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Battle over CPC blazes on
Two ministers clash over privatisation issue
By Chris Kamalendran
Ceylon Petroleum Corporation privatisation plans which fuelled a crippling strike recently are still swirling in controversy with two top cabinet ministers clashing directly and unions headed by the JVP firing away on their own.

Power and Energy Minister Susil Premajayantha is insisting the CPC must not be privatised and says he has got cabinet approval for his stand. But Finance Minister Sarath Amunugama is pulling strongly in another direction while CPC unions claim he has no say and they would have no dealings with him.

Dr. Amunugama told The Sunday Times the proposal to privatise the CPC was at discussion level, indicating the Government has not abandoned plans to privatise the remaining shares of the CPC.

It also means the Government is still looking at a third player or planning to privatise filling stations and shares. Mr. Amunugama has declared the CPC as one of the 'monsters' which have turned out to be a burden on the government. He identified other burdens as the CTB, Railways and the CEB.

Mr. Premjayantha's note to the Cabinet said: "I wish to inform the Cabinet of Ministers that in accordance with the policy of the UPFA Government the CPC will not be privatised under the ongoing CPC restructuring scheme". But, despite the crisis in the CPC and allegations of overstaffing, at least 50 new workers have been recruited in the past month.

Trade unions campaigning against CPC privatisation have proposed to the government measures to halt further privatisation of the Corporation. The fresh proposals were this week submitted to the government and are expected to be taken up for discussion after the arrival of President Chandrika Kumaratunga who is currently in London.

The joint trade unions, including the JVP union, at the meeting will be insisting that their proposals be implemented, instead of the Finance Ministry plans to look for a third player or privatise a part of the shares held by the Treasury.

JVP union chief Lakshman Ananda told The Sunday Times they were not worried about comments made by Finance Minister Amunugama and they would deal only with the President and their minister.

The unions in proposals to the government have said the overall debt of the CPC had gone up to Rs. 26,000 million together with the credit facilities given to government organisations including the CTB, CEB, CGR and the armed forces.

Mr. Ananda said the losses in the CPC were not due to the inefficiency of the CPC, but due to the subsidies and the debt. He said Minister Premajayantha had assured that he would get them an appointment with Treasury Secretary P.B. Jayasundara.

Among the proposals submitted to the government are;
* Implementation of the refinery LPG recovery project that will enhance the LPG production enabling the country to save US dollars three million.

* Implementation of an Isomerization process unit at the refinery to increase the gasoline production.

* Expanding refinery production.

* Improving efficiency and effectiveness of the Corporation to minimize the losses and corruption.

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