Budget Debate - 3rd Day

Common theme of PA budgets was that UNP mismanaged
- Harold Herat

Parliament met at 9.30 a.m. on Thursday 12, 1998 with Speaker K. B. Ratnayake in the Chair.

After presentation of papers and oral questions answered House commenced debate on the Appropriation Bill 1999 for the third day.

M. H. M Ashraff, Minister of Ports Development, and Reconstruction and Rehabilitation said: I wish the President who completes four years in her office, luck, long life and a longer term of office.

1998 was golden jubilee of the independence of the country. But I confess there is no gold in the budget.

With an on going war the situation would have been worse had the UNP come into power. When the two controversial proposals, namely the imposition of a 25 per cent increase in the rail fares and the withdrawal of allowance of USD 1200 to make duty free purchase for returnees from work abroad are taken off there is nothing much in the budget deserving Parliamentary time.

Today the UNP and the PA considering a Sri Lankan identity. But Sri Lankan identity is not possible without a Sri Lankan people. If we want a Sri Lankan identity we must have our different identities and a process to preserve it.

The Westminster type of democracy was suitable for countries which have evolved historically the basic condition. This system was foisted on Sri Lanka too early. The Westminster type of democracy I want say is bad. What I say is it is not suitable for countries both Asian and African where the atmosphere is not friendly to it.

This budget is being presented on the eve of the next millennium. The most important factor in the next millennium is technology. We who exercise power re-assess ourselves and prepare the country for the situation ahead.

We must adapt the western values to suit out conditions.

Institutionalisation of the opposition is not necessary for democracy.

Non-balanced development was the cause of the problems and the frustration of the various communities.

Harold Herat (UNP - Puttalam District) said: The great expectations of the people of this country is receding year by year and budget by budget. Minister Ashraff entrenched himself as the leader of the SLMC in his speech and expressed his belief that once the hike on railway fares is withdrawn and the duty free allowance continued the budget will be hunky-dory.

I don't see why we can't have a Sri Lankan identity. (Minister Ashraff applauded with others).

Minister G. L. Peiris in his budget speech said the resilience of the country's economy to the economic turmoil was due to the government's economic policies during the past 4 years. The Minister is fluent in both languages and is able to adjust facts to suit the needs. Your claim to have recorrected a ramshackle economy left behind by the UNP is the worst political gimmick. The economic growth rate is due to the continuation of the economic policies of the UNP.

The common theme of all the budget by the PA government was that UNP has mismanaged. The Minister also read the speech has a clouded vision and is away from reality. Don't blame the UNP but prove that you can deliver the goods. The PA has repeatedly imposed burdens on the people by raising prices and indirect tax. Increase in NSL and cigarettes will increase the price of goods. You sacrifice the people of the country to maintain the budget deficit to IMF levels. Has your military achievements been in line with the increase in military expenditure? If not for the massive infrastructural development done by the previous government they could not boast in their budget speeches.

This is a budget, strictly speaking, that cannot be debated. If you keep your ears to the ground you will hear that the elephants are on the war path.

The constitutional changes and other changes you have in mind is being delayed beyond the endurance of the people. Please bring the Prime Minister or the President to Parliament as you promised.

Although time is too late you should strive to achieve these goals. You have our well wishes.

Nimal Siripala de Silva (Minister of Health and Indigenous Medicine) said: Many UNP speakers said we did not do anything during our four years in power. But they said we were carrying out the UNP's own development programme. Here there is an admission that we have worked. There were compliments from Susil Moonesinghe on the previous day about the success of the Telecom.

We have set upon a course of long term development rather than a short term development. If you look at the budget superficially, it may look unattractive. If you go deep into the budget proposals you will see that the budget is sound enough.

The opposition charge that we did not work is all wrong. We have expanded infra-structures. We have increased salaries of public servants. Many rural areas are electrified. This is the human face of our economy, that we spoke of during the election campaign.

The Tamil parties are with the government. Their hearts are with the government. The problem that they did not have the freedom of speaking according to their conscience due to threats. Many of their members have been killed. We have no ill-will towards the Tamil parties.

The UNP accused that the budget mentioned nothing about the government's devolution package. But I must tell you that there should be an understanding between the government and opposition parties.

Rajitha Madduma Bandara (UNP - Moneragala District) said: Politicians of the People's Alliance who are harassing the UNPers in electorates brought thuggery into the House itself today.

Displaying of posters was our right and a group of government members forcibly removed our posters.

In 1994 you preached to stop the use of Benz and Pajero vehicles. You promised to put an end to patronising relations, but you have not been able to do it stealthily as you planned by trying to remove the duty free allowance.

