Parliament

‘Budget designed to make country Miracle of Asia’

Sandasen MARASINGHE, Irangika RANGE and Disna MUDALIGE

The Speaker Chamal Rajapaksa presided when Parliament met at 9.30 am yesterday.

After presentation of papers and oral questions, the House took up the Committee Stage debate on the Appropriate Bill for the 10th allotted day. The committee took up the Financial Head of the Traditional Industries and Small Enterprise Development Ministry.

Gamini Jayawickrama Perara (UNP): The computer was introduced to Sri Lanka during the J.R. Jayawardena regime. India has gone forward very fast. But has Sri Lanka gone that far? In Taiwan sophisticated machines are produced in very small rooms like 15 by 15 feet. The rulers should be dedicated. We are taking more and more foreign loans and our economy is going down. But this government gives loans to Maldives and Uganda.

Very recently 75 factories closed down and thousands of employees were deprived of their means of living. Do not think that one can remain in power for ever. You give all relief to the rich. The poor are being exploited and they are made poorer. This is a double standard policy.

Traditional Industries and Small Enterprise Development Minister Douglas Devananda: This budget has been designed to take the country forward to make it the ‘Miracle of Asia’. By now, the rate of inflation is reduced. The country has moved forward in the Millennium development goals. The country has reached a high performance level. To elevate the development disparity in the North and East due to the conflict, the government has initiated the Negenahira Udanaya and the Uthuru Wasanthaya development programmes. Rehabilitating 12,000 ex-LTTE combatants by the government is a remarkable achievement.

All these achievements could not have been achieved if not for the guidance of President Mahinda Rajapaksa. Finding a political solution for the issue in the country, is in the hands of the TNA by participating at the Parliamentary Select Committee meetings. The government has been able to resettle all the IDPs in their own areas.

With regard to the Divineguma Cottage Industry, programmes in 24 districts have already been initiated. Our ministry has supported the development of the Palmyrah and Kithul industry. Safety kits have been supplied to tappers in the industry. A comprehensive research has been initiated in connection with the development of the palmyrah industry. It is also planned to organize an Award Ceremony to recognize the Small and Medium sector industries. The coir, palm-leaf and many other local handicraft industries have been developed. Action has been initiated to develop the Elephant Pass salterns. The National Crafts Council is the main body in developing national crafts in the country. This institute provides training and other facilities to craftsmen to develop their trade. The Palmyrah Development Board is taking measures to develop all industries related to Palmyrah.

The 2013 budget also proposes to encourage the Kithul palm related products including kithul jaggery. A sum of Rs 200 million is allocated to uplift the pottery industry by introducing new designs.

Sujeewa Senasinghe (UNP): The government has not been able to develop the industrial sector to keep pace with the development of tourism. The government has not taken measures to develop traditional industries. Loans granted to small industries have been reduced. The technology used in the small industry sector are outdated. Therefore measures should be taken to update their technology.

Industrial and Consumer Affairs Deputy Minister Jayaratne Herath: The Export Development Board during the recent past, was developed. The EDB gained achievements in 2010 and 2011 despite the economic recession. The government is taking measures to popularize handloom products. Measures are being taken to encourage the powerloom industry. In Kurunegala we had 17 powerloom centres where at least 300 females were employed in each. There was a large number of powerloom centres across the country at one time. However after 1977 they all were closed down and all the employees we deprived of their employment even without their salaries being paid. During the Premadasa regime those buildings and assets were sold at very low prices to the private sector.

The Industry Development Act of 1990 is now outdated. We are planning to formulate a new Industry Development Bill to cater to the emerging needs in this sector. We want to strengthen the industrial zones.

Sunil Handunnetti (DNA): Small entrepreneurs need state patronage as their income is low and they undergo many hardships. The income local producers get from handicrafts is meager and their economy has been adversely affected due to unlimited exports from foreign countries. The government increased import duties on milk powder to protect local farmers. Why cannot it take the same stance to protect the local handicraftsmen? Our traditional industries can be promoted to a large extent, if the necessary weight is given by the government.

