The Political Column

7th June 1998

Cabinet fireworks over GST

By our Political Correspondent

The original plan of the government was to dissolve the Provincial Councils on June 6 and hold elections within six weeks.

This means the elections are likely to be held somewhere in the third week of next month.

At the Sri Lanka Muslim Congress Convention recently, Opposition Leader Ranil Wickremesinghe spoke to Minister G.L.Peiris on the matter.

Mr. Wickremesinghe asked whether the government was prepared to hold elections for all the councils on the same day.

Dr. Peiris pointed out that the North Western Provincial Council could not be dissolved on the same day as other councils since it began the current term after the others.

Mr. Wickremesinghe said he could advise the UNP Chief Minister Nimal Bandara to propose the dissolution of the NWP council simultaneously with the others if the government agreed to hold elections to all PCs the same day.

Dr. Peiris said it would be possible and promised to talk to the President about it.

Now it is almost certain the government would go for elections to all the councils the same day and is in the process of finalising its lists, though it is facing problems regarding its main candidates.

President Kumaratunga told the ministers she was facing difficulties in finding suitable candidates for the Uva and Central Provinces. The PA is also facing difficulties in choosing its main candidate for the Western Provincial Council.

As a solution, the PA leadership has brought pressure on several ministers to contest the Provincial Elections and give leadership to the others. Among those who have been asked to contest as Chief Ministerial Candidates are Nimal Siripala de Silva, Kingsley Wickremaratne and D.M. Jayaratne, but none of them is prepared to give up the Cabinet portfolio and contest since there are doubts as to whether they could make it.

However the PA has finalised its Chief Ministerial candidates for the North Central, North Western and Sabaragamuwa Provinces.

They are Bertie Premalal Dissanayake, S.B. Navinna and Athauda Seneviratne. In the Uva Province it appears the government would decide on Samaraweera Weerawanni in the absence of a more powerful personality and in the Western Province it is likely it would go to Susil Premjayanth. In all three provinces the SLMC is likely to contest along with the government while the UNP is also preparing lists with formidable candidates.

In the Western Province the UNP will field a team of professionals under the leadership of Karu Jayasuriya and it is going to be tough for the government, to retain the Western Province which is considered as an important council, politically.

On Thursday May 28 President Kumaratunga summoned a special meeting of PA district leaders to discuss political trends and their strategy at the upcoming elections.

The meeting went on till after midnight. They discussed not only election matters, but also matters relating to the AirLanka-Emirates deal.

President Kumaratunga said Ministers G.L. Peiris and C.V. Gooneratne put the government's point of view very eloquently during the Parliamentary debate. But Minister Kingsley Wickremaratne disagreed. In his view the government had failed to convince the people that the AirLanka-Emirates deal was not a shady one as alleged by the Opposition.

Minister Mahinda Rajapakse also spoke at length. In a hard hitting speech he attacked some government politicians who portrayed themselves as saviours of the government and the President.

He too referred to the AirLanka debate and said he raised a point of order at the debate in a bid to protect the interests of the President since the speakers threw some innuendos linking the President to the deal. "There is a backbencher who had told others that I did this after having conspired with the UNP and my intention was to bring the President to disrepute," an angry Mr. Rajapakse said, warning the backbencher against making similar statements in the future. "Nobody can put me into the UNP camp and put a UNP label on me. I know there are people who want to do this," he said.

"I started my political career in the SLFP and I will end it there, - I work for the party and not for personal benefit," he added.

After Mr. Rajapakse's outburst many ministers began to wonder as to who was behind that.

Eventually President Kumaratunga called Minister Dharmasiri Senanayake who is also the General Secretary to find out who Mr. Rajapakse was referring to.

When Mr. Senanayake said it was Dilan Perera, the President was visibly upset and asked "what has he gone and done"?

While that matter remains there, at the weekly meeting of the ministers there was a clash between the President and Minister Fowzie, over the manner in which the government has implemented the GST.

Mr. Fowzie said the GST had caused immense problems for the poor people.

He said no tax was levied for imported push cycles when the Business Turn Over Tax (BTT) was in force. But the GST has now put the prices up by another 500 rupees.

He lamented that with the price of the poor man's bicycle has gone up, the GST has brought down the price of the rich man's motor car.

The President who listened to Minister Fowzie carefully said that it happens only if the customers prefer to buy imported bicycles but if they get a local one there is no tax.

Mr. Fowzie disagreed. He said that there are no local bicycle manufacturers, but only assembling factories.

The President compared the GST to a woman who used to wear saree but now comes in another dress. The problem is some people do not like the new dress.

But Minister Fowzie was not impressed and continued to criticize the GST.

At this stage another minister pointed out even small tea boutiques in village junctions and wayside Thosai Kades were levying GST as a service charge.

Trade Minister Wickremaratne intervened to say traders with a monthly return of over Rs. 500,000 need to register under the GST scheme, and explained that others too had registered, thus making matters worse for the people.

