000 to US $ 50,000 per person to encourage gem and jewellery industry.

The budget has proposals to expand SriLankan Airlines and Mihin Lanka with new aircraft to increase the fleet to 30 by 2012. As an encouragement, those two airlines were exempted from all taxes for 10 years. Earlier, tax relief was granted to foreign companies and investors. Now, the situation has changed.

Graduates and youth will be provided jobs.

Pon Selvarasa (TNA): We do not interrupt the development process in the country. We have never followed such a policy. We think proper development is not possible without a fair power sharing system in the country.

Many parents have lost their children and many children have lost their parents. About 150 people had disappeared in Batticaloa district even after the war.

The Government said the poverty rate has declined in the country. A large number of graduates are without jobs.

Deputy Speaker Chandima Weerakkody takes the Chair.

Pon Selvarasa: Some schools have a threat of being closed down due to lack of facilities.

The Government has proposed a five percent increase in salaries and Rs 600 addition to cost of living.

Ruwan Wijewardena (UNP): I have a doubt whether the UPFA has distanced from leftist policies and embraced capitalism. This budget was presented aiming the Colombo business community.

The private sector is sceptical about the budget. The Government claims it to be a development oriented budget.

We cannot look towards only the East for foreign investment. We should look at the West also.

It is unclear how the Government would reach the Rs 986 billion revenue in the next year. Are we to borrow loans to put on weight to the existing debt in the country?

The Government servants were promised Rs 2,500 salary increment. Their hopes are dashed by this budget.

Mass Media and Information Minister Keheliya Rambukwella: The interest of the budget has been decreasing during past few years. When a budget is presented the Government says that it is the best budget in the history, while the Opposition claims it is the worst ever budget. The Opposition should analyze the budget in a different way without rejecting it as a whole. They should admire positive aspects too. Under this circumstances, the Government is pushed to say this is the best budget ever.

Many said Rajapaksa's policies would lead to a failed economy. But the country have never failed in the last five years. Some said we don't know to deal with the world. They said that the country would be isolated in the world.

The people created their mentality to accept that we were a failed nation. The situation was seen until 2005.

Even today, MPs like Harsha de Silva criticise the budget as an unsuccessful budget. Why cannot they point out at least a few positive moves in it, or why cannot they point out what moves are wrong and how they should be changed?

Ravi Karunanayake MP talked with hatred over the Hambantota port. He said at least a boat did not reach it up to now.

Many leaders in the past saw thousands of ships had been voyaging near the Hambantota port. But nobody could not initiate this project. It is our challenge today to make this port successful.

We have won many challenges. From the point of a failed nation we have moved to be a miracle of Asia.

Telecommunication and Information Technology Minister Ranjith Siyambalapitiya: Chandrani Bandara said at least 85 percent of the vote on Account for 2010 has not been accomplished. We take it as a compliment that as it has reached nearly 85 percent. The Budget is the future plan for the next year.

The Budget deficit is Rs 433.7 billion. We have to find this money from within Sri Lanka or outside. The budget deficit is a common phenomenon everywhere in the world. If we remain economically stagnated we don't need loans or donation. We want to develop the nation. We constructed the Hambantota Harbour, road network etc.

The Government's financial management is appreciable. The government will maintain the debts rate on par with developed countries.

The Opposition spoke of insignificant information or irrelevant matters. The Opposition should take up the matters widely. They are wasting public money here.

Today the UNP is shedding crocodile tears in respect of the public sector.

A Hunter, Samuel Baker who visited Sri Lanka in 1850 wrote in his book "The Rifle and the hound in Ceylon," that during the regimes of Polonnaruwa and Anuradhapura, a mighty nation has lived in the country. The had mastered in irrigation, construction of tanks and architecture.

The reality was that the brave nation had not had a proper leadership. During last few years, it had the proper leadership.

Manusha Nanayakkara takes the chair

Parliamentary Affairs Minister Sumeda G Jayasena: The government has taken initiatives to develop the road network in the country. Earlier it took about six and half hours to go to the Moneragala District from Colombo. Today it takes only 4 hours as the roads are developed.

The Government has absorbed a large number of graduates to the Public Sector. It will continue recruitments.

S Yogeshwaran (TNA): The people in the North and East have many hardships. The salary increment made by this budget is not sufficient. The prices of essential goods are very high.

