No. 3 of 2010 FIFTH NATIONAL ASSEMBLY PARLIAMENTARY DEBATES (HANSARD) FIRST SESSION TUESDAY 15 JUNE 2010 CONTENTS PAPERS LAID QUESTIONS (ORAL) MOTIONS Suspension of S.O. 10 (2) Government Programme 2010-2015 ADJOURNMENT Members Members THE CABINET (Formed by Dr. the Hon. Navinchandra Ramgoolam) Dr. the Hon. Navinchandra Ramgoolam, GCSK, Prime Minister, Minister of Defence, Home Affairs FRCP and External Communications Dr. the Hon. Ahmed Rashid Beebeejaun, GCSK, Deputy Prime Minister, Minister of Energy and FRCP 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 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 MAURITIUS Fifth National Assembly --------------- FIRST SESSION --------- Debate No. 3 of 2010 Sitting of Tuesday 15 June 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) PAPERS LAID The Prime Minister: Sir, the Papers have been laid on the Table – A. Ministry of Finance and Economic Development - (a) The Annual Report and Audited Financial Statements of the Financial Intelligence Unit for financial year 2009. (b) The Investment Promotion and Protection Agreement (Republic of France) Regulations 2010 (Government Notice No. 132 of 2010). (c) The Annual Report of the Board of Investment for the Financial Year 2008-2009. B. Ministry of Public Infrastructure, National Development Unit, Land Transport and Shipping – The Road Traffic (Crop Season) Regulations 2010 (Government Notice No. 131 of 2010). C. Ministry of Local Government and Outer Islands – (a) The Municipal Council of Curepipe (Fees for Outline Planning Permission and Building and Land Use Permit) Regulations 2009 (Government Notice No.133 of 2010). (b) The Grand Port Savanne District Council (Fees for Outline Planning Permission and Building and Land Use Permit) Regulations 2009 (Government Notice No.134 of 2010). (c) The Black River District Council (Fees for Outline Planning Permission and Building and Land Use Permit) Regulations 2009 (Government Notice No.135 of 2010). D. Ministry of Fisheries and Rodrigues – The Rodrigues Regional Assembly (Community Development) Regulations 2010 (Government Notice (Rodrigues Regional Assembly) No. 2 of 2010). ORAL ANSWERS TO QUESTIONS STC - DIESEL, MOGAS, PETROLEUM PRODUCTS & RICE (RATION) The Leader of the Opposition (Mr P. Bérenger) (By Private Notice) asked the Minister of Industry and Commerce whether, in regard to the State Trading Corporation, he will, for the benefit of the House, obtain from the Corporation, information as to – (a) the details of the present price structure for diesel and Mogas, indicating the (i) hedging losses incurred as at to date, and (ii) sums paid to filling stations and petroleum companies on the occasion of the last general election; (b) whether tenders for petroleum products will be called for; (c) the commodities and respective quantities thereof imported by the STCM Limited, and (d) the losses incurred, if any, on the recent re-tendering exercise for the supply of ration rice. Mr Soodhun: Mr Speaker, Sir, with your permission, I will reply to the PNQ as well as to the PQs 1B/41, 1B/56 and 1B/59 together. With regard to part (a) of the PNQ, details about the price structure for Mogas comprise the following - 1. Cost, Freight and Insurance (C.I.F) which means - • the average Platt’s Publication (Daily World Price) of the month in which a tanker is loaded (Bill of Lading date) May 2010 • FOB Mogas plus FOB Mediterranean (Italy) USD/M.Ton 701.99 • Plus Supplier’s margin (premium) USD/M Ton 30.43 • Plus Freight USD/M Ton 24.40 • Plus Insurance (.00425% of C&F) USD/M Ton 0.03 • Total CIF: USD 4,134,237.57 or USD/M Ton 756.85 • No of litres: 5,101,098 • CIF per litre: USD 0.5822 2. Excise Duty as per Excise Act MUR/litre 9.80. 3. MID Levy as per the Excise Act - June 2008 MUR/litre 0.15. 4. (Gain)/Loss from previous month – the CIF used in the price structure of a month is that of tankers of the previous month. Any gain realised due to lower CIF price for tankers of the subsequent month, as compared to that used in the price structure… Mr Bérenger: I’ll ask the rate, of course, to be circulated as it had been done in the past; it is not necessary for the hon. Minister to read everything. We are going to waste half an hour with that. (Interruptions) Mr Speaker: It has been the practice in the past to circulate the structure. I, myself, cannot follow what the hon. Minister is saying. Mr Soodhun: A question has been asked by the hon. Leader of the Opposition, that is, to give detail of the price structure. (Interruptions) Mr Speaker: The hon. Leader of the Opposition has made a request and the hon. Minister may comply; not now, as he is not in a position to circulate the information. He might do so later on. Carry on! Mr Soodhun: These are the details which have been asked. Mr Speaker, Sir, concerning the adjustment, when the price structure for a month is worked out, it is assumed that the quantity of the STC will sell to oil companies during a month will be one-twelfth of the normal contracted quantity – 90,000 M. Ton or 9,750,000 litres. Increase/(Decrease) greater than 7.5% and below 2.5%: as per paragraph 7 of the Regulations - any increase or decrease below 2.5 % in the retail price is carried forward and adjusted in the succeeding month. The same applies if the percentage increase or decrease is beyond 7.5%. Therefore, this amount is charged or refunded in the following month. For the month of May 2010, the price of Mogas should have been decreased by 8.75%, but has been limited to 7.5% in accordance with the Regulations. The difference of 1.27% or a decrease of MUR 0.5143 has been brought forward to June 2010. The windfall gain or loss - a stock taking exercise is carried out in the tanks of oil companies and filling stations on the day a change in price is undertaken. When there is an increase in price, a refund of the difference between the existing and the new price is made to the STC by oil companies and filling stations, and subsequently refunded to the consumers in the following APM exercise by STC in the price structure. In the same way, payment is effected to the above stakeholders in case of decrease in price and is charged to the consumers. The amount windfall gain or windfall loss is divided by the number of litres estimated to be sold to oil companies during a month, and is inserted as either a charge or a refund, whichever the case may be, in the price structure. Any amount charged or refunded in short or excess is considered in the item ‘Adjustment’ in subsequent month. For May 2010 APM exercise, the stock of Mogas on 08 May 2010 at the oil companies and the retail outlets were 12,414,248 litres and 1,473,802 litres respectively. The price differential between the month of April and May 2010 was MUR 3.0435/litre for oil companies and MUR 3.50 for retail outlets. Hence, a total amount of windfall loss of MUR 42,884,027.28 has been refunded to them. Divided by the monthly estimated quantity of 9,750,000 litres, the amount charged in the price structure of June 2010 works out to MUR 4.3984/litre. Provision for hedging - this item has been introduced in January 2008 (MUR 1.50 per litre) and increased to MUR 3.00/Litre in November 2008.