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Sunday, 21 April 2002  
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Economics of beedi and kasippu

Ref. the article I wrote on 'A lesson on simple economics' the other day, here is just a rejoinder to it on another aspect of fundamental rules of economics.

A pack of 20 cigarettes of the most popular brand is even now is marketed at Rs. 150. The poorest of the poor who continue to smoke thereby badly hit. As a result, there arose a demand for a cheaper brand even if it may be beedis.

In order to meet this demand for a cheaper brand, there sprang a production of what may be called white beedis, priced at just a rupee per unit but looking just like prestigious cigarettes so that the smokers' status was not undermined. Just imagine the economic benefit to the smoker. The original is Rs. 150 per pack; this is merely Rs. 20 per pack.

It took quite a long time for the authorities to analytically understand this state of affairs. And at long last, they decided to market two popular brands of legitimate cigarettes at just Rs. 40 per pack of 20 'cough sticks'. And it is available in the market at present. Since it is legitimate, the 'cough stick' producers do not complain now as they used to do earlier on.

Let me also mention here, by the way, of the well-known definition of a cigarette. 'It is a roll of tobacco with fire at one end and a fool at the other'. Be that as it may, the illicit production and marketing of tobacco rolls was reduced to the minimum by that 'sensible' step taken by the tobacco producers.

Analogically, the same can be said of kasippu. Incidentally, two of my friends died recently on account of liver damage and gastric ulceration resulting from over drinking. Both tobacco rolls and liquor are so costly. Not because their production cost is high but because all successive governments have been routinely heaping tax upon tax on them by every successive budget. Naturally, therefore, they began to be produced outside the purview of the law at normal cost of production and made them available in the market at an extremely cheap price.

It is thus obvious that the successive governments have been following a foolish policy in this regard. They seem to be destitute of the fundamentals of the science of economics. At present, however, they seem to have realised their folly little by little as manifested by the steps they have adopted in the recent past.

After all, if somebody wishes to commit suicide either in a slow process by heavily consuming liquor and smoking tobacco or instantly by swallowing poison or hanging himself, nobody can prevent it under any circumstances. So, let the consumers of liquor and smokers of tobacco rolls carry on because nobody can prevent them from doing so. It is their own decision to commit suicide in a prolonged, slow process.

So, bringing down the price of liquor and tobacco rolls is a step in the right direction. Those who entertain a death wish in their own minds can now have it fulfilled more economically than otherwise.

Dharmapala Senaratne ,
 Gothatuwa.

Cricket - an Englishman's game

Normally, I ignore, writers who haven't the spunk to give their names, but try to hide in pseudo anonymity. but in this case, as I have been made to feel a fool, I must reply in rebuttal.

First of all I must categorically inform CA, Nugegoda, that my letter in no way was meant for his amusement, but to open the eyes of the Sri Lanka Board of Cricket Control. Of course I welcome constructive criticism, but not cheap jibes.

With what authority does he make a general statement as "ever since cricket was introduced to this country a bat was referred to as a "Pitha".

Does he know that cricket is an Englishman's gentleman game, which was introduced to Sri Lanka (Ceylon), by the British during the colonial era?

There was no conversion then of cricket terms into the vernacular.

I wonder whether he knows the Latin expression "reductio-ad absurdum" (reducing to Absurdity). That is what he has tried to do with the contents of my well intentioned letter.

He has also tried to split hairs with some of the words I have used in good faith. He has stated that the Sinhala word "Lakuna" for a run is the accepted word. Accepted by whom? I never stated that as the field placing was in good English, short leg should become the literal translation "Kota kakula" or that "Silly point" should be "Moda isthaniya". He states that "Kreeda" is "Sports". Not athletics. Little knowing that athletics is a part of sports.

And another bloomer the Sinhala commentator, makes he calls a catch and a stopping of the ball "Rekagaththa". The ordinary cricket lover would be satisfied with a "Alluwa or Allagaththa or "Newaththuwa".

Criticism should never be meant to sarcastically humiliate anyone deliberately.

Capt. L.P. Juriansz,
Colombo 2.

Spirit of the New Year

The chime of temple and kovil bells

And the resonating beat of the Rabana

Echo through this hallowed isle

To warmly welcome another Sinhala

and Tamil new year

Filled with renewed hopes and resolutions dear

To give a better life to everyone here.

And with the dawn of another new year

Sri Lanka stands upright

In a spirit of reconciliation

To bring peace and harmony to a

warring nation

When we could claim a prosperous future

With aspirations high.

