People's Democracy

THE WEEK IN PARLIAMENT

Subhas Ray

ONCE again the constitution (eighty-fifth amendment) bill 1999, known as women’s reservation bill, has been put into the cold storage. Before the ill fated bill was taken up for consideration in Lok Sabha, a handful of members, railing against the bill, stalled the question hour proceedings, leading to an adjournment till lunch. Stiff resistance came from some NDA parties, Samajwadi Party, RJD and IUML members. BJP members, many of whom do not want any powers to be given to women, amusingly observed the happenings. The question is: why is this bill taken up every time in the last week of a session? In fact, it was due to the CPI(M) leader Somnath Chatterjee’s insistence and his April 24 letter to the prime minister that the bill was listed in the business on May 6. 

On May 7, the sharp hike in fixed line call charges was a hot issue and led to pandemonium in Lok Sabha. Some opposition members stormed into the well of the house to protest the hike. Launching a sharp attack on this anti-people move of the government, members demanded an immediate revision of the tariffs.

Rajya Sabha has passed the electricity bill 2003 that will bring about sweeping changes in the power sector. Jibon Roy, CPI(M), moved a spate of amendments to it and insisted on a division. But there was a division on three amendments only. Nilotpal Basu, CPI(M), asked the minister to explain why the government  was not in a position to accept 80 per cent of the amendments the standing committee had proposed after 16 months of hard labour. The standing committee system was evolved to improve the quality of legislation, and all political parties endorsed the concept. But now the whole system of standing committees is becoming infructuous. It is a larger institutional question.

TRIPURA SITUATION

CPI(M) members in both houses forcefully raised the issue of unabated terrorist attacks in Tripura. Matilal Sarkar in Rajya Sabha and Khagen Das in Lok Sabha referred to the recent terrorist attacks in village Satchhari, in Fatikroy and at other places. Outlawed NLFT and ATTF have also carried out a series of kidnappings in Tripura. In this grave situation the state needs more central forces. But the central government has withdrawn two army and some CRPF and BSF battalions from Tripura. Demanding adequate deployment of central forces in Tripura, the members asked the government to take up the matter of   terrorist infiltration with the government of Bangladesh where these outfits have their training and shelter camps.

Nilotpal Basu and Jibon Roy, both CPI(M), reminded the government of the state government’s requests for deployment of adequate central  forces, that are being neglected for long. It is clear that these terrorists are operating from across the border. So tackling the situation is beyond the state government’s control, they said.

HPCL, BPCL DISINVESTMENT

In Lok Sabha, initiating a discussion on the disinvestment of Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), Somnath Chatterjee, CPI(M), said the HPCL and BPCL are vital profit making undertakings and their proposed privatisation is nothing but  a loot of valuable national assets. Their total turnover in the last few years has been Rs 87,580 crore, only 1,000 crore less than the combined Rs  88,157 crore turnover of nine companies (Reliance, Grasim, Bajaj Auto, Tata Steel, Sterlite, Colgate Palmolive, L&T, Raymond and Glaxo). The HPCL and BPCL also paid Rs 21,759 crore as excise duty. In 1991-92, the BPCL’s net profit was Rs 148.46 crore after contributing Rs 18.76 crore to the exchequer; in 2001-2002, it went up to Rs 1,835 crore. Its contribution to the exchequer and national development also increased. It is providing jobs to 26,000 people in the country. It is laying pipelines for supply from Mumbai refinery to Manmad to Indore. These projects are to give employment to thousands directly and to lakhs indirectly in different states. These oil companies are also developing villages and encouraging sports, education, etc.  

As for their disinvestment, a question has arisen as to the government’s right to do it by executive decision, bypassing the parliament. If the aim is to put national resources to optimal use, Chatterjee wanted to know how it would be done. In a situation of economic stagnation, lack of resource generation and heavy public debt, where will employment come from? Just because the government cannot find out resources to repay the public debt, it wants to sell important pubic undertakings. Chatterjee warned that the sale of these companies would result in the monopoly of foreigners, bringing the country to their mercy. Moreover, the government has not allowed the ONGC to bid for the HPCL. But barring the PSUs from bidding would enable private parties to lower their bids, and this would lower the recovery. As for creation of infrastructure with the disinvestment proceeds, the government taken no action so far. Nothing has been done for the dismissed employees. Guidelines, including those about employee welfare, are not being followed in many cases. Chatterjee appealed to other members to oppose the government’s anti-national move.

