A deferral is not a solution

Saturday, 11 June 2016 00:00 - - {{hitsCtrl.values.hits}}

IN a welcome move, Prime Minister Ranil Wickremesinghe suspended the Parliamentary request for Rs.1.17 billion to purchase vehicles for a parade of Ministers and insisted “not a cent” would be released before the Finance Ministry allocates funds needed to rebuild houses after the twin disasters of Aranayake and Salawa.

The Prime Minister’s efforts to prioritise the people’s needs deserve to be applauded. The fact that the Government has heeded the displeasure of the public, which would have been neglected under the previous regime, is a win for the public. But does the “wait-and-see” measure really go the distance? Should the Government also not take this opportunity to implement a formula under which vehicles for ministries, public departments and ministers are regulated to protect public funds? The people certainly feel it is time to end the free-for all.

Less than two months ago the Government initiated a mammoth increase of VAT that slapped higher prices on pretty much everything. Suddenly healthcare, education and even a meal out became more expensive as people tried to cling onto their basic standard of life. Contrary to claims by various Ministers, the impact is not on the rich as the Government has sidestepped direct taxes at every turn and to add insult to the VAT injury, hiked up vehicle prices to astronomical levels recently.

All Members of Parliament, especially Ministers, are given tax-free vehicle permits, which if they were upstanding citizens they could use to purchase vehicles for their use and refrain from burdening the public still further. But of course doing the decent thing is not what Sri Lanka’s politicians are known for, so they will not even introduce a formula that stipulates the make, size and cost Ministers can be entitled to use.

Many countries around the world, including Singapore, which the Government claims to admire much, have similar formulas in place where Ministers cannot purchase vehicles as they please but have to adhere to guidelines approved by the State. These are elaborate guidelines that even give the engine capacity of vehicles so the formula does not become outdated. But adopting such progressive policies or reusing vehicles from the previous Government are conveniently overlooked. At the very least there should be a transparent index giving how many vehicles are used by each ministry and what are given to each minister.

It is also stunning as to why such generous amounts have been allocated to some Ministers. Under current market prices, a SUV of Japanese make would cost about Rs. 20 million, but former Army Commander Sarath Fonseka and Minister Mahinda Samarasinghe, against all logic, have been allocated a whopping Rs. 70 million each for a single vehicle. These jaw-dropping amounts come at the cost of public funds and Ministers, as all people know, already hold significant private wealth, which they can use to purchase vehicles.

What is sauce for the goose is also sauce for the gander. Until politicians understand this, they risk having their goose cooked at the next election.