Financial Times

Who blindfolded the J-Biz leaders?
Last week the J-Biz leaders, representing the entirety of the private sector business chambers, issued a press release which appeared in one local newspaper headlined “Business community commends Govt. decision to nationalise public transport”.

The million dollar question is who blindfolded the J-Biz leaders? Why did they not see the long term implications of this commendation and its possible boomerang effects? Before approving the issue of the press release did the J-Biz leaders validate whether the position they were subscribing to will be in the long term interest of the nation, the private sector, the transport sector and their members? The press release stated that “the J-Biz was pleased to note that a major portion of public road transport is to be taken over by the state with the reestablishment of Sri Lanka Transport Board” and “Public road transport in Ceylon was one of the best in Asia before it was nationalised. The Ceylon Transport Board (CTB) established in 1958 was successfully operated and managed till politics interfered with the management.

Later the CTB was used by politicians to provide employment to their supporters. The CTB deteriorated and became unmanageable being a financial burden to the state and the public due to mismanagement and inefficiency. J-Biz is glad that the government has realized that public road transport must be handled by the organized sector and not left in the hands of a few in the unorganized sector.” The J-Biz news release went on to state ”We trust that the government has learned from the past mistakes and will appoint independent and competent management to the SLTB answerable to the public. It is public money that is being utilised for the re-establishment of the SLTB.” The J-Biz then went on to recommend steps to be taken to ensure transparency.

By implication has the J-Biz given the following signal to the government and placed a powerful weapon in the hands of the rathu sahodaya’s that will boomerang on the private sector?

That:
- provided transparency is assured it is in order to re nationalise privatised industries ( eg. sugar, milk food imports, CWE, insurance, petroleum distribution etc)

- in a similar light it is in order for all remaining state institutions to remain so including Port, CEB, NWSDB, Petroleum Corporation etc

- in the interest of all public road transport being in the organized sector nationalise all trishaws and private hiring cars also under SLTB

- in the interest of the transport sector the Railways must remain within the control and management of CGR

- in the interest of denying the unorganized sectors to operate in vital food industry make paddy cultivation, buying and processing the sole responsibility of the Paddy Marketing Board and all private smallholder tea cultivation and processing be brought under the control and management of the JEDB and SLSPC

- J-Biz has the confidence that the government will strictly ensure that past mistakes including political interference with the management and politicians providing employment to their supporters will not be repeated and all transparency guidelines set will be adhered to by the SLTB and also that the government will without exception appoint competent management to all state institutions.

- the J-Biz will underwrite that newly re-nationalised institutions and all others state institutions pending reform will not be a burden on tax payers (including the CEB and Petroleum) and will provide an effective return on investments and supplementary revenue support to the national budget.

It may certainly be argued that the peoplised bus companies have failed due to owners lacking management and financial resources. Is the answer to such failure re- nationalisation? Did the J-Biz not consider other options before commending the government? How about giving incentives for fresh competition in public road transport sector and paving the way for the present inefficient ones to make a natural market exit? Why not even establish a new state SLTB to compete with private bus owners without re- nationalisation?
How are these same chamber leaders who subscribed to re-nationalising the public road transport ever in the future going to sit down and make submissions to the government on state sector reforms and argue their case effectively before the government and the authorities?

J-Biz leaders should develop a long term vision, be strategic in thinking and always try to establish the woods from the trees. They should look before leaping or leading others to leap! Please do not blindfold yourselves or allow others to blindfold you, as the private sector and the nation and its people are looking towards to your effective leadership in the forward march of Sri Lanka.

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