The price of governance

Wasantha Priya Ramanayake -Translated by A. A. M. Nizam

There was a time when posters were pasted on walls criticizing the government. The 17 years of UNP rule was shattered by the violence that started along with a poster campaign.

There had been no such demonstrations or attacks on this government up to now. A government like this will not fall to such a situation. In the demonstrations held recently no one shouted slogans telling the government to go home. The reason for this, is that the President liberated this country from terrorism.

Global fuel prices on the increase

But all demonstrations which were held during the last few days was due to fuel prices.

It is true that the fuel price increase affects the fishing community. Even before the price increase there were signs of fish prices coming down. But fish prices are low in the fish stalls of the Fisheries Corporation than other fish stalls. Therefore, fish in the Corporation stall are sold out quickly. In some areas the expeditious projects of the Fisheries Corporation have helped keep fish prices low.

The intervention of the Fisheries Corporation has contributed to maintain the fish prices during the last two years. Therefore, the fish vendors were not able to raise the price of fish in an arbitrary manner. It was in such a background that the fishing community became restless with the increase of fuel prices. But when the government intervened to provide the fuel concession to the fishing community, fishermen in the country, except those in Negombo and Chilaw areas, became calm.

Export revenue

It is a traditional thing for the Opposition to demonstrate on the cost of living. However, now it is a trend for ministers to criticise other ministers while being in the government.

Due to supplying fuel and electricity at concessionary rates during the last few years, the combined loss incurred by the Ceylon Petroleum Corporation and the Ceylon Electricity Board amounted to Rs. 238 billion. It amounts to Rs. 178 billion by the Ceylon Petroleum Corporation and Rs. 60 billion by the Electricity Board. While releasing this colossal amount as concessions for fuel and electricity the government has also released Rs. 132 billion this year as concessions for fertilizer subsidy, Samurdhi, school uniforms and others. When these two amounts are combined it comes to Rs. 470 billion. From this amount the loss relating to the Petroleum Corporation is equivalent to the total expenditure being incurred for the construction of the Moragahakanda reservoir.

There is a question about this concessionary scheme which has been formulated on the lines of equitable distribution throughout the country. It is a great injustice to provide the Rs. 240 billion fuel and electricity concessions to millionares and billionaires.

There is a problem even in the export revenue as well. The country's imports have increased while the exports have declined, resulting in a deficit in the trade balance. This deficit has to be covered from the foreign exchange reserves in the country. Therefore, there is a reduction in the amount of foreign exchange reserves held by the country. The International Monetary Fund's advice to strengthen the foreign exchange reserves is not a conspiracy. By this, they are not damaging the sovereignty of the country. It is the way that any institution that provides loans acts. Therefore, it is not possible to further implement a concessionary programme of this magnitude. Even if Ranil Wickremesinghe takes over this country he too will have to face this reality.

Public funds

A government is not an institution that works on a profit and loss account basis. Therefore, in consideration of the welfare of the people, a government needs to provide concessions. In this context it is the policy of this government to provide concessions to the people. But each cent of these concessions is not given from the pockets of the government leaders. It is given from public funds. A government has to think about all these things. Hence a future government cannot look askance about a fuel and electricity concession amounting to Rs. 238 billion.

At least from now on the government cannot sell fuel and electricity at a loss. However the government should be commended for proposing a concessionary scheme focusing attention on the sections of people who are most affected by this price structure.

There could be shortcomings in it. It may not be practical either. But that policy is not that hard. It is prudent to identify the real underprivileged sectors and introduce a concession system that will provide more benefits to the economically down trodden. There is no dispute that the economic development being carried out in the country should uplift the living standards of the people.