Friday, July 30, 2010

Gradual Removal of Subsidies, A Good Thing


The gradual removal of subsidies, such as those for petrol, liquefied petroleum gas and sugar, is a good thing. Yet, on Wednesday this week, Opposition political parties threatened mass demonstrations if the Federal Government does not back down on cuts in subsidies.

How ironic. Opposition politicians tend to be quick to accuse Federal Government politicians of buying votes. Yet, their threat to hold mass protests can be looked upon as their indirect promise of handouts for votes.

If the Opposition truly aspires to form the next Federal Government, then they really have to do a better job at being principled.

In principle, subsidies should go only to the deserving and not into the pockets of the well-to-do. Cutting back on subsidies that are not targeted at the poor is THE way forward. Holding on to subsidies given indiscriminately is not sustainable and encourages wastage.

The quicker the Opposition takes this position, the better it is for the rakyat. Sadly, they appear to have seized the opportunity to advance their own political agenda of forming the next Federal Government instead of pressing for what's best for the rakyat, which is the gradual removal of subsidies given indiscriminately.

Arguing that corruption must be removed before subsidies can be withdrawn is a faux pas, for the obvious reason that it smacks of self interest. Tackle corruption as it must be tackled, and tackle the need to remove subsidies given indiscriminately in its own right.

Indeed, the Federal Government should be pressured to reveal what it plans to do with the savings from the subsidies cutbacks. And the person to be pressured most is the architect of that savings plan, Idris Jala. The success of the savings plan from cutbacks on subsidies must be worked into the Government's score card clearly for all to see.

That should be the way forward, if the Opposition is earnest about caring for the well-being of the rakyat.

What it should not do is take to the streets with the ultimatum "reverse cutbacks or else!" Not only is it self-serving, it is also self-defeating.

The Federal Government is not averse to doing what is popular. If there is enough pressure, the Government will give back the subsidies it has taken. And while the Opposition would thump their chests and take the credit for it, in the end, everyone loses.

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