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10 APRIL 2024

Tuesday, June 14, 2011

Minister: Soi Lek approved diesel subsidy cuts

A minister reveals that Dr Chua Soi Lek had a chance to intervene when the National Economic Council met to decide on diesel subsidy cuts.

MCA president Dr Chua Soi Lek did not object to diesel subsidy cuts during the National Economic Council meeting when the matter was decided, revealed Domestic Trade, Cooperatives and Consumer Affairs Minister Ismail Sabri.

Speaking to reporters at the Parliament lobby today, Ismail said that Chua should have raised his concerns during the meeting instead of letting his party leaders complain now through the media.

"How can he now turn back and say it's not fair? The MCA statement is unfair to government,” he said.

He added that the MCA should be helping the government in tackling protests by C2-class fishing trawler operators because the party had a hand in making the decision in the first place.

Ismail was responding to MCA deputy publicity chief Loh Seng Kok's statement that the government was “being tough” on operators.

Ismail denied the accusation and said that it were the operators who were threatening the government.

“I said we can talk but don't threaten the government. Don't say 'I give you three days to settle or otherwise...'. Don't hold a strike first then call for discussions.

“You should discuss first. When you resort to a strike that means these things can't be solved. They strike first and are backed by some opposition leaders. Then they threaten the government. No way! You have to talk to them-lah,” he said.

MCA seeks compromise

In a statement earlier today, Loh warned that if both the government and the operators were not willng to come to a compromise, the situation would worsen.

"Ultimately, the price hikes will end up being passed onto the consumers which is not an ideal solution," said Loh.

Loh said that during a meeting with MCA recently, the affected boat operators were willing to pay up to RM1.40 per litre of diesel instead of the old price of RM1.25 per litre.

"Or if the price is reverted to RM1.25 per liter, they are willing to give up the government incentive of 10 sen for every kilogramme caught," said Loh, urging the government to reconsider the alternative proposal.

After meeting representatives of affected operators recently, Chua alleged that the government should instead go after operators who abuse diesel subsidies.

In what he terms as a 'Ali Baba' practice, he said that 50 percent of operators were taking advantage of RM1.25 price and renting out their boats to foreigners.

Fishermen and trawler boat operators strike

About 1,000 fishermen and trawler boat operators in Kuantan, Johor and Perlis have refused to go out to sea for three days, from June 11, to demand for the restoration of the RM1.25 per litre diesel price.

Taiping MP Nga Kor Ming told reporters earlier today that fish prices has gone up by 30 percent and this would be a problem because fish makes up 60 percent of Malaysian's protein intake.

Commenting on the strike, Ismail said that he considered the situation a crisis as it would cause a shortage in seafood supplies, and the price of fish would go up.

When asked if importing fish and other related items would resolve the problem, he said it had to be done to stop prices increasing. "For how long we will do this, I don't know," he said

At the moment, Ismail said he was unaware of any price increase but said that fish imports from Thailand would compensate for any shortfall.

Asked if the government would retract the subsidy cut, Ismail reiterated that the operators are capable of absorbing the additional cost.

"We don't see a reason why we should, Class C2 is an industry. The government actually should charge them the industrial rates as in the case of the inshore or coastal fishing industry.

"What's the difference between the deep-sea fishing industry and the coastal fishing industry? The former involves a ship that costs RM1 million to RM2 million. These are big ships, they can afford it,” he said.

He added that it was unfair if the government revoked the diesel subsidy given to small scale fishermen and that the government had no intention to do that.

Ismail also said that claims of 1,000 operators being involved in the strike were exaggerated and he estimated that only 50 were involved.

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