PARLIAMENT

‘Budget focuses on holistic development’

Sandasen Marasinghe, Irangika Range and Disna Mudalige

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 a.m. yesterday. After presentation of papers and oral questions, the House took up the second reading of the Appropriation Bill for the third day.

Joseph Michael Perera (UNP): The budget has not provided any relief for public servants. We request the government to increase the salaries of public servants at least by Rs. 10,000 according to rising cost of living. Today, public servants face severe difficulties to meet their basic needs due to poor salaries. If you want to make public servants efficient and productive, you have to pay them a good salary.

The EPF and ETF money belong to the employees of the private sector. The government cannot misuse these funds.

It is reported that huge amounts of EPF and ETF money have been invested in several companies which are incurring losses. The government has not provided any relief for private sector employees through this budget. President Mahinda Rajapaksa promised that farmers’ pension would be paid with immediate effect during the previous North Central Provincial Elections. But no farmers has received pension so far. Farmers are helpless.

Youth Affairs and Skills Development Minister Dullas Alahapperuma: The Budget 2013 has been prepared giving proper consideration to all key economic sectors. It has focused on future investment. Several governments which came to power after independence were unable to provide drinking water and electricity for every household in the country for last 67 years. But the present government under the leadership of President Mahinda Rajapaksa is ready to achieve this target by the next year.

The significant factor of this budget is formulation of plans to accelerate the development drive without cutting a single subsidy granted to the people. The certified price for a kilogram of paddy has been increased up to Rs. 35 without cutting off the fertilizer subsidy. We are self-sufficient in rice and maize due to fertilizer subsidy provided for farmers during the last seven years. The government spends Rs. 65 billion annually to provide the fertilizer subsidy for farmers. One of the main factors included in the budget is the proposal of converting the nation into the upper income earning level. Food, water and environmental security have also been given priority.

The government has allocated money to projects aimed at increasing the percentage of forest cover by 35 percent. We have to protect forests as sacred land for the benefit of future generations. Third proposals is developing skills through education. Today, over 80,000 youths who do not qualify for university admission, enter to technical and vocational training institutes. We have planned to increase the number of students for technical and vocational courses up to 122,000 by 2016 with the aim of producing skilled youths required in the international job market. We have been able to provide 24 hour electricity supply to the people despite the worst drought prevailed in the country recently. Due to the construction of Upper Kotmale and Norochcholai power projects, we achieved this target.

Pon Selvarasa (TNA): Prices of essential items have gone up. Resettled people in the North and East face great difficulties due to increased prices of essential commodities. They were provided with dry rations only for one month. So, I urge the government to continue with providing dry rations until the resettled people find their livelihoods. It is commendable the government decision of giving mid day meals and school uniforms twice to schoolchildren in the North and East. We appreciate and welcome this move.

The loan facilities to purchase motor vehicles and laptops should be provided for journalists in North and East as well. The salary hike of Rs 1,500 granted to public sector employees is not sufficient since the cost of living is high today.

Private Transport Service Minister C B Ratnayake: We have been able to maintain the economic growth rate up to 8 percent despite global economic crises and many natural disasters. As public representatives, we have responsibilities of every citizen of the country and leading the country towards prosperity on a proper methodology suited to the 21st century. We achieved significant improvements in supplying drinking water and electricity to the people in the up-country.

Plans are afoot to strengthen the livelihoods of the poor people with the aim of allowing them to stand on their own feet. There is a significant progress in the transport sector. Plans have been drawn to provide comfortable and safe ride for commuters by adding more buses and trains to the public transport sector.

Gamini Jayawickrama Perera (UNP): The percentage of the forest cover is rapidly decreasing due to human activities and natural disasters. It is the responsibility of all of us to protect our forest cover. But, the allocation made to protect the environment and forest cover is not sufficient.

The people face great difficulties due to the increase of prices of essential commodities and water and electricity charges. Frauds and malpractices are taking place in the country. Why the government does not appoint a select committee to look into the hedging deal? The government has not taken measures to revive the farmers’ pension scheme. That was launched by the UNP government for the betterment of the farmer community. We paid pension to farmers on due date during our regime. But, today farmers are straggling to live due to high cost of living.