Namal Rajapaksa (UPFA): The industrial sector deteriorated due to the conflict environment in Sri Lanka over the past. Sri Lanka has 26 Industrial Estates. The majority of them are garment factories. There is a dearth of skilled workers in these factories. Most of the reputed large scale industries we have today had started on small scales. Therefore we must give encouragement and incentives to small entrepreneurs. Industrialists face numerous difficulties when obtaining environment protection licence, bank loans and other facilities.

Villagers must be educated to diversify their products, without sticking to one common product. Diversification of products can give manufacturers markets. Today Sri Lanka has investment zones. The investors must be provided all the facilities. There had been occasions that investors had left due to discouragement. We want to create an era where “Invented in Sri Lanka” can be seen on our products, and we are committed to meet this end.

Deputy Chairman of committees Murugesu Chandrakumara takes the Chair:

E. Saravanaparan (TNA): The government targeted 60,000 cottage industries. I would like to inquire whether the government has achieved it. Every year the government is giving fresh promises, but does not fulfill them. The economy in the Northern Province can be revived if the abandoned industries resume production. We will be monitoring the progress of the government. The flowery speeches are of no use, the progress must be visible.

Traditional Industries and Small Enterprise Development Deputy Minister Weerakumara Dissanayake: For the last few years we have been endeavouring on one hand to protect the traditional industries and on the other hand to raise small enterprises to medium and large scale production level as well as to give incentives for more people to become small entrepreneurs. This sector has been revitalized and the enthusiasm in this sector is very high. The SME sector has made tremendous progress.

The TNA complained of the non resuming of production in industries in the North. They supported the LTTE and paved way for the closing down of these industries. Now the government is involved in reopening them. The leather industry is given more and more incentives. We have given facilities for the registration of craftsmen in the National Crafts Council. However, we have not forced anybody to get registered. We have recruited graduates to coordinate our tasks in an efficient manner.

Industry and Commerce Minister Rishad Bathiudeen: President Mahinda Rajapaksa in his capacity as the Finance Minister presented the 66th budget of Sri Lanka, and the eighth of this government, on November 8 mainly focussing on socio economic development, relief to the poor, and consolidation of measures of previous budgets. This budget is also indirectly supportive of export earnings in the measures to diversify domestic production by strengthening the SME sector, which is the backbone of our economy so that it enables us to cut down on our imports bill.

The Industry and Commerce Ministry and the departments under it serving the ‘Mahinda Chintana - Vision for the future’ aims to create a highly value added, knowledge based, internationally competitive Industry sector which employs a well-paid skilled workforce by 2020, and aims to achieve $ 50 Billion national exports by the same year.

In view of the increasing challenges to us in the international markets, under the guidance of our Export Development Minister Basil Rajapaksa I propose to make the export sector which is our life-line, a national priority. The World Economic Outlook report released by the IMF last month predicts sluggish growth for 2013. Accordingly the global recovery that already started has now weakened. Relative to IMF’s April 2012 forecasts, the latest forecasts for 2013 growth have been revised from 2.0 percent to 1.5 percent for advanced economies and from 6.0 percent down to 5.6 percent for emerging market and developing economies.

It is in this regard that I commend President Mahinda Rajapaksa’s acknowledgment in the latest budget of our aim to promote the IT/BOP/KPO industry to a billion dollar industry with 150,000 direct employments in the next three years. This will strongly contribute to our ICT exports. I am pleased to say that our ICT and BOP exports last year increased by 47 percent earning $ 310 million under the vision of Mahinda Chinthana.

I am also pleased to inform the House of our latest Ministerial level initiatives to lift our exports to face the challenges in the global markets. I wish to reiterate that we are not going to remain passive at a time when our export markets around the world turn more challenging. We are under no illusions that our exports are not going to become difficult in the future.

In fact, we are taking active steps to safeguard our exports. We have now set up a Consultative Committee on Market Diversification which began its work last week with the support of the Ceylon Chamber of Commerce.