On the other hand it is learnt that some traders are making hay on the GST since they do not pass it on to the State. President Kumaratunga who once again intervened told Mr. Wickremaratne to devise a scheme to monitor the GST and send flying squads to nab unscrupulous traders.

However the President had a bone to pick with the ministers. She said most of them had not acquired adequate knowledge on the GST and its implementation.

She said she would conduct classes to explain the GST to them.

Thereafter they took up a proposal to raise the salary of the Chairman of the National Aquatic Resources Agency (NARA).

Fisheries Minister Mahinda Rajapakse suggested that NARA's present chairman be paid a salary equivalent to what he is receiving in his substantive post as a University Professor.

The President disagreed and said it could not be done. She said there were Public Servants rendering a greater service to the nation than professors who receive less.

Mr. Rajapakse said he presented this Cabinet paper after careful consideration and there were occasions where several officers had been paid bigger salaries.

There are people who have not even got through their G.C.E. (O/L) receiving bigger salaries, he said.

Who are they? The President queried. They are in the Southern Development Authority and don't know what exams they had passed.

Mr. Rajapakse also referred to the high salaries given to some state media personnel.

"Who are they?", the President asked.

"There is Eric Fernando who is getting about Rs.45,000 as the Director General of the Sri Lanka Broadcasting Corporation," he said.

The President defended Eric Fernando saying he was doing a good job.

Minister Mangala Samaraweera too had similar views about Mr. Fernando saying he was doing a fine job.

Finally the President agreed to pay the Chairman of NARA his full salary entitlement, but not the same salary he received as a Professor of the University.

Minister Rajapakse said at the end "give what you can".

The President appeared to be annoyed, especially over the way he spoke to her.

However Mr. Rajapakse cooled down and later presented to the President and the entire Cabinet a frozen pack of boneless fish a product of the Fisheries Corporation.

The Ministry recently serviced one of the processing units in Minneriya Inland Fisheries Unit.

One minister quipped that Mr. Rajapakse had brought a fishy gift to iron out differences between him and the President. Perhaps it was a case looking a gift fish in the mouth.

An equally witty Mr. Rajapakse snapped back that he brought it in the hope that he would be spared the guillotine in the future, while everybody had a big laugh, Minister Indika Gunawardena made an interesting point.

He said everything would be reported in the newspapers!

Mr. Rajapakse took the matter up again.

He said though he was not present at the last Cabinet Meeting the newspapers had reported how ministers tasted pieces from an underweight loaf of bread.

Minister Jeyaraj Fernandopulle who endorsed Mr. Rajapakse's statement referred the matter to Minister Mangala Samaraweera.

There seemed to be more than one reporter Minister Samaraweera said.

The President revealed she was aware of another person who would go and leak information to a Sunday newspaper, things that were not so good for Mr. Rajapakse.

Ministers wandered who the President was referring to.

Was it Nirupama one whispered to another since she participated in the meeting in the capacity of an Acting Minister.

However Minister Rajapakse had something to say. He proclaimed, now he is no more a newspaper reporter since there are others who had reported proceedings of the Cabinet in his absence.

He said "now I am an editor - I am, giving an undertaking to edit all that goes against the interests of the President he quipped." Everybody had a hearty laugh except for Minister Samaraweera who reported to the Cabinet that the Union of Posts and Telegraph Officers were insisting that the government should hold an inquiry on charges against Post Mistress General Soma Kotakadeniya.

Minister Batty Weerakoon said it could lead to complications if Mrs. Kotakadeniya resorted to legal action. The best way to keep both sides happy is to promote Mrs. Kotakadeniya to a higher position and relieve her of the duties of PMG.

But Minister Samaraweera was not agreeable. So another mail crisis is looming as the UPTO had threatened to take trade union action once again.

When this weekly meeting of the ministers came to an end, one minister who missed this interesting event was Ratnasiri Wickremanayake who presided over the Cabinet for nearly an hour before the arrival of the President.

They met at 10.00 a.m. without the President and took up several matters, but put off the other items in the agenda and dispersed.

But when the ministers were walking down the corridor they were informed that the President had arrived. So they walked back to the Cabinet room, but not Minister Wickremanayake. He had already left.

The main concern of the government now, however is the Provincial Council elections, as any setback would reflect badly for the PA at the next Presidential elections. Hence the government is going all out to win the Provincial polls.

The UNP too is working hard towards this.

But an equally important issue just now for the UNP is the challenge posed by former Minister Wijeyapala Mendis.

Though Mr. Mendis has challenged the jurisdiction of the committee appointed to probe allegations against him, he appeared before it to give evidence.

The inquiry was held where the working committee meets and Mr. Mendis first said he would not be able to appear before the committee at 9.00 a.m. as required.

Accordingly Mr. Mendis arrived around 11.00 a.m. and said he wanted to talk privately to General Secretary Gamini Atukorale who heads the committee.

Mr. Mendis asked if he could record the proceedings and Mr. Atukorale replied it was OK since in an open inquiry there should be nothing to hide.

