Fifth National Assembly
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1 No. 11 of 2010 FIFTH NATIONAL ASSEMBLY PARLIAMENTARY DEBATES (HANSARD) FIRST SESSION TUESDAY 10 AUGUST 2010 CONTENTS 2 PAPERS LAID QUESTIONS (Oral) MOTIONS SUSPENSION OF S.O. 10 (2) GOVERNMENT PROGRAMME 2010-2015 ADJOURNMENT QUESTIONS (Written) 3 Members Members THE CABINET (Formed by Dr. the Hon. Navinchandra Ramgoolam) Dr. the Hon. Navinchandra Ramgoolam, GCSK, FRCP Prime Minister, Minister of Defence, Home Affairs and External Communications Dr. the Hon. Ahmed Rashid Beebeejaun, GCSK, FRCP Deputy Prime Minister, Minister of Energy and Public Utilities Hon. Charles Gaëtan Xavier-Luc Duval, GCSK Vice-Prime Minister, Minister of Social Integration and Economic Empowerment Hon. Pravind Kumar Jugnauth Vice-Prime Minister, Minister of Finance and Economic Development Hon. Anil Kumar Bachoo Minister of Public Infrastructure, National Development Unit, Land Transport and Shipping Dr. the Hon. Arvin Boolell Minister of Foreign Affairs, Regional Integration and International Trade Dr. the Hon. Abu Twalib Kasenally, FRCS Minister of Housing and Lands Hon. Mrs Sheilabai Bappoo, GOSK Minister of Gender Equality, Child Development and Family Welfare Hon. Nandcoomar Bodha Minister of Tourism and Leisure Dr. the Hon. Vasant Kumar Bunwaree Minister of Education and Human Resources Hon. Satya Veryash Faugoo Minister of Agro-Industry and Food Security Hon. Showkutally Soodhun Minister of Industry and Commerce Hon. Devanand Virahsawmy, GOSK Minister of Environment and Sustainable Development Dr. the Hon. Rajeshwar Jeetah Minister of Tertiary Education, Science, Research and Technology Hon. Satyaprakash Ritoo Minister of Youth and Sports Hon. Mrs Leela Devi Dookun-Luchoomun Minister of Social Security, National Solidarity and Reform Institutions Hon. Louis Hervé Aimée Minister of Local Government and Outer Islands Hon. Mrs Santi Bai Hanoomanjee Minister of Health and Quality of Life Hon. Mookhesswur Choonee Minister of Arts and Culture Hon. Tassarajen Pillay Chedumbrum Minister of Information and Communication Technology Hon. Louis Joseph Von-Mally, GOSK Minister of Fisheries and Rodrigues Hon. Ashit Kumar Gungah Minister of Civil Service Affairs and Administrative Reforms Hon Shakeel Ahmed Yousuf Abdul Razack Mohamed Minister of Labour, Industrial Relations and Employment Hon Yatindra Nath Varma Attorney General Hon John Michaël Tzoun Sao Yeung Sik Yuen Minister of Business, Enterprise, Cooperatives and Consumer Protection 4 Members Members PRINCIPAL OFFICERS AND OFFICIALS Mr Speaker Purryag, Hon. Rajkeswur, GCSK, GOSK Deputy Speaker Roopun, Hon. Prithvirajsing Deputy Chairman of Committees Hossen, Hon. Abdullah Hafeez Clerk of the National Assembly Dowlutta, Mr R. Ranjit Deputy Clerk Lotun, Mrs B. Safeena Clerk Assistant Ramchurn, Ms Urmeelah Devi Chief Hansard Reporter and Lam Shu On, Ms Clivie Sub-Editor Senior Library Officer Pallen, Mr Noël Serjeant-at-Arms Munroop, Mr Kishore 5 MAURITIUS Fifth National Assembly --------------- FIRST SESSION --------- Debate No. 11 of 2010 Sitting of Tuesday 10 August 2010 The Assembly met in the Assembly House, Port Louis at 11.30 a.m. The National Anthem was played (Mr Speaker in the Chair) 6 PAPERS LAID The Prime Minister: Sir, the Papers have been laid on the Table – A. Prime Minister’s Office – The Passports (Amendment) Regulations 2010 (Government Notice No. 156 of 2010). B. Ministry of Finance and Economic Development – The Finance and Audit (President’s Fund for Creative Writing) Regulations 2010 (Government Notice No. 158 of 2010). C. Ministry of Tourism and Leisure – The Annual Report and Audited Financial Statements of the Tourism Employees Welfare Fund as at 30 June 2009 (In original). D. Ministry of Social Security, National Solidarity & Senior Citizens Welfare and Reforms Institutions – The Pensions (Amendment) Regulations 2010 (Government Notice No. 157 of 2010). E. Ministry of Civil Service and Administrative Reforms – The Civil Establishment (Amendment No. 2) Order 2010. 7 ORAL ANSWERS TO QUESTIONS STC - PETROLEUM PRODUCTS – TRANSPORTATION The Leader of the Opposition (Mr P. Bérenger) (By Private Notice) asked the Minister of Industry and Commerce whether, in regard to the transportation of petroleum products, he will, for the benefit of the House, obtain from the State Trading Corporation – (a) and table copy of the formal invitation for Expression of Interest sent to six firms on 04 March 2008 and of their proposals, and (b) information as to – (i) if a final agreement has been signed between Betonix Ltd and the Corporation, and (ii) the control that will be exercised over the freight rates agreed upon between Betonix Ltd. and the Corporation and based on rebates available with regard to indicative market rates. Mr Soodhun: Mr Speaker, Sir, following a detailed study undertaken by an independent international consultant in 2007, namely Maritime Logistics and Trade Consultancy, it was concluded that, were Mauritius to have its own tanker, there would be net substantial