PARLIAMENT

Regulations under Finance Act taken up for debate

Sandasen MARASINGHE and Irangika RANGE

Speaker Chamal Rajapaksa presided yesterday, when Parliament met at 1 p.m. After the presentation of papers and oral questions, the House took up the Regulations under the Finance Act.

International Monetary Cooperation Senior Minister Dr. Sarath Amunugama: I present the regulations made by the Minister of Finance and Planning, under sections 26, read with section 22 of the Finance Act, No 11 of 2004, relating to International Telecommunication Operator Levy and published in the Gazette on December 29, 2011.

We take measures to amend the Telecommunication Operator Levy.

Those orders had been published in the Gazette on December 29, 2011. That has been a part of the law. Today they are presented in the House for approval. The changes in the Telecom field have been very insignificant to our economic field. Our government is able to initiate this drastic change in this Telecom field with the introduction of these new laws. In 2003, a little less than 10 percent of mobile or land phones had been in use. In 2011, 100 persons used more than 120 phones because of these changes. The Telecommunication Regulatory Commission attends to the issues in this field. Deputy Chairman of Committees Chandrakumar Murugesu takes the Chair: The government's vision is to provide roads, electricity and drinking water to villages. By now, an additional sum of Rs. 1 million has been allocated to each Grama Seva Niladhari division. For such matters, the government needs money.

Telephones, specially mobile phones, have a variety of applications in addition to calling and we hope to spread the Broad Band system.

The money so spent on new technology had been a good investment. We have to impose a tax for those developments.

Joseph Michael Perera (UNP): Telecommunicaiton had not spread to the field of education. Though the government speaks of Broad Band, the government has not event taken measures to introduce the old technology - the CDs to the village.

Shantha Bandara (UPFA): I am aware that each central college in the Dambadeniya electorate had been provided with internet facilities. This was a clear indication that the government was taking measures to spread modern technology to remote areas.

The development of 1,000 secondary schools also indicate the introduction of modern technology. Modern technology is today rapidly spreading, which is a fact to be pleased. But this telecommunication technology could be used for destructive purposes as well. Today, the use of telephones have increased to 105 percent.

Mangala Samaraweera (UNP): Even after a period of 3 years since the defeat of the LTTE, the government has been intercepting websites, monitoring the websites and emails at an epidemic rate. The government too controls those websites that reveal the corruption of the government. Human rights of the people have been violated by monitoring phone communications. Members of Parliament, senior Ministers, some Cabinet Ministers and certain journalists' phones have being monitored. This had been done with Chinese technology. Because of the government's action, Sri Lanka was being isolated by the International Community.

Thilanga Sumathipala (UPFA): Telecom has obtained the technology of those two Chinese companies, when I was the Chairman of Telecom, under the UNP government. We invited the Chinese companies to provide their technology to Sri Lanka to break the monopoly of the prevailing technologies of a few countries.

It was Mobitel who introduced the fourth (4th) generation telephones for the first time in Sri Lanka.

We are really happy with this achievement. There is high competition among telecommunication operators, specially, private telecommunication companies invest massive sums of money in the field with the aim of making a profit.

At adjournment

'Due to vehicle imports, rapid development demand for fossil fuel has increased'

Petroleum Industries Minister Susil Premajayantha, yesterday stated in Parliament that the demand for fossil fuel had increased drastically last year, due to the increase of vehicle imports as well as the rapid development in the country.

He made this observation in response to an adjournment motion moved by DNA MP Anura Kumara Dissanayake.

Anura Kumara Dissanayake (DNA):

The entire economy has collapsed due to the financial mismanagement of the government.

The government has put this country into a debt trap. Finally, people of this country have to face all these crisis. They are under pressure economically at the moment.

All financial institutions have collapsed. Trade deficit has increased, causing adverse effects to the national economy. Prices of essential items have gone up.

Prices of fuel, gas and electricity have increased. This has badly affected the people. They face severe hardships today.

Many taxes have been imposed in order to burden the ordinary people. The government has borrowed massive amounts of money from State financial institutions.

