Govt ASSURES NO Cuts in Subsidies Before Studies
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SUBSCRIPTION THURSDAY, MAY 22, 2014 RAJAB 23, 1435 AH www.kuwaittimes.net Kuwait takes Mubarak gets Modi extends James, Wade part in UN 3 years jail for olive branch spark Heat bazaar for embezzling to Pakistan, win over world’s5 poor millions7 invites11 Sharif fired20 up Pacers Govt assures no cuts in Max 36º Min 27º subsidies before studies High Tide 06:14 & 17:10 Assembly asks govt to prepare report within 6 months Low Tide 11:42 40 PAGES NO: 16173 150 FILS By B Izzak Iranian police KUWAIT: The government affirmed yesterday that it will not take any action on scrapping or cutting subsidies on arrest 6 over public services and commodities without adequate stud- ies and insisted that citizens’ income will not be compro- ‘Happy’ video mised. The assurance came following a two-day debate on the government’s policy to diversify the national economy, which is heavily dependent on income from TEHRAN: Police in Iran have arrested six young oil. people for posting a video online of them dancing “There is no plan to undermine the income of citizens. to Pharrell Williams’ hit song “Happy,” showing them The government is not talking about impacting people’s on state television as a public warning to youth in income. We just want to rationalize subsidies to make the Islamic Republic. The song has sparked similar sure that they reach those who need it,” Finance Minister videos all over the world, with people dancing Anas Al-Saleh told the Assembly at the end of the debate. down streets and smiling in choreographed crowds. “The aim is to safeguard national fiscal reserves,” the min- But in Iran, some see the trend as promoting the spread of Western culture, as laws in the Islamic ister added. Republic ban women from dancing in public or Oil Minister Ali Al-Omair insisted that the government appearing outside without the hijab. The govern- will not take any action on cutting subsidies without ade- ment also bans some Internet websites. quate studies and without negatively affecting people. In the Tehran video, three young men and three “No subsidy will be lifted before a study showing that citi- young women dance on a secluded rooftop, a stair- zens will not be negatively affected. The purpose is to lim- well, a walled-off driveway and a chic apartment, it consumption and in some cases smuggling,” Omair told wearing sunglasses and silly clothes while laughing MPs. Omair said that the government is paying KD 600 and smiling. The women wear no hijabs. Tehran million annually to subsidize gasoline and KD 260 million police chief Hossein Sajedinia confirmed on state for diesel. He however admitted that the government is television late Tuesday that the six people were currently studying ways to scrap subsidies on diesel. detained over the video. State television also aired Last week, the finance minister said that a ministerial blurred pictures of the video and then showed the committee was formed in October last year to revise all six with their backs turned toward the camera. KUWAIT: Lawmakers gather around Speaker Marzouq A-Ghanem during a session at the National Assembly state subsidies, which have soared to new high levels in Continued on Page 15 yesterday. — Photo by Yasser Al-Zayyat the past few years. Continued on Page 15 THURSDAY, MAY 22, 2014 LOCAL Ahmad Lari Dghaim Al-Saeidi Faisal Al-Armali More candidates submit nominations Faisal Al-Saeid Khaled Al-Dihani Khaled Al-Enezi Khalifah Al-Kharafi Mubarak Al-Najadah Nawaf Al-Anjari KUWAIT: More candidates submitted nomination papers on the second day of candidacy for the National Assembly by-election, due to be held on June 26. By-elections will be held in the three constituencies for five vacant parlia- mentary seats after the resignations of five MPs early this month. — PhotoS by Fouad Al-Shaikh p3.e$S_Layout 1 5/21/14 10:30 PM Page 1 THURS DAY, MAY 22, 2014 LOCAL Low income consumers unaffected by subsidy cut Govt panel to discuss proposal KUWAIT: A government committee studying annually on subsidies, including KD 2.5 billion yesterday that the Supreme Council of ways to reduce subsidies is set to discuss a to subsidize electricity. Subsidization eats up Privatization is studying a recommendation to proposal that categorizes consumers into five 26.2 percent of the 2013/2014 national budg- execute a program that transforms ownership categories based on their consumption rate et. The current plan is to reduce the total fig- of public projects to shareholding companies during its next meeting this week, a local daily ure by KD 1.5 million annually starting from within five years. The step comes as part of reported yesterday. The proposal is based on the 2015/2016 fiscal year, Annahar reported. moves