Our national trait for throwing the baby out
with the bath-water is truly remarkable. At times, we even throw
out the baby and retain the bath-water. Then, we throw up our
hands in horror and desperately look for the baby down the
drain.
When the UNP opened up the economy in 1977, it
threw caution to the winds. Instead of discarding the outdated
economic policies selectively and adopting new ones to keep pace
with the changing world, it debilitated the state enterprises
post-haste and drove most of them to an economic mass grave.
Then, in 1994, the SLFP the very party, responsible for running
a closed economy from 1970 to 1977, began from where the UNP had
stopped to make sure that the existing state ventures were done
away with.
Today, we have an SLFP-led government striving
to make a vital industry rise from its grave. Minister of
Petroleum Resources A. H. M. Fowzie, who was a Cabinet Minister
of the Kumaratunga government that divested the state of the
Colombo Gas thus placing the people at the mercy of Shell, is
promising cheap gas to be produced by the Ceylon Petroleum
Corporation (CPC). At present it is Laugfs Company that gets the
CPC’s gas, which meets about 35 per cent of its production
requirement.
When Laugfs entered the market dominated by
Shell, the people heaved a sigh of relief thinking that the
monopolistic exploitation would end. But, the consumer’s lot
hardly improved. The prices of the Shell and Laugf products have
remained tweedledum and tweedledee. Minister Fowzie’s gas, we
are told, will cost us ten per cent less than Laugfs’ product
and the CPC will gradually expand operations. He has already
placed the order for 50,000 cylinders.
In other words, since the sale of Colombo Gas in
1995, the people have been paying ten per cent more for gas for
want of a government venture to market it! The SLFP which has
led both the PA and the UPFA coalitions must take the full
responsibility for the exploitation of the public for over
thirteen years. It is unfortunate that Fowzie and others have
taken so long to realise their blunder.
One is reminded of a pithy local saying which
roughly put into English means that ‘one remembers the heath
only when one’s bowels are about to move’. (In the good old
days, when the rural folk were without toilet facilities, they
were dependent on nearby heaths. Some of them however were no
respecters of environment and ruined their respective heaths
with no heed for the useful purpose they served, only to regret
their blunder when they felt the need for it.) The tradition
continues. Having ruined the state owned gas company, the
government has suddenly woken up to the need for state
intervention to regulate gas prices.
We only hope that Minister Fowzie won’t join
forces with Shell and Laugfs and increase prices citing bogus
reasons. Shell, as is our experience, always has the last ‘Laugf’.
Multinationals and patriotic local businesses are united in one
thing: Exploiting the people.
Public transport is another area where we have
thrown the baby out. The private sector participation is
necessary for economic development in the modern world. So,
there is nothing wrong with its involvement in public transport.
But, instead of creating a healthy competition between the
public and the private sector, the UNP destroyed the Ceylon
Transport Board (CTB). Immediately after its electoral victory
in 1977, the sale of state-owned buses began. Many state-owned
buses were fraudulently condemned, auctioned, pushed out of
depots, started and taken away.
The private bus trade thrived like a canker at
the expense of the CTB, which continued to be burdened with the
ruling party stooges. Well equipped CTB workshops, which once
did the country proud, were sold for a song to cronies of
political leaders. They robbed their assets and bolted leaving
empty shells behind. Numerous experiments were done with it at
the behest of the international lending agencies until it fell
flat on its face. Today, frantic efforts are being made to
resuscitate it. It has shown signs of revival and some depots
are earning profits. Minister of Transport Dallas Alahapperuma
may claim the credit for it. But, he must not rest on oars. The
CTB has a long way to go before it regains its former self and
sinister forces that ruined it are capable of working in
mysterious ways to achieve their objective of destroying the CTB.
They haven’t given up.
The government has suddenly realised the
importance of the Co-operative system, especially the
Cooperative Wholesale Establishment or Sathosa. Why? The
political potentates have been rendered too impotent by the
mudalali Mafia to regulate the prices of essential
commodities. Had the Pettah importers and the rice mill owners’
Mafia not thrown a monkey wrench in the works, the government
would not have bothered to revive Sathosa or the cooperative
outlets. It would have continued to eat out of the hand of the
mudalali fraternity. The SLFP may try to wash its hands
of the crime of running Sathosa and place the blame for that at
the door of its rivals. But, it made no serious attempt to
revive it earlier, did it?
There are numerous such political blunders which
have cost us dearly in terms of loss of state assets and high
cost of living. But, we as a country don’t seem to learn from
our mistakes. Now that rice prices are coming down due to the
new harvest finding its way into the market, the government is
likely to be lulled into a false sense of complacency and put
its programme to revive Sathosa on a slow burn. If gas prices
plummet by any chance, the grandiose project to produce CPC gas
is likely to be shelved and the imported cylinders abandoned in
a warehouse to gather rust, provided a crony of a government
politician has no hand in the project. There is a possibility of
the Transport Minister giving up his project if someone puts a
spoke in his wheel just like the Health Minister who capitulated
to the diktats of pharmaceutical Mafia and their medical hit
men.
Politicians’ attempts to strengthen the state
sector have always been ad hoc and short-lived. Whether
there will be a difference at least this time round, remains to
be seen.