Though the C.O.L is alarmingly high

Prompting housewives to pose an audible sigh

Let's welcome the new year

With the fun and frolic

Associated with its traditional games,

Amidst swings and sweetmeats, kavun

and kokis

Wishing the country's peace and prosperity

to flourish

And to lead everyone of us

To feel a sense of serenity within us.

Though the din of crackers would

rudely announce

The close of the new year celebrations

Let's resolve to spend every day of the

new year

With peace and harmony, hope and good cheer,

Wishing each other a happy and prosperous new year.

by Andrew Scott

Penalising the poor

and the old

The recent budget has introduced a 10% tax on interests earned on fixed deposits.

The majority of those who deposit money in fixed deposits are not rich people. They do so out of their hard earned money in the form of EPF and ETF having been worked for 25-30 years during their productive period and now spending the evening of life. People cannot draw their EPF and ETF or their gratuity while they work.

It is the State that utilises these monies for development projects by paying a meagre interest on them.When people retire from their jobs at 55 or 60 years their earnings cease and it is the interest that they get by depositing their EPF & ETF for their survival. The interest rates that are paid nowadays are very low and to add to that burden now the government is motivated to drag that meagre amount out of the poor man's pocket.

It is during this time that people need more money, as they are weak and helpless both physically and mentally. It is in old age that people have to spend more on their medicine as old age is always linked with a series of diseases and disabilities.

In developed countries people in old age are paid a dole by the government. Instead of such relief, in our country old people are not allowed to enjoy at least what they had earned. Is this treatment fair by the unfortunate old people living in this country?

Before submitting the budget this government reduced the tax on cheap cigarettes to decrease the demand for illegal cigarettes. Who does the cigarette smuggling bussiness? Who creates these stories? It is the tobacco industry. One third of the total cigarette production in the world is sold as smuggled cigarettes by the tobacco industry. The motive of the tobacco industry is to maintain a price, which is accessible to everybody.

We all should know that it is a trade strategy.

Reducing of tax on beer and hard liquor would undoubtedly entice more and more youngsters for liquor consumption. The government as to protect people from using illicit liquor highlighted the reason for price reduction. Does illicit liquor improve people's health?

Cannot this government focus in other means of revenue without hammering the poor man's pocket?

Jeewaka Maithri,
Nugegoda.

Unemployed graduate trainees

Out of 10,000 graduates who were given appointments under the rapid implementation programs of the Government on the priority basis, we 4,000 were appointed as graduates trainee library development officers at school. After completion of one year in this post, we were again appointed as School Management Assistants with effect from May 16, 2000.

Our confirmation period ends on May 16, 2002 according to the circular issued regarding our appointment. Though two and half years have passed since our appointment, we haven't been confirmed in our posts. Unlike other job categories, we have no grades or any professional training. If we are absorbed in to SLTS, SLPS or SLEAS, at least we can be hopeful of our posts.

We have already informed of our condition to President Chandrika Bandaranaike Kumaratunga. Minister of Education and other officials concerned, but to no avail. Will the authorities concerned see to our plight and give us a positive response?

Management Assistants' Union,
Batticaloa.

Question on Norochcholai coal power station

I have read the interview your reporter had with Dr. Susantha Perera, the President of the CEB Engineers Union and I am disturbed to note his comment with regards to building a coal power station at Norochcholai.

As a member of the engineering profession, I am perturbed to read the baseless comment made in dragging the CEB line while discarding the very principles of engineering.

Can he please explain to the profession and to the public, his logic in upholding the CEB's dogma that Norochcholai is the best-suited site for a coal power station when the impracticality of building and operating a power station at this site has been shown over and over again?

Can he please explain the practicality of the following features associated with the proposed development at Norochcholai and inform as to whether such design and practice is employed at any other coal power station in the world.

1. The building of a 4.2 km pier to unload coal in mid-ocean?

2. The subsequent decision to discard the use of the 4.2 km pier proposed by the CEB consultants and to the decision to use Barges to unload coal in mid-ocean?

3. The unloading coal in mid-ocean, especially during the monsoons when excessive wind speeds creates a swell that reaches 8 to 10 meters?

4. The requirement to fill the proposed site with an estimated volume of 300,000 cubic meters of sea sand dredged from the bottom of the ocean, to raise the site levelly by 6 feet as required under the studies concluded by the CEB and its consultants?

It is a sad reflection on Sri Lanka's engineering profession when Dr. Perera insist that such stupendous suggestions are practical.

Adding insult to injury is the statement issued by the Head of the Institute of engineers in which the institute echoes blindly the views held by the CEB without proper professional scrutiny.

Can we, the public, have Dr. Susantha Perera's comments please? Can a professional engineer within the institute of engineers please reflect a proper and a professional view with regards to the impracticability of building a coal power station at Norochcholai?

Edmond Perera,
Nugegoda.

