Monday, May 1, 2017

Ceylon Today Editorial

Workers’ Obligations

02 May 2017

Yesterday, Sri Lanka and the world celebrated 'May Day,' a day set aside to recognize workers' rights.

While workers' rights are annually celebrated this way, there is however, no day set aside to celebrate workers' obligations.

Such rights are simply encapsulated by doing an honest job on every working day.

Whereas workers in the private sector generally subscribe to this ethos, as their future, more often than not is related to performance, there is a question mark as to whether such a discipline percolates down to the public sector?

The phrase 'percolates down' is used because the country's largest employer is the private sector. Nonetheless, certain key sectors of the economy, beginning with 'energy,' are virtually a monopoly of the State.

It's also so with regard to State revenue collection, led by Sri Lanka Customs (SLC), Inland Revenue Department (IRD) and to a lesser extent the Excise Department, that too being a monopoly of the State.

Therefore, two key pillars of the economy, 'energy' and 'State revenue collection', are prerogatives of the public sector. If there is a breakdown in one or both of these sectors, the economy suffers while there is no fallback option.

'State revenue collection' and 'energy' are virtual State monopolies.

Energy services are essentially led by the supply of electrical power, and petroleum products, predominated by oil.

Electrical power, more so its key services of transmission and distribution is a monopoly of the State, in the form of State owned Ceylon Electricity Board (CEB) and Lanka Electricity Company (Pvt.) Ltd. (LECO) being the distributors of such products.

Meanwhile, the storing, wholesaling and distribution of petroleum oil, a product needed for both electricity generation and to power automotives such as vehicles and trains, is dual operated by State owned Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Corporation plc (LIOC), an Indian Government enterprise.

There, however, is no mention in LIOC's website that it provides petroleum fuel to the CEB for electricity power generation.

Therefore, it may be assumed that the supply of petroleum fuels for power generation to the CEB (with LECO being only a distribution arm), is a monopoly of the CPC.

While the rights of a worker are enshrined in the Constitution, allowing him virtually unrestricted entitlements to seek employment in greener pastures, an example of which is the migration of CPC workers to the Middle-East when this sector was opened up more than 40 years ago in 1976, paradoxically during the closed economy era of Mrs. Sirima Bandaranaike's, there, however, is resistance from the workers themselves, to fully open up the energy sector, namely electricity distribution and petroleum oil storage and distribution to the private sector, for the public good.

Competition increases efficiency, while at the same time making such services more cost effective to the public.

Resistance to opening up is also found in regard to medical practice, another key area of public service. Whereas, it's alright for our physicians to go overseas in search of better jobs, it's however, not right for foreign physicians to come to Sri Lanka and establish a practice here, according to the Government Medical Officers' Association, a powerful trade union (TU) of physicians.

Automation and computerization, to increase in efficiencies in State revenue collection, are also resisted by the IRD and SLC workers.

These are the contradictions governing workers in monopolies or near monopolies or TUs that are exerted on the economy, the public and the Government of Sri Lanka.

In dictatorships, where governments rule by the barrel of the gun, such as in the case of China, it's easy to destroy workers' and TU rights. But in democracies such as Sri Lanka, that is not possible.

In capitalist USA, there is no room for either State or private sector run monopolies or oligopolies. Therefore, workers and TUs are powerless to dictate terms to the government or to the public in the USA. In fact, privatization in the USA is practised to such an extreme, its defence services too, are taken out from the hands of the State.

What may be missing in democracies such as Sri Lanka are responsible TUs.

In the late 1960s, a visiting journalist from Sri Lanka was told by workers in Tokyo that they obtain their demands not by striking, but by working harder.

There may be some truth in this theory, because a few years later, Japan went on to become the world's second largest economy, to be behind only to the USA. Recently it was overtaken by China, but still, its per capita GDP is four times bigger than that of China's.

The USA's per capita GDP was $ 56,000, Japan's ($ 32,000), China ($ 8,000) and Sri Lanka ($ 4,000) in 2015, according to the internet.

The bullet or responsible TUs may be the options left for Sri Lanka to follow, if it aspires, in former President Mahinda Rajapaksa's words, to be the 'Miracle of Asia.'

Daily News Editorial

Colombo’s other problem

02 May 2017

A lot has been written about recently on Colombo’s garbage problem. But there is one other problem that is equally unhealthy for Colombo. The city is bursting at the seams, unable to cope with the chaotic traffic situation.

On an average weekday, one million people enter Colombo by 30,000 buses. An equal number of people use more than 500,000 vehicles to enter Colombo daily. Most private vehicles have only one or two occupants. This is an almost criminal wastage of fuel and money, not counting the effects on the environment. The result is chronic traffic congestion, as all types of vehicles battle for limited road space.

What if at least one-third of these vehicle occupants give up their cars and come to the city by bus or train? There will be much less traffic congestion. But for this to happen, the buses must be far more efficient, punctual, comfortable and clean. If the buses can go faster than other vehicles, that in itself will be a major draw.

This was the main aim of the priority bus lane project introduced a few months back in Rajagiriya, which is essentially an experimental Bus Rapid Transit (BRT) system. This project turned out to be a success and the Cabinet had approved the proposal made by Megapolis and Western Development Minister Patali Champika Ranawaka to expand the Priority Bus Lane concept further and to take action to attract more people to use public transport services.

Accordingly, Bus Priority Lanes will be implemented in Moratuwa-Ratmalana, Wellawatte-Kollupitiya on the Galle Road and from Parliament Junction to Rajagiriya, Borella, Maradana, Pettah and Colombo Fort along the Parliament Road. The concept is also likely to be put into practice from the roundabout in Chittampalam A. Gardiner Mawatha to Pettah, Thummulla Junction to the Museum Junction and the Eye Hospital Roundabout to the Thummulla Junction during busy hours.