The government is constructing cities in the South without constructing houses for the resettled people in the North and East.

Sajin Vass Gunawardene (UPFA): Construction of 650,000 houses funded by the Indian government will commence within the next 20 days. It was apart from the many other facilities and houses granted to the people by the Government.

Range Bandara (UNP): The government appointed ten Senior Ministers. But no power has been delegated to Senior Ministers. These Ministers will also not be provided with facilities. Senior politicians who rendered a yeoman service to the country have been disregarded.

J R P Suriyapperuma (UPFA): The President presented the Budget which is a plan to develop the country for the next five years. We need to be visionaries to foresee the future. When the whole world was faced in a financial crisis, it is Yuan in China that stood stable. That is why the President decided to go hand in hand with China. The country achieved an economic growth rate of 7.8 percent. It is a significant achievement. The President wants to help the people achieve their aspirations. He prepared a road map for the next century. A massive development drive takes place. This will pave the way to become Sri Lanka as a country in the world.

Chandrani Bandara (UNP): This is not a Budget to develop the country. This will lead the country into a jeopardy. The Government promised to fulfill pledges through the last year's Budget. The Government has not done anything.

It was the UNP Government that carried out remarkable development projects including Udagama concept, Mahapola which will not be forgotten by the people.

Water Supply and Drainage Deputy Minister Nirupama Rajapaksa: No other leader in the country has followed economic strategies to bring development equitable to all areas in the country. The main objective of this budget is to reduce unemployment and inflation, and to develop infrastructure in the country.

Today, Sri Lanka has become a stable nation. The unemployment has dropped to 5.5 percent. The access to drinking water has reached a high percentage. The paddy farmers suffered earlier for not being able to sell their paddy. Today, farmers are benefited by their agricultural products.

The high fertilizer prices were barriers for their progress. The fertilizer subsidy has helped them a lot.

Tourist zones are being carved out in the North and the East as well as many key areas. This will promote tourism in the country.

The Budget has also paid attention for the education sector. Upgrading university education has given high priority by the Government.From the Magampura port commissioned lately about 25,000 job opportunities will rise. These jobs will reach the unemployed poor in Hambantota area.

The President who had been the Labour Minister has high concern over the difficulties of the public servants and therefore given possible concessions to them.

A H M Azwer takes the Chair.

Sajin Vaas Gunawardena (UPFA): Today, when the Budget is being debated the seats of the Opposition are vacated except one seat.

There is no member from the UNP and no member from the JVP. The Opposition looks at this Budget with hatred and jealousy. I heard that some members in the Opposition are expressing that if they could propose this kind of a budget at least during 2001-2003 period, they could have maintained their power.

Yesterday, Harsha de Silva MP took a great attempt not to talk about the Budget. What he revealed was the statistics. The statistics are different from the Budget.

He said we cannot think of development without letting globalization. Who says that we are aloof from globalization. We go parallel with globalization, but we have given prominence to our local production. Building national production and private sector is our aim.

Some countries depend upon the service sector. But this is not a good option. We improve our service sector but don't depend solely upon it.

By comparing the amount spent on health and education from 2001-2004, there is a huge increase during 2005-2009. We carry forward the Mahinda Chinthana policy then depending on any other agent or actor.

Justice Minister Rauff Hakeem: This is the first Budget after the second term of office of the President.

This is my maiden speech after joining this administration to support the 18th Amendment to the Constitution. We have taken a very pragmatic decision to support this administration for national interest having concluded the national conflict in a victorious manner.

The manner in which the war was fought showed that it had to go through many hardships and challenges.

The President hopes to make this country the hub of air, shipping, energy, and knowledge in Asia.

We are in an important geopolitical situation. It is not an easy thing to chart our international relations successfully. Our President has followed a strategic policy and we see that he has succeeded in it.

It is not only the infrastructure activities that will lead to reconciliation of the country. But we have to commit with zeal towards reconciliation and national unity. With cooperation and necessary dedication I am sure that we can achieve national unity and cultural integrity.

SLMC, in taking this decision has taken a pivotal role to cater national needs of the people.

I am sure that the President will pay heed to our proposals. And we will address the grievances of our people.

A large sum of money is allocated to the legal sector and we expedite the delayed court cases and legal procedures.

