Basil’s take on pay hike demands, Budget and development

The 6% GDP allocation on education was never considered by the Government during the discussions with the Federation of the University Teachers Association (FUTA), asserts Minister of Economic Development Basil Rajapaksa in an interview with the Daily FT.

He noted that the allocation on education was purely a policy decision of the Government and that it could not be measured by GDP or any other factor. The Minister also pointed out that it was the responsibility of FUTA to ‘heal the wounds’ created during their three-month-long union action.

Following are excerpts from the interview:

Q: Why did the FUTA issue have to drag for 100 days? Why didn’t the Government attempt to resolve it before?

A: The situation was more complicated than it looked from outside. There were many parties involved. Various parties had various views. Sometimes it was difficult to get everyone to agree on certain matters. When you have to deal with such a situation, it takes time. That is why it dragged for so long. But that does not mean the Government did not attempt to solve the matter before.

Both the Government and FUTA had numerous discussions. Both parties wanted to end this matter soon.

But, like I said before, since there were many parties involved, it took a long time to resolve this matter. No one can say the Government was not interested in solving the issue.

Q: Do you think your involvement came at the correct time?

A: My involvement in this matter happened when the discussions were at the halfway point. My duty was to be a facilitator and facilitate both sides. But then I had to be away from this for a while, mainly during election time.

 I have to admit that I could not commit fulltime to solve this matter; there was a delay from my end.

Meanwhile, there were uncontrollable issues. Both the Government and FUTA were trying to highlight and justify their own cases. Initially both the parties acted in a somewhat rigid manner. FUTA was carrying out its own campaign and the Government was trying to give reasons for the way it acted.

Q: Do you think the problem is now solved?

A: We have come to an understanding. Now both parties should work to settle this matter in the way we agreed. There are responsibilities for both parties. Everyone think it is only the Government that has to fulfil the pledges that were made. FUTA also has a responsibility. The strike went on for three months. Students losing three months of studies cannot be taken as an easy matter. Meanwhile, we have to take a new university intake. There is so much that needs to be done for that. Now it is the duty of FUTA to work hard and speed up the system. Whatever that was lost during the last three months needs to be gained. The wound that was caused by this strike action needs to be healed and it is the responsibility of the FUTA to do that.

Q: Some FUTA members have said that nothing can be gained from this Government and therefore they decided to call off the strike. Your comments?

A: There are members in both parties who say various things. Some members of the Government say the decision to call off the strike was for FUTA to take time to reorganise their campaign. They say FUTA is using this time to come up with a much stronger and more organised campaign. But this is just talk.

President Mahinda Rajapaksa and the Government are committed to resolve this matter for the betterment of the country, education system, and the universities. A Presidential Committee will also be appointed in this regard. I will closely monitor this matter. Let anyone say whatever they want; we will not let anyone cripple the education system in this country.

Q: When and by how much will the salaries of the university teachers be increased?

A:There is no specific timeframe as such. To be honest I am not involved in the salary matter. All I know is that the Finance Ministry has given an assurance and they will consider it. I believe there could be some relief coming from Budget 2013.

Q: What is the additional cost on the Government to fulfil the pledges made to FUTA? How will this affect the country’s economy?

A:This Government has a policy framework. We will not divert from our policies and functions to honour individual demands. We work according our own strategies. We will not place any extra burdens on the economy.

Q: When will the 6% allocation for education from the GDP come into effect?

A: This was never considered. This is a Government policy matter. It is the policy of the Government to invest in education. But it cannot be measured from GDP or any other factor. Whatever the need of the education sector will be fulfilled by the Government.

When you invest in something, there should be a return. We cannot just dump money if there is no benefit for the country or the people. Education is a high priority of this Government and we will make sure we do everything for the betterment of education sector.

Q: But the allocation for education for 2013 is lower than the previous year. How can you say this Government is doing everything for the betterment of the education sector?

A:The Government has cut down the budgetary allocation for my Ministry from Rs. 172 billion to Rs. 88 billion. What I know is that the money allocated for education has increased in the year to come. People are calculating these things in a wrong way.

Q: The doctors too are demanding a pay hike. What will be your reaction?

A:This is not something new. Everyday someone is asking for a salary increment. The Government knows how to handle such situations. The Government is committed to work for the people in this country. We will think about it and then decide what is best for the country.

Q: Do you feel the country’s economy is in good shape?

A: Definitely. Our economy is doing well. However, we cannot separate ourselves from the global economic crisis. But we are one of the best performing countries in the world at the moment. It is not said by us; it is the International Monetary Fund, World Bank and Asian Development Bank and other top organisations.

Q: But members of your Government have openly admitted that the Rajapaksa administration is struggling with no revenue. Do you agree?

A: Yes, there are problems. We must be struggling with revenue but the economy is in good shape. I can guarantee that. From time to time we come across difficult situations; then we tend to take measures to overcome such situations. We have enough money to carry out the development work.

Q: What are the main focuses of Budget 2013?

A: I don’t know anything about the Budget. I am not involved in that process. All I know is that the discussions are going on about the Budget at the moment.

Q: You are a strong member of the Government. How can you say that you are not aware of the Budget?

A: It is purely a job of the Finance Ministry. The President is visiting district by district and meeting people at grass root level. He met all the farmers, women’s organisations and various other organisations, provincial councillors, local government members, MPs, trade unions, chambers, business communities; he is talking to everyone and getting their feedback. When preparing the Budget, their views and grievances will be taken into consideration.

Q: Are you saying there will be more benefits for the people through the Budget 2013?

A: Any Government will try to provide benefits to its people. No ruling party wants to do bad things for its people. Unfortunately, when we try to stick to our policy framework, sometimes people tend to misunderstand. We are looking forward to introduce a three-year policy framework through this Budget. This will give a clear picture of how the Government will manage our finances.

Q: What do you have to say about people’s grievances of low wages and rising cost of living?

A:No there is nothing like that. People in this country are very knowledgeable. A very small portion of people in Colombo may complain about the cost of living and low wages, but that is not the common situation of the people.

The ‘Mahinda Chinthana’ clearly states that increasing the income of the people is a top priority of this Government. We have fulfilled this; the income of the people has increased. Go to rural areas and talk to those villagers. Their production has increased. They have electricity and pipe-borne water.

They no longer collect firewood because they cook with gas. The majority of the people use a mobile phone. This is what we call development. People can’t enjoy all these benefits and then complain the cost of living is sky rocketing. When they get the monthly bill for water, electricity or telephone connection, they talk about the cost of living. When you enjoy the facilities, you have to pay the bills.

Q: Although the Government claims it is engaged in massive development activities, the majority of the projects such as the Norochcholai Power Plant and Hambantota Port, are considered failures. Do you agree?

A: What is wrong with the Norochcholai Power Plant? Any machine will have breakdowns. That doesn’t mean it is a failure. Which country in this part of the world does not have power cuts? Only Sri Lanka.

Because this Government made the correct decision at the correct time and invested in the power plant, the country is enjoying uninterrupted power supply. Imagine how bad the situation could have been if Norochcholai was not built? It is the same with other development projects as well.

Certain parties and organisations, especially the media, try to find fault in everything this Government does. They don’t show the actual picture to the people in this country. Newspapers are only interested in finding news articles to fill up pages. They don’t care about the harm they cause to the country. This is a pathetic situation. Fortunately people still believe in the Government.