FDI IN MEDIA

Rajya Sabha held a discussion on foreign direct investment (FDI) in electronic media under a calling attention motion. From the CPI(M) side, K Chandran Pillai opposed the statement by state minister for information and broadcasting, Ravi Shankar Prasad. He said basically the government’s mindset is to treat the news as a commodity. Media are a part of our democratic system. He asked: what is the compulsion for us to entertain FDI in this sector? Our constitution permits no such thing. The government is not addressing this issue comprehensively, in the light of the present global scenario and the global media players’ might on display. Even advanced countries like the USA, UK, Australia and others have not permitted foreign investment in media, in electronic media in particular. Murdoch, with all his might, was compelled to change his nationality to become a “natural citizen” of the USA to start his Fox Television Services. In such a situation, we too have to be doubly careful about it, Pillai stressed, more so because the lords of the global village are manipulating mass opinion in favour of MNCs and imperialist powers, as was seen in case of Iraq. Pillai then asked if the government has examined the possibility of proxy shares held by foreign nationals. In case of cross ownership, what safeguard is there? The member also wanted to know why provisional permission was given to foreigners in this regard, in violation of the guidelines laid down by the government itself. What was the exigency in this regard?

ON ECONOMIC SITUATION

On May 7, Lok Sabha held a discussion on fiscal responsibility and budget management bill 2000. Rising to speak, Rupchand Pal, CPI(M), said the standing committee’s recommendations have to a large extent rationalised the  situation regarding fiscal deficit. The problem with our economy is that there is a severe recession, slump in demand, rise in unemployment. The government says over Rs 75,000 crore are needed for the infrastructure sector. There has not been much of public investment in agriculture. The government moves are killing the job opportunities. In the name of fiscal deficit, capital expenditure has been slashed. In the five-year 1990-95 period, capital expenditure as a proportion of the central government’s expenditure averaged 32.62 per cent. Now there is a sharp decline in it. Yet there is no attempt to address the situation, to create demand and jobs, while the government goes on borrowing. Thousands of crores are locked up in several central projects. Our money is going abroad and then coming as investment. No one discusses the black money. The prime minister too admitted once that we need huge public expenditure. The states have their problems of fiscal deficit and are trying hard to overcome the situation. We do need to step up public expenditure to overcome the present situation, Pillai concluded.

During the Rajya Sabha discussion on finance bill, A Vijayaraghavan, CPI(M), demanded transparency in decision-making and asked why the government had reversed  its stand  in regard to value added tax (VAT). The government was claiming that it had successfully checked the inflation based on the wholesale price index. But within three months of the budget’s presentation, there is a sharp increase in the inflation rate. This clearly shows it is an inflationary budget. The government is slashing all the subsidies and benefits for the poor by hiking the administered prices. At the same time, it is enhancing the customs and excise duties on LPG, kerosene and other petroleum products. Tax benefits are being given to the rich while the entire burden is on the poor in the country. No new projects for irrigation are coming up; there is a sharp fall in agricultural production. The country is facing a severe drought. Vijayaraghavan sharply accused the government of being responsible for shrinking job opportunities in organised industries and agriculture. The government must tell in what direction it wants to take this country, he insisted.

The state governments are facing an acute financial crisis. External agencies are carefully watching the crisis in the states and imposing conditions for extending finance. Hence the centre must do something to stabilise the states’ economies.

In regard to edible oil import, the CPI(M) member said it has crossed the 41 per cent mark. But there is a downward trend in domestic oilseed production. We are permitting foreigners to export their palmolien to India, to which all the four southern states are opposed. The government’s policy is also dooming the poor farmers of these states. There is a drastic fall in the prices of cash crops. The whole price mechanism has failed. The government must come forward with concrete proposals to help these farmers, instead of helping the foreigners.

About the public distribution system, Vijayaraghavan said the government has increased the issue prices of the PDS items for both the APL and BPL groups, resulting in a drop in offtake from the PDS shops. One-third of the total subsidy is being used to store the excess food stocks in FCI godowns. The benefit of food subsidy is not reaching the poor. Nearly 80 per cent of about 530 lakh BPL families are yet to be covered under the Annapurna programme. All this means that the government needs to change its policy, he concluded.

On May 9, both the houses were adjourned sine die.