by Sumadhu Weerawarne and Kesara Abeywardena

Proposing a Rs. 10 cut Jayaratne Herath (PA) said that the North Western Regional Development Ministry had been formed to create the ground for the interim council for the north and east.

He said that the ministry was doing no more than disbursing funds previously made available to MPs for development work through the Policy Implementation Ministry.

He also observed that the ministry had come into being at a time when the allocations to provincial councils were being greatly reduced.

"If you do not like the provincial structure anymore, at least make enough allocations to the regional development ministry to develop the area", he said calling for supplementary allocation to the ministry.

Asserting that necessary allocations would be made in the November budget D. M. Bandaranayake (UNF — Kurunegala District) called for the rehabilitation of over 6000 minor reservoir in the region.

"This would not only uplift the social and economic conditions of the people, but also provide sufficient water resources to enable us to meet the demand for rice in the country," he said.

He welcomed the proposed grouping of district — Kurunegala, Puttlam and Kegalle in this case — to form economic regions. He said that the resulting development would be to the boon of youth in the area.

Observing that the Ministry of Rural Economic Development had been created to satisfy the minister Gamini Ratnayake (JVP — Kegalle District) said that much of the allocation had been made for recurrent administrative expenditure.

He reflected that there was no identifiable single overall pattern in the rural economy. "It varies from region to region, and neither is there data to make an overall assessment," he said.

He added that the pattern of meagre allocations was also reflected in funds made available to the Regional Development Ministry as well.

N. Shivajilingama (TNA — Jaffna District) said that while the rural economy was faced with many problems, the allocations did not reflect this "Too little money has been provided," he said.

He asserted that in the north and east there was inadequate nutrition for the population because their economic status was low. "This was also impacted on their education," he said.

He asked the ministry to provide marketing facilities to the agri-centred rural economy, pointing out that it was a great problem to producers.

He also called for a rural banking system to provide small loans to people to encourage self-employment.

Speaking of a resurgence in the rural economy through the revival of the system of village societies.

Bandula Gunawardena (Minister of Rural Economy) said that the appointment of a cabinet minister to oversee such a revival was a "historic step".

He said that the initial purpose of the ministry was to provide direction to the sector and make a proper assessment.

He said that already, schemes have been initiated to establish vocational training centres in abandoned schools, to set up export processing villages in seven areas including Gokarella, Angunakolapalessa, Weerawila and Rajangane, to facilitate the export of local produce after value addition, to set up a handicraft centre in Dambulla and a printing village in Panaluwa.

Observing that a lack of markets and marketing facilities was one of the primary drawbacks of rural producers he said that Rs. 3.5 million had been set aside to provide sales points for rural produce.

He also spoke of a fund for rural development for which Rs. 10 million had been set aside as initial funding. "This fund will be used to provide infrastructure facilities, improve human resources and provide social upliftment. This will be enhanced over time", he said.

He said that Rs. 80 million had been allocated through other channels to provide loans without interest for members of the rural economy. "We will provide any improvement they need in employment, be it a tractor, a drain or any implement. We will recover the money over a three year period", he said.

Noting that his ministry had been set up in accordance with provisions in the UNF manifestos, Jayatilake Podinilame (Minister of North Western Regional Development) said that his ministry would cater to 15 per cent of the total population.

He said that mal-nourishment, unemployment and poverty were among the primary problems in the region. He added that this was due to a lack of water resources for agriculture and deficiency in infrastructure facilities to attract industries.

He said that a six year plan would be drawn up for the region with programmes designated for each year. He said that the plan would include development details for two towns from each district.

Conceding that allocations to his ministry were small, he indicated that this was as it was still a new ministry without a proper structure.

He also conceded that it has no funds beyond those made available for disbursement to MPs for development work, to initiate its own development activities.