PARLIAMENT

'Credit card frauds have considerably increased'

Irangika RANGE and Disna MUDALIGE

Speaker Chamal Rajapaksa presided when Parliament met at 1.00 pm yesterday.

After the presentation of papers and oral questions, the House took up three orders under the Registered Stock and Securities Ordinance, Order Under the Finance Act, Regulations under the Import and Export Control Act, Resolution under the Customs Ordinance and Regulations under the Payment Devices Frauds Act for debate.

Education Minister Bandula Gunawardane:

During the recent past, frauds related to credit cards had increased considerably. There are 60,228 local credit card holders and 7,32,134 global credit card holders in Sri Lanka. The total number of credit card holders amount to 792,362. The value of these credit cards is estimated to about Rs 32,054 million.

From among this amount, the value of local credit cards is comparatively low, which amounts to Rs 911 million. The rest of the Rs 31,143 million comes from global credit cards.

The monetary exchanges within the country and internationally have increased rapidly due to globalization.

Deputy Chairman of Committees Chandrakumar Murugesu takes the chair

John Amaratunga (UNP)

These regulations and orders were not approved in the consultative committees.

Water Supply and Drainage Minister and Chief Government Whip Dinesh Gunawardena:

It has been agreed at the Party leaders meeting that these regulations and orders need not be approved by the Consultative Committees.

Bandula Gunawardena (Continues)

With these changes taking place in the country, regulations are brought to the legal system to prevent financial frauds.

With the conclusion of the war in the country, the money that has been exchanging locally and internationally, had increased considerably. Therefore strengthening of our legal system to face credit card frauds is timely.

One of the major achievements of the country was that the interest rate on bank loans, could be lowered to a single figure. This is a great achievement when compared to other developing countries. Due to this interest loan rate reduction, the public had been able to pay their debts without paying high amounts of interest. The decision taken to decrease interest rates is one of the main progressive factors towards the economic stability of the country.

Another regulation was brought today regarding the import of vehicles. During the last budget, taxes regarding electronic and hybrid vehicles were lowered up to 38 percent. However, during that period, we were unable to pay attention to the cylinder capacity of the vehicles. Therefore the import of not only environmental friendly hybrid vehicles, but also vehicles with larger cylinder capacities had increased. Today regulations are brought to rectify the mistake.

Dr Harsha de Silva (UNP): The UNP had pointed out in detail on many occasions that the proposed Private Sector Pension Bill was not for the welfare of the people, but for the benefit of the Government.

The economy had been administered and managed properly during the UNP regime. The present Government had already shown its incapability in managing the economy. The Government has taken a number of bank loans nationally and internationally so far.

The debt servicing payments have increased due to the vast number of bank loans obtained at high interest rates by the Government. The debt servicing payment has been doubled in 2010, compared to that of 2009.

Sri Lanka had also to pay nearly US $ 65,000 million bank debt with an interest rate of 8.5 percent to the HSBC by 2012. The Government has also to pay nearly US $ 80,000 million as loans under the hedging deal. We could just imagine the future of Sri Lanka. The entire economy would collapse in the near future. Foreign remittances and export earnings too will be used to pay back foreign debts.

Health Deputy Minister Lalith Dissanayake: The Government had received many foreign grants from various countries. These grants have been invested for the massive development drive in Sri Lanka. Today we experience huge development projects like the Hambantota harbour, Mattala airport and the Kokavil transmission tower.

Foreign countries have admired and accepted the ongoing development process in Sri Lanka. That was why a number of foreign countries were coming forward to provide foreign grants and loans to Sri Lanka.

Our policy was to provide relief to the common man. The Government has imposed taxes on super luxury and luxury items, while removing taxes on essential items consumed by the ordinary masses.

The Government has also brought peace to the country.

Now the people are living happily.

Sunil Handunnetti (DNA): The two third majority in Parliament was nothing big compared to the people's real power. The Government could not present or approve anything as they wish without considering or giving priority of place to the peoples power.

