Parliament

Govt to formulate National Transport Policy

Sandasen Marasinghe, Irangika Range and Disna Mudalige

Speaker Chamal Rajapaksa presided when Parliament met at 9.30 am yesterday. After the presentation of papers and oral questions, the House took up the committee stage debate on the Appropriation Bill 2013 for the 14th day. The committee took up the finance Heads of the Ports and Highways Ministry, Transport Ministry, Power and Energy Ministry and Petroleum Industries Ministry.

Joseph Micheal Perera (UNP):

According to statistics, 2/3 of the transport needs of the people are fulfilled by the private sector. The Sri Lanka Transport Board (SLTB) caters to only 23 percent of the transport needs of the country. We all know both the SLTB and the Railway Department are running at losses. These institutions depend on Treasury funds. But the funds provided by the Treasury is not sufficient to carry out functions of the two institutions. These two institutions face difficulties in paying salaries of their employees. Therefore, it is necessary to formulate a proper mechanism to increase the income of these two institutions while eradicating frauds and corruption.

Private Transport Services Minister C B Ratnayake:

President Mahinda Rajapaksa has allocated a huge amount of funds to streamline the transport sector from this budget. The public transport sector which rendered a yeomen service to the people in the past started to degenerate gradually due to political intervention and incorrect decisions.

Today, 60 percent of passenger transport needs is fulfilled by the private sector while the balance 40 percent is covered by the SLTB. The government, realizing the importance of reviving the public sector transport service, has taken measures to formulate a National Transport Policy. We expect to overcome the problems pertaining to the both state and private sectors with the implementation of the National Transport Policy.

Gayantha Karunathilake (UNP):

It has been pledged in the Mahinda Chinthana to formulate a national policy for transport. But the government has failed to formulate the policy for seven years.

Problems pertaining to the transport sector have increased. Increase in road accidents, illegal route permit issuance, increase in frauds and corruptions are some of them. The number of accidents occurred at unprotected railway crossings, has increased. It is necessary to install safety gates at over 900 unprotected railway crossings in the country.

Transport Deputy Minister Rohana Kumara Dissanayake:

The Public Transport Sector collapsed with the introduction of the open economy. A number of buses destroyed during the terror period of 88-89. But today, under the instruction of President Rajapaksa, the government has given top priority to revive both the SLTB and the CGR.

Train operations on the Northern railway line were suspended due to terrorist activities. Today, the Northern railway line from Omanthai to Kankasanthurai are being reconstructed under Indian assistance. Two railway lines from Medawachchiya to Madhu and Madhu to Thalaimannar are also being reconstructed. The extension of the Southern railway line from Matara to Kataragama has been undertaken. We intend to establish an environmental friendly and sustainable transport system. The Motor Traffic Department has expended services to provide a better service for the people. New buses have been added to the SLTB fleet. These buses are also engaged in providing early morning and mid night services for commuters.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

Sunil Handunnetti (DNA):

Frauds and corruptions are rampant in the both SLTB and Railway Department. The SLTB has incurred a loss of Rs 6,000 million. There is a racket behind the spare part transactions of the SLTB. I request the Minister to conduct an investigation with regard to this racket.

Ports and Highways Deputy Minister Rohitha Abeygunawardena:

The Hambantota Port Project was criticized by the Opposition since the commencement of its construction. Opposition members said at least a fishing boat would not arrive at the port. Despite the all criticisms, operations are successfully handled at the Hambantota Port today.

Twenty eight ships have arrived at the harbour so far. We have received an income of Rs. 84 million from the operations of the harbour. Many large scale companies have come forward to invest US$ 515 million to set up business ventures in the port premises.

We have targeted to earn US$ 87 million from port operations by 2020. The government has spent US$ 360 million for the first phase of the project.

Harrin Fernando (UNP):

We do not oppose to the construction of new harbours in Sri Lanka. Income, generated through harbours, immensely contributes to the development of the economy. We can expect the increase of state revenue through large scale projects of this nature. But, four massive scale harbour projects are under construction in India. This will be a big challenge for us.

Transport Minister Kumar Welgama:

The Government has allocated money to pay to SLTB employees. There is a case pending on courts with regard to the issue. Therefore, once the judgment is given by the courts, we will take steps to pay gratuity to the employees.

