People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


Vol. XXVIII

No. 50

December 12, 2004

THE WEEK IN PARLIAMENT 

Subhas Ray

 

THE winter session of parliament began on December 1, 2004.  On the opening day itself, Lok Sabha speaker Somnath Chatterjee was forced to use strong methods to restore the order. Some BSP members tried to disrupt the proceedings and trooped into the well of the House. They were protesting against the arrest of their Party MP, Tahir Mohammad and demanded the dismissal of Mulayam Singh government in UP. The speaker, who was determined to keep a tight rein on the proceedings, threatened to suspend the BSP members if they continue to disrupt the proceedings. It had the desired effect and order was restored in the House. However, the speaker had to adjourn the House 15 minutes before schedule in the pre-lunch session when RJD and BJP members locked horns over a newspaper report about the BJP leader, L K Advani.

 

The government came under fire from the Left parties, BJP and other opposition parties on the price rise issue.

 

GTB ISSUE

 

After the zero hour, Ajay Chakravarthy of CPI moved a calling attention motion on the collapse of the private sector bank, the Global Trust Bank (GTB). Participating in the discussion, CPI(M) floor leader, Basudeb Acharia blamed the liberalisation and globalisation policies pursued by consecutive governments as the main reason for these cases of virtual collapse of private sector banks. He also criticised the governments’ proclivity to always force public sector banks to bail out such private sector banks whenever they get themselves into trouble. It may be recalled when GTB collapsed it was merged with the public sector bank, Oriental Bank of Commerce.

 

The problems for GTB began in 2001 and it almost became clear to everyone in financial circles that the bank would collapse one day. Alarm bells were sounded on a number of occasions; there were wake up calls for the regulators to step in and take appropriate steps to prevent it from virtual collapse. However nothing was done. The question is why did the RBI not take action at the appropriate time, questioned Acharia. He pointed out that right from 1997-98, the advance portfolio of the bank became a source of worry. Increasing exposure to capital market through advances meant digging its own grave. FERA had enquired into the affairs of the bank and it was found that funding was made to a corporate for a non-existent refinery.

 

Earlier, the Joint Parliamentary Committee in its report on the stock market scam had pointed out that something was wrong with the bank. Even the parliamentary standing committee also commented on this. So, despite frauds being continually committed by this bank all these years, the regulators took no action. Only when the bank was on the verge of collapse did the ministry of finance intervene and saw to it that GTB was merged the OCB. The non-performing assets of the GTB in the year 2002 was more than Rs 1200 crore.

 

Acharia demanded the finance minister to constitute a JPC to inquire into the affairs of the GTB and action against the person responsible for the collapse of this bank. He also demanded that a foolproof system must be evolved to prevent such frauds in financial institutions in the future.

 

The Lok Sabha also discussed the problems being faced by jute industry.  Initiating the discussion, CPI(M) member Santasri Chatterjee said that the problems of jute industry do not pertain only to West Bengal but also to Bihar, Assam, Orissa and Andhra Pradesh. He said that the jute workers of West Bengal had decided to go on an indefinite hunger strike from December 29 on their legitimate demands. But due to the prompt action taken by the state government, most of the demands of the workers were accepted by the recalcitrant employers. This is the way the Left Front government in West Bengal is upholding the rights of the workers and protecting the interest of the industry as well. He criticised some industrialists who were moving out of West Bengal without paying the legitimate dues to the workers. He referred to the plight of workers in other states, where taking advantage of the limitations or the weaknesses of the working class movement, their rights were being curtailed in all possible ways.

 

Touching on how to rescue the jute industry from the crisis it was facing, Chatterjee stressed the need to expand not only international market but also to seek newer areas where they can be used. He said the demand for jute goods is on the rise in international market since they are eco-friendly. As for newer areas, he said jute is being used in roads development. Chatterjee welcomed the holding of a conference to deliberate on evolving a comprehensive jute policy. He said this policy is not only necessary in the interest of national economy but also to safeguard the interest of the jute industry, workers, growers, farmers etc.

 

Rupchand Pal of CPI(M) in his speech reminded the minister that the Common Minimum Programme of the UPA government mandates the government that this important industry should be restructured and the use of jute must be encouraged.  When there was a crisis created by certain sectors in the matter of dilution of the Jute Packaging Order, the minister took keen interest to find out a solution. But the industry as such is facing newer types of crisis. Pal demanded that there should be uniform jute price and uniform wage structure. While framing the National Jute Policy, the issues relating to jute growers must be addressed, he stressed. He lamented the neglect of research institutes, which can help in significant manner in getting diversified products from jute.