This is a very pragmatic proposal. With the Cabinet giving the nod to promoting the import of Low Floor air-conditioned buses through concessionary loan schemes and preparing a common ticketing system with electronic card payment facilities, all the ingredients are present to attract a good number of motorists to a nascent BRT network. Air-conditioned buses and convenient payment methods are a “must” to attract the car-loving city workers.

Sri Lanka is late to the BRT party. In a proper BRT system, buses can actually use the left lane of the opposing side of the road to pick up and drop passengers at “centre island” bus halts. It is essentially a train system without the trains, with all infrastructure such as terminals and stations, gates, sidewalks, warning and direction signs, and pedestrian crossing facilities.

Many countries, even developing ones, dedicate a separate lane for buses at least during the rush hours. This speeds up the flow of buses and also allows other traffic to move without being hindered by buses which usually hog all lanes. In some countries such as Singapore the bus (and train) network is so good even without a proper BRT system that most people do not think about buying a private car. This should be the eventual goal of our transport planners too.

Sri Lanka already has more than six million vehicles, from just one million vehicles as recently as year 2000. If current registration trends continue, the country will have 10 million vehicles in the next 10-15 years even amidst a high duty and tax structure. The majority of them will still be fossil fuel powered. Being a net importer of oil, our fuel bills will soar as a result. We will indeed be able to save a lot more foreign exchange and minimize traffic snarls if more people opt not to buy private vehicles in the first place. However, this will never happen if the local public transport system is not improved by leaps and bounds. The proposed seven electric Light Rail Transit (LRT) lines (with some interchanges that interconnect at least two lines) into Colombo and the BRT system are likely to entice motorists who will appreciate their comfort and convenience. This is more likely to succeed than several failed initiatives in the past such as “park and ride”.

Developing public transport is essential if we are keen on reducing traffic congestion. Exports have already expressed fears that traffic could crawl to just 3 Km/h on roads leading to Colombo in a few years (at present vehicle registration rates). Everyone aspires to buy a vehicle, at least a motorcycle, because public transport options are limited and inconvenient. Comfortable, safer, punctual and cleaner public transport is the key to reducing the craving for private transport.

But there could also be an alternative answer. Ride-hailing services such as Uber and Lyft are already making it possible to live without a private car. Driverless car technology is progressing at a rapid pace and they are likely to be commonplace by around 2030. You will be able to summon one through an app, input your destination and get off. Between the LRT/BRT and car-on-call, who will really need a private car?

The Island Editorial

Worker crowded out

02 May 2017

Another International Workers’ Day has come and gone. It was like Sinhabahu without the Lion’s son, the eponym. Yesterday’s rallies, in our book, did not serve anyone useful purpose. This year, too, workers, eclipsed by politicians, have achieved nothing on the day dedicated to their cause. Only political leaders have got a mega ego boost. Their servile supporters who, well oiled and dazed, shouted themselves hoarse, and trudged along hot macadam roads under the scorching sun must now be fighting hangover and nursing leg pains.

Thousands of buses, both SLTB and private, besides many trucks and vans were seen disgorging men and women of all ages in Colombo and Kandy for the rallies of the SLFP, the UNP and the Joint Opposition (JO). It was an unseemly scramble among politicians to show their strength and their rallies amounted to an utter waste of time, energy and resources.

Funds for May Day political circuses usually come from moneybags, including anti-social elements, with huge slush funds at their disposal; they wilily back both main parties. The party in power is never short of funds with financiers falling over themselves to help it. It can also help itself to public funds. Those who are in the political wilderness spend a fraction of the ill-gotten wealth they have amassed while in power, on their May Day rallies and other such events, in a bid to make a comeback. They consider it an investment.

There are numerous unsolved problems troubling workers in both public and private sectors and fuelling trade union struggles. It is these issues that should constitute the main planks of May Day platforms. Sadly, political issues take precedence over them and workers, going through fire and water, so to speak, in trying to safeguard their rights have to settle for political speeches full of rhetoric and devoid of substance and sense on May Day.

The JO, which has undertaken to play a messianic role to help the working class in distress, also did not take on the government the way it should over the EPF losses and the proposed unconscionable tax on workers’ savings. One of its heavyweights had the gumption to tell this newspaper about a week before May Day that there were far more important issues to be taken up!

The JO leaders who carried out pump and dump frauds in the stock market with EPF monies while they were ensconced in power now fear legal action against them. It is hoped that they have not struck a deal with the UNP at the expense of workers’ interests to go slow on bond scams, EPF losses etc. The government and its political enemies are wary of going all out to destroy each other just like the nuclear capable nations which fear MAD—Mutually Assured Destruction. They act with restraint much to the consternation of their backers.

The government is cock-a-hoop about a recent vote in the EU parliament in favour of granting GSP Plus facility to this country. Workers’ having been let down by the Opposition, the independent trade unions, if any, should seriously consider informing the EU that the present government has not only caused a massive loss to the EPF through bond scams but also is contemplating a huge tax on workers’ savings. The EU should also be informed of Cabinet Spokesman Rajitha Senaratne’s declaration that the government is mulling over putting former army commander turned Minister Sarath Fonseka in charge of the armed forces and the police to deal with trade union agitations.

Meanwhile, intriguingly, the EU Parliament has chosen to gloss over the indefinite postponement of local government elections here for political reasons. Is it that the EU no longer uses rulers’ respect for people’s franchise as a yardstick of a country’s democratic wellbeing in granting trade concessions to developing nations?

If the SLFP and the UNP are really confident that turnouts at their May Day rallies were satisfactory and indicative of their real strength and popularity, then there is no reason why they should fear local government elections. They should go for mini polls without postponing them further. Let no lame excuses be trotted out.