Hidden motive behind student demonstrations

While the ceasefire is poised to bring peace to the North & East, the South will see chaos in education & economy unless the threats to both are neutralized immediately.

Under cover of various protests in the Universities, professional J.V.P. agitators are promoting the closure of Universities and work places.

They create problems to the Universities and when the Universities are closed, get on to the roads.

Unfortunately innocent students become helpless victims. Their studies are disrupted and examinations postponed so much so that a graduate passes out of the University when he/she is close upon 30 years.In other countries students, graduate from as early as 18 or 19 years.

What this means is that there is a loss of earnings for about ten years while the cost of educiaotn is likewise increased.

At present the following Universities or faculties are closed down for one reason or other.

i. The Buddhist University at Anuradhapura

ii. The Medical Faculty Colombo University

iii. The Medical Faculty Ruhuna

iv. The Law faculty

v. The Kelaniya University

Any one watching the T.V. coverage of demonstrations would not find it difficult to identify the faces of regular agitators, the common wording and writing on placards and even the common slogans shouted.

All this lead one to believe that one puppeteer is pulling the strings. That is the J.V.P. Hav

ing realized that armed insurrection and murder of the innocents as in the 1980s do not pay the J.V.P. now instigates demonstrations in the country. They have their own political agenda. Rushing

to be the saviours of students, workers and farmers the J.V.P. has no qualms in leading those who believe them down the Gadarene path. As a result of frequent J.V.P. led agitation several industries have closed down, the recent being Wall's Ice Cream (leading to the loss of 500 jobs) and Lipton's (leading to the loss of 550 jobs).

At a time when the country needs more industries to open to create employment the J.V.P. is hell bent on their scheming plans to cause industrial unrest in the country. Jobs cannot be created unless there is peace in the country and accompanying industrial and economic growth. Investors also must be certain in their minds that their industries would not be disrupted by J.V.P. elements.

Unfortunately today because of the J.V.P. some people are scared to invest and create employment.The recent local government polls have shown in no uncertain manner that their strategy to be the saviours of the Sinhala Nation have not been accepted by the vast majority.

The agitators are now getting ready to make island wide demonstrations.

The protest is against the so-called privatization and cease-fire.

Even today majority of the 'O' & 'A' level students attend tutories and pay very high fees. These are the very persons who have been misled into agitating. Having paid their way through to the Universities they want to prevent others from doing so.

After spending their parents' money on tuition fees students enter universities with the greatest difficulty and within a few months go on strike! It is impossible to see the logic behind students' actions.

I only see the hidden agenda of the J.V.P. I believe that they are frightened by professional J.V.P. thugs in the clothes of university students.

The J.V.P. during their murderous past in the 1980s after killing several university Professionals and teachers managed to close down universities till the late Ranjan Wijeratne dealt with them in the only language they understand.

As a result of the student unrest Universities were closed and the North Colombo Medical Colelge was closed leading to the exodus of medical students who having passed out as doctors out side Sri Lanka have become leading practitioners abroad. These NCMC graduates bring honour to Sri Lanka as they are regarded as very good doctors. Unfortunately it is a big loss to the country.

As a result mediocre and not so good students became medical students and we see the result in student unrest. Some students are not mentally equipped to be University students or doctors for that matter.

You see them at the Ruhuna campus.

While closing the avenues to University education for some of the best students in the country the J.V.P. inciters are now attempting to cripple the Universities to prevent fee levying education in the country.

In the case of medicine most countries have opened fee levying medical colleges. In India almost all the medical colleges are fee levying and hundreds of Lankan students are studying in Australia, UK, Russia etc., spending vast amounts of foreign exchange Malaysia draws a large number of students from Asia.It is now the appropriate time to commence a fee levying Medical College in Colombo and earn foreign exchange for the country while saving the money spent on education abroad. It also means that there will be no trend of leaving one's family and country to study abroad.

The Government must see that the best students enter the Medical faculty as some of the best students are kept out by the standardization of marks.

The latest episode in these unfortunate events perpetrated by the J.V.P. is the demand for enhanced Mahapola Scholarships. As the Minister stated in the T.V. when the then Minister Lalith Athulathmudali commenced the Mahapola scheme he only wanted to subsidize what the indigent students were getting and it was not meant to be a living allowance.

In a really serious economic situation there is no justification to enhance the Mahapola Scholarships while thousands of villagers in the drought affected areas are without any relief.

The hidden agenda of the J.V.P. agitation on behalf of students, workers or even against the cease-fire is for them to come to pwoer in the next election having realised that taking to arms as their Political leader Somawansa called for is self destruction.

Dr. Neville Fernando , 
Nawala

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