President discusses the concerns of the CPC Trade Unions
[August 18, 2004 - 12.00 GMT]

President Kumaratunga today held discussions with the combined Trade Unions of the Ceylon Petroleum Corporation (CPC) regarding their concerns about the alleged privatization programme. It was explained to the Trade Union leaders that there will be no privatization of the CPC.

The President explained in detail the current financial crisis faced by the CPC and the Ceylon Electricity Board due mainly to the exorbitant world oil prices. She also explained that some innovative decisions have to be taken along with the improvement of the efficiency level of the CPC in order to overcome this financial crisis.

The President said discussions are now being held with the three short listed parties for the position of the third player in the petroleum industry. A process initiated by the previous Government in 2002, whereby world wide proposals were called and short listed, after which three reputed State owned parties were selected for the final round of negotiations. This will be done on the basis of a joint venture with the CPC, in which the Government will hold 51% majority shares, which is a significant change from the previous Government’s proposal of selling 100 percent of the shares.

The Trade Union members listed out several of their proposals, and pointed out the deficiencies in the Indian Oil Corporation deal done by the previous Government. The Trade Unions also requested that such shortcomings should not be repeated.

The President assured the Trade Union leaders that no final decision on the third player in the petroleum industry will be taken without prior consultation with all parties concerned including the Trade Unions. The President requested them to submit their suggestions in writing as early as possible for her urgent consideration.

Associated with the President in today’s discussions were the Minister of Power and Energy Susil Premjayantha and the two Deputy Ministers, Kumara Welgama and Mahindananda Aluthgamage. The officials present were Secretary to the Treasury, Dr. P B Jayasundera, Senior Advisor to the President Mano Tittawella, Secretary to the Ministry of Power and Energy P. Weerahandi and the Chairman of the CPC Jaliya Medagama.

Minister Susil Premjayantha also addressed the gathering.

The meeting was adjourned on the basis that the Government would consider all the suggestions made by the Trade Unions in the coming weeks. Towards this end the Trade Unions are now scheduled to have a series of meetings with relevant Government officials.

The Trade Union leaders assured the President that they would not take any action that would inconvenience the public or disrupt the Government’s development programmes.
 

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Last Updated Date: August 18, 2004  - 12.00 GMT.