NC factions to battle out at today’s meeting

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KATHMANDU, March 17 – A day before the show of strength in the ruling Nepali Congress (NC), the two factions of the party held separate meetings today ahead of Sunday’s showdown where they are expected to be on each others’ throat.

Both the factions are flexing their muscles to blame each other for the current impasse in the parliament and instability in the government.

Former Prime Minister Sher Bahadur Deuba-led anti-PM Koirala group held a nearly four-hour-long meeting at Deuba’s contact office at New Baneshwor. According to Chiranjivi Wagle, prominent dissident leader, the group would present three arguments at Sunday’s party meeting at the Birendra International Convention Centre slated to begin at 8 a.m. The primary one is that the faction strongly opposed the possibility of a mid-term poll now.

Secondly, said Wagle, the current disruption of the parliament was not due to internal wrangling in the NC. "It is a misleading propaganda by the press," he said. The last one is that the present instability in the government was not due to any agreement or lack of it in the party. "Instability arose when former PM Krishna Prasad Bhattarai was forced to step down," said Wagle.

Both sides have been charging each other as the cause for the current state of instability. Prime Minister Girija Prasad Koirala and his supporters maintain that the opposition was emboldened by the tacit support of the Deuba faction and was able to hold the parliament hostage.

On the other hand, Deuba and his supporters feel that the only way out of the current crisis, emanating from alleged corruption in the Lauda Air deal, was the PM’s resignation.

In fact, today’s meeting at Deuba’s office attended by dissident MPs and party leaders was to chalk out a strategy to face the Koirala faction that is expected to turn the heat on Deuba and his men for their "non-cooperation".

Similarly, at a meeting at party’s central office at Teku, the ruling faction led by former NC general secretary Sushil Koirala, decided to recommend strong action against the dissident camp. According to a participant in the meeting, the former general secretary would either ask the party gathering to make the Deuba faction fall in line or take action against them which could be either suspension or expulsion of a few dissident leaders.

The meeting at the party office that lasted a little over two hours comprised of some ministers, Central Working Committee members and many district NC presidents who are known PM supporters.

In yet another crisis-control meeting at Prime Minister Koirala’s official residence at Baluwatar, three proposals were being thrashed out to be presented at Sunday’s meeting. One, the ruling faction would ask the dissidents to propose an alternative to the PM’s resignation if they (the Deuba group) was against mid-term poll.

There would be an attempt to get a resolution passed unanimously condemning the opposition’s demand for Koirala’s resignation. The Koirala camp is also likely to criticize the Deuba faction for bringing a no-confidence proposal against the PM based on the alleged complicity in the Lauda Air deal. They are of the view that it was this development that started the current chain of events that has resulted in the disruption in the parliament and the opposition’s vociferous demand for PM’s resignation.

Export of pashmina roducts plunge

By Ram Sharan Sedhai

KATHMANDU, March 17 - Exports of pashmina products, that unexpectedly boomed in the first half of the current fiscal year, abruptly nose-dived in the recent months mainly due to the growing use of woollen yarn, putting a question on its sustainability.

Starting from just scratch few years back, pashmina export has recorded quantum leap in recent years and has already become the third largest exportable item.

However, after a ballooning export worth Rs 5.47 billion during the first six months of the current fiscal year, it has almost stagnated for the last couple of months, forcing more than 50 per cent of the organized and over 90 per cent of the unorganized industries to close down.

This has also snatched the employment of over 70 per cent of the workers. Though exact figure is not available, it is estimated that the industry employs over 40,000 people in total.

Worried by the sudden decline in the exports of pashmina products, Royal Nepalese Consular Generals stationed at different countries have sent letters to the Foreign Ministry, Ministry of Industry Commerce and Supplies and other concerned government authorities warning about the situation.

They have complained that the quality of Nepali pashmina has deteriorated vastly in recent months.

A report sent by the Honorary Consular General to Luxembourg to the Royal Nepalese Ambassador to Belgium reads, "... the Nepalese exporters are doing the same mistake as carpet exporters did. ...they mix the fine pashmina cashmere with lower grade Angora wool ...".

Royal Nepalese Consular in Japan Mohan Krishna Shrestha, in a letter, dated February 23, 2001, to the Association of Nepal Pashmina Industry (ANPI) has complained the manufactures of failing to meet the standards, send goods as per sample, delayed delivery and fast fading colour’.