The Government has failed in managing the economy. When the Government needs money, the Treasury Secretary is ordered to impose taxes, while innocent people had to bear up the difficulties.

The Government is at stake due to obtaining many foreign loans. What has really happened to this money? It did not matter if the Government utilized the money for the uplift of the economy of the country.

But it was not happening. Already 400 schools have been closed down due to the lack of teachers and infrastructure facilities. The Government should make immediate efforts to use these foreign loans for the betterment and economic development of the country.

Social Services Minister Felix Perera: It was the Opposition who opposed the private sector getting pensions. The JVP had misled the private sector employees and brought them on to the streets against the pension scheme.

Actually, this pension scheme was more beneficial to the private sector employees who contributed vastly to the national economy.

The Government had brought this scheme considering the future requirements and wellbeing of the private sector employees. The Government was fully committed to protect the private sector employees and fulfill their requirements in a responsible manner.

Construction, Engineering Services, Housing and Common Amenities Deputy Minister Lasantha Alagiyawanna: Today the real national policy - the 'Mahinda Chinthana', a programme for the future had already been presented to the country. We are working forward to making it a reality.

The Opposition had tried to create a phobia among the people with regard to obtaining of loans. We urge the Opposition to give its positive contribution for the betterment of the country. This is the Government which takes decisions with thoughts about the future of the country.

Ravi Karunanayake (UNP): The Government had formulated the private sector pension scheme on the directives of the IMF. Today the Government was dancing to the tune of the IMF.

The Government had asked the people to tighten their belts, following and accepting the conditions of the IMF. Roshan Chanaka's death was a result of this deal between Sri Lanka and the IMF.

Transport Deputy Minister Rohana Dissanayake: There are 20 million people in this country. Mobile phone connections in the country amounts to 15.7 million. Moreover, there were 5.3 million land phone connections. So, the country was now heading towards a new journey.

In our development process, we have also ensured a spiritual development and a disciplined society. We have not pursued an open economy without control. We have retained our core values in our pursuit for development.

The importation of vehicles to the country, had rapidly increased. This was a positive sign of the improvement of the people's income status.

Ajith P. Perera (UNP): We have to admit that the regulations brought about regarding credit cards was a timely and important move.

Various banks were charging different amounts from credit card holders. There were considerable gaps in these amounts. There was no proper control over this issue and ultimately the customers are faced with untold injustices.

The private sector pension scheme had been presented with IMF influence. The Labour Ministry had not looked into this Act in a cautious manner.

Nishantha Muthuhettigama (UPFA): As a Government, we had a duty to ensure the financial rights of our people, specially regarding the use of credit cards. There were many incidents during the recent past over credit card scandals.

Even our Parliamentarian V.K. Indika had been a victim of such a credit card fraud last April. Therefore this was an important move of the Government to prevent such incidents recurring.

Livestock and Rural Community Development Deputy Minister H.R. Mithrapala: The Government was making a huge effort to uplift the milk industry in the country.

It was a promise made by the Government during the last budget that it would purchase a litre of milk for Rs 50. I am happy to say that we have fulfilled this promise today. Milk was being purchased by the Government for Rs 50 per litre now. According to the Mahinda Chinthana policies, we hope to make this country self-sufficient in milk in another five years time.

Sujeewa Senasinghe (UNP): Most of the Government members attempted to depict that the economy of the country was flowing in the direction of success.

The public would have not protested against the private sector pension scheme, if it was presented in an employee friendly manner without deceiving them.

However, the proposed Act was just aiming at IMF aid. The Government had no genuine feelings over the private sector employees.

National Languages and Social Integration Minister Vasudeva Nanayakkara: The Government had continuously been strengthened from the elections held recently. Therefore, there was no point in elaborating over and over again that the public had repeatedly accepted the policies of the Government.

The private sector pension scheme would not be withdrawn, but would be presented with amendments.

This is my personal view of the pension scheme and various people may hold various perceptions regarding it. The fear psychosis created due to this pension scheme was based on misconceptions.