savings of USD12.6 m. and strategic advantages such as greater control over pricing, delivery, timing and volume of imports. The Consultant, accordingly, recommended the purchase of a double-hull tanker. The other advantages that could be derived by encouraging investment in this project are as follows - (i) the bulk of profits will stay in Mauritius; (ii) there will be foreign exchange savings in terms of payment that would have been due to foreign tanker operators; (iii) a long-term transportation contract between Betamax Ltd and STC may help to stabilise and minimise freight rates in the national interest; (iv) Government will collect 15% as corporate tax; (v) the tanker being registered under the Mauritian Flag, Mauritian seafarers will have employment opportunities; 8 (vi) all provisions and spare parts will be purchased through agencies in Mauritius, and (vii) Executive Ship Management Ltd of Singapore (ESM) being owner of more than hundred vessels, in case of breakdown, there will be no disruption at all in the supply. The collaboration of the Mauritius Chamber of Commerce and Industry was sought and 400 firms who were members of the Mauritius Chamber of Commerce and Industry were invited to state whether they were interested in the project. Only six firms showed interest. When a formal invitation for Expression of Interest was sent to these six interested parties on 04 March 2008 by the then Ministry of Public Infrastructure, Land Transport and Shipping, Betonix Ltd was the only one to submit a responsive proposal, to their acquiring and operating a double-hull tanker vessel for the transportation of petroleum products for Mauritius for a period of 15 years as from 2010. I am tabling a copy of the formal invitation for Expression of Interest. In view of confidentiality obligations inherent to procurement practice, a copy of the proposal received cannot be disclosed without the approval of the bidder. Mr Speaker, Sir, it would be appropriate to inform here that in between the bid was submitted and the actual processing, the company Betonix Ltd had changed its appellation into Betamax Ltd. With regard to part (b) (i) of the question, a contract of Affreightment was signed between Betamax Ltd and the State Trading Corporation Ltd on 27 November 2009. An Implementation Agreement between my Ministry and Betamax Ltd has also been signed on the same date. The agreement is based on the satisfaction of a series of conditions laid down in the ‘Letter of Intent’ given to the promoter in January 2009 and which are as follows - (i) Betonix Ltd to hold 85% and the ESM 15% of the shares in the new company which will own and manage the new tanker vessel; (ii) Betonix Ltd and ESM to fully finance the purchase of the double-hull tanker vessel from their own funds and without any financial commitment and involvement whatsoever from Government; (iii) the vessel shall be registered locally; (iv) freight rates to be charged in connection with the transportation of petroleum products would have to be jointly agreed upon between Betonix Ltd and ESM 9 on the one side and the State Trading Corporation on the other, and would be based on rebates available with regard to indicative market rate, and (v) on the understanding that the STC will provide the Joint Venture Betonix Ltd/ESM the guarantee of a 15-year captive cargo as long as the conditions which, I have just spelt out, are respected. It is to be pointed out that it is only upon being satisfied that the conditions set have been fulfilled that Government decided to pursue with the proposal made by Betamax Ltd. In regard to part (b) (ii) of the question, as already mentioned, one of the conditions that needed to be met before the issue of the agreement, in principle, was that freight rates to be charged in connection with the transportation of petroleum products would have to be jointly agreed upon between Betonix Ltd and ESM on the one side and the State Trading Corporation on the other, and would be based on rebates available with regard to indicative market rate. Notwithstanding such an arrangement and with a view to properly safeguarding the interest of Government, the services of BDO De Chazal Du Mée (DCDM) were solicited to conduct an independent evaluation of the offer with focus on the comparative cost advantages that would be obtained from Betamax Ltd, if any, as opposed to the existing arrangements with the then carriers. For the sake of ensuring the adequacy and effectiveness of the evaluation, STC was required to provide to BDO DCDM all detailed workings and relevant data for the proper conduct of the evaluation exercise. In October 2009, DCDM submitted its report, and it concluded overall that the rate being proposed by the promoter is more competitive than what was being obtained. Apart from this factor, the agreement will yield to the country the other desired strategic advantages I referred to earlier. Thus, the rate per metric ton that has been agreed upon is premised of careful consideration of all the elements related thereto.