Thalatha Athukorala (UNP): The stories laid down by the Budget are illusionary. This is a Budget presented to cater to the needs of the World Bank and the IMF. No concessions are given to the people and their welfare is curtailed.

This country only proposes a three year plan. It also says the poverty rate has decreased in the country. The President said he will reduce this amount to five percent.

I would like to know the data used to calculate these figures. According to my opinion these statistics are not true.

The Government said that they would appoint only a less number of Ministers. But in reality the number of Ministers has exceeded even the last list of Ministers.

This Budget has proposed a two rupees increase in the international call rates.

One of the main means that we get foreign exchange is through those who have employed in overseas.

This increase will affect those who work in the Middle East countries. The Government should be more careful before imposing such unfair prices.

Ports and Highways Deputy Minister Rohitha Abeygunawardena: The speech of Thalatha Athukorala shows her affection to us. We see a green light and we hope that she will be seated in our side when 2012 Budget will be presented.

Nobody had confidence about their lives during the days of terrorism.

Ports and Highways Deputy Minister Rohitha Abeygunawardena: It is the UNP which betrayed this country to the LTTE. Now it is revealing how our soldiers has been harassed by the LTTE. The LTTE killed and burnt some of our war heroes.

Here is the only Government that fulfil the needs of Security Forces. The Government has allocated a huge amount of money for the wellbeing of the Security Forces. The country now marching towards the development. Large scale of development projects such as airports, power stations, harbours and irrigation schemes are being carried out. We have taken measures to eliminate illicit liquor and drugs from the country. This will pave the way to make this a virtuous country.

Vijitha Herath (JVP): This Budget has been identified as a one introduced to reawaken the nation. But the proposals included in the Budget will pave the way to destroy the nation. Any foreign investor can commence business in anywhere in Sri Lanka.

Today, fishing industry in the Negombo lagoon has been destroyed with the operation of sea planes. Fishermen undergo many hardships due to this project. Due to this nature of programs, the local production will be destroyed.

Tissa Karaliyadda (Child Development and Women's Affairs Minister): It is very important to give due recognition to the youth. This Budget is presented to address the issues pertaining to the youth. It has already been shown that our young members have a good vision.

A peaceful environment is prevailing in the country now. This situation will pave the way to attract more investors.

The Government has undertaken to provide many infrastructure facilities to create conducive environment for the investments.

The agriculture sector has been given a boost. This will make our country self-sufficient shortly.

Manusha Nanayakkara (UPFA): Steps have been taken to improve the national productivity. Tourism sector which is one of the two major income earner will be developed through this budget. This will create more job opportunities in the country.

Sudarshani Fernandopulle (UPFA): I see here the Opposition members criticize this Budget with malicious intention. The same persons have said that the servicemen captured Pamankada when really they captured Alimankada (Elephant Pass).

Electricity is provided to more than 85 percent of the population, specially to the people in the Estates sector. The access to drinking water, road network, telecommunication facilities etc have been increased.

This Budget is a foundation to reach the goal of reducing poverty to five percent by 2016.

Sarath Weerasekera (UPFA): Samanthiran yesterday said that Tamil people in Kilinochchi were not allowed to light lamps at their religious festivals. But I want to remind him that Sinhala people were not allowed to go beyond Vavuniya during the last three and a half decades. The Sinhala people did not interrupt their chariots at their Hindu festivals. I think he attempted to damage the image of our country by making false remarks at a moment when there were a few foreign dignitaries as guests in Parliament.

Although the LTTE terrorism is eradicated in Sri Lanka it is still functioning overseas. A statue of Thamil Chelvam is erected in France. This organization still functions in America. Under such a situation we should have a strong forces to fight for our defence overseas.

S C Muthukumara (UPFA): The people in our country has given the President a mandate so massive that there would not be a leader who can surpass that mark.

Concentrating on the rural area development the road network has been developed. At least one or two kilometres in each village in the country is concreted.

Ruwan Ranatunga (UPFA): The Government has reduced the poverty in Sri Lanka.

The Government's objective is to increase the per capita income to US $ 4,000.

Deputy Speaker Chandima Weerakkody takes the Chair.

Dayasiri Jayasekera (UNP): According to the UNP point of view this Budget is one that should have been presented by the UNP. It is a good Budget according to the open economy policy of the UNP. But it is contradictory with your vision.