It was unfortunate to see that even the UNP had joined in promoting those misconceptions. Since 2005, this Government had not shot at any protest. The JVP should be responsible for the death of the youth in the Katunayaka Free Trade Zone. They induced the police by throwing stones at them.

Finance and Planning Deputy Minister Geethanjana Gunawardena: On behalf of the Finance Ministry, I would like to thank all the members who joined in the debate today.

I also wish to thank the officials who came to Parliament today to assist with relevant data and information throughout the debate. This Government's path is a people friendly path and the public has embraced it in full.

In the economic path we have taken, we have been able to increase the exports of the country.

Deputy Speaker Chandima Weerakkody takes the Chair.

Three Orders under the Registered Stock and Securities Ordinance, order under the Finance Act, Regulations under the Import and Export Act, Resolution under the Customs Ordinance and Regulations under the Payment Devices Frauds Acts were approved in Parliament.

The House adjourned until 1.00 pm today.

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'Heeding public opinion President withdrew private sector pension scheme'

Productivity Promotion Minister Lakshman Seneviratne stated in Parliament yesterday that the President had decided to withdraw the Private Sector Pension Scheme by heeding public opinion even though he had got two thirds power in Parliament.

The Minister was responding to an adjournment motion moved by UNP MP Joseph Micheal Perera. No DNA MP was present in the House when the adjournment motion was taken up.

Joseph Micheal Perera (UNP): I request the Government to conduct a comprehensive investigation into the clash at the Katunayake Free Trade Zone which deprived the life of a youth, which was an unfortunate incident.

Compensation should be paid to the injured and killed people from the clash. The Government should look into the root cause of the incident.

The Gratuity Act was introduced by the UNP. The ETF was also introduced under the UNP regime. Money for heart surgery and scholarships for school children were being provided through the ETF. The private sector pension scheme has been a lie and was misleading the private sector employees. There was nothing beneficial for the employees.

Sujeewa Senasinghe (UNP): The Government had withdrawn the proposed private sector Pension Bill due to pressure of the people. We need to find out that by whom the order was give to shoot the employees.

The Government must take action to pay compensation to those who were killed and those injured during the incident.

Sports Minister Mahindananda Aluthgamage: We had made a promise that not a cent of the EPF or ETF would be touched.

The Government was fully committed to protect the people's savings. It was the UNP who tried to abolish the private sector pension scheme during its regime.

It has been proved that the UNP was against the giving of relief to private sector employees. A lot of attention was focused on the death of Roshen Chanaka.

The hospital medical staff made their maximum contribution to help save his life.

Productivity Promotion Minister Lakshman Seneviratne: Introducing the pension scheme for private sector employees was very important. We tried to introduce it with the necessary amendments. The Government was ready to listen to the people, although it had 2/3 majority in Parliament.

State Resource and Enterprise Development Deputy Minister Sarath Kumara Gunaratne: It was the JVP who should take the responsibility for the death of the youth. All MPs from the Gampaha District, had discussions with relevant parties of the Free Trade Zone regarding the Bill.

After several discussions and consultations with the President the Free Trade Zones employees pension scheme was removed. Even though the FTZ employees were exempted from the scheme the JVP took them on to the streets.

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Rs 44,840 m earned from taxes on essential items

The government has earned a tax revenue of Rs 44,840 million from taxes imposed on nine essential items imported to the country in the year 2009, a document tabled in Parliament said yesterday.

The aforesaid tax revenue had been earned from duty and all other forms of taxes imposed on imported items such as milk powder, gas, sugar, dhal, onions, potatoes, rice, canned fish and petroleum.

Accordingly, Rs 6,760 million had been earned out of taxes and duties on milk powder, Rs 3,570 million from gas, Rs 7,490 million from sugar, Rs 810 million from dhal, Rs 3,490 million from onions, Rs 2,220 million from potatoes, Rs 410 million from rice, Rs. 1,010 million from canned fish and Rs 19,080 million from petroleum imports, according to the document.

Finance Deputy Minister Geethanjana Gunawardena tabled the answer on a question raised by UNP MP Ravi Karunanayake.