Let me, at the very outset, congratulate the Hon. Vice-Prime Minister and Minister of Finance, for this Budget which will remain as a major landmark as it aligns the fiscal year with the calendar year – thus breaking away from a tradition which was reminiscent of the colonial days.
This budget, Mr. Speaker, Sir, aims at placing people, especially the poor and the under-privileged, at the centre of development against the backdrop of global economic recovery. It is a budget that is fair and responsible, and the Minister of Finance has been able to reconcile the expectations of the population, the workers as well as the business community. Everybody has his share of the cake. He has been able to reconcile once again the economic exigencies to our social objectives.
I have listened with much interest to the interventions of Honourable members of the opposition. I am, as always, much disappointed with their comments, because they are simply not convincing at all. Our colleagues from the opposition are finding some difficulties not only in identifying any weaknesses in this budget, but in making concrete proposals or suggesting alternative measures. Why? Simply, because one cannot be more ‘royaliste que le Roi’. How can one criticizes this budget, when the majority of Trade Unions, workers and representatives of Force-Vives and NGOs acclaim most of the measures proposed by the Minister of Finance in the most positive and satisfactory terms.
When we come up with bold and courageous measures, the budget is branded as ‘a budget dominaire’ by our friends from the opposition. And now that we attempt to share equitably the national income following economic recovery, among the most vulnerable and the working class, the budget is criticized as being a ‘Budget electoraliste’. Which is which, Mr. Speaker, Sir. Let us be serious. The situation even if we are economically more comfortable than before, it still calls for serious actions, and less rhetorics, or at least constructive criticism on the part of our colleagues from the opposition. Mais surtout pas de la démagogie.
The 2010 National Budget has come up with concrete and practical measures in order to better the quality of life of each and every Mauritian citizen. It fully and ably addresses the three main priorities of the government, namely in: (a) shaping recovery to accelerate job creation while maintaining employment, (b) in consolidating social protection and progress to embed inclusive growth and (c) in sustaining a green Mauritius in order to mitigate the impact of climate change.
Most of the economic and social indicators have shown that this government was always right in coming up with enabling and bold measures in time through successive budgets since we took office in 2005. We have been able not only to address the serious and catastrophic economic situation we had inherited, but we have also been able to mitigate the impact of the world economic and financial crisis with some success.
In the face of the world’s most severe economic and financial crisis, if Mauritius has managed to come out relatively unscathed, it is certainly thanks to these bold, pragmatic, and timely measures initiated by this government.
The national budget 2010 provides comfort, not only to the business community, but to the population at large and to the ‘small people’ in particular.
As a caring government, in order to protect the population, and particularly the vulnerable, the Budget has proposed a series of social measures. For examples, just to mention a few, namely:
developing national programmes on housing, women empowerment, sports & others through the National Empowerment Foundation;
increase of the monthly income ceiling for full payment of SC/HSC examination fees from Rs7,500 to Rs8,500;
extension of social aid to beneficiaries of Basic Invalids and Widows Pensions and child allowance in respect of children whose parents are recipients of social aid, and increase of old age pensions;
refund of taxi fares for university students with disabilities; and
expansion of the eradication of Absolute Poverty Programme to ensure that all pre-primary age children from poor families attend school.
The Minister of Finance must be congratulated for not forgetting all those who are struggling to have a house of their own. Through this Budget, we wish to fulfill the dreams of those still unfortunate ones by strengthening our social house programmes in line with our objective of providing ‘un toit pour chaque famille’. In this regard, the budget is providing for the setting-up of a low-cost housing programme on 1,000 arpents of land on 20 sites. The income threshold for government sponsored loans at the MHC has been increased from Rs8,500 to Rs10,000, thus increasing the number of beneficiaries. The upper limit for the sites and services scheme has also been increased fromRs12,000 to Rs16,000.
This budget rightly provides for spending and investing in vital sectors that also symbolize our welfare state, namely Education, Health and Social Security. These are core sectors on which depend the future of Mauritius through an educated, healthy and socially secured population.
Thanks to the subsequent budgets presented by my colleague, Dr. Sithanen, we have successfully mitigated the impact of not only the catastrophic economic situation we inherited in 2005, but also of the triple shocks as well as of the recent world economic and financial crisis. On top of that, we have not only been able to maintain and sustain the welfare state conceptualized by the Father of the Nation, but we have further strengthened the concept of welfare state so that the most vulnerable and the most deserving get maximum benefits.
These are the very fundamentals of the ideals of the Labour Party to which my friend Hon. Nando Bodha was referring. Even during the worst economic and financial scenario, this government will never to away with the welfare state. We shall never sacrifice the very ideals of the welfare state under any conditions. As a caring government, we shall always strive to further consolidate the welfare state by providing adequate social protection, free social security, free education and free health services to our citizens.
Our social achievements are many, Mr. Speaker, Sir. By way of examples, let me just mention a very few:-
Free bus transport for over 120,000 senior citizens.
Free bus transport for some 280,000 students.
Restoring universal old age pension.
Full payment of SC and HSC examination fees for some 9,000 students from families with modest income.