Plantation Industries Minister Mahinda Samarasinghe: I have to appreciate the President’s 8th successful budget. The public debt had exceeded the GDP at that time, global economy was down and there were many a problem when he took over the government in addition to the battle in the North. Despite this plethora of issues, he had correctly identified the proper means to overcome these issues. He identified that terrorism should be eliminated. He also identified that the scourge of terrorism cannot be eliminated by discussions. Now, the challenge is permanent peace and it is identified by the government. A considerable amount has been allocated to reconciliation.

We looked after 300,000 IDPs. However, we faced up to these challenges and eventual resettlement. I informed the Human Rights Council that we have resettled all of them.

By now, 1,953 square kilometres has been demined. Out of it, more than 75 percent was cleared by the Army. There is a formidable achievement. We have set up houses worth Rs. 33.34 million since 2005 in the North and East. The Army has constructed 4,651 permanent houses, more than 7,000 semi permanent houses, more than 7,000 houses were renovated. The Army also constructed 73 schools and playgrounds.

More than 200 religious places have been constructed by the Army. This is what they did for the people in the North and East. This is an untold story of the great service rendered by the Army to these people.

More than 11,000 LTTE child soldiers were rehabilitated and reunited with society. These are formidable achievements. We want to develop economic standards in those areas. The economic growth rate is 22 percent in the Northern Province. Despite the global economic downturn, we would mark an impressive economic growth rate at the end of this year due to these remarkable budget proposals.

We want to establish permanent peace and for that, we develop economic standards.

National Languages and Social Integration Minister Vasudeva Nanayakkara: With those proposals, we see the government involves directly to uplift the economy of the majority of the people which is the totally opposite view of the UNP which they introduced in 1978. Low income earners should be protected by the government. The government identified that employees in the estate sector are suffering from poverty. They should be given a ration of rice flour. There is no sovereign bankruptcy in Sri Lanka. We are in a position that we can pay our loan instalments. However, many other countries are not in that position. Even England and the USA are imposing tax. We have to earn by taxing. We tax from those who have. That is the means the government collects its revenue. Tax relief should be given under various restriction. It should not be a feast to the rich as it was done during the UNP regimes. I have not seen report which analyzed as to how these tax concessions were utilized for economic development.

S.C. Muthukumarana (UPFA): This budget aims at strengthening the future of the country. This government is introducing practical solutions for the storage of the paddy harvest of farmers.

We have to encourage organic farming by giving a good price for its products.

Sujeewa Senasinghe (UNP): There is an autocratic rule in the country. Eventhough the government is talking about peace and law, crimes have not decreased after the war. There had been 5,960 incidents of crime in 2010 and 2011 according to statistics.

When the inflation of the country is rising, the per capita income is also rising. But the purchasing power of the people does not increase. Therefore, with the sharp rise of inflation, the doubling of per capita income is not magical. This is not real economic development.

Foreign reserves of the country, compared with other countries, are not adequate.

The people are facing so many difficulties. The malnutrition rate is high, and one forth of the population is receiving Samurdhi. In reality, we see that the poverty rate is higher than 8 percent. According to Central Bank sources, vegetable production has not increased in the country.

Agriculture Minister Mahinda Yapa Abeywardena: The statistics presented by Senasinghe MP are not correct. This budget is one among a series. Don’t analyze it by isolating. I admit the production of chillie is not adequate, but the figures presented by him were wrong.

During the last three yeas, we did not import rice for local consumption. We are self-sufficient in rice. All rice exporting countries can only export about 3 to 5 percent of their production, because the rest must be stored for local consumption. We are guided by a far-sighted vision. A tax has been imposed on Big Onion to protect local farmers. We have enough local Big Onion stocks for the moment. Therefore, I request the President to continue this tax during next few months.

We have a target to be self-sufficient in chillie in 2015. We are working to realize this goal.

Rising kidney ailments is an issue that affects the agricultural sector of the country. We want to find the reason for this illness and we request the support of all the people for this.

