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Proposed reforms in Budget pro-labour, says Shettigar

Our Bureau

KOLKATA, March 4

THE proposed labour reform measures in the Budget are pro-labour and meant for employment generation, says Dr Jagdish Shettigar, Convenor, Economic Affairs Committee (BJP) and Member of the Prime Minister's Advisory Council. Participating in an interacti ve session on the Budget organised by the Calcutta Chamber of Commerce here on Sunday, he said these steps may be anti-trade union leaders.

Pointing out that such reforms would lead to better business prospects for the domestic industry, and thereby generate more jobs for the masses, Dr Shettigar said the accountability of Union leadership should have some link with productivity of the conce rned industry, and the continuing situation was in the way of fresh investments.

Dr Shettigar said the proposed changes to the Labour Act would open up the flow of investment into the domestic industry in a big way. And the measures suggested and reliefs provided (to agro-processing industries) would help expand the rural market for industrial goods, he added.

Urging the private industry to take advantage of the incentives given for agro-processing, Dr Shettigar said about Rs 30,000 crore worth vegetables were lost owing to lack of adequate processing and storage facilities. Defending the hike in import duties for agricultural products, he said this was being done to protect the interests of the local farmers.

Responding to complaints that nothing much has been done for the SSI sector in the Budget, he said the Government was fully aware of the huge potential of the SSIs in contributing to GDP, employment generation and exports.

Commenting on the dereservation aspect, especially in an open post-WTO trading environment, Dr Shettigar said protection was not the only way to promote the SSI sector. He informed that a special committee headed by Mr L.K. Advani, with a number of Union Ministers as members, was now looking at the problems of this sector.

Admitting that the WTO-driven tariff regimes were not in the interests of developing countries such as India, he said this, however, did not mean that ``We should oppose the multilateral trading system put in place by WTO. Alternatively, a bilateral trad ing regime was far worse, as India may have to reach an agreement with each and every member of the WTO, as is the case now with China (for gaining entry into WTO)''. He, however, reiterated that there was a need to sharpen the domestic bargaining capaci ty at the WTO ministerial meetings in order to protect trade interests.

Conceding that there may be certain anomalies with regard to taxation proposals, or other areas such as service tax on the leasing sector, he urged the chambers to provide a proper feedback to the Government for necessary action.On the issue of cut in sm all savings rates, he said there were differing views. Explaining the rationale, he added that the rates have been brought down to be as close as possible to the prevailing inflation rate, essentially to prevent the erosion in the value of earnings.