Budget Debate - 1st Day

‘‘In this budget I find very laudable and advanced thinking"

Contd from yesterday

Minister of Buddhasasana, Cultural and Religious Affairs Lakshman Jayakody: With regard to globalisation, national boundaries in the international environment is breaking down and taking us towards a one track attitude.

There is only one force in the world and that is free trade.

We cannot equate globalisation with international trade. It is not always necessary to relate globalisation with development.

The Middle Eastern market has nothing to do with globalisation. Our success in tourism has nothing to do with globalisation.

There should be an emphasis on what we are going to do. We want to have a very strong local industry.

One day we will have a free movement. All essential goods which we produce today will have to be produced high in quantity and low expense.

The reason why we were saved from the East Asian crisis was because the government has not liberalised the capital account totally. The UNP on the other hand said ‘let the robber barons come’.

We have to strengthen at least 5 crops in the country and the government has given all the necessary incentives.

Food security was given priority in this budget. We have to strengthen the rice and cereal production and this has been giving high priority.

Farming villages are going to be established. Marketing is something that we should ensure and assure to the business community particularly the farmer. We must provide them with the necessary infrastructure and research development.

Our private sector which is the engine of growth should be clean, accountable and transparent.

We are further supporting investment schemes which are already launched. The same budget concessions that have been given are being moved forward.

Joseph Pararaj-asingham (TULF-Baticaloa District) said: The budget has not given relief to the people of the North East. The claims of government that progress has been made in the field of human rights and efforts to bring an end to the war were only rhetoric.

In the North East prices of commodities are much more higher than in other areas. Many industrial enterprises have collapsed.

Poverty alleviation does not mean anything to the people of the North East. The Samurdhi Programme does not operate in the North East.

Literacy rate and performance of school children have fallen. No development in the North East. Health and education have been neglected.

Not a single North Eastern district has been included in the agricultural programme.

Foreign employment too has not brought any benefits to the people of the North East.

Defence spending keeps increasing year by year and this means you have no immediate plans to stop the war.

President made a statement in South Africa that the Tamils of Sri Lanka were not the original people of the country. This was very disparaging to the Tamils. One President said some time back that Tamils were the creepers and the Sinhalese the trees. The President paid dearly for this statement.

Dharmasiri Senanayake Minister of Tourism and Aviation said:I wish to classify this budget as a gateway to the new millennium. We have realized in 1994 when we took over the reigns of rule that economic planning frame-work should reconcile with our political commitments even within hard economic realities. Hence, our forward planning is not merely limited to the mandated six year term but runs beyond the year 2000 to the dawn and thereafter of the new millennium

Highest priority given to this year’s proposals is employment generation. Seven lakhs of youth have found employment during the last four years. This includes both public and private sector as well as jobs in foreign countries and self employment.

Necessary conditions will be created by this budget for obtaining new jobs in the Export Zone, Industrial Parks and infrastructure construction projects. Graduate employment scheme with the assistance of the private sector will continue to operate. A word of advice to the educated youth is needed here. The educated youth should get over the erroneous belief that government jobs are superior and should be sought after. Afterall the economy is fast turning to be private sector dominated. Private sector is the main engine of growth. The conditions of employment are far superior economically to those of the Government. Their salaries and wages carry perks never found in the state sector. Then why this reluctance and lethargy to join private sector enterprises ? They are part of the whole with a bigger cake to share.

What the Opposition was expecting was an election budget. But you see instead a production budget to ensure continuity of what we had been doing since 1994. We act not like former President Wijetunga who rushed to the media to announce a bundle of rewards to the electors on the eve of 1994 elections for which the economy had no carrying capacity.

There will be elections I believe early next year. May be Provincial Council, may be something else. But may I assure this House, we will not have elections to postpone elections as was done through that infamous Referendum in 1982. When election comes we will campaign on the merits of what we have done and we shall win.

A word about the ethnic conflict. In the name of the Triple Gem, in the name of God why cannot we embark on a national consensus on this vital national issue to arrive at a political solution and end this horrible war. People are weary of war. They have sacrificed and suffered enough. Mr. Speaker, enough is enough. Let us be noble and honourable to others who are belong to us. They are part of us. Let what is sacrificed be considered investment for peace. Let peace be our ultimate dividend with which we go forward as one people, one country for peace, happiness and prosperity for us all.