We spend nearly Rs. 12,000 million to pay salaries of the SLTB employees. The Railway Department has been revived today. We imported new power sets including super luxury trains from India and China. The Southern railway line has been converted into a high speed railway line. New buses have been added to the SLTB fleet. New trains have been deployed on main, Southern, Northern, Upcountry and Kelani Velly railway lines for the convenience of railway commuters.

A. Adaikkalanathan (TNA):

Public transport facilities should be uplifted in the North and East. Tamil speaking people like to live in a united Sri Lanka. Therefore, I urge the government to take action to provide a permanent solution for the national issue.

Sujeewa Senasinghe (UNP):

It is reported that the Railway Department has not paid distress loan to employees so far. There are a number of problems pertaining to the Railway Department. The Ports Authority’s chairman has taken the powers provided for ministers. He keep many bodyguards for his security. I urge the president to probe this matter.

Ports and Highways Deputy Minister Nirmala Kothalawala:

Let alone harbours, even a single well was not built during the UNP regime. A massive road development drive is undertaken by the government today. The Dahaata Wanguwa road which was neglected during previous regimes is being renovated. It is expected to reduce the travel time by 2 1/2 hours from Mahiyangana to Kandy after completion of this road. The government spent only Rs. 540 million to construct the Southern Expressway from Kottawa to Pinnaduwa. But today, we have earned Rs 915 million from the Expressway. Construction work on the road from Colombo to the North is expected to commence by 2015.

In the North, 510 kilometres of roads has been reconstructed. In the Nuwara Eliya district, 118 kilometres has been developed. Especially, the road network in rural areas has been renovated.

Dayasiri Jayasekara (UNP):

The Ceylon Petroleum Corporation is one of the key loss making institutions in the country. The CPC owes about Rs 80 billion from various sources such as the CEB. If this had been a private company, it would have been closed down by now.

The Sapugaskanda refinery has not been upgraded since 1993. Two workers had to pay from their lives due to this. This was a tragedy which could have been avoided.

No official responsible for the substandard oil issue has been punished. They are still earning their salaries from the CPC. These corrupt oil purchasing deals incurred heavy losses to the country. The minister should hold inquiries and reveal the corrupt officials to the country.

Oil pipelines are leaking at about 20 places. These old pipelines should be replaced with new ones soon.

Power and Energy Deputy Minister Premalal Jayasekara:

Electricity supply expansion projects to cover the entire country are being carried out by the ministry. When hydro power is insufficient, we have to depend on thermal energy. This makes the CEB to bear extra costs. But the CEB was not pursing profits from its services. We are keen on developing the power and energy sector.

Power consumers have increased to about 4.9 million with electricity expansion over the country. Now, most rural villages have received electricity, including those the North and East.

Under the Vidulamu Lanka programme, we have allocated Rs. 5,000 million to provide electricity for villagers.

Reservoirs dried due to the extended dry spell over the country during the past few months. However, now the reservoirs are receiving heavy rain falls. We also initiated a power conservation programme and we hope to promote it to be able to save 240 gigawatt hours annually.

The President is keen on expanding power supply to rural villages. We are committed to this end. We have started renewable energy projects to face emerging challenges in the power sector.

A. Vinayagamoorthy (TNA)

A substandard coal consignment has been imported. I request the minister to look in to this and take corrective measures. Newspapers reported this issue. We cannot use this consignment for power generation. Measures should be taken to avoid repetition of such incidents.

Achala Jagoda (UPFA):

The UN Secretary General noted that there should be a mechanism to ensure the provision of power to everybody. We have taken measures to activate this initiative. Fossil fuel pollutes the air and reduces the sunlight reaching the Earth as well as causes global warming. Mostly, fossil fuel has been the cause for many wars.

Gayantha Karunathilake (UNP):

The Power and Energy Ministry and the Petroleum Industries Ministry are two Ministries that have become talking points for cheap deals. Those were about substandard oil imports and the Norochcholai Power Plant. But during the UNP government these two areas developed remarkably creating a large number of employment opportunities.

The Laxapana, Vimalasurendra Hydro Power Plants were built during the UNP government. The one and only petroleum refinery in Sapugaskanda was set up during the UNP government. It was requested to blacklist the companies that imported substandard oil but it has not been done. Corrupt officers were not punished. Substandard petrol, substandard plane fuel and diesel were imported. The CPC takes double standard when taking measures against such incidents. The storage and delivery of petroleum is not organized.

