PARLIAMENT

‘Debt Conciliation Board, link between customer, mortgage provider’

Sandasen MARASINGHE and Irangika RANGE

Speaker Chamal Rajapaksa presided, when Parliament met at 1 pm yesterday.

After presentation of papers and oral questions, the House took up regulations under Debt Conciliation Ordinance for debate.

Justice Minister Rauff Hakeem: Allowances for the chairman and members of the Debt Conciliation Board have been increased under this Act. The last revision of allowances had been done in 2005. Therefore, the chairman and members of the Board had been faced with inconviences and were under stress, since their allowances had not been increased during the last five years.

Their transport allowances have also been increased to facilitate their participation in Board functions.

This Board renders a great service by organizing meetings between the customers and mortgage providing bodies for faking action to settled default accounts.

Ravi Karunanayake (UNP): The entire country is in a debt trap. Innocent people in this country ultimately have to bear up all these burdens. The Supreme Court in Sri Lanka has given a ruling on the Headging deal. But the Government had overlooked the ruling given by the Supreme Court. The case was taken up at an International Court.

According to the ruling given by the International Court, Sri Lanka has to pay a sum of US $ 162 million to the Standed Charted Bank. Who was responsible for this massive loss?

If the Government had implemented according to the ruling given by Supreme Court in Sri Lanka, we could have saved a large sum of money within the country.

The officials who were responsible for this loss are now giving various explanations.

A.H.M. Azwer (UPFA): It is the UNP who destroyed the country during its regime. Many State institutions, including the Sathosa had collapsed under the UNP regime.

This Government had to bear the burden of settling loans borrowed by the UNP.

There is an unprecedented development in the country, including the North and East.

Our younger generation will reap many benefits from these large-scale projects. The UNP is no more. The party had already been divided due to clashes among the party members. Therefore, it is obvious that the UNP will be defeated in the forthcoming Provincial Council elections.

The military personnel were doing a great service to the nation overseas. One could see the services rendered by Major General Shavendra Silva.

What a massive service he was rendering.

Now the country is self-sufficient in rice. But during the UNP regime, rice was imported.

If someone was betraying the country, he should be brought to book. Now President Mahinda Rajapaksa was on the proper track to get Rizana released. Missions have been sent for talks with the family members who filed the case against Rizana.

Where are the children of the TNA leaders? They are studying overseas. They are leading luxurious lives, but innocent people are suffering here.

Ajith P Perera (UNP): Today, most of the people including the attorneys don’t have a clear idea about the Debt Conciliation Board.

The fact that the members in this House too did not have a clear idea about the Debt Conciliation Board was clear today.

There is only one Debt Conciliation Board functioning in the country and it is in Colombo. We should at least have one in each province.

We also should educate the people about this Board to provide relief to the people who gain loans.

At least, the matters pertaining to debt conciliation had not been taught to the attorneys.

At this stage, DNA MP Ajith Kumara brought to the notice of the House that there was no quorum.

The presiding member ordered for the quorum bells to be rung. Members arrived in the House.

A H M Azwer takes the Chair.

Thilanga Sumathipala (UPFA): The Debt Conciliation Board had been submitted with 622 cases within the first 8 months of 2010.

Medium-scale businessmen and rich persons were able to get the service of an attorney to solve their loan problems. But the poor people did not have that facility.

So, at least 6 or 7 provinces should have these Debt Conciliation Boards set up. We have to educate the public on how the services could be obtained.

I had a chance of staying a few days in New York, where I attended a few meetings with Major General Shavendra Silva. At these meetings, representatives of the international community were surprised to know that Major General Shavendra Silva had not been interviewed when the Channel 4 footage was prepared.

What I understood is that the International Community is not distanced from us.

Ajith Kumara (DNA): There are a large number of persons in remand custody who were not in a position to pay a small sum of money as fines.