The increase of cost of living has affected the ordinary people a lot. The inflation of the country has gone up.

Today the plantation sector workers are unable to have all three meals of the day. They just take a cup of plain tea and go to work.

The income level of people has raised by 37 percent. But the problem is the expenditure. It has gone up rapidly.

Take the plight of the university lecturers. They demanded a salary hike since 2008.

Even the Higher Education Minister repeatedly admitted that this amount should reach at least Rs 200,000. But only 25 percent allowance is given to them.

To continuously receive this allowance they should publish their researches in accepted international journals.

I ask what the internationally recognized journal is to publish a book on the Sinhala language.

Budget aims to build local economy

A H M Azwer (UPFA): A point of order Sir. MP Dayasiri is using the cell phone inside the House to give his live speech to the media. This is against the Standing Orders.

Jagath Pushpakumara,Coconut Development and State Plantation Minister: He is using the cell phone and we object to this. This is against the Standing Orders.

Deputy Speaker Chandima Weerakkody: Members of the House are not allowed to play the recordings in the mobile phones. They cannot use mobile phones to give live recordings of the Parliament to the media.

Dayasiri Jayasekera: This is the speech made by the President and what I was playing was the web audio.

Dinesh Gunawardena, Water Supply and Drainage Minister: I request you to order the Sergeant-at-Arms to confiscate the cell phone of MP Dayasiri .

Deputy Speaker Chandima Weerakkody: I order to hand over the mobile to the Secretary General of the House and to continue your speech.

A H M Azwer (UPFA): MP Dayasiri brought an alien product into the House and this is a clear breach according to the Standing Orders. Therefore it should be confiscated.

Deputy Speaker Chandima Weerakkody: That item was handed over to the Secretary General by the honourable member. Therefore that matter does not arise.

Sriyani Wijewickrema (UPFA): This is a people friendly Budget.

A H M Azwer takes the Chair.

Sriyani Wijesekera (continues): This is a Budget that builds up local economy and production in the country. When the income level rises, naturally the cost of living too goes up.

The country was suffering from terrorist activities when the President took the responsibility of the country. With his brave leadership we could put an end to this suffering. Measures are taken by our Government to distribute electricity to all by 2012.

The problem of drinking water will be solved 100 percent within next few years.

The harvest from the agricultural sector has been increased and even the people in the North and the East are more inclined towards agriculture. The fertilizer subsidy has helped to this improvement to a great extent.

Mohan de Silva (UPFA):

UNP MP Dayasiri Jayasekera completely misled the House. He said that graduates will not be provided with employment opportunities. But the Government has already decided to provide 10,000 jobs to graduates in various sectors.

The country is growing fastly now. Due to the far sighted economic policy, the country achieved 7-1% economic growth rate in the first quarter of this year. The per capitaincome has been increased to US $2500.

The unemployment rate was 8-5% when President assumed duty in 2005. Now it has been brought down to 5%. This is a remarkable achievement.

The House adjourned until 9.30 am today.

Stubborn MPs should see Parliament doctor

Speaker Chamal Rajapaksa yesterday said that all MPs who create nuisance in the House should better consult Parliament, doctor.

The Speaker made this observation when several Government MPs were creating disturbances during the question times. When the Opposition MP was continuously disturbed, the Speaker said that these trouble makers should go to the medical room in downstairs and meet the doctor there.

Chief Government Whip Water Supply and Drainage Minister Dinesh Gunawardene: There is an ayurvedic medical centre too.

UNP MP Ravi Karunanayake:

They would get better and faster, relief if we can provide them with an ambulance too.

Kallady Bridge will be completed by 2011

Economic Development Deputy Minister Lakshman Yapa Abeywardena yesterday said that the construction of the Kallady Bridge will be completed by September 2011. Minister made this observation in response to a question raised by UNP MP Dayasiri Jayasekera. The construction is carried out by the State Development and Construction Corporation.

The estimated cost of the construction is around Rs 900 million and a sum of Rs 150.28 million has been spent so far. He added that the Japan International Corporation Association has given a Rs 848.33 million loan for the construction.

Answering to a question about the handing over of the tender, the Deputy Minister said the State Development and Construction Corporation and Simplex India have submitted tenders worth Rs 847 million and Rs 3,397 million respectively and contract was handed over to lowest bidder.