Maravi

Don’t use Global recession to lay off workers – Rupiah

Don’t use Global recession to lay off workers – Rupiah
Written by Kabanda Chulu, Chibaula Silwamba and Mwala Kalaluka
Sunday, January 18, 2009 6:32:10 AM

PRESIDENT Rupiah Banda yesterday warned investors not to use the global financial crisis as an excuse to lay off workers in a cynical attempt to reduce costs of production. And in an apparent reference to The Post, President Banda said the government will assist to provide an ethics council for those media houses that think they are above self regulation and have refused to cooperate with their colleagues in the Media Ethics Council of Zambia (MECOZ).

Meanwhile, President Banda has said the fight against corruption will continue and culprits would be punished.

Officially opening the Third session of the 10th National Assembly in Lusaka, President Banda said each MMD administration entered its first year faced with a crisis of one type or another.

He said the first MMD administration had to deal with severe food shortages largely due to drought in 1991/92 season while the second administration suffered sudden investment withdrawal by Anglo American Corporation from Konkola Copper Mines, which threatened about 10,000 jobs in 2002.

“The start of this administration is no different and we have taken over at a time of severe global financial crisis, nations - poor or rich - are affected. And in response government has devised intervention measures designed to mitigate the adverse impacts of the crisis through engaging mining companies to prevent job losses and economic diversification and promotion of the development of the Multi Facility Economic Zones,” President Banda said.

“To undertake these measures, government will re-allocate resources from non-priority areas and these measures are intended to address concerns of both employees and employers where the threat of factory and business closures looms. But the global financial crisis must not be used as an excuse to lay off workers in a cynical attempt to cut costs and reduce overheads because any job losses should only come as a last resort after consultations with trade unions and after thorough analysis of all options available.”

President Banda said to secure the future of Zambian industries; the government was ready to work with the public and private partners, both domestic and foreign.

“But any industrial restructuring should take into account the knock on effects of laying off workers, which includes the loss of tax revenues and impact on local communities and increased levels of poverty,” President Banda said.

“I am therefore directing the Minister of Labour to ensure that the tripartite labour council is fully involved in any industrial restructuring which may lead to a reduction of labour output.”

But some UPND members of parliament laughed-off President Banda's statement whilst reminding him that Austin Liato (labour minister) had been chased from a mining company during a fact-finding visit last week.

On mining, President Banda said the sector, which is the mainstay of the Zambian economy, had to deal with a volatile end to 2008. He said the global mining industry had suffered.

“Lower demand from countries like China and India has seen cut-backs and closures in many producing countries,” President Banda said.

He, however, observed that there was hope on the horizon because Zambia had promising sites for uranium. He said the government this year intended to effect further amendments to the mines and minerals development Act to encourage foreign direct investment.

“However, windfall taxes can only be levied on profits and this year profits will be scarce. We must ensure that we do not kill the goose that lays the golden egg. There is little point in taking in a few million dollars in tax if thousands of jobs are lost as a result,” President Banda said.

“Government is currently engaged with the industry to make sure that a beneficial financial environment exists for both government and investors.”

He said his government would do all it could to protect jobs and safeguard the industry for the future.

“However, as the government review the situation in the mining industry, the welfare of all mine workers is the top priority to the government,” he said.

“In this regard, government is determined to ensure that mining companies meet their social and legal obligations should they choose to pull out or disinvest. In addition, a special Task Force will report back to government on the needs and possible strategies available when closures are imminent.”

And a majority of parliamentarians from the MMD and UPND cheered when President Banda said media houses that thought were above self-regulation by not subscribing to MECOZ would be assisted.

As President Banda, who urged all media outlets and practitioners to consider joining MECOZ concluded this assertion, one UPND parliamentarian was heard shouting 'The Post' amidst the din.

“Recently, there have been calls in this House for the state to regulate the media in country. However, my administration believes in the media self-regulation. However, the onus remains on the media to work out such regulations which must be respected by all and clearly stipulate the sanctions against erring journalists or media houses," President Banda said.

"With that in mind I would urge all media outlets and practitioners to consider joining the media ethics council."

President Banda said he would rather have MECOZ as a course of action in terms of media self-regulation other than forcing the government to act.

"If other media houses think they are above self-regulation and refuse to cooperate with their colleagues in the media ethics council [of Zambia], then government will assist to provide one," President Banda warned.

"Government will review the licence system so as to allow existing and new broadcasters, both radio and television, to cover more of the country in terms of signal coverage. We want to see competition in this sector."

President Banda said the media remained useful partners to the government in the fight against corruption, poverty and the HIV/AIDS pandemic.

