Premier says treasury can”t afford 1996 law right now
Prime Minister Fouad Siniora defended his government”s financial policies during a regular session of Parliament on Wednesday. In response to inquiries made by opposition MPs, Siniora said that the recently adopted increase in the minimum wage and other salaries had laid a huge burden on the Treasury.
"Every single one of us would like to see people”s financial status improve, but we must bear in mind that we do not have the sufficient funds to undergo some reforms," he said. "The wage increase would cost $500 million … We only have 30 percent of this amount and we still have to borrow the other 70 percent."
"We have to abide by some limits to stay in the safe zone," he added, in response to opposition MPs who demanded the implementation of the Wages and Ranks Law, which was approved in 1996 and was designed to rationalize and increase public sector salaries.
Siniora was then the finance minister in late Prime Minister Rafik Hariri”s government.
"We also need not to forget that the Cabinet still has to pay $500 million to the Ministry of the Displaced and $450 million as compensation for people who suffered material losses during Israel”s 2006 war on Lebanon," the premier said.
He added that he was not willing to impose more taxes in order to raise the funds necessary for implementing the Wages and Ranks Law.
Siniora said that the Cabinet”s draft budget for the year 2009 was already projecting a deficit of $2 billion.
While the premier was presenting his argument, Parliament Speaker Nabih Berri approached him with a box of tissue paper, asking him to "clean his tears."
"Here is a box of tissue paper … You made us cry," Berri said sarcastically.
Earlier during the session, which kicked off in the morning, Siniora engaged in a debate with Deputy Prime Minister Issam Abu Jamra.
Abu Jamra, a senior official in MP Michel Aoun”s Free Patriotic Movement, was again trying to discuss the controversial issue of the powers attaching to his office when he was interrupted by Siniora, who said that Parliament was not the proper place to resolve the matter.
"If not, then let it be done during Cabinet sessions," Abu Jamra replied.
The deputy premier recently demanded that more prerogatives be joined to his post, but his proposal was not welcomed by Cabinet minister representing the parliamentary majority, who argued that the deputy premier an honorary position.
The session was adjourned at noon, to be resumed at 6 p.m., but a quorum was not reached. Berri scheduled the next session for December 4.