 

KANCHI SEER ISSUE

 

In Rajya Sabha much heat was generated when Sushma Swaraj (BJP) was allowed to speak on a sub judice matter regarding arrest of Kanchi Shankaracharya Jayendra Saraswati. The CPI(M) leader, Nilotpal Basu, said that in the best spirit of the Constitution this matter should not have been discussed at all in the House. He said this issue was basically one of a murder case and fixing accountability thereof. Ridiculing BJP members, many of whom claim to be prominent lawyers, Basu said they should reserve their actions and statements in favour of the Sankaracharya for the court of law, if their case is so well founded.  He took strong objection to the insinuations by BJP members that Shankaracharya is being treated in the manner as he is being treated because of his religious association.

 

Referring to the overlap of areas of prerogatives, Basu said that for the dignity of the constitutional scheme, it is very necessary that parliament must not encroach upon an area which is constitutionally not meant for it. He referred to the talk about the judiciary acting in an area which is not its prerogative or about the executive working in an area which is not its prerogative.

 

The Lok Sabha passed the Banking Regulation (Amendment) and Miscellaneous Provisions Bill, 2004.  Participating in the discussion on the Bill, the CPI(M) members, Mahboob Zahedi and P Satheedevi demanded enactment of a comprehensive legislation for strengthening the cooperative movement. They noted the key role played by the cooperatives in the generation of rural employment, disbursement of agricultural credit and expansion of the public distribution system in the country. However, political interference and corruption have increased in the cooperatives.

 

Apprehending misuse of the Act, the CPI(M) members wanted the strengthening of the autonomy and integrity of the cooperative banks. The decision to introduce and implement service tax on the cooperative banking service will affect the growth of the cooperative banking sector, they said and demanded removal of service tax.  An authority should be there to monitor the working of cooperatives and punish erring functionaries.  The RBI should monitor the functioning of cooperatives, said the CPI(M) members.

 

The government introduced a Bill in the Lok Sabha seeking repeal of the Prevention of Terrorism Act (POTA) on December 2. The discussion and passing of the Bill was slated for December 6.

 

WAGE BOARD FOR JOURNALISTS

 

CPI(M) deputy leader in Lok Sabha, P Karunakaran drew the attention of the government to the sufferings of journalists and non-journalists working in the media due to the non-constitution of a new wage board.  Saying that more than seven years have lapsed since the last wage board was constituted, Karunakaran demanded early decision by the government, as even if the new wage board were to be constituted now it would take another two to three years to finish its task.

 

C S Sujatha of CPI(M) made a forceful demand for providing financial assistance to widows in Kerala.  She said that the financial assistance being provided to the widows through the National Family Benefit Scheme is helpful to an extent to these women, particularly those belonging to the financially backward sections. Though the meagre amount could not do much to mitigate their financial constraints, it is definitely a gesture of the society of its sympathy and concern for these women. But, unfortunately, the disbursement of this amount has not been done in Kerala since 1998. The state stands to get about Rs 46 crore from the centre on this account. In this connection, thousands of applications are pending with the authorities. She urged upon the government to release the amount due to Kerala immediately.

 

PAYMENT OF WAGES BILL

 

The Rajya Sabha passed the Payment of Wages (Amendment) Bill, 2002 on December 2.  During the discussion, K Chandran Pillai of CPI(M) supported the Bill since the last revision regarding the coverage occurred in 1982.  He recommended that abolition of ceiling for the payment of wages could also be thought of. The trade unions are arguing for such a proposition.  Pillai charged that as far as defaulting in the payment of wages in the country is concerned, the major defaulter was the government itself.  The irresponsible officials who are defaulting on account of paying the wages to the labourers in accordance with the Payment of Wages Act have to be punished severely.  The standing committee on labour had recommended incorporating stringent measures to deal with this problem.  However the Bill did not reflect this, said Pillai. He demanded that the government must incorporate a stringent clause to discourage this tendency of non-payment by employers, particularly the government that is supposed to be a model employer.  He also pointed out that many major companies in the private and public sector undertakings are designating contractors to carry out various jobs.  If a contractor disappears from the scene, nobody could be held responsible to pay the workers due to the contract nature. Pillai demanded that appropriate measures should be incorporated in the Bill to deal with such a situation.  He concluded by saying that this new initiative for a fresh amendment to the Payment of Wages Act will be considered up to the mark if such amendments are incorporated.

 

The demand for enactment of a central legislation to halt the process of commercialisation of education was raised by CPI(M) member, Chandrakala Pandey in Rajya Sabha on December 2.  She referred to the ‘March to Parliament’ being conducted by thousands of students who came from all parts of the country under the banner of SFI and other Left students’ organisations on the day.  The assurance of the present government to provide education to all will never get fulfilled without putting a ban on commercialisation of education, she felt.  The Model Act proposed in this regard by the SFI suggests measures to remove all types of irregularities in the educational field and is worthy of paying attention to, suggested Chandrakala Pandey. She urged upon the government to enact a central law without delay in order to check commercialisation of education, and control self-financed private educational institutions so that benefit of higher education could be provided to all the students.

(December 5, 2004)