Doubling the subsidy on flour and cooking gas, while maintaining subsidy on rice. En passant, this reminds me of 1982, when the then government took a decision to remove subsidies on our staple food namely on rice and flour.
Giving financial support to help pig breeders recover from the impact of the swine fever epidemic.
Low cost Housing Schemes.
Granting 4,400 fishermen shares in the Fishermen Investment Trust.
Providing Rs1 billion to support small planters for derocking, irrigation and land preparation.
These are practical examples of what we understand by ‘Putting People First’, Mr. Speaker, Sir.
‘Putting People First’ is not merely a slogan of the present government, but rather it also reflects our sincere commitment to the ideals and goals of the Labour Party. Today, we have every reason to be proud particularly whenever Mauritius is cited in international Forums for its remarkable achievements. It is not for nothing that Mauritius is among a very few countries in the African Continent placed among the High Human Development Countries in the 2009 UNDP Human Development Report, and is given a ‘honourable’ ranking in the Human Development Index.
It is a known fact that the best way to protect our people is to provide them with jobs. Contrary to what is happening world wide, be it in the USA, in Europe, in emerging economies like China and India, we in Mauritius, we are not only protecting jobs, but also creating jobs. For the year 2008 alone, we have been able to create more than 19,500 jobs. Much more than what the previous government created during 5 years when the international economic situation was relatively better than what it is today.
The unemployment rate has been continuously going down since we assumed office. The rate which was 9.6% has now reached a rate of less than 8%. During the past 4½ years, we have been able to reverse the rising trend.
I have noted that various opposition members, of whom Hon. Nando Bodha, has in his intervention repeated what he said in his observation last year relating to the new labour laws contributing to job losses. I will reiterate my comments on the observations made for the benefit of my colleagues on the other side of the floor and in particular to Hon. Bodha.
Job losses during the period 2001 to 2005 were as follows:-
2001 8,788
2002 7,957
2003 14,663
2004 16,100
2005 10,085
These bring a total of more than 57,500 workers who were laid off in the EPZ Sector alone during the years 2001 to 2005. The new labour laws came into effect on 2nd February, this year. And we are talking of more than 57,500 job losses in the EPZ sector alone at the time of the previous law – the Labour Act.
Contrary to those years where no immediate protection was available for laid-off workers, today workers under similar situation are better protected under the new labour law, particularly the Employment Rights Act.
We have, for example the Workfare Programme under the Employment Rights Act which has the merit of ensuring a means of immediate subsistence – a maximum of Rs10,095 and a minimum of Rs3,000 for a maximum period of 12 months to all laid-off workers. Unlike the situation prevailing under the previous laws – the Labour Act – where many workers did not receive any compensation on the closure of enterprises, the Workfare Programme guarantees a Transition Unemployment Benefit. This programme, in fact, maintains a contact between the laid-off worker and my Ministry until he is placed in a job, retrained/reskilled through the IVTB or is assisted through the SEHDA to set up a small business of his own. The Workfare Programme also ensures payment of the laid-off workers’ contribution to the NPF on his behalf for a maximum of 12 months. This is indeed a revolutionary scheme which has also been commended by the ILO.
Since the coming into operation of the new Labour Legislation in February this year, some 1700 laid-off workers have been admitted to the Workfare Programme and an amount of Rs43.5 million has been paid to the workers as Transition Unemployment Benefit. Had there not been the workfare programme, these laid-off workers would have to wait until their cases were determined by the Industrial Court and even then there would have been no guarantee of any payment especially in cases of liquidation.
Let me reassure the House that contrary to what opposition MPs had stated, the new labour legislation gives better protection to workers against termination of employment and in no way facilitates firing. Even in disciplinary cases employers still have the obligation to give the worker a proper hearing. Besides, all cases of unjustified termination of employment are duly investigated by my Ministry and bona-fide cases are lodged before the Industrial Court for adjudication.
There has also many comments regarding the role of the National Pay Council in relation to the grant of salary compensation announced in the budget. As members are aware, that as from the year 2007, the National Pay Council meets in May to make recommendation to government on the quantum of salary compensation to be paid to workers. The NPC functions in all independence.
For this exceptional circumstances, arising out of the transitional period required to concide the Financial Year with the Calendar Year government had to come with a policy decision regarding the payment of a salary compensation to workers. This does not in any way undermine the very existence of the National Pay Council.
Furthermore, this budget provides for massive investment in public infrastructure, without forgetting to give the necessary ‘encadrement’ to other as important sectors as Fisheries, Housing, Construction, SME’s, Tourism and ICT, just to name a few.
I am happy to note that the Minister of Finance has given due consideration in this budget to the SME Sector as well by providing several additional measures. The SME Sector, according to the Minister of Finance, has been the main source of employment creation during the crisis.
Mr. Speaker, Sir, as this House is aware, the government, since it took office in 2005, has attached high priority to the development of SMEs, which now amounts to around 100,000 enterprises and employs some 45% of the workforce. We believe that SMEs are socially and economically important because they are one of the main driving forces behind economic growth.
They are indeed playing a major role in the recovery of employment levels, as well as in addressing unemployment problems and poverty alleviation objectives.
