The Hon. K. Sujith Sanjaya Perera

¶ 01 Alright. I request that be implemented too. We know that wages for workers have also risen. On the other hand, pesticides and weedicides are purchased at very high prices. Therefore, Hon. Minister, I draw your attention to at least reduce the VAT imposed on these inputs. That would be very important. Members who spoke earlier also raised this. If we are to revive the smallholder tea sector, at minimum we must re-popularize replanting; that is nothing new. Up to now, the amount provided for replanting to smallholders has been about Rs. 600,000 to 650,000. That amount is not sufficient. Therefore, I request you, if fiscal space permits, to increase that allocation. If so, we can revive the crop. Given the present economic conditions, no one is motivated to replant. If this continues, it is obvious that export earnings from tea will decline. I kindly request your attention to this as well.

¶ 02 Hon. Minister, I wish to raise another matter concerning smallholder tea growers in the Kegalle District. The main office of the New Kegalle Smallholder Tea Development Authority was moved to Dehiovita about two or three years ago at a cost of about Rs. 300 million to construct the building. We have now learned that since last week, steps are being taken to move that office back to Kegalle. Hon. Minister, I ask: after spending such a large sum to establish the main office in Dehiovita, what is the rationale for moving it back? We know that in Deraniyagala, Yatiyantota, Ruwanwella, and Dehiovita, over 25,000 smallholder tea members are represented—most from the electorate and localities I mentioned. They had easy access to the Dehiovita office to address their needs. Now they cannot, because it has been taken back to Kegalle. I do not know whether this was done with your knowledge. Therefore, I request you to look into this and take appropriate action.

¶ 03 Hon. Minister, tea exporters have a new concern. It affects not only tea exporters but all exporters—namely SVAT. We have learned that you intend to change this. You stated that you would not bow down to the IMF, yet we understand that, as a condition of the IMF, SVAT is to be abolished and VAT imposed. Thus far this has functioned through a paper-based set-off mechanism. If you now reintroduce VAT, not only tea exporters but all exporters will face severe difficulties. Amounts collected as VAT will not be easily refundable. We have seen cases where refunds took two, three, even four years. Therefore, I kindly request that the existing SVAT mechanism be continued.

¶ 04 If this is converted to VAT and collected in cash, exporters will suffer severe disadvantages and capital constraints. I wish to draw your kind attention to this.

¶ 05 I also wish to raise a matter we have discussed for a long time: the Tea Shakthi Fund. The Tea Shakthi Fund was established around 1996, as I recall, with a large amount of capital raised from shares contributed by smallholder tea growers. The then Chief Organizer of the Opposition, our Hon. Gayanthaa Karunathilaka, also served as a Chairman at that time and rendered great service. He too knows that the Fund acquired about 16 vehicles to transport green leaf, and provided equipment and vehicles to societies. About 18 tea factories were affiliated to the Fund. However, due to various irregularities, the Tea Shakthi Fund collapsed. To date, members who contributed share capital have not been able to recover their monies. That is a grave injustice. Portions have been paid at various times, but full and fair settlement has not occurred. Therefore, Hon. Minister, please inquire into this and ensure justice. Some factories are still operating, but it is unclear whether their income accrues to the Ministry of Plantation Industries or the Smallholder Tea Development Authority, and whether any portion is used for the welfare of smallholders. We look to your intervention in this regard.

¶ 06 Finally, I make a request for the cinnamon industry. There are many issues, including prices. We know that in the past a separate institution—the Department of Cinnamon—was set up. People now wish to know whether that department will continue, or be amalgamated with the Department of Export Agriculture. Cinnamon is unique to Sri Lanka, a major foreign exchange earner and business. Therefore, Hon. Minister, stakeholders request that it be kept separate; to look into exporters’ issues, prices, and problems in exporting cinnamon, and to elevate the institution to an Authority. Please pay attention to this as well.

¶ 07 As my time has elapsed, I will not speak at length. We wish the Hon. Minister well. You presented many commendable measures. We hope the necessary funds are received to carry out development activities, address estate workers’ needs, wage increases, and housing issues, and that you will have the strength, courage, and good fortune to achieve these. I take my seat.

¶ 08 Thank you very much.