Parliament

July strikers allowance makes budget historical' - minister

Sandasen MARASINGHE, Irangika RANGE and Disna MUDALIGE

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 a.m. yesterday.

After the presentation of papers and oral questions, the House took up the second reading of the Appropriation Bill (2013) for debate.

Chief Opposition Whip John Amaratunga: The budget document is confusing. Usually at the end of the budget document the gist of the budget should be printed. But in this booklet the gist is not provided in any comprehensive manner. Racing cars are imported by only a handful of people. Why should the government relax tax on behalf of them from the budget? The crime rate is rising in the country. The drug menace is the main reason behind crimes. The administration of the Prisons Department is weak. This was obvious during the recent incident in the Welikada Prison. Drugs should not be allowed to the sneaked into prisons. Many problems loom in the health sector.

Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena: As one of the leaders of the trade union which led the July strike, I am happy with regard to the proposal to grant an allowance to the July strikers over 65 years. This budget becomes a historical one with this proposal. Food security and securing enough oil stocks for local consumption are main tasks of the government under the present global context.

The President has allocated a large sum of money for agriculture, understanding its importance. The proposal to promote organic fertilizer is highly appreciable. The government has allocated Rs. 125 billion to extend drinking water supply for the rest of the villages in the country. During the recent drought, we had to depend heavily on fuel to generate power.

The contribution of migrant workers to the economy should be commended. The depletion of forest cover is another global issue. We have proposed to increase our forest cover to 35 percent from 29 percent. The tertiary education level is very low in Sri Lanka. Incentives have been provided in the budget for tertiary education.

What the President mentioned in the budget is not about the 13th Amendment. What he has said is that the expenditure on Provincial Councils is very high. This is a reality. We have to admit it. We have to create a mechanism to change it.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair

Sajith Premadasa (UNP): When talking about the budget, we have to study the fiscal management of the government as well as the macro economic variables. The government has imposed many indirect taxes. These affect the innocent poor people very badly. The government should have moved to progressive taxes without depending on indirect taxes. The tax framework of the government makes the rich richer and the poor poorer. Many government institutions are running at a loss. The government nourishes these loss-making institutions with money collected by indirect taxes. The unemployment rate has actually gone down and we thank the government for it. But the youth-unemployment is still high.

Petroleum Industry Minister Susil Premajayantha: Chief Opposition Whip John Amarathunga stated that he could not understand the budget. But he should as an experienced politician, be able to understand it. He also spoke of the robbery in the Museum. We have arrested the suspects. The government has been able to bring down the inflation rate to a single digit despite the global economic crisis and the brutal terrorism which lasted for 30 years. A sum of Rs. 1,500 million has been allocated to implement the Divi Neguma project with the view to eliminating poverty. The government is currently following long term economic policies to achieve economic progress in all sectors. Though the government has spent a huge amount of money for development activities, it has not cut-off a single subsidy given to the ordinary people.

Niroshan Perera (UNP): It has been proved that many projects initiated by the government are totally unsuccessful. The Norochcholai Power Plant was closed temporarily several times. Only a few ships have arrived at the Hambantota Port so far.

The prices of essential commodities and rates for telephones, electricity and water have risen. Incidents pertaining to raping women, child abuse, killing and abductions have increased. But the government has not taken any action to eliminate these crimes. Law and order should be established to create a virtuous society.

Scientific Affairs Senior Minister Prof. Tissa Vitharana: The main focus of this Budget is on achieving rapid economic development. The support given to religion in the budget in an effort to counter this is welcome, because good governance and an honest society is an essential part of development. I hope the LLRC Report and the Parliamentary Select Committee process will be implemented.

I congratulate the President and all concerned in managing our finances for having maintained economic stability and our growth trajectory in a difficult post-conflict situation despite the global capitalist economic crisis, the oil crisis, the food crisis and the climate crisis. Nearly all the economic indicators are indicative of good economic management. There has been too great a dependence on foreign borrowing. We hope that more attention will be given to these matters in implementing the budget in the coming year.