In order to recover from this crisis, a number of taxes have been imposed on essential items. Therefore, the government should take immediate steps to reduce the cost of living and provide relief to the people.

Ravi Karunanayake (UNP)

We have a responsibility of building the economy. Today our economy runs according to the opinion of the Central Bank Governor and Finance Ministry's Secretary, carrying more burdens on the ordinary people. So who will be responsible for these burdens?

The government must consider the Opposition's views as well.

A.H.M. Azwer takes the Chair.

The government has to accept that the share market is collapsing. You should not play with the economy. Though the government promised to provide subsidies to fishermen, school vans and three-wheeler owners, no subsidy has been given to them so far. When will you grant the promised subsidies to the people?

Opposition crying in the wilderness

International Monetary Cooperation Minister Dr Sarath Amunugama: The Opposition is attempting to take petty political gains from the increase of fuel due to uncontrollable reasons. That has been the nature of the Opposition. The prices of fuel in the world market had increased. Now the entire world is facing an economic crisis.

The Opposition is always talking of debts. But they always hide the fact that the country is becoming rich. But the reality is that for the first time in the last 15 years, we had the lowest loan rate last year (2011). It was 78.2 percent in proportionate to the GDP. We hope to reduce it to 74.2 percent this year. But during the UNP regime in 2002, the rate was 105.6 percent. The rate was 102.3 percent in 2003 and 2004.

The economic growth rate is around 8 percent today. The newly built airport, harbours and expressways are assets of this country. The Opposition should not forget these facts.

China never grants loans without studying the projects carefully. They granted us loans because they were able to get them back as our projects are successful.

The base of international monetary transactions is trust. The Opposition spoke of the IMF. The Opposition asked the IMF not to grant us loans. But we were able to obtain them after discussions.

Opposition member Dr Harsha de Silva told the media that our economic strategy had come on a proper track.

But some other members say otherwise. What is the stance of the Opposition?

We do all these things while providing relief to the public. The voice of the Opposition is a 'cry in the wilderness'. Is it wrong for the government institutions to earn profits?

I wish to state that we would protect the economy and the country under whatever cost.

Dayasiri Jayasekara (UNP): This government increased the price of fuel not because of the fuel price increase in the world market. The fuel shipment had been imported on January 17, at a cost of 90 US Dollars.

We import Iranian light, Oman light and Arabian light to refine. The government imported a barrel of crude oil at a cost of 98 US dollars. Now the prices of fuel in the world market has increased. The government increases fuel prices here before it imports fuel at the increased price rate. Diesel, kerosene oil and petrol rates had been increased at 49 percent, 37 percent and 19 percent respectively.

Petroleum Industries Minister Susil Premajayantha: Since last January, the prices of petrol, diesel and kerosene oil had increased gradually and a barrel of refined fuel is above 132 US dollar.

There is an accepted pattern of calculating the price of fuel practised by all previous governments. We have not veered from that practice of calculating the prices of fuel.

The refinery was commissioned in 1968 and was constructed with Italian technology. We can refine 30 percent of the requirements. The rest, we have to buy as refined fuel.

The crude oil refined in the Sapugaskanda refinery is imported from Iran. We have been importing crude oil from Iran, as it is the most suitable oil to be refined in our refinery. Though we had attempted to expand the refinery, there is a problem in Iran as we all know.

The price of fuel in the world market had increased grossly by 10 US Dollars.

The diesel and kerosene oil was sold at a loss of Rs 26 and Rs 31 respectively, which had been deliberately forgotten by the Opposition.

The Opposition makes all these arguments being fully aware of reality. The demand for the fossil fuel had been increased last year due to increase of vehicle import and development in the country.

Kabeer Hashim (UNP): The government killed innocent people who gathered in protest. The CPC is Rs 179 billion in debt to commercial banks.

Co-operatives and Internal Trade Minister Johnston Fernando: The prices of 99 items have been reduced. But the Opposition has forgotten it. You spoke of protests. The Opposition protested with 1,000 people against the government which had a mandate of 4 million.

