Muhith bins BGMEA demand for Tk 30b incentive package
Saturday, 5 September 2009
Finance Minister AMA Muhith Friday said the apparel exporters' demand to give Tk 30 billion from the government's incentive package to pay workers' wages and allowances ahead of Eid-ul-Fitr is "unacceptable," reports bdnews24.com.
Speaking to the news agency on telephone from Sylhet, Muhith said the economic support package has simply nothing to do with the payment of wages and bonus to workers.
"In no way, their demand can be accepted," he asserted.
Bangladesh Garment Manufacturers' and Exporters' Association Thursday asked the government for a Tk 30 billion (3,000 crore) incentive package by September 7 even though the readymade garment sector achieved four per cent export growth in the last fiscal year
"With the Eid-ul-Fitr approaching, BGMEA has to cater for a Tk 5,000 crore (Tk 50 billion) incentive package to give away to employees and workers of the sector before the festival," said BGMEA President Abdus Salam Murshedi at a news conference.
Murshedi also demanded an additional Tk 10 benefit per dollar during exchange on 30 per cent of the total export costs, minimum five per cent subsidy on the interests accrued on the debts in the RMG sector and Tk 10 per litre of diesel until power and gas supply situations improved.
Muhith, commenting on the demand for compensation for losses due to power and gas crises, said, "Such a demand from them ahead of the Eid is not at all a good sign."
"The demand that they are making in the name of gas and power crises is not acceptable. Power and gas crises are not new in this country. We are making all-out effort to tide over the crises."
The BGMEA chief had claimed that there was a 15-20 per cent cut in the first two months' exports this year compared with the same period of last year and that's why many factory owners cannot pay their workers duly.
Garment workers staged demonstrations in Dhaka over the BGMEA's remarks and sought assurance on payment of wages and allowances before Eid.
"It is really scary for workers. From suggestions that pay and bonus might be available before Eid, it is normal to stage demonstrations," Muhith said.
"But everyone has to make sure that no instability creeps up."
BGMEA leaders said they would not take the responsibility of any unrest due to the workers' anger over not receiving pay and bonus.
On the stimulus package, Muhith said, "The taskforce that was formed to counter the recession will sit in its second meeting in a few days."
"The meeting will decide which sectors will receive money from Tk 50 billion [allocated in the budget for the recession-hit sectors] fund."
"We are always observing the world situation. Many countries are already emerging out of the recession. It is a good sign."
The minister on April 19 rolled out a Tk 50 billion stimulus package for the final quarter of the past financial year, with the aim of protecting the readymade garment and other export-focused sectors, farming and energy sectors from the global slowdown.
But the apparel exporters who cried for government support to face "unprecedented" challenges got no allocation of any additional incentives under the package.
BGMEA leaders have often been pressing the government from time to time for incentives, clamouring all through that their business suffered losses due to global economic crunch.
The exports data, however, do not reflect any negative impact of global recession.
According to Export Promotion Bureau statistics, in FY 2008-9 Bangladesh exported woven products worth $ 5.9 billion, which surpassed the export target, set by the sector, by 4.13 per cent and 14.54 per cent more compared with that of 2007-8.
Bangladesh exported knitwear worth $ 6.4 billion in FY 2008-9 which fell short of its target by 2.35 per cent, but compared with the preceding year, it was 16.21 per cent more.
Speaking to the news agency on telephone from Sylhet, Muhith said the economic support package has simply nothing to do with the payment of wages and bonus to workers.
"In no way, their demand can be accepted," he asserted.
Bangladesh Garment Manufacturers' and Exporters' Association Thursday asked the government for a Tk 30 billion (3,000 crore) incentive package by September 7 even though the readymade garment sector achieved four per cent export growth in the last fiscal year
"With the Eid-ul-Fitr approaching, BGMEA has to cater for a Tk 5,000 crore (Tk 50 billion) incentive package to give away to employees and workers of the sector before the festival," said BGMEA President Abdus Salam Murshedi at a news conference.
Murshedi also demanded an additional Tk 10 benefit per dollar during exchange on 30 per cent of the total export costs, minimum five per cent subsidy on the interests accrued on the debts in the RMG sector and Tk 10 per litre of diesel until power and gas supply situations improved.
Muhith, commenting on the demand for compensation for losses due to power and gas crises, said, "Such a demand from them ahead of the Eid is not at all a good sign."
"The demand that they are making in the name of gas and power crises is not acceptable. Power and gas crises are not new in this country. We are making all-out effort to tide over the crises."
The BGMEA chief had claimed that there was a 15-20 per cent cut in the first two months' exports this year compared with the same period of last year and that's why many factory owners cannot pay their workers duly.
Garment workers staged demonstrations in Dhaka over the BGMEA's remarks and sought assurance on payment of wages and allowances before Eid.
"It is really scary for workers. From suggestions that pay and bonus might be available before Eid, it is normal to stage demonstrations," Muhith said.
"But everyone has to make sure that no instability creeps up."
BGMEA leaders said they would not take the responsibility of any unrest due to the workers' anger over not receiving pay and bonus.
On the stimulus package, Muhith said, "The taskforce that was formed to counter the recession will sit in its second meeting in a few days."
"The meeting will decide which sectors will receive money from Tk 50 billion [allocated in the budget for the recession-hit sectors] fund."
"We are always observing the world situation. Many countries are already emerging out of the recession. It is a good sign."
The minister on April 19 rolled out a Tk 50 billion stimulus package for the final quarter of the past financial year, with the aim of protecting the readymade garment and other export-focused sectors, farming and energy sectors from the global slowdown.
But the apparel exporters who cried for government support to face "unprecedented" challenges got no allocation of any additional incentives under the package.
BGMEA leaders have often been pressing the government from time to time for incentives, clamouring all through that their business suffered losses due to global economic crunch.
The exports data, however, do not reflect any negative impact of global recession.
According to Export Promotion Bureau statistics, in FY 2008-9 Bangladesh exported woven products worth $ 5.9 billion, which surpassed the export target, set by the sector, by 4.13 per cent and 14.54 per cent more compared with that of 2007-8.
Bangladesh exported knitwear worth $ 6.4 billion in FY 2008-9 which fell short of its target by 2.35 per cent, but compared with the preceding year, it was 16.21 per cent more.