Tissa Attanayaka - UNP Kandy District MP.

It is dissapointing the way the government has implemented their proposals. The people of Sri Lanka should get more relief, more job opportunities but nothing has been done. The rate of inflation is very high, its about 14%. We should not hide these problems but face them.

The Deputy Minister said that the economy is stabilised. That it is 6%. The progress is only between 4-5%. If the government does not do something about the currency, the rupee will devalue.

After submitting the budget proposal, what progress have you made? What evaluations have been made? What happened to all the 50 factories which was mentioned in the last budget?

The Deputy Minister said that duty relief would be given to medical equipment. Though this was done in the 5th budget, the patients who receive treatment are suffering as a result. Medical expenses have risen.

They also said that large foreign companies loved to invest here, but where is the foreign exchange.

The government expected a large income through privatisation and still expects it. But the success of privatisation was only up to 60%. Is it only through privatisation that the country could gain a revenue?

Look at the conflict in the economy. For instance the tea industry had 25% from imports to Russia. But now the market has collapsed. It is not only the rupee but now Russia levies a 3% tax on its imports.

This budget has given an opportunity to a few businessmen to earn money which is clearly seen through the budget proposals.

The budget is also to boast the image of the government which is seen through the introduction of ‘’Govi Sevana’’ establishment which is really unnecessary.

The government promised to strengthen the farming sector and said they have allocated Rs. 2 million. But the farmer is not getting his proper income for his produce.

The yield of paddy has come down but the farmers are not getting their revenue.

R. Yogarajan (CWE—Colombo District) said: We thank the government for filling 2500 vacancies in plantation schools. There are still about 3000 more vacancies in the estate sector.

I appeal to the Deputy Minister of Finance to allocate Rs. 100 million to fill the existing 3000 vacancies. When these vacancies are filled estate areas will be in par with other areas.

I also urge the Minister to allocate Rs. 100 million to implement the State Language policy.

As plantation companies cannot maintain the housing standards in the estate sector the CWC is pressing for the transfer of the ownership of houses to their occupants so that they could build them.

Investors are hesitant to invest in this country due to the war. War should be ended by political means rather than military means.

T. B. Ekanayake (PA Kurunegala District) said: The 1999 budget proposal prepares the ground for healthy development of the economy.

Tissa Attanayake spoke about plans to close down branches of banks. The Central Bank report reveals no such closure of bank branches. But in the South-Eastern countries which experienced economic problem have devalued their currencies.

Premaratne Goonasekera (UNP—Colombo Dist.) said: We wonder if it was Professor G. L. Peiris who drafted the budget or if it was President Chandrika Kumaratunga.

The member who spoke before me representing the rural areas said that low concessions have been given to the poor in the rural areas. But no relief has been given to the country in general.

Prof. G. L. has never been among the poor or experienced hunger. Therefore he does not know the suffering of the poor. There are of lakhs as people suffering in their country. There is no employment for carpenters and metal workers as a result of the collapse of the construction industry. No relief has been provided to those unemployed people as well as the educated ones.

It is only to the rich that concessions have been provided for. The rich are paid the GST back.

The Defence levy is added to the goods and therefore the poor consumer suffer as a result.

The budget has been drafted only for the rich.

You have a development plan from now on to the year 2004, but there is no plan for unemployment.

The Ministry of Defence says that the youths should not take to arms. But the government should realize that these people are not going to bear up for along time if their needs are not met.

The private sector is not interested in our local graduates. The Sinhala educated graduates find employment only in the government sector.

It is the SLFP that committed the biggest crime by putting aside English education and following a Sinhala only policy in 1956.

Maithripala Sirisena, Minister of Mahaweli Development said: The United National Party started its Janasaviya programme from the least populated villages. In the Polonnaruwa district Janasaviya was given only to two AGA divisions. Our government gives Samurdhi benifits to 14 million people in the country.

The UNP is shedding crocodile tears about the young people. Our government will stay in power even after year 2000.