With the per capita GDP going up to USD 2800 Sri Lanka has entered the lower middle income bracket and is no longer entitled to much of the grant aid and low-interest concessionary credit that it was entitled to as a low income country. As a result it has to raise more foreign capital by increasing export income and other income from foreign sources like remittances, tourism, and foreign direct investment. The 2013 Budget has appreciated the need for this and taken steps to promote all these areas. The tourist drive has been given highest priority, and a more conducive environment is being created for FDI. I welcome the support given in the budget to the Information Communication Technology sector so that its present income level of USD 400 million can be raised to USD one billion by 2015. Shady stock market manipulation must be eliminated through good regulation. I am glad that the budget is giving support for the Nanotechnology Park which could eventually become the focal point for generating advanced technologies like Nanoelectronics and Nanobiotechnology.

The fact that this budget has given some funding support to get the NSSTI off the ground is a good beginning. The increase of taxes on imported vehicles has already resulted in a drop of imports. This should be extended to all luxury goods. Almost one third of our import bill is to pay for oil. The support given in the budget for Renewable Energy is most welcome. The tax revenue which was Rs. 12.2 billion in 2007 fell to Rs. 6.3 billion in 2011. This reflects not only the inefficiency but also the corruption in the Inland Revenue, Customs and Excise Departments.

While commending the government for the increase allowance given to government employees, in view of the considerable increase in the cost of living the Rs. 15,00 allowance given in the budget should be increased to Rs. 25,00 and included in the salary. The minimum monthly salary in the private sector should be Rs. 12,500.

We also welcome the payments of the monthly living allowance of Rs. 5000 to the July 1980 strikers who are over 65 years of age. But about 300 of them are dead and it is only fair that this amount be paid to their wives. Another 400 or so are under 65 years but over 60. So by including those over 60 years no injustice would be done to them.

Foreign Employment Promotion and Welfare Minister Dilan Perera: This is a very successful budget presented by President Mahinda Rajapaksa. It has introduced many reliefs without cutting off current subsidies. While allocating for pensions, paying salaries and allowances to public servants and paying back loans and interests, the budget has given a number of reliefs to the ordinary people. During the UNP regime the strength of the public service was reduced to 600,000. Our view is to expand the public service, as our vision is neo-liberalism. The expenses to pay public servants' salaries has increased by 343 percent compared with the figures of 2003. The expense for pensions has increased by 340 percent. We give fertilizer at the rate of Rs 350. Persons going for foreign employment are given housing loans. I request the TNA to participate in the Parliamentary Select Committee without cheating the Tamil community any further.

Harin Fernando (UNP): This budget has forgotten 99 percent of the people in the country. Rs 1,500 is to be paid only to 1,300,000 public servants. It has forgotten the 6.7 million private sector employees. What has been given to the estate sector employees? The budget doesn't say if compensation will be paid to the farmers affected by the drought. 2013 is a critical year for Sri Lanka.

Mass Media and Information Minister Keheliya Rambukwella: We have so far not been able to deviate from the customary method of making budget debates. The ruling party says it is the best budget while the Opposition says it is an utter failure. Harin Fernando criticized it but it was not a constructive criticism. In this manner we can end up the budget debate within a few days.

Under this government, during the last few years, cultivation has become a profitable venture for farmers.

R. Yogarajan takes the Chair

The Opposition spoke of the salaries of public servants. When President Rajapaksa took over the government the minimum salary of public servants was only Rs 7,500 but now it has increased to Rs 18,000.

The core of the Sri Lankan economy is the plantation and agricultural sectors. These sectors have been strengthened. All agricultural equipment have been exempted from import taxes. A strong foundation has been laid to the economy by the budget. I thank the President for presenting an all inclusive well planned budget to develop the economy.

Productivity Promotion Minister Lakshman Seneviratne: Ravi Karunanayake at one time criticized the taking over of the Pelawatte and Sevanagala sugar factories. We only produce five percent of our local sugar requirement in the country. The rest we import. After these two factories were taken over local sugar production has increased. The Sevanagala sugar factory, before it was taken over, was more keen on producing alcohol. We have obtained a net profit of Rs. 680 million within this short period from this factory. In Pelawatte, the net profit has been about Rs. 400 million during the last few months, after taking over. The Kothmale and Norochcholai power plants commenced constructions within the regime of President Rajapaksa. Now these have been almost completed. The Hambantota port and Mattala airport have also commenced work. The development of the country is visible. The Divi Neguma programme is progressing very successfully. People are now cultivating vegetables in their home gardens, while also maintaining flowering plants.

