Budget 2012:

'We have achieved targets entrusted to Ministry'

Sandasen Marasinghe, Irangika Range and Disna Mudalige

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 am, on Saturday.

After presentation of papers and oral questions, the House took up the Committee Stage debate on the Appropriation Bill 2012 for the third alloted day.

The committee took up the finance head of the Economic Development Ministry for debate.

Kabeer Hashim (UNP): We have reservations about the economic policy followed by this government. The Economic Development Ministry has a responsibility to explain the economic policy pursued by this government. The government is following an extreme neo liberal economic policy.

The government imposed a cess tax in 2009 to encourage local production and it was removed in 2010.

Tourist arrivals to Sri Lanka are not satisfactory even though the government tries to promote it.

Lakshman Seneviratne (Productivity Promotion Ministry): But what have you got to say about the statement by the National Geographic Magazine that said Sri Lanka has been named among the top six countries as a travel destination. What does it mean honourable member?

Kabir Hashim (UNP): It is useless promoting the tourism industry while destroying the culture of the country.

Health Minister Maithripala Sirisena: The Economic Development Ministry is a new concept of this government led by President Mahinda Rajapaksa. The ministry under Minister Basil Rajapaksa has taken the country on a novel path to development.

Now Kabir Hashim spoke of the economy and I have a doubt whether he is a UNP member. He made contradictory statements about the UNP policy. He spoke of the tourism industry, farmers, economic policies, and local productions.

You know under what regime the farmers committed suicide. Did the UNP think of local production. Who introduced casinos to Sri Lanka and during which regime did we find HIV patients in Sri Lanka. The government is providing all relief to the people through the Samurdhi programme.

He spoke of farmers. We are encouraging and promoting agriculture. Now farmers are not committing suicide. Why don't you find out the price of paddy? Farmers get a good price for their paddy. The private sector is now exporting paddy.

When we consider road development, this ministry made a tremendous contribution to develop the road network. If you need to see development go outside Colombo. We can say that it is the government under the leadership of President Mahinda Rajapaksa which has made the most significant contribution since 1948 in developing the road network. So I request the UNP and Opposition to put aside their envy and malice to see the massive development projects in various spheres in this country. The UNP said this government is following the extreme end of neo liberalism. They don't have any moral right to talk about this as we never promoted super classes as they did under their regime.

Dr Harsha de Silva (UNP): What is economic development. You can say the economy in developing when the economic growth rate records six or seven percent. Theoretically, it is correct. But if living standards is not uplifted, we cannot say there is development.

Economic Development Minister Basil Rajapaksa: My ministry is attempting to develop the rural areas and uplift the living standard of the people.

Child Development and Women's Affairs Minister Tissa Karaliyadda: Our past political history records that certain politicians made various promises to the voters.

But our President encouraged the public to develop home-gardens to make the country self-sufficient in food and provide a healthy diet to them.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair: There is a big contribution on the part of the public to the Divi Neguma programme. Our country must move with the modern marketing changes, so that it can be made self sufficient. The Divi Neguma Programme was introduced to support this idea. It has also helped empower women.

Neomal Perera (Foreign Affairs Deputy): As the one million home garden development programme was successful last year, this budget has made provision to develop 2.5 million home gardens under the Economic Development Ministry. The people are provided provisions to develop 2.5 acre home gardens. These programmes will be a model to the entire world to overcome the food crisis.

The road network, health, rural roads and many other programmes are implemented under the Gama Neguma Programme. More than Rs. 13,100 million is allocated for these programmes. We will witness how the people will pay their gratitude to the government when an election is held. But the Opposition is speaking with malicious intention.

Gayantha Karunathilake (UNP): We are debating on the finance head of a powerful ministry. But I appreciate Minister Basil Rajapaksa as one who takes a great effort to perform his duties.

The Samurdhi Ministry which was a different ministry earlier come under the Economic Development Ministry. According to Samurdhi statistics it is clear that there are around 7.5 million people faced with poverty.

Child Development and Women's Affairs Deputy Minister M.L.M. Hisbullah: I am very happy to have the opportunity to work with Economic Development Minister Basil Rajapaksa to develop the East. He is dedicated and committed to develop the nation. A large amount of money has been allocated to develop schools in our areas. Toilet and sanitory facilities have been developed in hundreds of schools.

Child Development and Women's Affairs Deputy Minister M L A M Hisbullah (continues): There is massive development in the North and East. The Economic Development Ministry is carrying out most of these projects. I express my gratitude to the Economic Development Minister and the staff of the ministry for the development work being carried out in the Eastern Province.

Consumer Welfare Senior Minister S B Navinna: This is a budget which has paid first hand attention to rural development. It has allocated sufficient money for health, education and social services.

The President's budget proposals have long-term development plans and he does not persue temporary solutions to problems. This is a people-friendly budget despite the false criticisms of the Opposition. The Opposition always criticizes the initiatives of the government without analysing the good and bad.

