Media Statement
by Lim Guan Eng

(Petaling Jaya, Thursday): DAP challenges Cabinet Ministers to practice accountability, transparency and leadership by example by changing their lifestyle and taking public transportation to share the burden of he 30 cents fuel hike increase with the people. This follows Deputy Prime Minister Datuk Seri Najib Tun Razak’s call to Malaysians to change their lifestyle, become more prudent in their spending and ensure there was no wastage to adapt to the inevitable fuel price increase.

What is the point of asking Malaysians to make sacrifices and change their lifestyles if Cabinet Ministers and senior government civil servants are not willing to do so but continue to use fuel at public expense? The public will only know that the government is serious about adapting to the high fuel price environment when it sees Ministers and civil servants use public transport, reduce unnecessary expenses account paid by the public.

Otherwise calling Malaysians to change their lifestyle is meaningless and hypocritical if the Ministers and senior civil servants do not practice what they preach. Instead of asking Malaysians to change their lifestyle, Malaysians might as well change the government.

DAP also questions how Najib can ensure the government is responsible in managing our country’s finances, implement prudent spending, good governance and far-sightedness leading to a stable financial system when there are so many leakages caused by inefficiency, abuses of power and corruption. One of the failures is the diesel subsidy for fishermen where the diesel supply rose sharply from 326 litres in 2002 to 1.2 billion litres in 2005. However the amount of catch at 1.29 million metric tones in 2002 actually declined to 1.2 million metric tones in 2005.

There is nothing wrong with this diesel subsidy but everything wrong with the implementation and enforcement until there are some fishermen, who profit not from fishing, but by selling subsidized diesel causing a great shortage. This has victimized genuine fishermen who are unable to go to sea and catch fish due to the shortage of diesel. Why is Najib not taking action against enforcement personnel who allow the amount of diesel supplied to go up nearly 3 times yet the amount of fish caught to decline?

Clearly Najib is confusing policy with implementation resulting in the Malaysian public being punished with higher fuel prices for the failure in enforcement. If Najib has lost confidence with the Malaysian enforcement officials and that removing subsidies is the most effective way to prevent such leakages then he should allow fuel prices to reflect international market rates. DAP would be willing to support removal of such subsidies provided that Petronas profits are distributed to the public.

Where is the guarantee that the RM 4.4 billion savings in subsidies will be channeled to finance development projects and improve the public transport system for the benefit of the people? Najib said that it is better for the fuel price to go up by 30 cents at one go than 45 cents on 3 occasions last year. DAP would like to ask what happened to the billions of ringgit in subsidy savings when fuel prices went up 45 cents because neither was there improvement in public transportation nor any benefit from development projects.

Instead of enjoying the billions of ringgit saved, the people had to shoulder the increasing burden themselves and watch the billions of ringgit saved two years ago wasted on corruption and wastage. Examples of mismanagement, negligence and wastage of public funds are the recent massive flood in Shah Alam when Sungai Damansara burst its banks caused by extensive logging in Bukit Cahaya and negligence and failure of government authorities to perform, failed public works projects such as MRR2 in Kepong or Matrade Building or wasted in expensive overseas junket trips by local councilors to makan angin.

Clearly the explanation that the RM 4.4 billion saved from the present price increase would be used for the people’s benefit has no credibility and is an exercise in self-deception to “bluff not only oneself but also others”. The people have a right to ask why should the government increase the price of petroleum by 20% or 30 cents per liter when the international price of crude oil has dropped to US$62 compared to record prices of US$70 last year?

Clearly increasing fuel prices suddenly by 20% when the international market price of crude oil is going down is irresponsible and not in the national interest. The KLSE has reacted badly yesterday to the fule hike losing more than 7 points, which would have a chain effect on the prices of other goods making 2006 the year of inflation.

Removal of subsidies prevents distortion of market distortion in the actual prices of our products, improve efficiency, cut down losses due smuggling of our cheaper fuel overseas as well as forces the economy to be more competitive and Malaysian workers more productive. However to alleviate the high cost of living faced by the people, especially wage earners and lower income groups, Petronas huge profits of RM 35.5 billion should be shared with Malaysians.

Petronas profits of at least RM 35.5 billion for the 2004-2005 financial year would allow every Malaysian to take home at least RM 1,500 per annum. Instead of giving to every Malaysian, such profits should be given only to the needy ones. This RM 35.5 billion in profits does not include the RM 31.2 billion paid to the government in the form of taxes, dividends, duties and royalty payments. The RM 31.2 billion can be used by the government to fund Petronas investment requirements. 

DAP believes that Malaysians would prefer to have a share in Petronas RM35.5 billion profits than to see tens of billions of ringgit wasted on corruption and abuse of power. If the government is not willing to allow an increase in salaries to help them reduce their living expenses and financial burden following the fuel hike, then distributing Petronas profits is only fair as it is the right of the people to partake and enjoy in our natural resources.

(02/03/2006)