ADJOURNMENT MOTION

Earlier issues due to technical problems and lack of rain - Minister Ranawaka

Power and Energy Minister Patali Champika Ranawaka, stated in Parliament that there was no power cuts as pointed out by certain politicians and media.

He stated that there was a crisis due to technical problems and lack of rainfall, but the problem had been completely solved by July 9.

The minister further said that if there had been such drops in water levels in reservoirs earlier, at least a 10 hour power cut would have been experienced by the public. He also said that if Kerawalapitiya and Norchcholai coal power plants were not initiated under the guidance of President Mahinda Rajapaksa, the public would have had to face a 10 hour power cut definitely by now.

He made this observation in response to an adjournment motion moved by UNP MP Dayasiri Jayasekara in Parliament yesterday.

Power and Energy Minister Patalai Champika Ranawaka: I have never said that we could supply electricity to India. A similar statement had also been made by late President J R Jayewardene.

There had been an electricity crisis, but it had been solved. But still certain politicians and media have made attempts to distort the situation and point out that there had been a crisis. Still there were power cuts, but the Electricity Board would give prior notice through the Lake House print media or by means of loudspeakers in rural areas. The prior planned power cuts for repairs and failures, had been due to accidents which were also pointed out by the media, cartoonists and politicians as due to inefficiency of the Electricity Board which was not true. The crisis in the electricity generation was solved by July 9.

The crisis had been mainly due to lack of rain. But earlier, if such a shortage was experienced, at least a 10 hour power cut would have had to be made. Had we not had mechanical problems, the country would have comfortably received the power supply.

By now we have provided electricity to 90 percent of the country, including areas in the North.

With the commencement of the Lakwijaya power station in early 2011, power generation capacity had been lifted to a higher level like never before in Sri Lanka.

Accordingly, the installed capacity of the power plants had now increased to 2700 MW. Currently, the peak power load in the country was less that 2000 MW. Therefore, taking the installed capacity of power plants into consideration, there cannot be a shortage of power.

The commendable situation occurred mainly due to establishment of the Puttalam Lakwijaya coal power plant and the Kerawalapitiya Yugadanavi combine cycle power plant during the Rajapaksa regime. In addition to those two plants, the Mahinda Rajapaksa government gave the initiative to construct the Upper Kotmale Hydro Power Plant after a long delay, during previous governments and as a result this plant would be commissioned by the end of this year.

At the beginning of 2011, there was ample water in the reservoirs in the catchments areas. During the first three months, adequate rain was experienced, enabling the smooth operation of power generation. At the beginning of April and the onset of South Western monsoonal rains, the storage of reservoirs were adequate to produce 775 Gwh of electricity, which was higher than in 2009 (278 Gwh) and 2010 (517 Gwh). Therefore the additional generation of hydro power during January to March this year, had no bearing on the current power crisis.

By the end of June, the hydro power storage in the reservoirs had reduced to 350 Gwh which was around 29 percent of the total capacity. Later, the capacity had dropped further to 290 Gwh. The current electrical energy requirements of the country was around 32 Gwh per day.

Taking this current requirement into consideration and the water levels in the reservoirs, this capacity would only be sufficient to cater to the power requirements of the country for less than a month.

Therefore if rains were not experienced within the next month, hydro power generation would not be possible. Hence not only would it be impossible to meet the power requirement during peak hours, it would also be impossible to meet the country’s daily electrical energy requirement as well.

There are 3 main reasons for the power crisis:

1. The reduction in South Western monsoon rains which provides adequate water to the reservoirs.

Taking into consideration the average amount of rains experienced during the month of June, there was a decline of 70 percent in rainfall this year. Generally, for a 30 year average Castlereagh received 631 mm of rains, but this time it was limited to 230 mm. Maussakale average was 530 mm, however it received only 170 mm this year.

This situation arose especially during the months of May and June.