And President Banda said the high cost of fertiliser and fuel had a negative impact on the economy and contributed significantly to the high inflation rate.

“Given the present economic situation, my government will continue to pursue prudent fiscal and monetary policies. To do otherwise would be folly and irresponsible,” he said. “Our aim is to achieve the projected five per cent growth domestic products.”

He said the global credit crunch and subsequent cost saving measures had resulted in job losses, damaging the economy and society.

“Concerns have been raised on the measures my government is undertaking to cushion the country from the effects of the credit crunch,” President Banda said.

“In response, government has devised intervention measures designed to mitigate the adverse impact of the crisis. These measures includes; (1) engaging mining companies to prevent major job loses and encourage other investors to come; (2) diversification of the economy through; (a) enhanced resource allocation to irrigation (b) provision of resources to the citizens economic empowerment fund, (c) promotion of the development of the Lusaka Multi-Facility Economic Zone to generate employment (d) provision of adequate resources this year for the completion of Nansanga Farm block to attract investment and (e) provision of the adequate resources for the infrastructure development for Kasaba Bay and Livingstone areas to increase the number of tourists arrivals.”

President Banda said the other measures put in place included encouraging private sector participation in development of power generation centres and promotion and expedition of the exploration of petroleum in the country.

He said the global downturn with its negative impact on jobs, commodity prices and international trades, flew in the face of Zambia's efforts to create jobs to boost prosperity and to reduce poverty levels. He said the challenge was to devise strategies that would minimise the negative impact of the world recession on Zambia's growing industrial and trading sectors.

“I urge business leaders and heads of companies from all sectors to adopt more innovative survival strategies aimed at achieving that competitive edge,” President Banda said. “Government remains committed to reducing the cost of doing business in Zambia.”



President Banda said while promoting domestic entrepreneurship was important, it was also vital that Zambia encourage domestic and foreign investment through the Multi-Facility Economic Zones (MFEZs) that had been put up in Lusaka and Chambishi.

“When completed both facilities are expected to generate more than 10, 000 jobs,” he said.

He said developing the right skills was vital to economic empowerment.

“These are indeed tough times but relying too much on others or indulging on self-pity will not help. We must help ourselves,” President Banda said. “Education is the road out of poverty.”

On agriculture, President Banda said his administration's emphasis would continue to be on increased and sustainable food security at all levels.

“This will both counter the effects of the world food crisis and increase incomes,” he observed.

President Banda acknowledged that farmers had complained of delays in the distribution of farming inputs and the announcement of the floor price.

“Concerns have been raised regarding the food reserve agency that it has not purchased maize in the outlying areas, concentrating instead on the district centres,” President Banda said. “I, therefore, direct the Food Reserve Agency to intensify their crop marketing system this year by ensuring that they concentrate in buying crops from the remotest parts of the country as the private sector concentrates in districts and urban areas.”

He said the cyclical price irregularity of fertiliser affected all farmers and his government would like to see the prices stabilised, thereby benefiting all farmers; starting in 2009/2010 season onwards.

“I am therefore directing the Ministry of Agriculture and Cooperatives to ensure that from 2009, the extension service begins to perform and all provinces will have production targets,” President Banda said.

He said his government would support irrigation agriculture, especially among small-scale farmers.

“In spite of such challenges, this year's irrigated maize crop will harvest some 100, 000 tonnes,” President Banda disclosed. “There is urgent need for mechanising the small-scale farming sector. The government is working on programmes to bring in tractors and agricultural equipment to be used by small-scale farmers.”

On land, President Banda said the Ministry of Lands would be opening a customer centre in each provincial headquarters to ensure a more efficient system and cut out central bureaucracy by providing better accountability at a local level.

On tourism, President Banda said Zambia offered herself as a haven of peace and tranquility.

“We should view 2009 as a year of opportunity, a year of greeting new friends to our borders and for forging lasting relations. I appeal to our immigration officers to truly represent Zambia's hospitality,” President Banda said.

On the environment and natural resources, President Banda said the government would implement the national adaptation plan of action aimed at adapting and mitigating the impacts of climate change.

“The environmental protection and pollution control Act will be reviewed to make it investor-friendly whilst protecting the integrity of the environment,” President Banda said.

On energy, President Banda said the government had engaged with various partners to ensure more supply of electricity. He said the government would also look at ways of increasing the provision of energy derived from the sun.

On infrastructure, President Banda said in an effort to make Zambia a regional economic hub, the government would continue improving infrastructure such as roads, railway lines, airports and canals to improve accessibility and reduce transport costs.

