Weekly News Clippings (30 May 2013)

A life=Tk 1 lakh (The Daily Star, May 30, 2013)

Currently compensation provisions in Bangladesh are among the worst in the world with the country’s labour law price tagging a worker’s life at Tk 1 lakh ($1,250). According to right activists and labour leaders, Bangladesh labour laws should have stringent provisions to oblige owners to support workers and their families in case of workplace accidents. Even in China, the compensation is about Tk 78 lakh. Activists demand that a dead worker’s family should be given compensation equal to at least his lifetime’s earnings, taking into consideration the bonuses and increments the worker would have got over the years. Garment owners refuse to pay such an amount, maintaining that they cannot afford to do so.

 

ADP zooms up 26pc (The Daily Star, May 29, 2013)

The National Economic Council has sanctioned a Tk 65,870 crore budget for fiscal 2013-14′s annual development programme, which is 26 percent higher than the current fiscal year’s ADP allocation:

·        The transport sector got Tk 15,363 crore, which is 89 percent higher than the current fiscal year’s allocation. The Padma Bridge project got 6,852 crore alone. Please see Padma to eat up ADP for more information.

·        The power sector got the second highest allocation of Tk 9,053 crore.

·        The education sector got Tk 8,766 crore, which is 18 percent higher.

·        Health sector saw a 2 percent increase only, i.e. Tk 4,239 crore.

·        The agricultural sector’s allocation stood at Tk 3,721 crore, which is 26 percent higher than the current fiscal year’s.

·        The total number of projects is 1,046, around 60 percent of which will be funded by the government.

 

Rajuk role in question (The Daily Star, May 29, 2013)

Architects and civil engineers now question the role of Rajuk in the unbridled growth of illegal buildings as well as the government’s reluctance in approving the required amount of manpower for identifying rickety structures like Rana Plaza. The president of Institute of Architects Bangladesh contends that the building law, safety precautions and mandatory Bangladesh National Building Code (BNBC) have not been followed in constructing thousands of buildings in Savar and other fringe areas of the capital. Rajuk is legally responsible to control development within its 1,528-square kilometres area of Dhaka Metropolitan Development Plan (master plan) as per the Town Improvement Act.

 

Reforms to help cut subsidy by 24pc (The Daily Star, May 28, 2013)

The government’s spending on subsidy may go down by 24 percent next fiscal year due to various reforms and price adjustments. However, this projected decrease is partially a result of a likely 7% upward revision of the current fiscal year’s budget. The total allocation for subsidy will be Tk 28,695 crore next year compared with the original 2012-2013 budget of Tk 35,045 crore (or an 18% decline). A special audit will be carried out in the state enterprises that deal with fuel, electricity and fertilizers to contain misuse and increase efficiency resulting in reduced subsidy spending.

 

Rehab urges government to allow black money (Dhaka Tribune, May 27, 2013)

The Real Estate and Housing Association of Bangladesh (Rehab) has asked the government to incorporate a provision in the upcoming budget allowing people with “legally” earned undisclosed money or black money, to purchase flats and apartments. According to the Rehab, the slump in the real estate sector dictates that buyers should be allowed to make their first purchases without revealing their sources of income. It has also urged the finance minister to lower levies on land and apartments from the existing 12.5% to 4.5%. Meanwhile, Transparency International Bangladesh (TIB), a global corruption watchdog has raised concerns about the probable move to allow whitening of black money terming it “illogical” and “completely contradictory to the constitution.”

 

Tannery relocation remains a far cry (Dhaka Tribune, May 28, 2013)

Continued disagreements between the government authorities and tannery owners over who should bear the cost of relocating tanneries to Savar have brought the long delayed relocation to a standstill. Tannery owners are refusing to pay for relocation and central effluent treatment plant (CETP) as the estimated cost for the project has increased over five times in the last decade. According to them, the government originally accepted responsible for the costs when it initiated the tannery relocation move in 2003. Later, the government deviated from its original plan and attempted to push the relocation expense on the owners via a 15 year loan agreement. According to the High Court’s order, the government was supposed to shift the tannery units from Dhaka to a proposed leather estate at Harindhara in Savar by February 28, 2010.

 

DCCI hunts for 2,000 young entrepreneurs (The Daily Star, May 26, 2013)

On June 15, the Dhaka Chamber of Commerce and Industry (DCCI) will set out to find 2,000 entrepreneurs from across the country. The DCCI will organize events at each of the 64 districts and select entrepreneurs with new and innovative ideas, who will receive financial support from the chamber. The DCCI will also give priority to ideas related to education, health, infrastructure and communications, renewable energy, fashion designing, handicraft, environment and waste management, IT, outsourcing, e-commerce, electronics and light engineering and agro-based industry. The names of the 2000 winners will be announced in November 1 and 2.