Water Supply and Drainage Deputy Minister Nirupama Rajapaksa: This budget has been prepared in consultation with numerous stakeholders including farmers and trade union representatives. The government has allocated Rs. 22000 million to produce safe drinking water to several districts. Rural community will be able to reap the benefits of there projects. The budget has also provided incentives for small scale entrepreneurs by exempting them from certain taxes including VAT. I also draw your attention to the development work carried out by the government in Colombo and Sri Jayawardenapura. The beatification programme and clearing of canal system have been praised by the residents in these areas.

Sirasakthi Ananthan (TNA): Even though three yeas have passed after the conclusion of war, the government has not curtailed the allocation for the defence sector. The Tamil people who were deprived of their property during the war are still living without permanent shelters. Resettlement has not been completed yet. The budget has not allocated money to upgrade the living standards of people in war-torn areas. Foreign funds received for these ares have not been utilized efficiently.

Resettlement Minister Gunaratne Weerakoon: The resettlement programme is progressing fast. It is not true that people live in jungles. Those jungles have been cleared and people are now being resettled. I request the MP to send his problems in writing to me, I will answer them when the Expenditure Head of of resettlement is taken up. These areas had been devastated by a 30 year war. This is not an easy ask. It must be noted that no body has been resettled forcefully. It was a misleading statement.

Deputy Chairman of committees Murugesu Chandrakumar takes the Chair

Agrarian Services Deputy Minister S.M. Chandrasena: When analyzing the budget in neutral terms, one can see that it is a very significant budget which has a balance in every aspect. The certified price of paddy has been increased to Rs. 32-35 per kg as requested over the past few years. The president has fulfilled his promise by increasing the certified price for paddy. The country experienced a severe drought. During that time, the President instructed to dredge tanks. From this budget further money has been allocated for the purpose. The budget has also proposed an insurance scheme for formers. This money is solely for the welfare of farmers. The insurance scheme will be helpful to the farmers in case of drought or any other crop damage. This Rs. 150 is not an addition to the fertilizer subsidy, but for insurance which will be repaid to the farmers.

Prabha Ganeshan (UPFA): A number of development activities are taking place across the country. It is necessary to implement programmes for the benefit of estate workers. Today estate workers are deprived of basic facilities of education, health and houses. They have got addicted to liquor. They must be educated by conducting awareness programmes. Rehabilitation process is essential for the resettled people. I request TNA members to give their fullest support to the government to complete the resettlement process. Please, do not expect to gain political mileage through this issue.

Thalatha Athukorala (UNP): The budget is a failure. It does not contain any relief for the common man. President Mahinda Rajapaksa promised a number of pledges during the previous Presidential election. But none of them were fulfilled. No allocation has been made to develop research developments in universities through the budget.

Transport Deputy Minister Rohana Kumara Dissanayake: The government has been able to achieve a number of development goals during the past seven years. The economic growth rate has been increased upto eight percent.

Despite the negative aspects from war, natural disasters and the global economic crisis, we have been able to increase the per capita income upto US$ 2,800 this year compared to US$ 836 in 2004.

Deputy Speaker Chandima Weerakkody takes the Chair

Dr Ramesh Pathirana (UPFA): This is a people-oriented government. It has presented a development-oriented budget giving a prominent place for the all key economic sectors. We all agree that it is the President Mahinda Rajapaksa regime which has taken measures to revive the agriculture sector after the D S Senanayake regime.

Industry and Commerce Deputy Minister Jayarathna Herath: The budget has been presented with very strong proposals, with the aim of strengthening the key economy sectors in the country. The budget has been presented with the objective of uplifting the rural economy. The government has encouraged farmers to increase the usage of organic fertilizer.

Lohan Ratwatte (UPFA): We must explain the difference between our budget and a budget compiled by the Opposition party. Our economic vision is far sighted and fruitful.

Shehan Semasinghe (UPFA): The theme of our budget is a 'poverty free Sri Lanka'. This itself shows the path the government is taking. The farming community has always been with the present regime. The President did not forget to give relief to farmers.

The House was adjourned until 9.30 am today.

