Increase subsidies to support livelihoods: Harsha de Silva

• UNP demands closure of Mihin Lanka and halt inconstruction of new tower

UNP MP Dr. Harsha de Silva yesterday demanded that the Government give subsidies that will support families with the increasing prices.

On the kerosene subsidy that the State said would be given, he noted that Rs. 200 was inadequate to support rising costs. “It is not just the kerosene prices that have gone up; it is the prices of other goods as well.”

He noted that for a normal family, the cost increase is approximately Rs. 3,500 with the recent price changes. In 2010, household monetary and non-monetary income for an average family was recorded as Rs. 36,451.

In monetary terms, the income is Rs. 31,209. However, the expense has been listed as Rs. 31,331 in monetary terms. Expenses for food amounts to Rs. 13,267. “We ask the State to give a subsidy that people can use. No one can do anything with Rs. 200.”

Highlighting miscalculation, he noted that the Government stated that Rs. 80 million had been allocated for 500,000 people. “Even a six-year-old would know that 200 into 500,000 is Rs. 100 million. So either they have allocated less than Rs. 200 or less than 500,000 people will get the subsidy.”

He also noted that the increase in fuel prices in Sri Lanka did not go hand-in-hand with the world oil market. “Between 2004 and 2008, the world fuel market was US$ 141; this soon fell to US$ 138, then to US$ 125 and is now US$ 117. However, in Sri Lanka, the prices have gone up but have not decreased as in the world market.”

Demanding the closure of Mihin Air as soon as possible, de Silva quoted from the latest report of the Committee on Public Enterprise (COPE), which reveals that the combined losses for 2007/2008, 2008/2009 and 2009/2010 by the airline amounted to Rs. 13.8 billion.

“On top of that, the Government is planning to erect a tower for a high value. We demand that the Government stops all this unnecessary spending and gives the benefits to the people.”