Price hike of consumables, a temporary issue - Johnston Fernando | Sunday Observer

Price hike of consumables, a temporary issue - Johnston Fernando

17 October, 2021

Chief Government Whip and Minister of Highways Johnston Fernando said increase in the prices of some consumer items would only be a temporary issue, hoping that this situation would change within the next few weeks.

The Minister in an interview with the Sunday Observer said the Government will have to take crucial decisions if attempts are made by unscrupulous traders to exploit the consumers due to the removal of price control. He said as the Covid-19 pandemic is under control, the Opposition has now taken up the price hike of some consumer items.

Their sole intention is to obstruct the forward march of the Government. There is no solid basis behind their arguments. The prices of some consumer items have gone up due to the economic crisis in the world market. This situation would turn to normalcy. The prices of food commodities would come down in the near future, he said.

Excerpts

Q: The prices of consumer items such as gas, wheat flour, cement and bakery products have gone up rapidly due to the removal of price control. Would you like to elaborate your views?

A: Not only Sri Lanka, the entire world population has faced severe hardships due to the Covid-19 pandemic. This cannot be confined to increasing the prices of some consumer items such as gas and milk powder. The price of each commodity has increased in the world market. However, when the country faced a severe Covid-19 crisis, we didn’t allow to increase the prices of essential commodities.

As a Government, we imposed emergency regulations to provide food commodities to the people at a concessionary rate. Now the country is open. If we allow companies to incur further losses, they all would collapse. Consumer items such as gas won’t be available in the market even at higher prices. After extensive discussions, steps were taken to remove the price control imposed on certain essential commodities. In a situation where the people couldn’t report to their work and businessmen couldn’t continue their business ventures, the Government didn’t allow traders to increase the prices of goods and somehow managed it to a certain period.

If we continue the same practice, we will have to impose more taxes on the people. We admit the fact that the prices of certain consumer items have increased due to the removal of price control. However, this would only be a temporary issue. We hope this situation will change within the next few weeks.

Q: However, the Opposition and the people complain unscrupulous traders have exploited the removal of price control and increased the prices of some essential commodities as they wish. Your comments?

A: Throughout history, these unscrupulous traders had been there not only in Sri Lanka but also in the rest of the world. We saw how some traders exploited the situation when the people faced severe hardships. That is why the emergency regulations were imposed and certain decisions were taken before the country was opened. This is not a new phenomenon. However, the Government will have to take certain crucial decisions if attempts are made by unscrupulous traders to exploit the consumers.

Q: The Opposition queries what is the role of the Government if it is not in a position to prevent attempts by the unscrupulous traders to exploit consumers?

A: The Opposition makes such absurd arguments. When the Covid-19 pandemic emerged, they requested the Government to quit if it cannot control it. The Government has controlled the pandemic. The vaccination drive is carried out successfully. Earlier, the Opposition alleged this is a Government which cannot bring even Covid vaccines. Now, we are among the few leading countries which have successfully vaccinated their people. As the pandemic is under control, the Opposition has now taken up the price hike of some consumer items.

They just take up an issue and utter some nonsense to pretend that they are in the Opposition. There is no solid basis behind their arguments. The prices of some consumer items have gone up due to the economic crisis in the world market. However, we cannot expect anything more from the Opposition. This is an Opposition which didn’t even join hands with the Government to control the Covid-19 pandemic. They were happy to see if more people were dying due to Covid-19. They are such an irresponsible Opposition which even took people to the streets without allowing the Government to control the pandemic.

Their sole intention is to obstruct the forward march of the Government. However, the Government took several key decisions to safeguard the people. The emergency regulations were also imposed to do away with the monopoly created on rice and sugar by errant trades. At that time also, the Opposition made various statements and even wrote to the United Nations without talking about its positive aspects.

Q: The people have faced severe hardships due to the high cost of living. Has the Government laid emphasis to provide relief to them?

A: This is only a temporary issue. The Government has laid key emphasis on the situation. As the Government and the people, we have temporarily faced the situation due to increasing the prices of consumer goods in the world market. This situation would turn to normalcy. The prices of food commodities would come down in the near future. As a nation, we should move forward by facing these challenges.

Q: You told the media recently that the Samagi Jana Balawegaya (SJB) is on the verge of a major split. Could you explain?

A: The SJB’s split is imminent. The SJB MPs are highly disappointed. Their stress and disappointment had been there so long. SJB Presidential Candidate Sajith Premadasa was defeated by 1.5 million votes. The SJB said Sajith Premadasa is the only candidate who can defeat Rajapaksas. However, he faced a massive defeat at the last Presidential Election. As a result, the SJB has mentally collapsed. Within a month, the SJB said Sajith Premadasa is ideal for the premiership and they would win the General Election. Finally, they went to courts to postpone the General Election. They also attempted to reconvene the dissolved Parliament. However, Sajith Premadasa was defeated at the General Election as well. If Premadasa is unsuccessful, at present, there is no other leader in the Opposition. Some MPs say the Opposition Leader doesn’t have a proper understanding of the role of the Opposition. They openly criticise him. Now, the Opposition Leader alone goes to paddy fields to meet farmers to secure his position. The split in the Opposition cannot be prevented because of this incapable Opposition Leader. It is evident in the manner he speaks in Parliament. They should be held accountable for their failure to prevent the 2019 Easter Sunday attacks when they were in power.