Our party will remain strong under the President.

Production of seed paddy increased by 100 per cent during the last four years. Shortly we will be in a position to export seed paddy. Seed paddy production had collapsed under the UNP rule.

John Amaratunga (UNP—Gampaha District) said: I want to advice the Minister of Mahaweli Development to try to safeguard your own minister. Some sections of your Ministry are not operating now. Workers have been retrenched. At a time when you should create more employment you are terminating services of employees. Very soon you might even close down your Ministry.

Referring to the budget I would call it a rich man’s budget. You have given concessions to the rich. Poorer sections got nothing. Job agents have received concessions to import vehicles. Tax on Pajeros has been reduced.

This is also a revenue collection budget rather than an expenditure budget. People hoped the budget would give some concessions. They thought there will be some change in the GST. But nothing happened.

You have failed to give jobs to educated youths, specially graduates.

You talked highly about the road construction programmes. But you have not provided money to start them next year as you promised.

You must not accept every recommendation of the World Bank. The collapse of the economies of the East Asian countries was due to implementation of World Bank recommendations. Please do not make that mistake.

Bharata Lakshman (PA — Colombo Dist.) said: A special feature after 4 years of rule is the great attention which has been paid to the unemployed youth. Unemployment has become a great burden to the government. Vocational training for school leavers have been introduced to get them job oriented.

Today there has to be an educational reform in the country so that those who drop out from the usual educational system will always have the opportunity for vocational training. We cannot expect the private sector to provide these youth with employment because most private institutions to try to have as less employees as possible. Privatization of the Milk Board proved an unsuccessful venture as we noticed that the Chairman and the Directors were importing fruits and vegetables, for personal means.

In this budget proposal no price increases have been introduced on any of the goods other than cigarattes and liquor. I’m thankful to Minister Fowzie for reversing the increasing of railway charges.

R. A. D. Sirisena (UNP — Kegalle district) said: The government which inherited an open market economy, which they dispiced before coming into power has run into difficulty due to mishandling by incompetent persons.

Employment has become a serious problem today. The Samurdhi animators are agitating demanding permanency.

You have not kept any of your election promises.

Budget secrets had been leaked before the minister presented it on November 5. For one, I knew that there was a proposal to increase the rail fares and also about its eventual withdrawal later.

Athauda Seneviratne Deputy Minister of Public Administration, Home Affairs and Plantation Industries: I think the Deputy Minister has been able to present the 5th budget containing inflation and Sri Lanka has been able to survive the conflicts that have affected the other countries in the region.

There has been an economic ressession in most of the countries in Asia. Sri Lanka has been able to go on without being subject to these difficulties because of our economic policies. We have been able to bring down inflation and become economically stronger.

The World Bank, IMF and other financial institutions have expressed their happiness over the situation in Sri Lanka and they are willing to give us support because of the progress we have made.

Mahinda Samarasinghe (UNP — Kalutara Dist.) said: There was a lot of expectations before the delivery of this crucial budget of the PA government. Unfortunately the budget has moved in an entirely different direction and added currency to the general belief that this government is perhaps the most unprofessional government since the post independence era.

I am well within my rights to ask the government to take back this budget and present a new budget which will instill confidence in not only the general public of this country, but also the vital business sector/private sector of this country which no doubt has been disillutioned by the Ad-Hoc attitude displayed by the government since the introduction of the budget.

Sir, this is the bleak picture faced by many of Sri Lankas trading partners. Due to certain economic sanctions faced by India and Pakistan in the post nuclear explosion era and the downgrading of the credit worthiness of these two countries the economic prospects for our two largest neighbours also look quite bleak.

How then can a small country like Sri Lanka which has a savings rate of only 16% hope to achieve growth rates of 7-8%!

We are a population of only 20 million. If we are to realistically grow at 7-8% on a sustained basis in order to achieve NIC status, we would necessarily have to export or perish. We cannot simply increase production and hope to sell it to a population of 20 million and then achieve these high growth rates. It is only through a dynamic export led growth strategy can we hope to absorb and sustain any production increases.

Parliament on Wednesday