Neranjan Wickramasinghe (UPFA):

Under the Iranian project, 47 kilometres of roads was provided with electricity in my area. In 2010, the production cost of one electricity unit in Rs 13.16. The cost of electricity production is very high. But the government has plans to generate more 300 MW.

Anura Kumara Dissanayake (DNA): The CPC is incurring heavy losses. These could have been minimized if the corruption in it had been arrested. Oil imports are big deals in the country. Those affect the country very much. Therefore, those deals must be carried out transparently and under strict supervision.

The officials responsible for the hedging deal are not punished. Instead, they hold high ranking positions in the government. The hedging deal deprived a large sum of money to the country.

Gayantha Karunathilake takes the Chair.

The CPC as estimated would incurs Rs 100 billion loss this year. The corrupt deals largely contribute to this loss.

Petroleum Industries Minister Susil Premajayantha: In 2004-2005, the CPC had a profit of about Rs 5,000 million. The Ceylon Petroleum Storage Terminal Limited (CPSTL) earned profits. I would like to clarify the reasons for the loss that incurs today we did not increase oil prices in the local market. Even though the oil prices in the world market rised sharply. Today, the price of a refined oil barrel in the world market is varying between USD 120-125. We bear an extra burden the on oil price hike without passing it to the people.

During the drought period, about 85 percent of the power requirement was generated from fuel we provided fuel for the CEB at concessionary prices. We incur a loss of Rs 37.49 for each furnace oil litre we supply to the power sector. We provide 2,400 metric tonnes of oil for the power sector and another 400 metric tonnes for the industrial sector. The daily loss due to the concessionary price of oil to the power sector is about Rs 75 million.

So, about 60 percent of the loss incurred by the CPC is due to this reason. However, the government is giving this concession for the entire population. The country’s economy and industrial sector would not be able to cope up with extra costs on power. The balance 40 percent loss of the CPC is mainly due to the concessionary prices of fuel for the people. The government has to endure a loss of Rs 10.40 from each diesel litre, Rs 14.78 from each kerosene litre and, Rs 2 from each petrol litre as at today.

All together, the loss the government has to bear due to concessionary prices of oil is about Rs 65 million per day.

We have implemented all the four recommendations of the committee to probe the substandard petrol issue. Two persons have been interdicted and legal action has been sought. Measures have been take to obtain Rs 55 million lost from this incident from the supplier. The oil pipelines from the Colombo Port to Kolonnawa are more than 50 years old.

About 400 families had built houses on these pipelines. We removed and resettled about 65 such families. We will take measures to lay new pipelines within the next 6-7 months. This more will require about USD 45 million. The CPC owes Rs 104 billion from government institutions. We have made agreements to obtain this money in instalments. The government owns 66 percent of the CPSTL. Only 33 percent of shares belongs to the government. We will increase this share allotment.

When fuel prices were revised in February, we had been incurring a loss of Rs 35 from each kerosene litre and Rs 25 from each diesel litre. However, even after the price revisions, the fuel prices of Sri Lanka are still lower than those of India.

We have always followed an open tender procedure in all our oil deals. We have worked in consistent with the circulars of the Treasury.

Thenuka Vidanagamage (UPFA):

Mahiyanganaya was an underdeveloped region without basic facilities a few years back. Many families requested power supply. About 82 percent of the population in the area depends on agriculture. We wanted to provide facilities for the children of there farmers to obtain decent education. The main obstacle for them was the non availability of power supply. But recently, many power projects have been initiated in this region. The benefits of these projects are for the residents in the area.

Dilum Amunugama (UPFA):

The government has been able to extend power supply to rural areas covering 94 percent of the country. The government has allocated a colossal amount of money to power supply projects. The government is giving a concession for electricity traffic to the consumers using below 120 units bearing Rs 53 million. Religious places also get a concession for electricity tariff. The government bears Rs 600 million loss due to this.

Deputy Chairman of Committees Chandrakumar Murugesu takes the Chair.

P Ariyanethiran (TNA):

We don’t want to criticize the development projects implemented by the government in our area, the North. Electricity is provided for North rapidly.

