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 Kathmandu Wednesday November 07, 2001 Kartik  22,  2058.


PM supports relaxation of Labour Act

Post Report

KATHMANDU, Nov 6 - At a time when the Nepali entrepreneurs are strongly demanding to simplify the existing Labor Act, Prime Minister Sher Bahadur Daupa today urged them to develop a national consensus to change the present Labor Act asserting that he personally supported hiring and firing labour policy.

Addressing an interaction programme organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today, Prime Minister Deuba opined that the private should play an active role for the effective implementation of the liberal economic policies through greater participation in the privatization process.

Referring to the ongoing Maoist-government negotiation, the premier expressed hopes that a peaceful solution would be reached. "Though there is pressure for the talks to end soon, I believe that we should try to ensure positive results."

He also stressed upon the need of cordial relations between the business community and the government and added that the government has always responded positively towards the various recommendation forwarded by businessmen.

Commenting on the proposed formation of an Investment Board with joint participation of the government and business community, he expressed his commitment towards the proposal and assured that necessary steps would be taken soon to materialized the idea.

Accepting that fact that weak monitoring mechanism of the various development projects has greatly hindered the realisation of desired outcome, premier Deuba said that the government is forming an Monitoring Cell at the Prime Minister’s office very soon to strengthen the monitoring capacity.

Speaking on the same occasion, Rabi Bhakta Shrestha, President of FNCCI, said that Nepali industries are facing series of serious problems, which has greatly obstructed the process of industrialization in Nepal.

"Conducive environment is the foremost condition needed for the development of business and industry in the country, in the absence of which domestic as well as foreign investment shrink," Shrestha said.

He also said that the national goal of reducing poverty could be achieved by generating enough employment opportunities, which ultimately depends on the industrial development of the country.

Furthermore, he expressed pessimism over the materialisation of the different government commitments and said that the existing huge gap between the commitments and actions is emerging as the biggest problem.

He appreciated the government’s efforts to end the Maoist violence through peaceful means and hoped that the Maoist-government talks would bring permanent peace.

He expressed deep concern over the dwindling tourism and export related industries and urged the government to bring a package program and use economic diplomacy to safeguard the industries from collapsing.

On the occasion, Shrestha also presented a 22-point recommendation to the prime minister that he opined should be taken acted upon to address the present problems of Nepali businessmen.

Among others, the recommendation has stressed upon the need to ban all types of strikes, bandhs and other anti-industrial activities. Furthermore, it has emphasised that entrepreneurs should be given the right to hire or fire labours, in addition to the formulation of a budgetary policy for rehabilitating sick industries.

The FNCCI has also recommended the introduction of multiple entry visas to tourists to boost the ailing tourism industry and to revise and review the various tourist fees. In the light of the present precarious condition the Nepali industries are in, the FNCCI has also urged that the banks should reschedule its investment.

Similarly, the FNCCI has also pressed for the issuance of the 5-year debentures to refund the duty drawbacks that the government owes to the private sector. Also, it has urged that refinance rate on convertible currencies for exportable industries should be reduced. It has also demanded seriousness on the part of the government to provide security to liquor industry and has requested to purchase domestic products as far as possible by increasing the development expenditure.


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