Another reason behind the impulsive decline in the export of pashmina products is shifting demands of the customers in the west. Since pashmina is basically a fashion wear, it was sold as hot cakes when it was flying high in the fashion market thereby creating an inflated demand. But now there are signs of switching tastes of the consumers.

Krishna Prasad Acharya, Managing Director of Pashupati Indrayani Woollen Industries Pvt. Ltd, says, "The exports of pashmina products declined simply because it was taken as fashion wears by the foreigners".

India exports low quality pashmina with a label reading "Hand-woven in Nepal: Made in India". This is another factor that has seriously affected Nepalese products, he adds.

He argues that failure on the part of the Nepali entrepreneurs to understand latest market trends is another reason behind the decline in export. "Fashion keeps on changing but our weavers are unaware of it and produce similar goods every year," Acharya says.

Some Indian buyers are yet to pay large amounts of money to Nepalese suppliers, which has also considerably pushed down supply to India, he says.

There should be quality control authority and attention should be paid right from the beginning of production to delivery of goods. While the buyers are increasingly becoming quality-conscious, Nepalese manufacturers are compromising over the quality of products, Acharya laments.

However, Pushpa Man Shrestha, Member of ANPI and Managing Director of Nepal Pashmina Industry, attributes the exporters’ malpractice of selling woolen products in the name of pure pashmina items and substandard products to the sharp decline in pashmina exports.

"Exporters are selling 100 per cent woollen products saying they are pashmina, at a very low price, creating confusion among the buyers whether a product is genuine or a spurious one. And this has made it difficult for genuine suppliers to sell their products", says Shrestha.

Another major reason behind the sharp drop in its exports is the 16 per cent countervailing duty slapped on the import of Nepalese pashmina by India through its federal budget recently, according to Shrestha.

He also accused the Indians of instigating Nepalese producers, especially the new entrants, to weave cheap and low quality shawls. "It is these new entrants, which are creating trouble to the entire industry," he adds. It is estimated that India alone buys over 60 per cent of Nepalese pashmina products, mainly for re-export.

Since pashmina has the highest rate of market diversification - it is exported to 44 countries at present - trade observers say, losing market for pashmina will be a significant loss for Nepal’s foreign trade.

Cause of fire yet to be determined

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KATHMANDU, March 17 - The cause of the fire, which damaged two shopping complexes and a trekking goods shop in the heart of the capital city as well as in a carpet factory in Lalitpur district almost simultaneously Friday night, has remained a mystery.

Fire at those four places destroyed property estimated to be worth of tens of millions of rupees. All these incidents are suspected to be sparked by electric short circuits. However, most of these businesses were closed at the time of the fire and lights and appliances had been turned off.

"I can’t say anything about the cause right now. It seems a co-incidence that fire broke out at the same time in so many places, but it looks mysterious," said sub-inspector of Jansewa Ward Police Station, Man Bahadur Bhandari.

On Friday night, fire broke out at Suraj Arcade located at Makhan Tole, Pashupati Plaza of Khichapokhari, Sherpa Trekking Goods Centre of Thamel and also a carpet factory of Imadol in Lalitpur.

"It was 12.45 a.m. when we suddenly saw smoke coming out from the a closed store," said Syam Bahadur, one of the guards of Pashupati Plaza.

Fire was first spotted in Thamel at 9 p.m. at the trekking goods store. District Police Office of Kathmandu has estimated the loss at the store could be as much as Rs. 13 million.

According to Bhandari, the loss from fire at one single shop at Suraj Arcade was estimated to be worth Rs. 2 million. At another, shop goods worth Rs. 400,000 were burnt down.

At Pashupati Plaza, one store lost goods worth Rs 1.6 million and another lost Rs 400,000 due to the fire.

However, the actual losses of property is yet to be estimated and could run into millions of rupees as each of these complexes house hundreds of stores and stocks expensive goods like watches, mobile phones and electronic items.

Him Rawal, the chairman of Suraj Arcade Chamber of Commerce, claimed that the total loss of the shopping complex could be Rs. 15 million.

Police is investigating to find the actual cause of the fire. "The investigation is going on. If necessary, we will question the security guards too," Sub-inspector Bhandari said.

Meanwhile, a carpet factory at Imadol in Lalitpur was also gutted by fire by the midnight.

It took over three hours to bring the fire under control. Firebigrades from Kathmandu, Lalitpur, Bhaktapur as well as Tribhuwan International Airport were exercised to extinguish the fire.