On health, President Banda said his administration would introduce the social health insurance as one of the strategies to increase accessibility to the health care services.

“This will compliment the government policy of free medical services,” he said. “Further, my administration intends to table before this House the health professional Bill which will harmonise the regulation of health professionals in Zambia.”

President Banda said the restructuring process for hospitals at all levels including districts would be completed and the drug supply, management and logistics would be strengthened at district level.

On education, President Banda said the government would continue with its policy of increasing access to and improving the quality of education at all levels, particularly for the rural areas.

He said the Zambian universities were fast becoming a regional learning hub by attracting students from Angola, Democratic Republic of Congo and Malawi.

On local government, President Banda said his administration intends to introduce the Local Government Service Commission within this year.

He also said the government would present a local government amendment bill in parliament to extend the tenure of mayors and council chairpersons.

He said the government was working towards addressing the many challenges facing the public service among them inadequate remuneration, shortage of housing and technical capacities.

On gender, President Banda said he would appoint women to decision-making position based on merit.

On youths, he said he was happy to inform the House that about 100 youths [former street children] that were being trained at Zambia National Service (ZNS) had been employed by the ZNS.

“I, therefore, urge the private sector to absorb some of the remaining graduates following the successful implementation of this programme,” President Banda said.

On corruption, President Banda said his administration remained committed to fight corruption, which he said erodes investor and public confidence.

“Corruption also diverts the scare resources from national development,” he observed. “Let me sound these words of warning: Government will support those who are prepared to work hard and put in an honest day's labour. For those who go outside of the law, they will be caught and punished.”

He assured that funding to the Anti Corruption Commission (ACC) would be increased to make the institution more efficient and effective.

Whilst commending the Task Force on Corruption on the good job it is doing in the anti-graft crusade, President Banda said the ACC would remain the main body fighting corruption.

On the electoral reforms, President Banda said the Electoral Commission of Zambia would this year undertake the continuous voter registration exercise as provided for in the electoral Act.

He said during, the October 2008 presidential elections, young Zambians that had just reached the voting age were not registered and could not vote because the ECZ had financial shortage to do the continuous voter registration exercise.

On foreign policy, President Banda said Zambia's policy of good neighbourliness had been a key guide in its relations with countries in the region since independence in 1964.

On defence and security, President Banda said Zambia was committed to reducing the sources of conflict on the continent through its participation in peacekeeping efforts on such conflict areas such as Darfur in Sudan, the Great Lakes Region and the DRC among others.

On the Constitution, President Banda commended the National Constitutional Conference (NCC), saying it was doing a very fine job.

“I wish to inform the House that the government will continue to render the necessary support to the NCC so that it speedily implements its programme and delivers its draft report and constitution Bill without delay,” he said.

Meanwhile, President Banda invited Zambians, regardless of their political leaning, ethnicity, race or religious background to unite behind the country's common agenda of defeating poverty, creating wealth for themselves and propelling Zambia forward towards prosperity.

“We will not be able to solve all our problems this year but I believe we can weather this global storm and we will emerge a stronger nation,” President Banda said. “I want to assure this August House and through this House, the nation that, I as President of this Republic want to leave a legacy of my Presidency. I therefore, commit to work very hard and tirelessly to build that legacy especially that my current tenure is only three years.”

President Banda said he expected his ministers, deputy ministers, permanent secretaries, heads of commissions and government agencies, parastatal executives to perform no differently from him.

When adjourning the House to next Tuesday, Vice-President George Kunda said President Banda's speech was a wonderful and well-researched one, much to the disapproval of some opposition parliamentarians who shouted him down.

And commenting on President Banda's address, UPND spokesperson Charles Kakoma said the speech did not provided hope to Zambians.

“There is nothing new, especially that he did not talk about new policies or direction and even strategies to resolve the current problems facing the country. If anything, President Banda's speech has dampened morale among the people instead of uplifting their expectations,” he said.

And PF spokesperson Given Lubinda described the speech as an irrational and emaciated statement that lacked policy direction.

He said President Banda's statement on the operation of the media was double-tongued.

“We are not impressed with his speech. It is emaciated in all ways since it lacked direction. When addressing Parliament and the nation in general, a President should give policy direction and not threats because those were irrational statements,” said Lubinda.

“And his statement on the media is doubled-tongued in that he is talking about self-regulation and also threatening The Post. But why attack The Post? And if President Banda thinks that The Post is worrying him and his government, why can't he engage The Post and ask them why they are not members of MECOZ?”

Labels: JOBLOSSES, MECOZ, RUPIAH BANDA

posted by MrK @ 6:33 AM