We don't oppose your protests as we appreciate democracy. We have never hurled a stone at the police. Mangala Samaraweera spoke in the morning to fulfill the needs of the international community inimical to Sri Lanka. He said that telephones are tapped. Totally false. It should be expunged from the Hanzard.

A member who spoke prior to me, said the tax on milk powder had increased, which is totally baseless. Gas has the highest price rate in the world market today.

But we did not increase the gas price. This is the reality. The inflation rate has been reduced to 3.8 percent. Early last year, the inflation rate was high. The fuel price in the world market was very high during those days, but the fuel price in Sri Lanka had not increased.

The government had increased it only when the inflation rate dropped. Now the UNP think they can defeat this government with the leadership of Sajith Premadasa. They are only dreams.

Niroshan Perera (UNP): The police should take the whole responsibility for the killing of fisherman Anthony Fernando in Chilaw. Why had the government not taken the culprits into custody yet? Today the government is engaged in suppressing protest campaigns of the people without solving their problems.

Education Minister Bandula Gunawardene: The government spends huge amounts of money for the welfare and well-being of the ordinary people. We spend Rs 368 billion to pay salaries to the public servants. A sum of Rs 110 billion is spent on pension payments. In addition, Rs 12 billion is spent to pay special allowances for the disabled soldiers.

A sum of Rs 37 billion is spent for providing fertilizer subsidy to farmers. A sum of Rs one million will be given for each rural village in Sri Lanka for development activities. The government is engaged in a massive development drive while granting relief to the people.

Telecommunication and Information Technology Minister Ranjith Siyambalapitiya: The economy has been growing rapidly after President Rajapaksa came into power in 2005.

Sri Lanka as a country going through a post-war period, was able to register the highest economic growth rate of 8 percent in the recent past.

We have a good reputation for handling fiscal management in the world. We know that there is a fluctuation in the international oil market, due to political instability in the Middle East countries. This situation is not confined to Sri Lanka. It has adversely affected all countries in the world.

The House was adjourned until 1 pm today.

House hails Wijedasa Rajapaksa's victory

The Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena, on behalf of the Government, congratulated Parliamentarian Wijedasa Rajapaksa yesterday in Parliament for his being elected as President of the Bar Association of Sri Lanka. Opposition Leader Ranil Wickremesinghe too joined in congratulating Wijedasa Rajapaksa on behalf of the Opposition.

MP Wijedasa Rajapaksa was the first parliamentarian to be elected as President of the Bar Association of Sri Lanka.

Ranil says he did not accept that Sri Lanka committed war crimes

Opposition Leader Ranil Wickremesinghe, yesterday said in Parliament that he did not accept that Sri Lanka committed war crimes. He also stated that he made the same statement on various occasions in Parliament. He made this observation expressing his views in response to a speech by Chief government Whip and Minister Dinesh Gunawardena to the special statement made by Opposition Leader Wickremesinghe on Wednesday, under standing order 23(2).

Minister Gunawardena further stated that though the Opposition spoke of issues, they had failed to nominate members to the Parliamentary Select committee for finding solutions to the national issue. He added that solutions for almost all issues would be provided at the Parliamentary Select Committee if the Opposition nominates members to the Committee. Opposition Leader Wickremesinghe stated that the Opposition would take part in the Parliamentary Select Committee for finding solutions to the national issue, provided the committee would accept the amendment submitted by the Opposition on the recommendations of the Lessons Learnt and Reconciliation Commission (LLRC).

'SL has received US$ 1 billion in foreign direct investments'

Economic Development Deputy Minister Lakshman Yapa Abeywardene, told Parliament yesterday, that Sri Lanka had received a sum of US$ 1 billion worth of foreign direct investments through the BoI in 2011.

He said that the BoI had received around 222 investment applications in 2011. "We expect to create around 69,346 employment opportunities through this investment under section 16 and 17 of the BoI Act, he said. The Deputy Minister was responding to an oral question raised by UNP MP Ravi Karunanayake.

He further said the BoI had played the lead role with the assistance of other line agencies for drawing foreign investments into the country.