At the inquiry Mr. Mendis made verbal submissions for nearly two and a half hours and made use of the opportunity to attack the Special Presidential Commission of Inquiry. He said that the UNP opposed these commissions and re-iterated his position that he was not guilty of an offence..

There is no finding against me by any competent court of law, Mr. Mendis said.

He pointed out that there are findings against the Party leader too and said that the main objective of the government in setting up these commissions was a political witchhunt.

Mr. Mendis said he had joined the UNP in 1952 and the only senior UNPer on the committee probing allegations against him is Percy Samaraweera.

"He too joined two years after me," Mr. Mendis said.

He also told the committee he had become more popular after the findings of the SPC were announced.

There is more support for me from my electorate than ever before.

Mr. Mendis also asked the committee as to why they were proceeding only against him when there are so many others in the party who were facing similar charges.

At the end of it Mr. Atukorale announced the probe had ended and the committee would submit a report to the working committee.

Mr. Atukorale simultaneously requested Mr. Mendis to name those against whom he (Mr. Mendis) alleged that there were similar charges.

The committee is expected to submit its report to the party leadership by June 18.

The Mendis issue has certainly become a thorny one for Ranil Wickremesinghe. It is said that Mr. Mendis' recent advertisements have irritated Mr. Wickremesinghe and some of the UNPers whisper that Mr. Mendis is being meted out with harsh treatment since he was a Gamini Dissanayake loyalist. They point out that if Navin Dissanayake is nominated as the Chief Ministerial candidate for the Central Province, he would romp home and that this is the second time he is being denied an opportunity to break into national politics. It is said that earlier during the local government elections he was a strong candidate for the Kandy Mayor's post. Meanwhile further divisions and sectarianism seem to grow within the UNP. There is a definite "get together" between Sirisena Cooray and President Premadasa's family. The trio - Mrs. Premadasa, Sirisena Cooray and Sajith Premadasa were all at Hambantota for President Premadasa's 5th Death Anniversary Commemoration. Mrs. Premadasa is still threatening to contest the Presidential elections. Mr. Wickremesinghe therefore has a lot of delicate issues on his hands but of course he has shown a remarkable ability to face and tide over problems.

While the two main parties are saddled with many problems the SLMC has emerged as a strong party once again following its annual convention in Colombo.

The Muslim Congress Convention certainly helped Minister Ashraff to revamp his image. Politically, Minister Ashraff has had a bad spell for some time with the Opposition taking him to task on certain issues and with a rising wave of unpopularity in the Eastern Province. Of course, the latter is explainable because the rank and file of the Muslim Congress heaped so much hopes on the Muslim Congress and its leadership, and in a poor country as experience has shown, it is a rare feat for politicians and political parties to fulfil 50 per cent of their promises.

The presence of the President and Mr. Wickremesinghe, gave colour and clout to the Convention. Earlier there was speculation the President might not attend because of security reasons. Mr. Wickremesinghe, however, attended the Convention without consulting any of the Muslim members in his party because he is aware that Mr. Ashraff has a hostile Muslim lobby within the UNP. Messrs M.H. Mohamed, Azwer, Ali Moulana, Imtiaz Bakeer Markar are said to oppose any link with the Muslim Congress. However, A.C.S. Hameed is said to be sympathetic to the Muslim Congress and about an year ago it was rumoured that Mr. Hameed was trying to pave the way for Mr. Ashraff to join the UNP and this created a certain amount of unhappiness among some of the UNP Muslim MPs. This time Mr. Wickremesinghe's attendance has been a great blow to the UNP activists in the Eastern Province because Mr. Ashraff's message to the Muslims in the Eastern Province is clear and that is he has a ready-made seat in the UNP if he should wish to take such a decision.

The presence of the President and Mr. Wickremesinghe at the Convention also revived hopes of the Package being given a new lease of life. Both the President and Mr. Wickremesinghe spoke in conciliatory and accommodating language and the President advocated a new political culture and Mr. Wickremesinghe more or less was also airing views close to it. The net result of the meeting is that now the Tamil parties have decided to meet Mr. Wickremesinghe to verify whether the message that emerged at the Convention had any substance or whether they were only pious announcements.

Meanwhile developments in the Jaffna Peninsula are worrying. It was earlier alleged that there were a large number of LTTE sympathisers among those who returned to settle down in Jaffna. Is it that now the LTTE, having allowed the elections to take place, is on a gradual elimination strategy. Will it finally come down to those who are heading the important local bodies resigning and others refusing to take over? If this is the trend, it is sad and alarming. The war is being fought to eradicate terrorism but if this process is being undermined by some of the people themselves, then it is time the question is asked as to whether anything useful can be achieved by pursuing this war. The economy is feeling the heat of the war and foreign exchange reserves are dipping, and the government has now introduced a number of new regulations to curb the outflow of foreign exchange. The pledging at the Aid Group meeting is not all that comforting.

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