The climatic changes round the world where rains were experienced in abundance during dry seasons and drought experienced during normally rainy periods, have become a disturbing reality. This phenomenon was amply experienced during this year.

Moreover monsoon rainfall was experienced not in the higher elevation areas where springs generate water which feeds the main reservoirs, but in the low lying populated areas. Meteorologists have cited the changes in the wind pattern for this difference. If rains were not experienced within this month, even providing clean pipe borne water would be an arduous task. Therefore, if we were to avoid a crisis situation, we need to use water sparingly.

2. Issuing of water for cultivation in the Yala season.

Even with the reduction in rainfall, with the influx of farmers seeking to cultivate their land after the war, adequate amounts of water had to be released to meet their agricultural requirements.

3. The inability to generate the anticipated power output from the Puttalam “Lakwijaya” coal power station and the Kerawalapitiya combined cycle power plant.

While the Lakwijaya power plant was scheduled to commence operation at th beginning of this year, it was expected to add 720 GWh of power to the National Grid during the first 6 months of this year, but due to th delay in commencement and the technical faults experienced, it was only able to add 265 GWh of energy to the National Grid. Furthermore, due to technical difficulties and the fuel supply related issues which arose at the Kerawalapitiya combined cycle power plant, of the 670 GWh power generation expected from this power plant, only 275 GWh of energy was generated. Hence between these two power plants around 850 Gwh of energy was lost. Furthermore, due to technical difficulties at the Embilipitiya Oil Fired Power Plant and the Kelanitissa Combined Cycle Power Plant, the total plant capacity had reduced.

Due to these difficulties and uncertainties and with the escalating power demand in the country, the CEB system control unit was forced to curtail power intermittently in a bid to prevent the entire country plunging into darkness. However, from the July 10, the CEB had been able to supply electricity without any disruption, due to the Lakwijaya Coal Power Plant generating electricity without hindrance.

The Ministry of Power and Energy who focused their attention on the escalating power demand around 2007, informed the Cabinet of an impending power crisis around 2010-2012. However, due to the power generation of the Puttalam Coal Power Station which was due to be added to the national grid in 2012 being operational in 2011, alternative power generation methods were abandoned.

Even with the reduction of water levels in the reservoirs, if the Lakwjaya and Kerawalapitiya Power Plants had operated according to plan during May and June, water levels could have been maintained at commendable levels, thus preventing the country from facing a power crisis. Furthermore, the government would have been in a satisfactory financial position with the low cost of power generation from these two power stations. I have informed the Ceylon Electricity Board to inform the public of any future power shredding ahead of time in the event of any technical issues that may arise at nay of these power stations.

The Kerawalapitiya Power Station is currently operating at full capacity as a result of the Ceylon Petroleum Corporation supplying them with the requirement of special fuel. The Chinese firm fixed the technical issues at the Lakwijaya Power Station. If the Puttlam Lakwijaya and the Kerawalapitiya Yugadanawi’ power plants operated according to plan in the future, there would not be an issue in meeting the power demand until the rains arrive. With these two power plants, the hydro power stations would only be required to operate around 2 hours a day to meet the peak demand, and the current water levels in these reservoirs would suffice to meet that requirement.

In the future measures such as, utilizing the water in the reservoirs sparingly, uninterrupted supply of fuel for the thermal power plants, resolving of technical issues of thermal power plants, implementing plans to optimally utilize the embedded generators and focusing people’s attention on ways of energy conservation was some methods that could be implemented to avert a future power crisis. In a bid to avert such a situation I have appointed a committee which consists of representatives of relevant Ministries and meets on a daily basis, to oversee the power generation process and avert future issues.

Dayasiri Jayasekera (UNP): The country was at a massive electricity crisis in 2002. We experienced an 8 hour power cut as a result of this crisis. Finally, we felt that we need more power plants. Norochcholai and Kerawalapitya power plants were initiated by the present government.

