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LATEST NEWS UPDATES | Jaya joins cry against govt on retail FDI

Jaya joins cry against govt on retail FDI

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published Published on Nov 28, 2011   modified Modified on Nov 28, 2011

-The Telegraph

 

Tamil Nadu chief minister Jayalalithaa today joined the chorus against the entry of foreign capital in multi-brand retail, saying the Centre’s decision that smacked of “overweening arrogance” would affect the livelihood of millions of small-time traders.

In Delhi, the under-fire UPA brought out a full-page ad in newspapers that said the move would “generate 10 million new jobs” contrary to the “mistaken belief” that it would result in widespread unemployment.

The thrust and counter-thrust came amid signs that the Opposition was gearing to corner the government in Parliament after the winter session’s first-week washout.

NDA ally Janata Dal (United) has given a notice for an adjournment motion in the Lok Sabha tomorrow and efforts are on for floor co-ordination among Opposition parties, including the BJP, the Left and Jayalalithaa’s AIADMK, besides the BSP and the Samajwadi Party.

Jayalalithaa, who joined the other two non-Congress women chief ministers in voicing fears over the Centre’s November 24 decision, said her government would “not allow multi-brand global players to set up hypermarkets in Tamil Nadu”.

In a hard-hitting statement, she said the move would “affect the livelihood of millions of small departmental store owners and completely destroy the unorganised retail sector within the next couple of years”.

Uttar Pradesh chief minister Mayawati had said as much yesterday when the BSP boss had also tried to link the decision with “Congress yuvraj” Rahul Gandhi.

Bengal’s Mamata Banerjee, whose Trinamul is the Congress’s biggest ally at the Centre, is also against liberalising foreign investment rules.

Mamata told an election rally in Calcutta that Trinamul was not consulted on the decision to allow 51 per cent FDI in retail. “We cannot allow this to happen as it will affect shopkeepers, big and small. The government must first ensure that it can provide livelihood to these people. We are a pro-people party and will not take any decision that hurts them.”

In Chennai, Jayalalithaa said multinational companies had swamped retail markets in many countries and put millions of small-time vendors out of jobs. “For instance, in the UK, it is reported that three retail chains now control 65 per cent of the entire retail market. Similarly, in a country like Thailand, over 30 per cent of the local shops were forced to… down shutters within 10 years of the entry of foreign retailers,” she said.

That the Union cabinet’s announcement was made outside Parliament when it was in session, without consulting state governments and ignoring opposition from trade bodies, “only indicated the overweening arrogance of the UPA government”, Jayalalithaa said.

She challenged the Centre’s argument that unlocking retail markets would create 10 million jobs in the next three years. “This will actually lead to 40 million people being uprooted and thrown out from their business,” she said. “…these retail vendors in the country who depend on this business for their livelihood will be rendered destitute and will be driven to the streets,” she warned.

In Ahmedabad, former junior foreign minister Shashi Tharoor also entered the debate, backing the move and asking small shop owners to provide more “personalised service” to swim with the tide, though he also admitted that they might be affected initially.

“As more capital comes in, more institutions or shops and stores are established and you need more people to run them,” he said on the sidelines of an event. “It is possible that some people might be immediately affected. But a larger number will benefit.”

In Delhi, Opposition sources said the aim was to also bring UPA allies like Trinamul and DMK on board in the effort to corner the government. Sources in the BJP said Sharad Yadav, the Dal (United) chief, today held consultations with leaders of the BJP, CPI, CPM, BSP and the AIADMK in Delhi and chalked out strategy for stalling Parliament.

“Parliament will not run at the cost of people,” Yadav, who is also the NDA convener, said.

Leader of Opposition in the Lok Sabha Sushma Swaraj said BJP veteran Murli Manohar Joshi had submitted a notice for an adjournment motion on the issue on the party’s behalf.

The Telegraph, 28 November, 2011, http://www.telegraphindia.com/1111128/jsp/nation/story_14808174.jsp


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