Daily News Online
   

Tuesday, 15 November 2011

Home

 | SHARE MARKET  | EXCHANGE RATE  | TRADING  | OTHER PUBLICATIONS   | ARCHIVES | 

dailynews
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

No private assets will be taken over by govt - Basil

Continued from yesterday


Following are excerpts of the speech made by Economic Development Minister Basil Rajapaksa in Parliament on Wednesday during the debate on the Revival of Underperforming Enterprises and Underutilized Assets Bill


Some people said that molasses too are manufactured during the sugar-making process. The investors have requested permission from the Excise Commissioner to import 250 metric tonnes of cane molasses. When the Excise Commissioner conveyed to the Sugar Research Institute, the investors’ request to import molasses, the latter ruled it out as completely wrong and cannot be allowed at any cost. The investors’ case against the Excise Commissioner is pending in the Court of Appeal.


Minister Basil Rajapaksa

Land was released to the investor only for cultivation and not to import molasses and manufacture arrack. The institute was set up for the benefit of the sugar cane cultivators - which is a public property. The Ven. Maha Sangha should know that the industry does not benefit the sugar-cane cultivators - instead moonshine is manufactured. I do not know how the Ven. Maha Sangha speak on this issue. All conditions stipulated in the agreement have been violated.

I should clarify this too. There are Mahaveli lands. Despite the delay in handing over the deeds of transfer, the beneficiaries of state land have taken over the possession of their allotments. Over 200,000 awardees of Mahaveli lands have not still been issued the deeds. As provided for in the Mahinda Chinthana, all deeds have since been released to the land beneficiaries. About 250,000 deeds will be released soon. That the deed for this land had not been issued is not acceptable. The President obtained a Court Order within a day to have the deed released immediately. The President could have remained silent, but he acted with due deference to judiciary.

National property

The Lanka Tractor Company which remains closed for a number of years was not a loss-making venture. It was privatised in 1994. It earned a profit of Rs. 25.5 million in 1989, Rs. 55.2 million in 1990, Rs. 29.3 million in 1991, Rs. 20.2 million in 1992 and Rs. 37.4 million in 1993. Such a profitable venture was privatised causing the ruin of a national property. There were 550 employees there who lost their jobs. The corporation had been appointed local agents to Massey Ferguson Kubota Tractors, and Taffa. The employees were denied their gratuities. This Corporation was privatised for a sum of Rs. 148 million. We would not have taken this step had at least the two valuable blocks of land at Pettah and Narahenpita been made use of.

There is the allegation that state enterprises are running at a loss. Some have incurred losses due to mismanagement attributable particularly to the UNP governments. The Electricity Board is run not solely for profit. It is a service. We have programmed to supply electricity for all by July 2012 in keeping with the concept, ‘Electricity for all’ - under the guidance of President Mahinda Rajapaksa. To reach this target, we have commissioned rural electrification schemes, power generation ventures, new generation profits at Norochcholai, Kerawalapitiya and Upper Kotmale. Without solely depending on thermal power, we have used alternate sources such as hydro-electricity and coal-fired energy. We purchase electricity from some companies at the rate of Rs. 120 per unit and sell it to the consumers for Rs. 4.50. We are providing a transmission line to the North - from Vavuniya via Kilinochchi to Chunnakam and till such time we have to depend on the two private companies in the North for the supply of electricity at the rates determined by them.

The Petroleum Corporation incurs a loss of Rs. 20 per litre of diesel. We could show profit by merely increasing the price which we don’t do. We don’t follow the ‘price formula’ practised earlier. The loss from kerosene is Rs. 30 and it’s Rs. 45 from furnace oil in the process of electricity generation.

Business enterprises

With regard to SLTB, I should say that we have deployed SLTB buses in difficult areas. There are separate school buses. The private buses play ply on profitable routes.

Therefore in accordance with Mahinda Chinthana even with losses, their services will be maintained in the interest of the public.

We have institutions, such as, Kurunegala Plantations, Chilaw Plantations and Lanka Phosphates which were incurring losses, but now run on a profitable basis. Institutions were privatised to share the private sector managerial skills in the development of the national economy. I would like to ask the Opposition what alternative is there for us to resort to other than taking over these assets, if they are not properly managed and have failed to earn profits?

You have also made the allegation that we might acquire temples, private houses and business enterprises as well. We have never acquired any temples, but really developed them. It was the UNP which acquired and barricaded the Getambe temple and the Gampaha Saama Maha Viharaya of Ven. Daramitipola Rathanasara Thera.

Private assets

Then it was Ranasinghe Premadasa who acquired the residence of Minister Mervyn Silva. The entire stretch of land from the residence of Veteran Ayurveda Physician Pandit William Alwis upto the Duplication Road was taken over by the UDA to put up the Lucky Plaza.