Locals said that the fire at Suraj Arcade was brought under control only after midnight. "The loss and damage to the store could have been kept to a minimum had the firebigrades worked in time. One fire engine was stuck at the Indrachowk intersection and another that reached the site was without water," said Ramesh Agrawal, a shopkeeper at the complex.

Meanwhile, Nepal Chamber of Commerce has urged the government to investigate the incident and make public real cause behind the fire.

"This atmosphere of fright and terror bears strong possibility of disturbance in development process," the chamber states in a press release issued today.

It further requests the government to establish a permanent rescue centre for similar accidents which might occure in future.

ESPA no solution to service tax row

By Shree Ram Subedi

KATHMANDU, March 17 - Following the government's abrupt decision to include hotel industry into the Essential Service Sector (ESA) Thursday, the tension existing in Nepal’s hospitality industry seems withering, for now. But that is not over.

And a million dollar question is: Will the despondent workers who joined office Friday calling off their strikes temporarily will serve with a smile?

The very smile that is hallmark of the Nepali hospitality industry has now become uncertain. The seven-month-old service charge row has affected tourism. The relations between the hoteliers and employees have been strained even more seriously.

The situation developed in such a way that a party would be a winner and another a loser. And the mid-way was almost impossible. The play-safe Ligal Report, which prescribed a mid-path incorporating the voices of both parties, could not put a full stop to the ongoing tussle.

The government, which has been blamed for inaction and indecision by both the parties, ultimately took a bold step by slapping Essential Service Operation Act (ESPA) in the hotel industry. The government has argued that it had no option but to act to protect the already faltering tourism industry. Tourism being a priority sector and one of the major foreign exchange earners, peace was but necessary.

Though the ESPA has brought the strike to an end, it does not provide a long-term solution. Industrialists and experts too believed that unless an amicable solution to the dispute is sought, it would continue to plague the tourism industry.

Rajendra Khetan, Chairman of Employers Council of FNCCI, expressed doubts that the current developments would lead to lasting peace.

Says Khetan, " There has to be a dialogue and both sides should show flexibility".

"Labour is an issue between workers and employers" argues Dr Narayan Manandar, a labour expert. He says, " Imposition of ESPA by the government, would not pave way for peace and good industrial relation."

Striking unionists accept that the ESA is a setback to their andolan but warn that they would seek all the possible alternatives, except violence, to fulfil their demands.

They say that the government has violated the International Labour Organisation (ILO) Convention No. 98, which guarantees the right to organize and to bargain collectively. Nepal is a signatory to the convention.

The workers are eventually likely to opt for legal remedy if their demand is suppressed. But that would not take care of the-goose that lay golden eggs.

A recently concluded departure tourist survey conducted by Org-marg Nepal revealed that key consideration for choosing Nepal among competing destinations is the quality of service.

And the faint smile now hotel workers carry on their lips, if not repel tourists would certainly not please them.

The demand and supply gap of tourist arrival and number of beds have increased dramatically, especially after the mid-1990s.

The row between the hoteliers and the workers will further worsen this, argued Dr Manandar.

‘If you see the number of cases related to hotel industry lodged in the labour court, they are second to textile industry, said Manandar. "This shows that industrial relations in Hotel industry is already sour."

If employees have a negative view of work regarding pay, working condition, status and biases from the management, it would immensely affect the service delivery. Helpful employees are key to success especially in the context of regional competition. The ESPA, as it would be valid for only next six months, may repress the workers for now but without fruitful negotiations leading to an amicable solution, the problem could only worsen.

Forest officials destroy 530 huts in Kalikot

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DHANGADI, March 17 - Around five hundred huts were destroyed in Kailali in an effort to stop encroachment of forest land, said a forest official here today.

According to forest Ranger Yogendra Bahadkher, a total of 530 illegal huts constructed at Malakheti and its neighborhood have been destroyed. The destruction came in an effort to conserve the forest land that was on the verge of devastation, he said.

Exposed to attacks for the last two years, the forests here had sheltered hordes of people claiming to be Sukumbashis or the landless. The forest official also accused the political leaders, who in the name of supporting the landless, had helped a large number of people to squat the forest-land.

The District forest office arrested three persons including the District treasurer of the United People’s Front on charges of issuing authorization papers for their settlement.

The forest officials also seized receipts and other documents possessed by those illegal settlers which were issued by the politicians permitting them to build their huts.

Meanwhile, more than 400 people displaced from the forest area staged a protest rally in front of the District Forest Office today after their leaders were arrested for interrogation.

