| News From CUTS - March, 2006 |
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March 28, 2006, Addis Ababa, Press Release The effective implementation of competition policy and law is an important instrument for reducing poverty, achieving Millennium Development Goals (MDGs), enhancing economic growth and private sector development in Africa. Adoption of appropriate laws on competition policy and sectoral regulation should be an essential requirement for any liberalised economic system as it is a key element which benefits the consumers and business sector. These were the key messages heard at a regional conference. Experts hailing from policy research institutions, competition and sectoral regulators, civil society and development partners from Eastern and Southern Africa gathered at Addis Ababa for a two day a regional conference on Capacity Building on Competition Policy. The conference is being hosted by CUTS International, a research and advocacy organisation working in Asia and Africa in collaboration with AHa Ethiopian Consumer Protection Association as part of a seven country project called 7Up3. The project is being implemented in seven countries of the region: Botswana, Ethiopia, Malawi, Mauritius, Mozambique, Namibia and Uganda, with support from the Norwegian Agency for Development Cooperation (NORAD), Norway and the Department for International Development (DFID), The United Kingdom. Promotion of fair trade practices should be a priority not only for the government but also for the business and consumers as latter are usual victims of unfair trade practices, said Ato Harka Haroye, M.P. and Chairman of Trade Practices Investigation Commission of Ethiopia. Capacity building of national and regional institutions and establishing a network of people and organisations in support of fair competition and economic regulation in Africa are the main objectives of the seven 7Up3, said Pradeep S. Mehta, Secretary General of CUTS International. An effective competition regime can bring productivity gains to an economy, and thus enhance growth by ensuring free entry and exit to markets, for firms of all sizes. This encourages innovation, reduces costs and increases national competitiveness, all of which are crucial for productivity and growth. This why the UK’s Department for International Development (DFID) is interested in competition policy and regulation. DFID’s mission is to help reduce poverty in the world and a vibrant, productive private sector will deliver the higher rates of economic growth that are essential for poverty reduction, said Karen Ellis, Economic Advisor to the Investment and Competition Team at DFID, London. Experts from Botswana, Namibia, Mauritius, Malawi, Mozambique, Namibia and Ethiopia shared their findings on the existing competition and regulatory framework at the conference. The experiences and lessons from regulating sectors such as electricity, telecom were shared by officials of the competition and regulatory agencies. CUTS International is also organising a training workshop for the officials of the Trade Practices Commission of Ethiopia on 29th and 30th of this month, in collaboration with the commission by bringing resources persons from Africa and outside.
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March 27, 2006, New Delhi, Press Release There is an urgent need to decentralize the regulatory enforcement system for regulating the cable TV Industry because there is a variation across cities in terms of cable TV system, CUTS International said in a representation to the Ministry of Information & Broadcasting during a stakeholder consultation seminar on CAS in the capital. In fact, in most cases, problems in cable TV industry are of local nature. It is therefore important that the state governments and local stakeholders should evolve a cable TV system that best suits their state. The experience of Chennai suggests that Conditional Access System in its present form has not proved successful. A major reason for this is that even with set top boxes, channels come in bundled form i.e. there are 5 to 6 different bouquets available giving no choice to consumers. Another important reason for low penetration of CAS in Chennai is that set top boxes are available only for purchase at a price. This is quite prohibitive. For CAS to be successful, bundling of channels need to be scrapped. Further, set top boxes must be made available on rental basis and provided in a manner similar to the way LPG Cylinders are available. That is Consumer pays a deposit amount for getting the set top box and in case of transfer, can return the same to MSO, CUTS has said. Further, given the emergence of alternate delivery platforms, TRAI must ensure that the ‘must provide clause’ for all TV Channels is adhered to in a non discriminatory manner. This would ensure competition at all levels and choice to consumers. According to CUTS, there are no standard rates or conditions at which cable operators provide services to subscribers. Monthly subscription charges are increased without complying with the orders of TRAI in this regard. There is a crying need to regulate prices and ensure proper service standards at local level. In several cases, monopoly of cable operators at consumers’ end is the result of monopoly of the multi system operator (MSO). Concrete policies are required to check the behavior of broadcasters, MSOs and cable operators.