Sections 16 and 17 were only two provisions in the BoI law for the approval of projects. However, the BoI was also permitted to enter in to agreements with Strategic Development Projects (SDP), under Section 17, providing additional facilities under the SDP Act No. 14 of 2008 and its amendments, he added.

Police restraint amid provocation - Minister Gunawardena

Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena Wednesday stated in Parliament that the Police did not batton- charge UNP protesters on February 17, 2012.

Minister Gunawardena further stated that this has been proved by the fact that none of the UNP protesters who staged it suffered any injuries during the incident. He added that 15 police personnel, including three senior officers had suffered injuries during the conflict, while three of the injured had been admitted to hosiptal.

Minister Dinesh Gunawardena made this observation in response to a special statement made by DNA MP Anura Kumara Dissanayake, under standing orders 23 (2) stating that the protests against the government had been suppressed in an undemocratic manner.

Minister Gunawardena stated that 112 protests had been staged in Colombo by various political parties and groups during 2011, adding that not a single police personnel or member of the forces had been deployed to suppress any of those protests. The minister further stated that it was baseless to say that the government had supressed the protests undemocratically.

Minister Gunawardena further stated that the rights of the people, the freedom of expression and rights fo assembly has been clearly mentioned in Article 14 of the Constitution. He said that to organize and stage a protest, nobody needs Police permission. He also added that the Police could take action to control the protesters, provided they disturbed day-to-day activities of the public and their transport.

He further stated that it was not Constitutional to employ the Police and Security Forces to supress the public protests,but if the protesters act violenctly by disturbing the public, it was constitutional to deploy the Police and Security Forces to control the situation. He also stated that violence by the protesters had been clearly visible at the incident where a traffic police personnel on duty had been hacked to death at Puttalam on August 21, 2011 by a group of protesters.

The Minister further stated that the protests had been staged this year in Colombo and due to reasonable reasons, water cannons and tear gas had to be used on two occasions.

The minister referring to one incident, said that the JVP had organized a protest on February 15, 2012, against the increase of fuel prices. They had been planning to come opposite the Fort Railway Station at 3 pm from Maligawatta.

But another group of around 700 people had arrived opposite the Fort Railway Station around 2 pm to stage a protest in favour of the government. The Police had then informed the JVP group of protesters including MP Anura Kumara Dissanayake, MP Vijitha Herath and Lal Kantha to stage the protest in Maradana.

Later on, a conflict had arisen when the Police blocked the road as the JVP protesters had been reluctant to do so and had expressed their need to go opposite the Railway Station.

He added that the protesters had assaulted the Police with stones. The Police had been compelled to use water cannons and tear gas. He also said that six Police officers had sustained injuries, but it had not been reported that any of the JVPers were injured.

Minister Gunawardena referring to another incident stated that the UNP also had staged a protest for the same cause on February 17, 2012 opposite the Fort Railway Station, from 3 pm to 4.30 pm, blocking the road for the public.

During the protest, a picture of the President that had been placed in front of the station, had been broken by the protesters and burnt. The offices who went there to photograph the protest had also been assaulted by the protesters.

Minister Gunawardena added that after the speech by Opposition Leader Ranil Wickremesinghe at the protest, he went towards Fort in his official vehicle. The protesters had followed his vehicle. Though the Police had warned them not to enter the High Security Zone, the protesters without paying any attention had attempted to enter the HSZ after assaulting the Police.

It was only then that the Police had to use water cannons to control them. Then as the protesters had stones at the Police, the Police had to use tear gas. The protesters had damaged a colour light during this incident.

The minister further stated that 15 Police officers including three senior officers had been injured during the incident, while three had been admitted to hospital.

The minister added that no batton charges had been given at the protesters. He also added that the same fact had been proved by the fact that no single protester had been reported to be injured. The minister further stated that apart from those two incidents, at any other protest, no water cannons or tear gas had been used.

He added these facts were evident enough to the effect that there was no pressure for the public to protest for their rights.

He also added that the rights of the people to protest for their rights was guaranteed.

Anura Kumara Dissanayake had questioned during his special statement that whether the rights of the people to protest for their rights was accepted. He also questioned whether it was constitutional to use the Police and forces to surpress the people's protests.