In this budget speech the minister himself said that only 1,200 graduates were given employment under the 'Tharuna Aruna' programme. There is no infrastructure development and the countries the President went to obtain investment have collapsed.

Shantha Premaratna (Deputy Minister of Parliamentary Affairs and Plan Implemention) said: This is not a budget aimed at deceiving the people. I believe that the people of this country also expect a budget that ensures future economic security and development.

If the UNP had a scheme to employ graduates that passout, as they brag, why is there a backlog of over 35,000 unemployed graduates, now?

The concept of 'Govi Gammana' and the money allocated to it will focus on areas that have been overlooked by every government since independence. These 'Gammana' will provide employment as well.

We expect the support of the opposition to resurrect struggling companies by privatisation.

We will be able to present a budget that will hand out many benefits to the people if we end the war. This is an honest budget that spells out the reality of a protracted war that drains the country of its resources.

Jayawickreama Perera (UNP - Kurunegala Dist.) said: We can't accept the argument that the defence expenditure hampers development efforts.

We handed over a growing economy. We started massive development efforts that are producing results now. Thanks to UNP government policies you are enjoying the benefits including the development in the telecommunication sector.

The 'Shell' deal is not bringing in any profits to the country. You destroy the local companies nurtured throughout the years by selling it to foreign companies. The money you got by selling SLT, you use to pay your debts.

Another youth uprising will take place unless you give employment to the 35,000 graduates that are protesting in the streets.

He throws loaf of sliced bread to the middle before concluding his speech.

Prof. A. V. Suraweera (Deputy Minister of Cultural and Religions Affairs) said: This debate has become joke. Several incidents took place today posing a threat to the honour of this assembly. During the previous government the price of goods used to go up almost weekly. This was termed as 'price revisions'. Than the budget did not increase any prices. We had to refer to newspapers everyday to see which items had gone up in price. We have to look at the 1999 budget with a broader out look.

R. Pulendran (UNP - Wanni Dist.) said. This budget is insensitive budget. The price hikes would increase the inequalities of different income groups. Does the Samurdhi benefits reach the targetted sections of society. Even the appoinments of Samurdhi animators are questionable. The Ministry of Defence provides the most number of jobs. Whatever you have offered does not fulfil the expectations of the people.

Dixon Nilaweera (PA - Colombo Dist.) said: This budget is a remarkable feat presented in difficult times. We are facing a war. We are giving youth an opportunity to realise their full potential even under constrained circumstances.

This budget strengthens diversification of opportunities. Former Finance Minister Ronnie de Mel used to deliver exhaustive budget speaches longer than the 550 Jathaka tales and fascinating as the 'Hans Anderson', fairy tales. Now the opposition behaviour like 3rd grade kids. They bring slices of bread, books and throw them at us. You are demeaning the dignity of this house. An intelligent opposition would come up with alternative proposals. We must give priority to solve the ethnic conflict.

'Govt. Trying to go Forward on reverse gear'

A. M. D. Rajan (C.W.C. National List) said: the budget does not disclose how the government is going to employ the young people in the plantation areas in the industrial estates that the government proposes to set up.

We are not against programmes to give employment to graduates. What I say is there should be employment prospect for the plantation youths too.

Training should be provided in the mother tongue of the youths concerned. Tamil is now an official language. But this has not still been fully implemented. All ministries should work in Tamil language too. If everyone has equal opportunities including working in Tamil, everyone can regard oneself as equal citizens of the country.

Selling of plantations to private companies has caused serious problems to the plantation community.

No lands are available for cultivation. If lands are available some people can use them for growing vegetables and grass etc.

Earl Gunasekera (UNP-National List) said: the defence provision for next year was Rs. 47 billion. This is a reduction of about Rs. 15 billion compaired with expenditure in 1998. Therefore the claim of government speakers that increased defence expenditure was not allowing syphoning out of funds to other development programmes adequately is not true.

The government's claim that a telephone can be obtained in five days must be considered a feat of Kamitsuma, the executive officer of Telecom rather than the government.

The competition created by other telephone companies has made it necessary to install telephones as quickly as possible.

The minister has allocated Rs. 100 million for cultivation of seed paddy. But last year's budget stated that government was selling the seed paddy farms in Hingurakgoda, Pelwehera and Polonnaruwa to private companies.

The Hingurakgoda farm has been sold to CIC which grows only commercial crops as gherkin. They don't grow seed paddy.

Present programme is to grow seed paddy in Maha Iluppallama. Batalagoda and Ambalantota. Which are located for away from rice growing areas.

K. Thurairasasingham (TULF Batticaloa Dist.) said: ours is an agricultural country. Our main concern is the amelioration of the living conditions of the rural people. The budget does not take into account this fact.

Government must give sufficient concessions for the import of agricultural inputs specially agro-chemicals. The subsidy is inadequate and the prices remain out of reach of the ordinary farmers.

Eastern province is a major rice producing area. But there is no seed paddy farm in the district. You must consider setting up one.

Eastern paddy cultivators do not have facilities to sell their produce. The Paddy Purchasing Centres have been closed down. Security check points are a major hindrance to farmers who transport paddy to other areas.

Paddy cultivators have found difficult to pay up their loans.

Fishing industry in the North and East has also suffered heavily due to security measures in operation.

H. B. Semasinghe (Deputy Minister of Tourism and Civil Aviation) said I think this budget opens the doors to technological development. It is unfortunate the opposition has not understood the benefits of the budget.

In this budget, clear policies to solve unemployment has been laid down. This budget was made with the year 2000 in mind, not the 1999 elections.

The development of the construction industry will also improve opportunities for youth employment. 24 billion rupees has been allocated for development. University of Peradeniya will receive funds to fulfil one of its long-time need.

The budget will carry forward the stable economic policies that has served this country from economic crisis that has even affected India and Pakistan.

Upali Amarasiri (UNP, Galle district) queried whether the government has achieved any economic development during the four years of office? There is no such development as far as I can see. You were only carrying on with programmes initiated by the UNP.

Look at the performance of the stock market. It is collapsing. Ask any expert on economy, he will tell you how the economy has fallen.

The 32 tea factories producing CTC teas are suffering losses now. Production has fallen. Government invested Rs. 500 million and the private entrepreneurs invested Rs. 500 million. Total investment was Rs. 1000 million. Now you are telling the companies not to produce CTC tea but to produce orthodox tea.

Please stop the import of teas. The teas imported are packed here and exported again. Please stop this.

Government has failed to stem the crime wave.

In my electoral district of Galle farmers do not cultivate paddy, for want of seed material.

This is the most unsuccessful budget of all.

Suranimala Rajapaksa (UNP, Gampaha district) said the PA government completing its fourth year in office today displayed their true colours today. While expressing my regret to these acts of thuggery, I wish to offer my comments on the budget.

The government has not stated the future course of action in this budget. The government has allocated money only to several ministries, and the Presidential Secretariat. Infrastructure development remains neglected.

Factories in the Biyagama Free Trade Zone and several other areas are now being closed down. You have provided relief to the rich by bringing down the prices of Benz cars. Common man has been dealt a blow by the increase of postage and beer.

Domestic manufacturing industry is neglected. Even water is imported from Bharain. We request the government to be true representatives of the people without becoming capitalists.

Reginold Cooray Deputy Minister of Samurdhi said: The UNP was in power for nearly two decades. They had five fifths majority in Parliament. The period was a good period too.

When I listened to the speeches and the accusations the UNP was making against the government, what they appear to be saying is that we have muddled every thing they made.

If this position was true there cannot remain an ethnic problem. There cannot be the miriads of other problems.

We are presenting the fifth budget at a time when the whole world is caught up in a whirlwind of change.

We are a resourceful country. But why are we still so poor. In my view the reason is the defective handling of the human resources.

This budget is addressing this most serious problem. Government is allocating Rs. 2000 million to that task.

The government has also rightly discovered the truth that agriculture cannot be developed merely by increasing the acreage of land. We must increase productivity instead.

Unemployment was largely due to certain concepts rooted in the society. People are seeking government jobs. This is because of job security. There is also the social recognition attached to government jobs. These are all concepts which should change.

Today there are a large number of jobs for which there are no takers. It is for the purpose of changing these misconceptions that the government has announced concessions to technology sectors.

Mano Wijeratna (UNP - Kegalle dist.) said: This budget is like trying to go forward on reverse gear. This offers no relief to the people. There is an attempt to reduce the budget deficit. This they have tried to achieve by reducing capital investments. The UNP government invested in long-term development projects.

The government that promised to reduce unnecessary expenditure of the ministries have allocated funds for 31 ministries in this budget.

The government has spent colossal amounts to fund the war. What have we achieved. Even the President has admitted that there is corruption in the military.

Tea and rubber manufacturers and the workers are struggling to keep their heads above water.

I will remind this government that charge taxes from the birth certificate to the death certificate they will have to face the reality when they go to their areas for the next elections.

Sivathasan (EPDP - Jaffna Dist.) said: Tamils living within and outside the north and east helped to seal the overwhelming victory of the present government. It was a mandate for peace.

Every member who spoke on this debate emphasised the need for a political solution.

We say that the 13th Amendment should be strengthened and developed to find a solution, to the ethnic problem.

There has been no provision to develop industrial parks in the North-East.

(Parliament meets at 9.30 a.m. today).