Prof Rajiva Wijesinghe (UPFA): This was a people participatory budget. It has given timely proposals for the upgrade of all sectors in the country. Poultry farming as well as Divi Neguma initiatives will strengthen the economic status of low income families.

I believe that research in agriculture should be improved.

We should formulate a power devolution mechanism with the participation of all segments in the country. In this endeavour, political power should not be the top priority.

Our War Heroes and Police have been appreciated for their disciplined behaviour and commitment towards their job. Their dedication must be recognized.

In recent times, we have taken steps to prison rehabilitation and reforms. However, an unfortunate incident took place in the Welikada prison recently. We have to make sure to avoid repetition of such incidents.

Resettlement Minister Gunaratne Weerakoon: There was a traditional system in presenting the budget in earlier occasions by other governments. President Mahinda Rajapaksa changed it. Those days, the people were looking for grants from the budget.

Now, the Mahinda Chintana 10 year plan has proved a reality. We can remember how the MPs of the TNA acted when there was bloodshed by the LTTE.

The Opposition looked at Hambantota port negatively. But we could make it a reality. Your views on Mattala Airport was the same. However, we have developed all these sectors.

E Saravanapavan (TNA): This budget has been designed to develop the areas in Sri Lanka except the North.

More concentration has been made in items other than inland revenue.

Money has been allocated to develop other areas except the North. About 3,000 rehabilitated persons have been employed under the Army. The question arises as to why these civilians should work under the Army.

The 13th amendment is to be abolished.

Foreign Employment Promotion and Welfare Minister Dilan Perera: I have a paper cutting. The TNA said in parliament that the 13th amendment should be thrown into the dustbin. You said so when the LTTE was pointing their gun on your head. But we said there should be the 13th amendment. Now, you say you need it.

E Saravanapavan (TNA): But you say it should be abolished.

Dilan Perera: No, we don’t say so.

Sajin Vas Gunawardana (UPFA): You should come to the Parliamentary Select Committee to see what’s happening and to make your suggestions. We have been meeting for one and half years to talk about this issue. But the TNA boycotted this Parliamentary Select Committee.

Construction, Engineering Services, Housing and Common Amenities Deputy Minister Lasantha Alagiyawanna: The second highest allocation is made to the Northern Provincial Council when the allocations to the Provincial Councils are considered. The highest has been made to the Eastern Province. Saravanapavan did not see it.

The Mahinda Chintana vision has changed many sectors in positive direction in Sri Lankan history.

The government has a vision for future as well as a target. In 2005, our per capita income was 1,241 US Dollars. Our target is to increase it to 4,000 US Dollars in 2015. One cannot criticize one budget proposal forgetting the rest and the government’s modus operandi.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

The UNP has no moral right to speak of the salaries of public servants. The government has allocated Rs 35 billion to increase the salaries of public servants whereas the UNP governments did otherwise.

Ven Athuraliye Rathana Thera (UPDA): There was a large number of kidney patients in certain areas of the country. I am happy the President spoke of this issue at the budget speech and spoke of reducing the use of insecticides.

This budget has proposals to come to a solution for this issue. The TNA never speaks of education, agriculture, farmers, fisheries industry. They have only one topic. It is provincial council.

We have sold seed forms since 1977. We have to change it. We also have to think about the energy crisis.

The government has focused on these issues.

Chandrani Bandara (UNP): This budget is a failure. The last year, the government promised to build 50,000 houses for security forces personnel. Though the government boasted, no development is taking place pertaining to reservoirs such as Moragahakanda. The government is speaking of a development rate that is not felt by the people. Why did this budget reduce the tax on racing cars? Do poor people import racing cars?

Education Deputy Minister Vijith Wijayamuni Soyza: I have seen about 15 budgets. This is one of the best budgets. The Opposition said this a Carlton budget. Ronnie de Mel said one was a budget of Gee Kiyana Kanda. In that light, we can call this is a Carlton budget. This budget is not a temporary solution. This is the first phase of a five year plan. Those days, the government had to sell national properties to solve problems in country. Now, it has been changed. During previous governments, infrastructure facilities were developed only in special zones to attract foreign investors. But today, infrastructure in the entire country is being developed.

The budget deficit is reduced to 8 percent from 10. The 100 percent debt has been reduced to 80 percent though large development projects initiated by the government.

Roshan Ranasinghe (UPFA): We are thankful to the President for presenting a people friendly budget. The people in Polonnaruwa have been greatly benefited by development initiatives. Farmers in Polonnaruwa have been empowered. They can stand up by their own feet.

War heroes are also contributing towards development. Colombo has been undergoing a tremendous transformation with their help.

Deputy Speaker Chandima Weerakkody takes the Chair.

Opposition members in Colombo should appreciate facelift in Colombo.

Technology and Research Minister Pavithradevi Wanniarachchi: The government’s prominent attention towards agro-economy is seen clearly from this budget. Relief provided for farmers are more than at the expected level. It has given a certified price for paddy. Their interests on loans have been written off and repayment periods of loans have been extended. The fertilizer subsidy has continued and seed paddy is given free among farmers. The Divi Neguma programme is progressing steadfastly. It is distributing seeds free among households as an encouragement for the people to cultivate vegetable.

The Mattala airport will be opened in the near future. This is a massive government project.

Land and Land Development Deputy Minister Siripala Gamlath: The President has not forgotten War Heroes and their dedication during the war. They have been given relief step by step through last few budgets. The government has recruited 14,000 graduates as development officers and they have been appointed to every GN Division to facilitate development projects. The budget has made a special allocation to the Deyata Kirula. The funds will help upgrade infrastructure. Schools will be renovated using this money.

There had been occasion in the past, on which farmers committed suicide by taking poison when they could not settle their loans due to devastation of cultivations owing to floods and drought.

I must note that, after President Rajapaksa assumed duties, farmers have been provided with a great number of relief and they have been strengthened in many aspects.

Petroleum Industries Deputy Minister Sarana Gunawardena: This budget strengthens the local economy. Some criticized that the budget caters to the needs of upper class. This budget was not prepared by a handful of people. Representatives of all sectors participated in preparing the budget.

The President, as a person who feels the pain and suffering of the needy, made proposals to provide an additional uniform set, a pair of shoes and nutritious meal free for children in rural areas.

Sri Lanka is rich in natural beauty. This is an ideal condition to promote tourism. Today, the influx of tourists is increasing and even reservation of tickets has been difficult at times to come to Sri Lanka. Our aim is to increase tourist arrivals over 2 million while upgrading hotel facilities to cater to them.

At Adjournment

Fisheries and Aquatic Resource Development Minister Dr Rajitha Senaratne yesterday said in Parliament that measures will be taken to invent a soup cube made from fish with the support of NARA and other stakeholders.

He made this observation in response to an adjournment motion moved by UPFA MP Victor Anthony.

Victor Anthony (UPFA): Malnutrition has become a critical problem in the world. It is our duty to save our future generation from malnutrition. Eventhough Sri Lanka has comparatively low rate of malnutrition, we should also take adequate measures to low down this rate further. Dwarfinism and under weight children are results of malnutrition.

We have to make sure good health among mothers to control malnutrition among children. Mothers should be provided with nutritious meals. The highest rate of malnutrition is reported from Somalia.

It is not hard to prepare a nutritious meal in Sri Lanka. But it is seen that fish protein is not enough.

I suggest to introduce a soup cube made from fish to be distributed among schoolchildren.

Ranjith Soysa seconded the motion.

Education Deputy Minister Gamini Wijithamuni Zoysa also spoke.

Fisheries and Aquatic Resources Development Minister Rajitha Senaratne: This is an innovative idea. A soup cube made from fish has not been introduced so far in the world. We have a target to eliminate malnutrition in 2014 by increasing fish consumption as well as production. Daily fish consumption per person has increased to about 38 grams.

We have commenced four canned fish factories. They will increase their production up to 64,000 tins per year by January.

The requirement per year in Sri Lanka is 130,000 tins.

The House adjourned until 9.30 a.m. on Wednesday.