Politicians, legal experts discuss current impasse

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KATHMANDU, March 17 - The debate on whether Prime Minister Girija Prasad Koirala should resign over the government’s alleged involvement in the Lauda Air controversy continued even outside the perimeters of the parliament.

During a program, representatives of various political parties discussing the alleged involvement of the prime minister in the Lauda Air deal Saturday, continued to express their different views.

For the past month and half, almost all the major opposition political parties have been demanding Koirala’s resignation over the controversy and have been stalling parliamentary proceedings and holding street protest demonstrations.

The program also discussed role of the Speaker of the House of Representatives in the operation of the House, jurisdiction of the Commission for the Investigation of Abuse of Authority (CIAA) and also the possibility of mid-term polls if the House is dissolved as an ultimate resort to do away with the continued deadlock of the House.

Speaking at the program, leader of Nepali Congress Arjun Narsingh K.C., said that forceful ouster of the prime minister, as the oppositions have been attempting, would be undemocratic and that would be detrimental even to them.

K.C. repeatedly insisted that the prime minister would not bow down to the unconstitutional and undemocratic means being exerted by the opposition parties.

Defending the contentions, CPN-UML’s Keshav Badal said that the prime minister should prove his innocence as the cabinet itself is involved in the Lauda Air deal. Similarly, leader of CPN- ML, Radha Krishna Mainali, stressed that seeking national consensus among all the forces within the parliamentary ambit would be a way out of the present deadlock.

Speaking at the same program, senior advocate Mukunda Regmi lambasted some of the leaders of the CPN- UML for misguiding and misinforming the party about the controversy. He also alleged that the present opposition parties in the House were not committed to parliamentary democracy. However, senior advocate Regmi said that present situation did not call for dissolution of the House and announcement of mid term polls.

Another advocate, Bishowkanta Mainali said that resignation of the prime minister and election of new leader of NC parliamentary party could be a solution to the deadlock. He also held PM Koirala to be responsible for the various anomalies plaguing the country.

Similarly, leader of Nepal Sadbhawana Party , Badri Mandal said that solution of every problem should be sought through the House.

Former Chief of the Commission for Investigation of Abuse of Authority (CIAA), Radha Raman Upadhayay, said that the investigation of corruption is very difficult, though not impossible.

Lama thrashes Wangchuk in the final

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KATHMANDU, March 17 - Rajen Lama of Chorten Snooker won the First Surya Nepal Snooker Challenge defeating Tashi Wanchuk of Heaven’s Snooker in a closely fought match held at Cosmos Solarium today.

Rajen who defeated Niraj Gurung in the semi-finals defeated Wanchuk in the 11-frame match today watched by hundreds of cheering snooker fans. For Rajen who won the match 7-4 in the 11th frame, it was a Herculean task to defeat Wanchuk who seemed to be a promising opponent in the initial stage of the match. Tashi who won the first frame gave a tough fight to Rajen till the end of the 6th set when the score was a 3-3 tie, but in the 7th frame Rajen came back with a huge difference of 105-27 with the help of his 30 point break.

Wanchuk, who had performed with much confidence till the end of the 6th frame had to face numerous snookers placed by Rajen during the match. In the 7th set Rajen was successful to take advantage of the foul rendered by Wanchuk to thrash him with 105 points. From that set onwards, Rajen took advantage of the tension shown by Wanchuk to win four frames in succession.

Rajen won the tournament scoring 27-76, 56-45, 45-58, 67-44, 37-45, 105-27, 92-22, 71-42, 96-11, 44-47, 100-24 and went home with the prize money of Rs 51,000 and a trophy in addition to a cue stick.

The 22-year-old champion who won the Carlsberg tournament prior to this and who has been playing snooker since 1996 said that he faced difficulty in defeating Wanchuk in the final. Rajen had defeated Niraj Gurung in the semi-finals and Gajraj Khadka in the quarter-finals to face Wanchuk in the final today.

Rajen also took home the prize money of Rs 11,000 for the highest break of 58 points in the semi final match against Niraj Gurung.

The runner up Wanchuk who entered the final defeating Shankar Thapa 6-1 in the semi final had a tough time facing the champion in today’s match. After the match, Wanchuk admitted that he lost the game because he was not in form lately. Wanchuk, the winner of the Birthday Cup and three other titles had to be satisfied with Rs 31,000 for the runner up.

T V Ramaswami, the chairman of Surya Tobacco Company gave away the cash prizes and the trophies to the winners and the runner ups amidst the prize distribution ceremony held after the game.