Q: President Gotabaya Rajapaksa addressing 72nd Army Day Anniversary Celebrations said the people may have a sense of displeasure towards him and the Government for not delivering as they expected. The President said not only him, all Ministers and Members of Parliament should accept it. Your views?

A: That is true. After a lapse of seven or eight months of his landslide victory at the Presidential Election, the President was not able form his own Parliament. Parliament didn’t even allow the passing of a Bill to pay the loans obtained by the former Government. After that, the President had to face the Covid crisis. Some people didn’t get the vaccine due to a false propaganda campaign launched by the Opposition.

However, the President could control the pandemic. A huge amount of money which had been reserved for the public welfare was spent to import vaccines and maintain the healthcare services and treat Covid-19 patients. Amid these hardships, the Government tried its best to fulfill requirements of the people and continued its development drive.

The Government also provided employment to 55,000 graduates. Having done lots of work, if the President says that he cannot be satisfied, we can imagine how he has planned to work for the country. The President may have some displeasure for not delivering as he expected.

Q: How do you view the assurance given by the President to introduce a new Constitution and electoral system next year?

A: That was a pledge given to the nation by the President. Since we introduced the 20th Amendment to the Constitution, we said that a new Constitution will be introduced, but that process was delayed due to the pandemic. However, it is a very good move to introduce a new Constitution and electoral system.

Q: Soon after the Pandora Papers revelations came into light, the President ordered the Bribery Commission to launch an immediate investigation into related transactions of Sri Lankans exposed in the Pandora Papers and submit a report in a month. Your comments?

A: The Opposition was under the impression that the Government will not investigate this matter. When the Government decided to conduct an investigation, the Opposition attempts to sling mud at us. The Government has not influenced the judges and Bribery Commission officials on their investigations. President Rajapaksa is a credible leader. He decided to investigate this matter. Those who looted the Central Bank and used that money for elections, point their fingers at the Government.

Q: How do you view the demand by the Opposition to punish the real culprits of the Lak Sathosa ‘garlic scam’?

A: Four suspects of the garlic scam are now in custody. Even the Trade Minister has made a complaint in this regard. The CID was instructed to investigate the matter. This is a good trend. During the tenure of the Yahapalana Government, they didn’t produce the suspects before courts. They allowed them to escape the country. The Opposition is not ready to appreciate whatever good move taken by the Government. They have an issue because it is not like their tenure in office. Now, the law is implemented properly. Therefore, those who are in the Opposition look at this with hatred and hypocrisy.

Q: Will the Government conduct the indefinitely postponed Provincial Council (PC) election before March next year?

A: The PC election should have been held several years ago. The election was postponed due to the crisis situation faced by the country. Parliament sessions were not held as planned. Now, the Government has taken a decision to conduct the PC election, which is a praiseworthy move. Even Opposition Leader Sajith Premadasa demands to conduct the PC election. We are not a Government which attempts to postpone elections.

Q: How do you respond to the media speculation that the Cabinet of Ministers has decided not to effect an immediate fuel price hike?

A: The Minister in charge has informed the Cabinet of Ministers that the Ceylon Petroleum Corporation has incurred a loss of Rs.85 billion. This loss has to be recovered by imposing more taxes on the people. Otherwise, we will have to find other alternatives. The Government is considering how this situation can be addressed. The Government has not yet taken a final decision to increase the fuel prices as the people have faced hardships due to the prevailing situation.

Q: Farmers protest due to a lack of fertiliser for the Maha season. Is there any truth in the allegation?

A: The Government has assured farmers to provide them with fertiliser. In addition, 540,000 farmers have been given an incentive of Rs. 12,500 each per hectare to produce organic fertiliser. The Opposition is having hatred against farmers. During their political history, the JVP has been against farmers. They are a party which killed farmers and set fire to the Agrarian Service Centres. Sajith Premadasa’s SJB was mostly defeated in agriculture-based areas. They have a grudge against farmers.

When a good move is taken to produce organic fertiliser, the Opposition with the help of certain elements who support them, protest against it. Three Presidential Candidates, Gotabaya Rajapaksa, Sajith Premadasa and Anura Kumara Dissanayake stressed the need to promote organic fertiliser and suspend the import of chemical fertiliser. After President Gotabaya Rajapaksa has assumed office, he has taken a decision to fulfill his pledge. It is the responsibility of the people to join hands to make this endeavour a success. When the world has faced a food crisis, the Opposition attempts to discourage farmers.

Q: The Opposition has raised concern on the Government’s agreement signed with US-based New Fortress Energy on the Kerawalapitiya Yugadanavi Power Plant. Would you like to elaborate your views?

A: That was a good decision and investment made. The Opposition attempts to portray the investors are not coming to Sri Lanka. Amid the pandemic, investors are coming to invest in Sri Lanka.

The investors from China, India, Germany, US and UK have expressed their desire to invest in Sri Lanka due to their confidence in Government and its initiatives taken to control the Covid-19 pandemic. As a country, we should be happy about it. The US-based New Fortress Energy’s investment on the Kerawalapitiya Power Plant is US$ 250 million. They have been given 40 percent of shares, which is reasonable. After 15 years, the company will give these shares back to us.

Comments