More importantly we are looking at actively joining Regional Production Networks so that our exports become more market driven. To this end the government’s efforts to open both Indian and Chinese markets, which are seen as difficult segments, are becoming successful. As a result, the high level Indian trade delegation led by Indian Minister Anand Sharma which arrived here last August, announced that India wants to double current trade volumes with us to $ 10 billion by 2015 with $5 billion new Indian investments.

Thanks to the initiative and request our Economic Development Minister Basil Rajapaksa, India agreed to set up two large-scale, dedicated, export manufacturing zones making our high level goal of joining Regional Production Networks a reality. One zone is for automotive parts and the other for pharmaceuticals. Thereafter, a special Indian Textile delegation that arrived in September, which was the biggest such delegation to come here, announced, based on the initiative of Basil Rajapaksa, that India will open their apparel markets to us and as a first step India has increased our five million export quota to eight million. Our efforts to open China too is becoming successful. Our exports to China under APTA alone increased by a massive 719 percent which shows our progress in market diversification to China. The high level Chinese official delegation arrived here last September, informed me that my request to allow Sri Lanka exports to enter China’s growing FMCG segment is being positively considered by them.

Ven. Ellawala Medananda Thera: Rather than debating whether the allocation for education is adequate or not, I think it is more fruitful if we consider the work done from the money allocated. Whatever the money we spend on education, must be utilized efficiently. The university education system is not a borrowed system from the West, even though some tend to believe so. Western education concepts have merged with the oriental education concepts over the period of history. The ragging problems in the higher education sector have occurred due to these unsuitable western education policies. Fortunately, the minister holding this portfolio has understood this reality. Lecturers must provide their contribution for valuable researches and books, in addition to conducting lectures. They must not limit their service to the salary.

Janaka Bandara takes the Chair.

Sujeewa Senasinghe (UNP) : We are not blindly objecting to the establishment of private universities. However, we are not agreeable to the procedure the government is following in this regard. The same members who once opposed the setting up of Private Universities are now speaking in favour of it. It is an irony in life. We have many loopholes in the Higher Education System. Our literacy rate is high but we have not taken measures to make the optimum benefit of this achievement. There is no argument over the fact that the money we spend on education is not satisfactory compared to other countries.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

Higher Education Minister S B Dissanayake: The government will keep to its agreements with the FUTA. We will not discard them. Admitting 5,800 more students to universities is not an easy task. The universities are crowded. Over the past years too we have gradually increased the intake.

The academic year of the new batch will commence on March 15. All arrangements have been made to take the additional group.

Some raised questions regarding the Mahapola Scholarship. The government will grant it to all students who qualify to receive it. Some inquired about the independent functioning of universities. Who controlled these universities a few years back? Their control was in the hands of a few students. There were periods in which the students were even killed and Vice Chancellors threatened. There must be some kind of discipline in universities. Today the situation has changed. Students can learn freely and walk freely without the fear of being ragged. The lecturers have already got a considerable salary hike. They also get a Research Allowance together with many more additional benefits. Many raised questions on the Malabe Medical College. I too agree that this college should improve in certain aspects. Why should we allow our students to spend colossal amounts of money in foreign countries while we can offer quality medical degrees in Sri Lanka? Does not this save our money? We consider it the duty of the government to provide facilities for our children to pursue higher education here. Many countries have now identified higher education as an attractive income source. Why should not we do the same strategy? It is true that the Malabe Medical College did not have a Teaching Hospital. But now they are constructing one. We should give them time and room to improve. I want to stress that the government at any cost is not ready to privatize the state universities. We provide the maximum facilities and resources to them.

We are ready to establish a new faculty for Hindu Civilization in the future. The government has allocated a huge amount of money for the development of Higher Education. It has been allocated Rs. 215 billion through this budget. The main objective of the government is to take all possible measures to develop the human resource measure.

Eran Wickramaratne (UNP): Investment made to the university system and the entire higher education sector was not sufficient during the past few years. Due priority has not been given to education. The government should give priority to increase the allocations for higher education.