However, today, Minister Ranawaka was trying to show CEB off as a profitable institution. But we have heard that certain elements were trying to block the Minister. These days the people of this country experience regular power cuts. Who was responsible for this situation? It was very clear that the CEB was engaged in unannounced power cuts. So why was the government trying to conceal this fact? We want to know whether the government had vested the power of controlling Norochcholai Power Plant with the Chinese government?

A H M Azwer takes the Chair.

Sunil Handunheththi (DNA): I second the motion move by MP Dayasiri Jayasekara. The most efficient ministry keeps the people in this country in the dark, even without prior notice. But the matter was that this minister boasted of supplying power even to India. We had adequate rainfalls but he could not manage the water resources. He could show a profit, but now there was no adequate water.

Now the ministry has to resume to petroleum to generate electricity.

But when you showed profits you did not point out the debts and the maintenance charges. This ministry was a very pivoted institution to the public and I request you to protect it without putting the people into jeopardy.

J.R.P. Suriapperuma (UPFA): We need power for an industrial revolution. Electricity is the basic need of human beings essential for the country’s development.

The people must be educated on how to preserve electricity by minimising wastage.

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[Speaker to convey his decision today or tomorrow on hedging issue]

Speaker Chamal Rajapaksa

yesterday stated in Parliament that he would declare his decision today or tomorrow if a special statement under Standing Order 23 (2) could be made by a member on the hedging agreement as there were two cases pending in courts overseas in that regard.

He made this observation when the Leader of the House and Irrigation and Water Resources Management Minister Nimal Siripala de Silva objected to a special statement by DNA MP Anura Kumara Dissanayake.

Minister Nimal Siripala de Silva

stated that there were cases heard in this respect before courts in England and in Singapore. He added that a debate could not be made in Parliament as it would affect the decision of the case.

At this stage DNA MP Anura Kumara Dissanayake

stated that there was no case being heard before a court in Sri Lanka and there was no objection to discuss this matter in the Sri Lankan Parliament.

UPFA MP A H M Azwer

stated that Sri Lankan parties were involved in the case.

Opposition Leader Ranil Wickremesinghe

stated that if there was a case being heard before a court in Sri Lanka, the matter could not be discussed in the House.

He added that the matter of cases being heard in courts overseas, did not prevent as debating here on that matter.

UNP MPs Ravi Karunanayake and Ajith Perera also joined the debate.

Speaker Chamal Rajapaksa

stated that he would declare the decision today or tomorrow only if this matter could be debated in Parliament, after considering the submissions by both parties.

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[Govt to compensate PCs for removal of powers to levy BTT]

The government was to direct one third of the revenue drawn from the Nation Building Tax to Provincial Councils, Deputy Finance Minister Geethanjana Gunawardena told Parliament yesterday.

This would be as compensation for the removal of powers from provincial councils to levy Business Turnover Taxes by the 2011 budget, he said.

He said the government had taken action to remove the Business Turnover tax collected by the revenue Departments of Provincial Councils and amalgamate it with the Nation Building Tax Levied by the Central Government.

Accordingly, employers who worked at the revenue departments of the Provincial Councils have been transferred to other departments, the Deputy Minister said, adding that the government had proposed to absorb them into the Inland Revenue Department, but trade unions had been opposed to the proposal.

The Deputy Minister was replying in response to a question raised by UNP MP Eran Wickremaratne.

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[Election laws being violated - MP Ajith Kumara]

Ajith Kumara (DNA) Election laws were being violated by UPFA candidates and their supporters. state properties and vehicles of State institutions were being abused during election campaigns. Every political party has the freedom to engage in their political activities. The government should ensure this right.

J.R.P. Suriyapperuma (UPFA): Most countries in the world were in a severe debt crisis. Not only developed or underdeveloped countries, but also superior and developed countries were in a debt trap.

The welfare of the people had been cut off as a result of their debt burdens.

Parliament was adjourned until 1 pm today.