Sunday, November 27, 2011

War over FDI in retail: Parliament adjourned, Govt refuses debate with vote

New Delhi: For Parliament, its day at work ended by noon. Both Houses were adjourned till tomorrow - a consequence of the stand-off between the opposition and the government over the latter's decision to increase Foreign Direct Investment or FDI in the multi-brand retail sector. Two major partners in the UPA - Mamata Banerjee and M Karunanidhi - have asked the government to reverse its decision, leading to a new crisis for the UPA. In Parliament, the opposition wants to discuss the government's decision under an adjournment motion - which would end with a vote. The government has rejected this - it wants a debate, but no vote. Sharad Yadav of the Janata Dal (United) (JDU) says he will ensure Parliament does not function till the government withdraws its decision to allow 51% FDI in the multi-brand retail sector, a move that would allow giants like Walmart and Tesco to set up shop in India. The list of parties and states attacking the move to increase FDI in retail is embarrassing for the government - one of its most important allies, the Trinamool Congress (TMC) which is headed by Ms Banerjee today sought a rollback of the Centre's decision, arguing that there would be no embarrassment if the withdrawal was in the interests of workers and farmers. It also expressed its strong displeasure about not being consulted over the move. "There is no system in UPA 2 to discuss moves before they are made", party leader Sudip Bandopadhyay said, repeating an accusation that the TMC voiced just a few weeks ago, when the government raised petrol prices. DMK chief M Karunanidhi, also a senior member of the UPA with 16 Lok Sabha MPs, also put the government on notice. "It's dangerous to allow FDI in retail trade as it affects lot of small traders as well as middle-class consumers. It will also be a cause for economic decline of our country. The DMK has sounded a note of warning in this regard in the parliament," said Mr Karunanidhi. The government faces more opposition from within in Kerala where the Congress party's branch has expressed its dissent. And two senior Union ministers from the Congress - Vayalar Ravi and TK Thomas - acknowledged that they had shared reservations about allowing FDI in the multi-brand sector in the cabinet meeting which eventually cleared the proposal. An adjournment motion allows a member of the House to ask that regular business be suspended to discuss an urgent matter of public interest. It includes a debate and ends with a vote that tests the government's strength. The opposition's insistence on a vote is seen as a pressure tactic - what it really wants is for the government to put its decisions on retail on hold till the matter is extensively debated in Parliament. In the Rajya Sabha, Jayalalithaa's party, the AIADMK, moved a notice for an adjournment motion. Senior BJP leader Murli Manohar Joshi had planned a similar course of action for the Lok Sabha. The BJP's Arun Jaitley told NDTV an hour before Parliament opened that, "FDI will hurt Indian economy...The sense in the country is against FDI...Government's decision on FDI will have a political fallout." And Gujarat Chief Minister Narendra Modi confirmed his presence on a long list of chief ministers who are fighting the government over FDI in the multi-brand sector on the grounds that it will wipe out lakhs of small mom-and-pop stores. "My stand is the same as that of my party BJP & which is in the interest of the nation," Mr Modi tweeted this morning. Yesterday, Leader of Opposition in the Lok Sabha, Sushma Swaraj had tweeted, "Parliament is in session and Government announced a decision of such far reaching consequences outside Parliament. It is a contempt of the House." Unlike last week, when the UPA government managed to avoid an adjournment motion over the issue of black money as demanded by the BJP, this time it wouldn't be smooth sailing. Sources in the BJP have told NDTV that since the government did not admit the adjournment motion on black money on technical grounds, there is no reason why they can't bring one on FDI. Sources also say that if the government rejects the current motion arguing that the one on black money had already been proposed, the BJP is also considering a no-confidence motion. The government has real cause for concern given the fact that the BJP has found backers over the FDI issue in AIADMK chief J Jayalalithaa, Trinamool Congress chief Mamata Banerjee and BSP chief Mayawati - the three women chief ministers of Tamil Nadu, West Bengal and Uttar Pradesh. Mamata Banerjee is a UPA ally and has partymen as important ministers at the Centre. But she does not support FDI in the retail sector. "Some people can support 51 per cent FDI in retail but I do not support it. You see, America is America, Bangladesh is Bangladesh, Pakistan is Pakistan and India is India. I have to take into account how much capacity I have, how much is my ability. There are so many shops here. If these shops close what would the shop owners eat?" the Trinamool Congress chief said. Ms Jayalalithaa had, on Sunday, lashed out at the Central government over the issue, saying, "This move of the government of India to announce such a major policy decision affecting millions of people outside Parliament without even consulting the state governments is unprecedented and indicates the overweening arrogance of the UPA." (Read: Won't allow FDI in retail in Tamil Nadu, says Jayalalithaa) Nearer home in poll-bound Uttar Pradesh, Mayawati, at a Dalit rally on Sunday, used the FDI issue to target Congress General Secretary Rahul Gandhi. "To please the yuvraj, the FDI in retail has been allowed to benefit his foreign friends," she had said. The war cry from the three women Chief Ministers indicates that the implementation of FDI in states will be difficult. Even in Congress-ruled Kerala, the state party chief Ramesh Chennithala has written to the PM opposing the move. "Congress in Kerala has always opposed it as thousands of local merchants will be affected. Earlier also, I'd written to the Congress High Command regarding this. Kerala is not open to MNCs in retail. I have requested the Chief Minister also not to allow FDI in retail. Since there is freedom for the state government, I think it will not allow FDI in retail", Mr Chennithala said. Opposition, allies, reluctance even at home. But the UPA government is not blinking. It shrugs off the Opposition's charge that it was not consulted. "Privately, many members of different political parties including the BJP have been talking to us. And they have all been saying privately please do it. Why are you waiting? It doesn't require Parliament sanction. Why don't you do it? And now they stand up and do this," Law minister Salman Khursheed said. Instead of opening channels of communication with opponents and allies, the government went for direct contact with the aam aadmi through full page advertisements - countering each Opposition charge - in national and regional dailies. (Read) The advertisements, however, belie the jitters in the government over an issue that has brought together the Left and the right, while creating extreme discomfort among crucial allies in the UPA.

Article Source:- http://www.ndtv.com/article/india/war-over-fdi-in-retail-parliament-adjourned-govt-refuses-debate-with-vote-153411

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