Today people are enjoying the dividends of development. 'Divi Neguma' is one of the main programmes that we initiated to uplift the living standards of the people. Successful programmes have been implemented at district level for infrastructure development.

Dayasiri Jayasekara (UNP): This is the ministry where all powers are concentrated. The target of this government is to make this country the Miracle of Asia by converting it to be the hub in five main categories. However, this target is unrealistic with the government's present policies which discourage the investors.

There had been 269 direct foreign investments into our country. However, from this amount 185 projects have either closed down or been cancelled. This amounts to 65 percent of the total number of director foreign investments. So this is the plight of foreign investments in the country.

We asked from the government whether containers are allowed to pass through the Expressway, and got to know that containers are not allowed to do so. This is not how it should be. For the establishment of new factories along the Southern Expressway, these types of vehicles should be allowed to use the Expressway, in order to generate new employment opportunities.

Resettlement Minister Gunaratne Weerakoon: It is for the first time in history that a single ministry like this has been established to coordinate development projects to facilitate a balanced development in all regions.

The Oppositions sees all initiatives in a pessimistic manner. Please do not resort to such low criticisms. Analyze the facts and make constructive criticisms.

I would like to note that 300 km of highways in Galle alone are being carpeted now. We are grateful over this initiative.

One million domestic economic units have already been established and this will be increased up to 2.5 million shortly. The transformation that this programme has brought to the economy is great and this fact should be accepted.

Hareen Fernando (UNP): The Economic Development Ministry is one of the most important sections in the Budget.

It has given prominence for the elimination of poverty. Tourism, rural development, infrastructure development etc, also come under it. It covered all aspects and nothing is left for other ministries.

I believe that the government will take into consideration the suggestions, proposals and opinions of Opposition MPs too, to obtain a better service from this ministry at the consultative committee meetings.

Economic Development Deputy Minister Lakshman Yapa Abeywardene: The government has initiated innovative programmes to develop the country in economic terms through an ambitious development plan.

The Economic Development Ministry includes a programme that focuses on the economic, social and cultural uplift of all provinces, especially those affected by the recent North and East conflict. Steps have already been taken to improve the road network. We have moved from concreted roads to carpeted ones.

The "Divi Neguma" project has successfully kept the prices of vegetables at affordable levels.

A number of new projects are in the pipeline including seven star hotels. The Ministry is also steering the tourism industry to cope with larger arrival numbers. Our target is to achieve 2.5 million tourist arrivals by 2016. Trough its efforts, Sri Lanka today has a per capital income of US$ 2,200 and an economic growth rate of 8 percent. This has resulted in creating a number of job opportunities.

Five new large scale factories have been nearly set up in the East. According to the poverty index, poverty in urban areas has come down from 7.6 percent to 5.3 percent while the rural poverty rate has been reduced from 15.9 percent to 9.7 percent.

Meanwhile, the poverty rate in the estate sector has been reduced from 32 percent to 11 percent. Tourist arrivals have increased due to the peaceful environment in Sri Lanka. Our target was to attract 750,000 tourists by end of this year. But we have been able to achieve our target by November 24, this year recording 750,000 tourists arrivals.

New plans are afoot to attract 950,000 tourists by next year. The government has been able to initiate 350 new livelihood projects in rural areas. This has resulted in the uplift of the livelihoods of rural people.

Traditional Industries and Small Enterprise Development Minister Douglas Devananda: The government is committed to protect the rights of the people. Minister Basil Rajapaksa has spent most of his time to solve the problems of Tamils. We appreciate it. The 2.5 million home economic units programme had resulted in uplifting the livelihood of the people in the North and East. A peaceful environment has been created in the North after 30 years.

The government has, embarked on massive development projects in the North. People of the North will definitely benefit through these projects.

Industry and Commerce Minister Rishad Bathiudeen: Direct local and foreign investment has increased. We are now reaping the benefits through this massive development. Tourist arrivals has increased by 34.2 percent. We have been able to develop the economy.

The Tamil people who were chased away by the LTTE during the war have been resettled in their native places in the North and East. The Economic Development Ministry has greatly contributed to the increase in production in the North and East.

Education Minister Bandula Gunawardene: It is our President Mahinda Rajspaksa who provided the leadership to wipe out terrorism and restore peace. The environment has now been created for the people to live in peace. For the first time in history, people are cultivating their lands in the North and East.

Economic Development Minister Basil Rajapaksa:

We have been able to achieve the targets that the President entrusted to our ministry.

The faith of the President in this ministry has further increased. The work of the Economic Development Ministry is done with the coordination and cooperation of a number of ministries. Senior ministers also contributed to our work by providing consultation.

We placed more importance on the rural sector. More money is allocated for development projects connected to this sector.

Village level development projects are being carried out with the support of the community, Grama Niladari officers, Pradeshiya Sabhas, District Secretariats and other village level organizations.

Foreign investment is essential to our country. However, an investor means a businessman. A businessman should work to earn profit. So we have to bear this in mind too.

The Financial Head of the Economic Development Ministry was approved without amendments.

The House was adjourned until 9.30 am today.