However, the dry rations for the people have been stopped. There are oil deposits in the Mannar district. Who are going to take the benefits?. It should be transparent. Tomorrow is Mahaweeraday. Still the people cannot celebrate that day.

People want development. But what is the use of carpeted roads and facilities if they are not given a political solution.

Health Deputy Minister Lalith Dissanayake:

You are going to light lamps on Prabhakaran’s birthday. What do you say about the massacres done by him at Central Bank and other places.

P Ariyanethiran (TNA):

What is the cause for such actions?

Ruwan Ranathunga (UPFA):

Under the Sramashakthi programme, the Power and Energy Ministry identified 60,000 families in high land areas where electricity cannot be provided. There were projects to provided them with electricity in 2012. Those projects are nearing completion. However, almost all the areas in the country are provided with electricity.

Ravi Karunanayake (UNP):

The loss incurred by the Petroleum Industries Ministry in 2008 was Rs 14,750 million. The loss in 2010 and 2011 was Rs 26,290 million and 94,500 million respectively. This ministry has a non return of Rs 226,000 million. The Power and Energy Ministry has an outstanding of Rs 60 billion to the Petroleum Industries Ministry. The Minister admitted the hedging is a totally a flop. How do you rectify the negative assets of the CPC?

Sri Lanka is a country which has a high productions cost.

All such problems were solved within 100 days during the UNP government.

Why don’t we use wind power and solar power?

Power and Energy Minister Patali Champika Ranawaka:

All the institutions under the Ministry have worked with a sense of responsibility to solve problems. The challenge is the short of energy. In 1994, there were 1.4 million electricity consumers and now it is 5.3 million. In 1994, each family consumed 148 units and now it is 513 units.

Deputy Speaker Chandima Weerakkody takes the Chair.

Until 2004, no investment was made for electricity generation. But under the leadership of President Rajapaksa, we could initiate many projects including the Norochcholai project.

This problem will be solved in 2014 with the Puttalam project which would add 900 MW to the national said. During the UNP government, they bought electricity from the private sector. By now, 94 percent of villages have been provided with electricity. We will provide electricity for all in the next year.

Those days, the best results of examinations were reported from leading schools. But it has changed as electricity in given to villages.

When the UNP took over the government, a unit was Rs 0.16 and after 17 years it was Rs 3.71 which was a 23 fold increment. Those days, electricity was generated only by water. But 80 percent of the expenditure of the CEB is for the power generation cost.

The CEB could earn profits for the first time in 2010 after 15 years due to management changes. We could have earned profits in 2011 and 2012, but the government did not like to increase the prices of electricity with the increase of fuel price. We expected a loan of Rs 40 billion. The projects included 800,000 street camps and free electricity provision to the resettled IDPs and the cost of electricity provision to the North and East where the electricity supply was destroyed by the LTTE.

Those days, there were 7-8 hours power cuts. They are still in other countries in the region. But we are supplying electricity 24 hours. We provide relief for 400,000 families, 60,000 factories and 30,000 religious places.

We have given electricity to 250,000 anew this year. But those days, electricity was limited to Colombo 7 and the suburbs. The situation has changed. We had a period when electricity waste was 24 percent and we could reduce it. We have given electricity to 250,000 families that used kerosene oil lamps. We gave solar powered electricity to Meemure which is a very rural village. The Opposition spoke of the failure of Norochcholai. But the Kotmale plant had to be closed for 2 years after it was commissioned. The Samanalawewa plant could not be used. So far it is the same. The UNP has forgotten it. That waste is added to the debts of the CEB. I don’t want to talk about those political issues. But I had to talk as the Opposition talked about it.

Sylvester Alentine (UPFA):

The people in North have been provided with electricity. But there are some areas where electricity is not yet provided. So I request you to provide them with electricity.

Petroleum Industries Deputy Minister Sarana Gunawardena:

There is no a single UNP MP here to listen to the government. The UNP asked as to why fuel is leak from Petroleum Corporation Pipes. They cannot remember that Gonawala Sunil made holes in pipes to steal fuel during the UNP regime.

That is the reason for these oil leaks.

During the UNP regime, a ship transporting fuel to Sri Lanka sank. Even a complaint has not been made so far. What happened to it?

The House was adjourned until 9.30 am on November 28.