Not only such properties, they also acquired the land where Premasiri Stores was housed, Andrew Donald’s premises where Unity Plaza is located and the die-hard UNPer Jinadasa Mudalali’s land at Warakapola, alleging that he displayed only the photographs of D.S. Senanayake, Duddly Senanayake and Rukman Senanayake but not that of J.R. Jayewardene. Who took over the media? Did they not take over the media institute of Ranil Wickremesinghe’s brother Shan Wickremesinghe? All these were taken over by the UNP.

On behalf of the President, the Cabinet would like to give you an undertaking that we will never take over any private assets. Private sector includes even the pavement hawkers for whom we have provided self-employment to protect them as part of the private sector. Here are a few facilities provided to the private sector by the government. Recently, when the entire global banking system collapsed, it was imminent that we would face the same danger faced in Sri Lanka. Thousands of Seylan Bank employees were kept on agonising suspense due to the fear of loss of employment. The depositors were equally affected. However, due to the direct intervention of the President, within 24 hours the Bank, its employees and depositors were relieved and protected.

Tax reforms

The entire banking system was strengthened. That was the biggest relief provided to the private sector. People know that so long as the President is in power, their investments in banks are quite safe. What was the fate of Pramuka Bank? The depositors were in an imbroglio. We reconstituted the bank as ‘Sri Lanka National Savings Bank’ and won the confidence of all depositors.

We gave the fertiliser subsidy to the farmers. When the tea industry was in dire straits, we provided the fertiliser subsidy to the tea small holders of less than five acres. We also reduced their electricity tariff and wrote off the interest on their loans.

They were also benefited by the increased tea prices due to the application of fertiliser. Since May 1 this year, the fertiliser subsidy was extended to rubber and coconut estates as well. Sugar cane cultivator and sugar-cane companies too were benefited by the fertiliser subsidy. What was the relief package provided to the tourist industry when it was in perilous straits? The government directly intervened and reduced their electricity tariff; loans were written off; special interest-free loans were given to them.

Wide tax reforms were introduced for the first time after 1977. Thirteen items were deleted from the list of taxes since April this year. Interest rates were also reduced to 14 percent to help them wriggle out of the crisis. One doctor remarked that he could save Rs. 7,000 on the interest of his housing loan alone.

We have also ensured the security of investments as well as foreign aid by an Act of Parliament.

Budget deficit

We have also provided relief to rice-mill owners. Four years ago, the small-scale rice mill owners at Marandagahamula in the Gampaha electorate were in turmoil when their industry collapsed. As a relief measure, their loans were written off and fresh loans on low interest were provided to strengthen storage facilities.

We also improved the lot of local construction companies having de-monopolised the field dominated by a few foreign construction companies. Consequently, today, our local construction companies are in a position to tender for World Bank, Asian Development Bank and JEBIC-funded projects. Then there is the World Bank-sponsored system of Business Ranking to judge whether the environment in a country is conducive to investment. Sri Lanka ranked 98 in 2011 from 104 and today it is 89 in the overall ranking. In the sector-wise ranking such as starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting invertors, paying taxes, trading across boarders, enforcing contracts and resolving insolvency, Sri Lanka has advanced to 46 from 74 in protecting investors.

The inflation rate too has drastically come down from 26 to a simple digit, five during the previous month. We have also narrowed down the budget deficit. No country in South Asia, except Sri Lanka, has been able to supply electricity throughout 24 hours, seven days of the week and 365 days of the year!

Under the President’s Mahinda Chinthana, not only the mega entrepreneurs, but the small-scale trader, owner of a tea kiosk, three-wheeler driver, ‘DIMO Butta’ driver and even the pavement hawker were equally guaranteed of security of business.

Restoration of peace after the liberation of the country by the Mahinda Rajapaksa government is the biggest achievement which benefited the business community. We have ensured the right of every citizen for free movement from Dondra to Point Pedro irrespective of ethnic, religious or caste differences.

Our war heroes made the biggest investment with the sacrifice of their precious lives. From the supreme legislature, I would like to assure the private sector of this country that the Mahinda Rajapaksa government would do its utmost to safeguard honest businessmen and their investments as well as their future progress. We will provide maximum support to our local investors while encouraging them to ensure high-level foreign investment into the country. We shall protect our people, the country’s environment, national heritage and customs and provide full protection to the investors.

On behalf of the government, I would like to appeal to you to extend your support to this Draft Bill. This Bill aims at protecting the under-utilised and underperforming public property and utilising it for the well-being of the people of this country. Your support is necessary to make use of such assets to provide employment and ensure the country’s development.

Concluded

EMAIL |   PRINTABLE VIEW | FEEDBACK

www.bsccolombo.edu.lk/MBA-course.php
Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
www.news.lk
www.defence.lk
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
LANKAPUVATH - National News Agency of Sri Lanka
www.army.lk

| News | Editorial | Business | Features | Political | Security | Sport | World | Letters | Obituaries |

Produced by Lake House Copyright © 2011 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor