Budget Debate - 2nd Day

"Milk food is one clear example of the skyrocketting prices of commodities"

Alavi Moulana (Minister of Provincial Councils and Local Government): The previous member spoke of bank loans and the budget but he forgot to mention the loans taken by the previous regime. They are now talking of banks, money and the economy. They sold peoplised companies for a pittance. There was no tender procedures, there were no labour laws then, who created this war, people who worked with underground elements are now bringing bogus figures to the House saying the future is in their hands.

P. Dayaratna (UNP, Ampara District): They have nothing to talk about the budget. This is not an election budget as many people say. It is because they cannot face elections. The government ministers who condemns the economic policies of the UNP do not offer any explanations as to why they are continuing with it.

They are reaping the benefits of the foundation laid by the UNP. They use flowery language to describe the UNP economy to say that we have left behind a bankrupt economy. The budget speech was like a fairy tale. The government has only made proposals but no sum of money has been allocated. You are trying to destroy the bus service.

(Vasudeva Nanayakkara - People say the UNP destroyed the bus service).

That is your view. The government acts irresponsibly. There is no planned approach. The front row of the government side is always empty. Ministers are not in the House to answer the questions that arise during the debate.

The price of Benz cars and vans will come down. The concessions given to public servants not convincing. The government has allocated billions to fund a war they claimed to have completed by 90 per cent.

Not a cent has been allocated to the southern infrastructure project. The Minister bragged about this project during the budget speech. That is why we call it a fairy tale budget. Even developments in telecommunication today is due to projects initiated by our government. The government is yet to launch a new infrastructure project.

Batty Weerakoon (Minister of Science and Technology) said: As Minister of Science & Technology I am particularly glad of the handsome incentives given in the Budget to the advancing field of computer technology. In the 1998 Budget we saw the removal of duties from computers. In the Budget under discussion there is encouragement given to the tackling of the Millennium Bug and also to training in computer programming. As to the problem of the Millennium Bug there was the regional conference on the matter convinced by the World Bank in Islamabad about two months ago. I was pleased to see that in the ratings given at that conference we scored top marks on the steps we had taken by then to prepare ourselves to tackle the problem. The concessions given in the Budget for the purchase of Year 2000 compliant hardware should go a long way for us to get a sizeable portion of the grant made to the World Bank by the British Government for cleaning up the systems. So far only the British Government had made this kind of contribution.

The incentives given in the Budget for training personnel in computer programming hold the doors wide open to employment creation in a sector that calls for intelligence, education and high skills. We note from the figures presented in the Budget Speech that the proportion of population that has access to secondary education is today 51.4%. This is a high figure for the region. Given the basic facilities a sizeable section of this proportion will get drawn into computer programming which is already a highly paid job sector into which we have only just stepped in. In the Soft Ware business we have in our country a handful of excellent young persons, with plenty of drive and well versed in the relevant technology and the business. I have no doubt that they and the enterprises they are linked to will make the best of the incentives and the encouragement given them in the Budget. We will soon break out of the cheap labour market and the Free Trade Zone mentality of the 1980s and link ourselves to the realms of high technology. Thank God, Sir, there is now no longer the wish on the part of any body to make ourselves into another Asian Tiger. Even the IMF no longer speaks of these Tigers.

Dr. Jayalath Jayawardena (UNP, National List) said: This is the weakest, budget the country has seen since independence. One proposal was withdrawn by the Minister himself. Another withdrawal is in the pipe line. One might wonder whether the government would withdraw all the proposals before the voting.

The budget does not provide for the recruitment of graduates for jobs. You were very boastful of the Rs. 50 million you allocated to the Peradeniya University for the purpose of construction of a conference hall.

You have only opened six garment factories so far. We opened 106 garment factories in the year of our rule.

Pavithara Wanniarachchi (Deputy Minister of Health and Indigenous Medicine): This budget has made provisions to eradicate malnutrition among the poorer sections of society. This scheme will be implemented with the Samurdhi scheme to reach the lower segments of society.

The tax concessions for vehicles for government servants is a welcome measure. I also request the minister to extend this tax concession to Pradeshiya Sabha members. The construction industry would also benefit from the 1999 budget.

Lakshman Yapa Abeywardane (UNP, Matara District) said: There is only 1 year and 9 months for the next general election. In the first budget your government promised to solve an employment problem. Today we have a situation where after 4 years in power you are still drawing up plans.

When a government come into power it spends the first year to do the planning and the rest of the term implementing the plans.

You don't implement any promises that you give to the people.

Transport and Highways Minister Fowzie went to Matara to inaugurate the construction of the Colombo-Matara highway. He promised to complete the work in 2 years. But what is happening now? Construction of the road has been abandoned after filling earth for a few yards. Now the government says the work on this project will start in 1999.

The industrial estates promised to set up in Thelijjawila and other places in the Matara district have not materialised.

The Port of Galle which you promised to construct, remains abandoned.

I challenge the government to deny that the Ministry of Finance is considering to tax the balances of the Non-Residents Accounts, to cover up the loss of anticipated revenue due to the restoration of duty free concessions given to returning middle eastern workers.

Your leadership promised to construct 25 garment factories in the Matara district. So far you have set up only two.

D. M. Seneviratne (PA - Ratnapura District) said: UNP ruled the country for the longest period from independence. Has the UNP succeeded in resolving the employment problem. Has the UNP succeeded in resolving the ethnic problem.

I will state that the UNP did not succeed in resolving any problem.

From 1956 to 1977 the emphasis in his country was on the strengthening of the public sector. Many countries in Asia followed the same policy.

There was an attempt to bring about a dialogue between the main political parties to resolve the ethnic crisis, which is a hindrance to their operations. This call came from whom we call the business community. These are the people who we called capitalists in the past. But we welcome their efforts to resolve the crisis.

These people are also asking for other things. They want the privileges enjoyed by the working class as leave, to be curtailed. They are asking for more of these workers' privileges and rights to be curbed.

A. H. M. Azwer (UNP - National List) said:

"Sri Lanka is sinking like the Titanic" screamed a banner at the Sharjah Cricket Stadium last night. This surely was not so much a reference to our criketers as it was to the PA government.

Like the sinking Titanic, the fate of the Government of President Kumaratunga is surely sealed, and the bowling and batting tactics of Vice Captain Peiris will not save Captain Chandrika's ship and its descent to the depths of the ocean.

I must hasten to add a word of consolation to Captain Arjuna and his valiant warriors who I am sure will soon rise like the proverbial phoenix and put Sri Lanka firmly back on the cricketing map again.

Unfortunately I cannot express the same sentiments about Captain Chandrika's and Vice Captain Peiris's Budget. Their team lacks, I make bold to say, men of the calibre of Arjuna, Aravinda, Sanath, Roshan, Kalu, Hashan, Murali, Chaminda and Marvan.

In actual fact, Chandrika's is a lacklustre, lackadaisical and lumpish team.

The manner in which things are removed from the Budget proposals, there will not remain any proposals to vote upon at the end of the debate. This could be aptly described as a "Striptease" Budget a Kopakabana Budget.

It is common knowledge that this Budget is prepared by the Deputy Minister of Finance - if at all he did it - to help his in-laws, the Hemakas and Mahendra Amarasuriya. This therefore can also be tastefully desribed a "Budget-in-laws."

R. M. Ratnayaka (UNP - Badulla district) said: The constitutional changes, eradicating bribery and corruption, streamlining the public administration, you promised to provide 4 lakhs of self employment, the Workers Charter, are some of the promises you made to the people of this country before you came to power. The budget has not even touched on these promises during the past four years. The price of milk foods is one clear example of the sky rocketing prices of commodities. 20 lakhs receive Samurdhi, 7% don't have access to education. Over 6000 million rupee increase in revenue has been envisaged in this budget.

You have projected 2 lakhs 50 thousand jobs in the next 2 years. But the job market will be flooded by job aspirants by this time far exceeding the supply.

This budget has been made by university professors living abroad while experts in our universities who had conducted surveys have been left out. The economic policy is formulated by people unfamiliar with our surroundings.

Wijayamuni Soysa (PA - Moneragala Dist.) said: We have achieved 3% increase in agriculture. The industrial sector increased by 15% in the first nine months of 1998. I will table a list of 552 BOI approved factories and 16 industrial parks were set up during the last four years.

When we came to power 81% of electricity depended on hydro power. We initiated alternative energy plants. The telecommunications industry has become efficient after we privatised Sri Lanka Telecom, who are now competing with private companies. The previous government did not provide adequate infrastructure facilities.

Susil Moonesinghe (UNP - Kalutara District) said: Any government can present a budget. It is like a balance sheet prepared by a skilled accountant who will prepare it to suit the needs of the company. To avoid tax he would prepare one kind of balance sheet and another to satisfy a Bank from which the company wants loans.

Test of a Budget on the other hand is to go to polls.

We say that the Sri Lankans working abroad are the people whose contributions are the third source of foreign exchange to the country. But at what cost. The families of these workers as seriously affected.

Bannet Cooray (PA Colombo Dist.) said: This budget has given incentives to develop the construction industry. China has showed a marked increase in development due to the development of its construction industry.

Amidst economic constraints the funds allocated to the Samurdhi programme has been increased by 800 million. Today the Presidents fund is used for the benefit of the society unlike during the time of the previous government.

Vasudeva Nanayakkara (PA Ratnapura District) said: A previous member of the UNP hailed the UNP era as the "golden age" of the economy of this country. During the past 17 years the quality of employment deteriorated although employment may have increased. It was the result of a capitalist economic policy.

The much bragged of "Golden age" between 1977-1994 was also rampant with poverty, the net income deteriorated.

The 1999 budget will result in a two rupees increased in almost every commodity.

The education and health sectors have been neglected with the funds allocated for these sectors coming down during the past few years. The necessary funds needed for social development has been further cut back due to the concessions given to large scale companies in the budget. The government will lose millions in revenue. You cannot cover it up by increasing Samurdhi benefits, anyway it is not adequate to cover up the cost of living.

If the government does not change its government budgetary policy the UNP will be given a chance to come up again.

Chandradasa Galappathi (UNP - Ampara Dist.) said: The change of the revenue proposal has widened the Budget deficit and the government has so far failed to reveal how the additional moneys are collected.

According to the Minister's own words the emigrant employees send in foreign exchange totalling Rs. 500 million. In the Budget speech the same minister in 1995 moaned the lack of regard for these people who earn foreign exchange for the country. But in 1998, the opposite has taken place.

If you have won the war and only as little as four percent of Jaffna is yet to be retaken, why do you want to raise the National Security levy from 4.5 percent to 5.5 percent.

You have raised the price of fags and liquor at every budget. Why are you raising the prices of other varieties of alcohol.

When you removed the tax on beer last year you said prices were being (reduced) in order to save the people from the effect of hard liquor.

Gamini Lokuge (UNP - Colombo District) said: The Deputy Minister of Finance conceded that there are flaws in the budget. Felix Dias Bandaranaike resigned on a similar issue. The Deputy Minister of Finance must resign.

The government has become the curse of the people. You must resign immediately.

M. E. Samarasinghe (PA Matara District) said: The fifth Budget was presented in an environment where there is a war. I am happy that the government has been able to present a budget of this nature for the 5th time.

We have increased only the National Security Levy by this budget. This is quite in line with the thinking of the leaders of the UNP itself. Such justification of increase of taxes in time of war was made by President D. B. Wijetunga in 1989,

UNP talks about peace and economic prosperity of the country only when they are in power. When the UNP is in the opposition, they look at everything as inimical forces.

I see the budget as a friendly budget. It was not however an election budget as conceived by the UNP. It has addressed the development of science and technology.

There are tax incentives to improve the country's technological capabilities.

Government's proposal to improve the lot of the farming community is commendable. I wish the government had gone a bit further and taken over temporarily undivided land and give them on a temporary basis to people who can cultivate. This could be done under emergency regulations or under the provisions of the Agrarian Services Act.

M. Sivalingam (CWE - Nuwara Eliya District) said: The ongoing war poses difficulties to allocate money for the people. Plantation sector has to be looked after. You must take measures to extend whatever incentives you have offered in the budget to reach the plantation areas.

The cost of production of potato farmers has to be brought down by providing relief.

Price of arrack should be brought down as this drives middle income groups to consume illicit liquor.

Sarathchandra Rajakaruna (UNP - Gampaha District) said: Government members didn't have much to say about the budget. There should be more funds to repair roads and drains.

The government boasted of providing jobs but how will they give jobs. They have not told us how.

Although the government has spelt out several programmes to develop agriculture the farmers are struggling to cultivate. Why are the farmers committing suicide?

The expatriate workers who toil in foreign countries under difficult conditions have been deprived of their source of comfort, in this budget.

Parliament on Thursday