In order to boost up this sector, the government, has, over the years continuously been taking an array of budgetary, institutional and legal measures. In the last budget, particularly in the context of the international economic crisis and also with a view not only to creating jobs, but also to saving and preserving employment, a series of measures were announced and are presently being implemented –with regard to giving SMEs all the support this sector requires.
The SMEs sector is called upon to play major role in generating employment opportunities for thousands of people in the economy. It will also be a major avenue to absorb new entrants on the labour market and thus open new vistas for the entrepreneurial class. Our efforts to developing a culture of entrepreneurship is slowly but steadily gaining grounds among our population, particularly among women.
I wish to take this opportunity to also congratulate the efforts of such SMEs development institutions such as the National Women Entrepreneurs Council, AREU, DBM, Trust Fund for Social Integration of Vulnerable groups, Enterprise Mauritius, amongst others. And last, but not least, the SEHDA to be known in future as SMEDA for its accomplishment so far – since 2005.
Mr. Speaker Sir, the Vice Prime Minister and Minister of Finance in the budget speech 2010 quote US Secretary of State Hillary Clinton who was speaking in Nairobi in August this year. Mrs. Clinton said that Mauritians have benefited from government reforms which I quote “unlock human potential”, unquote.
I wish to expand, Mr. Speaker Sir, on this idea of ‘unlocking human potential’. Even before going any deeper into this idea, I would like to focus for a moment on this very word: ‘unlock’. We have seen, in this budget speech, and in all of the ones presented by this government since it came into power four and half years ago, many doors being unlocked for the population.
Mr Speaker Sir, it began with this very concept of Democratization of the Economy and Empowerment, which are among the various programs devised by our government to help the Mauritian population unlock its own potential. It unlocked the possibility for them to do business with ease, to become their own boss and to create small and medium enterprises. It unlocked the possibility for planters, labourers and artisans to become shareholders of the cane industry, an industry who had remained for years without reach of the people that for decades had constituted its very core. It has unlocked the possibility for the former workers from this industry to own land and to recycle into new jobs. It has unlocked the possibility for women to train in fields ranging from manufacturing to agro-industry, and set up their own businesses.
This government, Mr. Speaker Sir, is now going even further in this unlocking process. Indeed, as the Vice Prime Minister and Minister of Finance himself said in his speech, it is going to, I quote : “break new ground, while intensifying efforts to consolidate the traditional and emerging economic pillars, so as to open more business opportunities and further stimulate job creation” … unquote.
And breaking new ground and unlocking human potential we are Mr. Speaker sir through this fresh, re-invigorating process of developing the creative arts industry. Mr. Speaker Sir, this is unheard of in this country. Other than listen to local music on the radio occasionally, and seeing them perform when we attend official functions, which government has encouraged the Arts industry as much as we have? It began in 2007 with the de-tax of musical instruments and other related equipment. The aim being to encourage those who are making a name for themselves on the local, regional and even international front, through events such as cultural festivals. Now this Government is going to unlock the potential of these artists, but also that of budding artists. What the Government is proposing to do, is its own version of ‘El Sistema’, which is a program of Social Action for Music begun in Venezuela, and which has spread even to the United States. The idea is to help children and young people from poor backgrounds, and particularly those who demonstrate a liking and aptitude for music, to acquire the necessary musical knowledge and skills which will propel them to break out of the cycle of poverty. This is our new ground, Mr. Speaker Sir… a ground that has already been broken in other countries in the world, and which will in ours too.
Other than this innovation, Mr. Speaker Sir, for those are establishing themselves in the performing and creative arts industry, the government ins proposing to support artists in undertaking journeys abroad, to benefit from international events and attend courses and workshops overseas. Grants and scholarships ranging from 52 to 200 thousand rupees have been earmarked for this purpose. Moreover, Government is proposing to use money from the National Lottery to cater for these needs. But every artist needs a stage or performing space and structure… and this too we are providing Mr. Speaker Sir, through the habilitation of the Anjalay Coopen for concerts and the subsidization of such concerts for broader public attendance. The creation of a Mauritius Symphony Orchestra is all the more commendable, Mr. Speaker Sir, at not only does it enhance the cultural profile of our country, but of its citizens who are going to be called upon to become part of this orchestra. The creation of this symphony orchestra will be the stimulus for our young musicians not only to believe in their talent, practice and perfect it and unlock their potential of becoming the pride of our nation through the Mauritius Symphony Orchestra. Just imagine the small child from an area seen as a pocket of poverty, playing on his small drum or pipe… and dreaming of one day playing at the … Plaza in his country’s national orchestra…and actually making a very decent living of it. This child’s dream is what this government is proposing to make come true, his potential we are working towards unlocking.
The successive budgets presented by this government over the years, under the leadership of Dr. Navin Chandra Ramgoolam, have given me enough reasons to be optimistic. Our achievements speak for themselves. Slowly but steadily, we have been able to overcome all the challenges and constraints on which we have absolutely no control. Yet thanks to the bold, courageous reforms as well as necessary measures taken – coupled with the support, contribution and comprehension of the population, our country and our people are better off today than they were 5 years ago. The feel-good factor is very much present among the population.
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