Vijitha Berugoda (UPFA): Those studying in the university should learn not only the subject related matters but also extra circular activities. If we want to develop Sri Lanka into a knowledge based country, the Higher Education sector should be improved. Our objective is to achieve economic growth based on education.

Sylvester Alantine (UPFA): Fishing is the main livelihood of the people in the North and East. Modern technology and the latest knowledge should be introduced for the development of the fishing industry. I propose that a new Diploma Course in Fishing be commenced in both the Jaffna and Eastern Universities for the benefit of the fishing community.

Deputy Health Minister Lalith Dissanayake: It is the present government which took measures to increase the salaries of university lecturers. A free environment has been created within the university system currently. The government has given a prominent place for the education system while allocating sufficient funds for the development of the sector.

Dunesh Gankanda (UNP): There was a revolution in the education sector during the UNP regime. The free education policy was introduced, while the facilities in the Ruhuna, Wayamba and Sabaragamuwa Universities were uplifted during the UNP regime. It was the previous UNP government which took initiatives to provide free uniforms, text books and meals to school children.

J R P Sooriyapperuma (UPFA): Higher Education Minister S B Dissanayake cleared all issues that were raised during the last six months. I thank him for bringing the universities onto the proper tracks.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

In the olden days the father and children generation gap was 25 years. Now it has reduced to 13 years. They question on electronic civilization, internet, cyber and robots from their parents. The minister has the responsibility to make the children from grade five to ten suit modern civilization.

Higher Education Deputy Minister Nandimithra Ekanayake: The Opposition said that the government is attempting to destroy free education by commencing private universities. Sujeewa Senasinghe and Eran Wickramaratne said otherwise. The Opposition has no unanimity in their opinion.

The DNA pointing out many definitions said that education should not be job oriented. But they lead university students to protest on roads demanding jobs, but nothing else. International school were initiated by the UNP. 95 percent of Engineering graduates are employed. The rate of MBBS qualified who are in employment is 90 percent. However only 29 percent of B.A. graduates are employed. That is why the minister suggested that there should be a change in the composition of Arts subjects with more importance stresed on English language. Hostel facilities and other facilities are provided to students.

Sajith Premadasa (UNP): What is the answer for the brain drain?

Higher Education Deputy Minister Nandimithra Ekanayake: You know there are people who love the country and those who do not love the country. Those who do not love the country leave the country after obtaining free education and also for other reasons. The JVP during their period of struggle or terrorism, killed educated people creating an environment for them to leave the country. During the UNP regime there was state terrorism that also led educated people to leave the country. The ‘Brain Drain’ was there in all of the periods but it has been more intense now.

Parliament adjourned until 9.30 am today.

‘Members should join debate from their seats’

Speaker Chamal Rajapaksa yesterday stated that members who join the Committee Stage debate should do so from their own allotted seats. Making a statement in Parliament he said that this matters had been stressed by previous Speakers on several occasions. He added that he too continues to abide by the same and that Members hereafter have to make their speeches from their own allotted seats.

The Speaker stated that this matter is clearly noted in Standing Orders 86 and 93.

Carrom Centres for all districts

Sports Minister Mahindananda Aluthgamage said in Parliament yesterday that Carrom Centres would be setup in all 25 districts to promote the game of carrom in the country.

He made this observation in response to an adjournment motion moved by UPFA MP A H M Azwer.

A H M Azwer (UPFA): Sri Lanka was able to make outstanding performances in the Sixth World Carrom Championship held recently. Our player Nishantha Fernando became the World Champion. We have to provide facilities to promote carrom in the country.

UPFA MP Shantha Bandara seconded the motion.

UPFA MP J R P Sooriyapperuma also spoke.

Sports Minister Mahindananda Aluthgamage: I congratulate the players who excelled in the Carrom Championships held recently. We have provided good facilities and financial support for Nishantha Fernando. I also appreciate the suggestion to promote carrom. We are now taking steps towards this end. We hope to encourage more youth to join in this sport. We also hope to establish carrom centres in all 25 districts and an international indoor carrom stadium. We have identified that Sri Lanka has the potential to improve in certain sports in addition to the popular fields.