Ailing industries will be revived soon - Minister Dayaratna

By P. Krishnasamy

Minister of State Resources and Enterprise Development P. Dayaratna, one of the three senior most parliamentarians who held six ministry portfolios under all five Presidents of the country, explained in an interview with the Sunday Observer the Government’s achievements and future plans on provision of infrastructure facilities, especially in the war-torn Northern and Eastern provinces, the current thinking with regard to rejuvenating some of the ailing State enterprises and winding-up others that have been a burden on the national economy.

Excerpts of the interview:

Q: You represented the Ampara constituency as a UNP parliamentarian during their administration and held important Ministry portfolios. Can you compare the current levels of development activities in the Eastern province under the administration of the UPFA as against that of the UNP at that time ?

A: The UNP did not have the opportunity to do this kind of development work and they never did. Because during a major part of their administration the North and the East were ravaged by war and they were not successful in ending it. But the UPFA led by President Mahinda Rajapaksa ended the three-decade war and restored democracy and peace. The UPFA administration has already launched many development projects, including infrastructure development and ‘A Class’ road networks. For centuries we have been using the ferry at many places on the highway between Trincomalee and Batticaloa. Now there are huge bridges and there are going to be more. And there is going to be a two-lane highway from Trincomalee to Batticaloa. When the road network is there, people will get the infrastructure, water, electricity, irrigation and other facilities. That is what the people wanted but did not get in the past. But this Government is doing it.

Now I travel on carpeted road to Colombo from Batticaloa in five hours. When did you do that? That is part of development. You must see the several water supply schemes that have been launched and several more in the pipeline with huge fund allocations. Previously there were seven ferries on the highway between Batticaloa to Trincomalee.

Q: The PC administration is now in place in the Eastern province in an atmosphere of peace and communal amity. Certain political parties are insisting on the re-unification of the North and the East while some others are demanding a separate unit of devolution for the Muslim community annexing the non-contiguous geographical areas of their domicile. Your comments please?

A: I do not believe in having several communally-based units of devolution in a country the size of ours. The outcry for unification or for separate units of devolution are basically due to the development question. But this Government has taken up that challenge. The Government has already undertaken development in the North and the East on a larger level than in any other part of the country.

Q: Due to the long drawn-out war, the once thriving KKS cement factory now remains dormant. What are the Government’s plans to re-activate it?

A: Fortunately the factory is not destroyed and is intact. Only certain exposed components of the factory were destroyed in the war. It is in good condition and can be used. A committee appointed by the Government is now in the process of conducting a study to submit a suitable proposal with recommendations also on alternative source of funding to re-start the factory. There are many offers from countries overseas for taking over the factory. This has become possible because the Government rooted out terrorism, ended the war and restored peace. Quite a number of investors have already gone there to see the condition of the factory. Five years ago nobody would have even thought of going there to invest.

Q: With many of the raw materials locally available for cement production, can we compete with the internationally popular brands of cement and meet the national requirement?

A: Quality-wise we can compete, but quantity-wise we cannot because the national requirement is huge.

Q: Are there any plans to re-activate the sugar factories in Hingurana and Kantale? Can local production be anticipated in the near future?

A: In the case of sugar factories too there are investors who have come here and offered their proposals. These are mostly Indian companies but some Chinese companies have also offered to takeover. I would not say production would become possible in the near future because these are matters to be thrashed out with the Treasury and the political authorities. But I hope it will be done before too long. The Hingurana factory is already given to a local investor and we are observing as to how they are functioning.

Q: Will it be possible to produce sugar to meet the local requirement?

A: As it is we are not producing even twenty-five percent of the national requirement. We will have to depend on imports.

Q: Can you also tell us about the condition of the paper industry that is under the purview of your Ministry ?

A: We have one paper industry at Valachchenai and the other at Embilipitiya. The Embilipitiya factory was put up much later than the Valachchenai one. We will need several billions of rupees to put up a factory of that calibre today. The Embilipitiya one is not functioning and there are foreign investors who are ready to takeover and invest. There is a committee sitting to get the best proposals and offers. Very soon we will advertise calling for expression of interest. Once that is done we will sort out as to whose proposals and offers are in line with what we are proposing and what we anticipate.The Valachchenai factory is producing white paper and hard paper which we use for file covers etc. But not all kinds of paper which was produced earlier. It is because we do not have the raw materials today. We only use some of the re-cycled waste paper.

Every month we are exporting 8,000 tons of waste paper for want of facilities to re-cycle them locally.

Q: Many of the Corporations and Companies coming within the purview of your Ministry are seemingly unprofitable. What is the policy of the Ministry with regard to these enterprises that are a burden on the national economy?

A: I have already told you about what we are doing to rejuvenate and activate many of the enterprises while trying to wind-up a few. There are four categories of such enterprises. A few are to be wound-up because they cannot be revived to make a profit. Some are losing but they can be made profit-making. Some are picking-up. So the quality of their products and the efficiency of their management have to be improved. And there are many profit-making enterprises as well.

Q: Has the Government plans to either re-start the Paranthan Chemicals or to hand it over to private investors?

A: Paranthan Chemicals is only a name. At the 200 acre site, there is no name board. There are some machinery and equipment lying on the ground. The army is occupying the area. The State will not invest in it because this is not the time for the State to invest. This is the time to allocate money for infrastructure and development that are badly needed in the Northern province. The private sector will not do it. There are offers from foreign investors to start a Chemical factory. It will be a feasible project because the adjoining is the saltern from which they can get salt without transport cost.

Q: Do you have plans to export ceramic and porcelain products? A: At present the State does not own ceramic or porcelain factories. They were all privatized. We only have brick and tile factories. We do not have plans to start such factories in the future. Why should the Government start something that has failed. As regards the brick and tile factories, five of the eight are not functioning. But none of them have been making a clear profit and, as a result, the machinery have not been maintained properly . We are trying to select some of the best ones where the raw materials are easily found in an effort to rejuvenate them and make them profitable ventures. Clay and firewood for burning are the main raw materials that are needed.

Q: Some estate management agencies, including the Janatha Estates Development Board (JEDB) and State Plantations Corporation (SPC) are also under the purview of your Ministry. There have been complaints that the maintenance, profit levels and the working/living conditions of the workers of the estates managed by these agencies are comparatively lower than the estates managed by the Regional Plantation Companies (RPC). Your comments?

A: At the beginning when the RPC took over estates they took the best leaving the non profit-making ones. The JEDB and SPC as estate management agencies are not making a profit. Of the other three plantation companies coming under the Ministry’s purview, the Chillaw Plantations and the Kurunegala Plantations are making a profit while the Elkaduwa Plantations is not making profit but is in the verge of picking up.

Recently I had a discussion with trade union leaders about non-payment of EPF/ETF benefits and gratuity payments to the workers.

We realise that it is unfair and we are trying to sort out the problem. We have found out ways and means of addressing these issues. It will take time but I am certain that we are on the right track.

Q: Even the housing projects of the Government have not reached the workers of the JEDB and SPC managed estates?

A: That is because payments that have to be made by these estates have not been paid and they are not entitled.

Q: It is said that local political leaders are using their influence to help some businessmen to takeover some of these estates?

A: It is not true. We are trying to give them to people who are coming out with a viable project report so that something useful to the country will happen.

We would even consider projects for re-forestation because our forests have been destroyed to a great extent and we need forests.

These are not lands that were abandoned due to infertile soil but due to difficulties in getting the necessary funds for fertilising.