to create new sources of income, setting up a category for people with very In other news, the government began rationalize spending and improve the private high income, another for people with high measures to start providing unsubsidized sector’s involvement in the state’s develop- income, while the remaining three categories energy to state departments beginning with ment process, said sources quoted in the would include people with average, below the upcoming fiscal year, according to a report. average and low income respectively. Ministry of Electricity and Water official. The The Supreme Council of Privatization is People under the third, fourth and fifth cat- ministry hopes that the project would prompt chaired by Prime Minister HH Sheikh Jaber Al- egories will relatively be unaffected by meas- other ministries and state departments to Mubarak Al-Sabah, and includes Deputy ures to reduce subsidization on services such rationalize consumption and save national Prime Minister and Minister of Commerce Dr as energy and fuel, said sources familiar with funds, said Ali Al-Eidi, head of the executive Abdulmohsen Al-Mudej, Minister of Finance the discussions. Instead, the rationalization committee for rationalizing energy consump- Anas Al-Saleh, Minister of Electricity and system will focus on high-income consumers. tion at state establishments. Water and Minister of Public Works Abdulaziz The Finance Ministry committee will make A company that pays a monthly water bill Al-Ibrahim, Minister of Communications and sure that consumers will be categorized accu- of KD 1 million for example, receives KD 12 Minister of Municipality Affairs Essa Al- rately based on a realizable database, accord- million in subsidies from the government, Eidi Kandari, Minister of Social Affairs and Labor ing to the sources who spoke to Annahar dai- told Al-Jarida daily. Similarly, the government and Minister of State for Planning and KUWAIT: Duke of York Prince Andrew has left here, ending his visit to the State of ly on the condition of anonymity. pays KD 21 for every dinar that a ministry pays Development Hind Al-Subaih as well as Kuwait. He was seen off at the airprot by the chief of the mission of honor Ahmadi Kuwait pays an average of KD 5.4 billion for electricity. In other news, Al-Rai reported experts in various fields. Governor Sheikh Fawaz Al-Khaled Al-Hamad Al-Sabah. No major changes in prices Textile Arts Association holds exhibition By Nawara Fattahova According to Hakam, Commercial Director of Khaldiya Co-op, the prices of KUWAIT: Kuwait Textile Arts Association Kuwaitis, a matter that can create a good KUWAIT: Kuwait Times is keeping tabs on some fruits and vegetables may show (KTAA) has launched its 15th annual exhibi- mixture of expertise and cultural back- the price changes of some basic com- slight changes due to a sale they hold tion showcasing many arts and crafts by its grounds in the meetings and workshops modities on a weekly basis. In the previ- every Wednesday. “On this day, the cus- 90 plus members representing many hosted periodically by KTAA” she said. ous two weeks, we published the prices tomer will find the cheapest price in the nationalities at Ahmad Al-Adwani Hall and Dr. Fouke assured that such mixture per kilo of five different commodities market for certain fruits and vegetables. will continue till next Saturday. would also give the audience an opportu- bought from one of the co-ops to com- But this only applies on boxes and not on “The exhibition is celebrating the end of nity to see many different designs and pare prices. These are the commodities loose produce. Also, the season matters a fruitful season for the association that is backgrounds reflected into these art the prices of which usually hike during and regulates the price. Supply and under the auspices of Sadu House, a local pieces. Ramadan. demand also affect the price,” he told art association that supports this tradition- “The National Council for Culture, Arts Buying the same samples of fruits and Kuwait Times. al art and commodity,” President of KTTA and Letters has been very supportive and meat as the previous weeks, Kuwait Times Hakam expected that prices will rise in Dr. Linda Fouke told Kuwait News Agency its Director General Ali Al-Youha’s assis- detected a drop in the price of local toma- Ramadan or even before it. “This is a tradi- (KUNA) during the opening ceremony. tance was instrumental in organizing this to. While one kilo of local tomatoes cost tion every year that prices of many com- She explained that the association looks exhibition that is held in the same hall for 330 fils in the previous weeks, this week modities go up, even if the supply is for and hosts workshops and lectures from the second year in a row,” she pointed out. the price was 245 fils.