'Govt's stance is to act with PSC decision' - Nimal Siripala

The government's stance in connection with the 13th Amendment to the Constitution is to act in line with the decision reached at the Parliamentary Select Committee followed by a wide debate if it should be repelled, amended or corrected, said the Leader of House and Irrigation and Water Resources Management Minister Nimal Siripala de Silva. He also stated that the Opposition has not nominated its nominees to the Parliamentary Select Committee and said that the government expects the interested parties would support to find a solution to this issue by nominating their members to the Parliamentary Select Committee.

Minister Nimal Siripala de Silva made this observation in response to the special statement made by Opposition Leader Ranil Wickremesinghe under Standing Order 23 (2) requesting to divulge the government's stance in connection with the 13th Amendment to the Constitution.

Minister Nimal Siripala de Silva further stated that the government's view of the Opposition Leaders Opinion that this matters would defame the country, is that the government is firm that a home grown solution is needed for this issue. He added that this stance has clearly been shown by the government to the international communities and that the government is always against this issue being internationalized.

He also said that a wide discussion is initiated among political parties, various organizations and people on this matter.

He added that it was unjust to identify various persons' and political parties' views as of the government, since the government's stance was to reach a consensus in a wide discussion as envisaged in the Mahinda Chintana future vision. The Minister added that in that vision the President has stated that there are various sections who agree and disagree with the provincial council system which has existed for nearly two decades. He added that in the vision it is envisaged that an open discussion will be commenced in this connection.

The Mahinda Chintana vision has it that the country requires a system that unites the country but not one that would divide it.

It also has it that the government's stance is that such a solution should be reached following discussion at a Parliamentary Select Committee.

Minister Nimal Siripala de Silva stated that though one year has lapsed after the government appointed its nominees to the Parliamentary Select Committee, the Opposition has failed to do so. He added that the President's wish to discuss this matter with the Opposition including political parties representating the Tamil communities could not be materialized as the Opposition did not respond positively.

The Minister added that the government trusts that the constitution is not a document that should remain unchanged but one that should be changed with the need of time.

He added that according to a statement made by the UNP General Secretary Tissa Attanayake to a daily newspaper the 13th Amendment was rushed through Parliament following the 1987 Indo-Lanka Accord and certain short comings had crept in and they needed to be rectified.

'Provisions available for Forces to search Prisons' - Minister

A three member committee with a retired High Court Judge as the Chairman has been appointed to conduct an impartial investigation into the incident at the Welikada Prison on November 09, said Rehabilitation and Prison Reforms Minister Chandrasiri Gajadeera in Parliament yesterday. The Minister further stated that so far no officer has been revealed to have been involved in creating such a situation and if such a thing was revealed, they would be dealt by regulations under the Prison Ordinance. Minister Gajadeera further stated that none of the LTTE suspects or foreign suspects were among the 27 who were killed or injured. The remain of the dead inmates will be handed over to the closest relatives. The remains of six of the dead have not been claimed as yet by any relative. The government has taken measures to treat all the injured inmates.

Minister Gajadeera stated that the L and Chapel wards in the Prison had not been inspected for a number of year due to protests of the inmates. Convicts of crimes of grave nature and suspects of such crimes are kept in those two words.

He added that in accordance with the request of the Prison Commissioner General the Police Special Task Force assisted the intelligence Unit of Prison to conduct the search inspection in those two wards.

There are provisions in Section 77 of the Prison Ordinance to involve STF and other forces in such inspection in Prison. Prison officers had informed the STF that the inmates were directing crimes in the country and drug trafficking while being in the Prison.

The Minister added that after the inspection 18.790 grams of drugs, 41 mobile phones, cash in Rs 2,140 and 22 sim cards were seized from the inmates of these wards.

The inmates hurled stones at the prison officials and STF officers. Later the inmates broke into the armoury of the prison and shot at civilians and officers outside the prison, attempting to flee from prison.

During the attack a prison officer, STF Commandant DIG Ranawana and several other officers were injured seriously. The Minister further said that the unruly behaviour of the inmates on the roof of the prison was telecast on the media.

The Minister further stated that on one previous occasion the Colombo Remand Prison (CRP) was searched with the support of the STF in the same way where 127 mobiles and drugs were seized. The Terrorist Investigation Unit found a number of crimes around the country have been directed by those inmates in CRP. In addition it was revealed that those inmates had maintained relations with foreign countries as well. The Minister further stated that on such occasions no such incident took place.

The Prisons Department decided to seek the assistance of the STF with the view of making use of the STF's high technical equipment and their expert knowledge.