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Training seminar on Competition Policy and Law concludes March 25, 2006, New Delhi, Press Release The valedictory of 5 day Seminar on Competition Policy and law organised by CUTS International in the capital was addressed by Jean-Pierre Lehmann, Professor of International Political Economy, IMD, Lausanne. Congratulating CUTS for pioneering training on issues related to Competition, Mr Lehmann said that the efforts would go a long way in bringing about clarity on the subject and would be instrumental in forming a base for furthering such issues in government and industry. Addressing the participants who had come from countries across the globe including Singapore, Thailand, Mauritius, Vietnam, Cambodia and representatives of Central Government and many Multinational corporate houses, Mr Lehmann stated that right market and right trade must be accepted as basic human rights. The consumer must have a choice. Therefore the rules should be in place and be respected. Citing the example of China, Mr Lehmann said that share of China in international trade is on the rise for the last decade. It has emerged as the new and huge kid on the bloc. What is important in such a situation is that there should also be clear understanding of the fair and unfair trade practices in the region. This is extremely urgent and important for the global market to be healthy thus giving the desired results to all players. Jean-Pierre Lehmann, is the founding director of the Evian Group. He has been Professor of International Political Economy at IMD International Institute for Management Development since 1997. His main areas of expertise are the socio-economic and business dynamics of East Asia, the impact of globalisation on developing countries and the government - business interface, especially in respect to the global trade and investment policy process. He is the author of several books and numerous articles and papers primarily dealing with modern East Asian history and East Asia and the international political economy and acts in various leading capacities in several public policy forums and organizations. The five day seminar kick started the activities of CUTS Institute for Regulation and Competition (CIRC) aimed at developing analytical capabilities to comprehend competitive policy and law issues, their perspectives and linkages with the industry and economy. The resource persons for the Seminar included practitioners, economists and lawyers such as Aditya Bhattacharjea, Francois Souty, John Preston, Jaivir Singh, Manish Agarwal, Pradeep S Mehta, Partha Mukhopadhyay, Shravan Nigam, Shyam Khemani and S Sundar. For
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March 22, 2006, Umsning, Meghalaya, Press Release The farmers’ rights to use their own variety of seeds and their own farming methods have been discussed in a meeting organised by Consumer Unity & Trust Society, Calcutta Resource Centre (CUTS-CRC) and Rural Resource & Training Centre (RRTC, a wing of Bossco Reach Out) at RRTC, Umran on March 22, 2006. Many farmers have participated in that meeting and expressed their concern over the Access & Benefit Sharing and Prior Informed Consent issues on the traditional knowledge. Farmers were of the opinion that the seeds and the fertilizers offered by the government are of very low quality and can be useful after one year. They said that the traditional varieties of seeds nurtured by them over centuries are far superior to the seeds provided by the government. It was felt that the traditional knowledge has to be documented properly so that it can be useful over the generations. The NGOs working in these issues must take the responsibility of documentation of the traditional knowledge. In the context, the recent Seed Bill, 2004 has been discussed. The farmers opined that the anti farmers’ bill, where farmers cannot use their own varieties of seeds, must be resisted. It was decided that the bill will be translated into the local languages and the main implications of the bill will be disseminated to the farmers’ group as soon as possible, so that our government can be resisted from taking any anti farmers’ policy. The meeting, which was organised under the programme Farmers’ Rights to Livelihood, initiated by South Asian Watch on Trade Economics and Environment (SAWTEE), based at Kathmandu, was successful in bringing all the farmers’ group of the region on a common platform. It was expected that this would facilitate the process of advocacy for the cause of the farmers to the government in future. For
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Postal
Act Amendment calls for public debate before being presented in the
Parliament; March 22, 2006, New Delhi, Press Release CUTS has demanded a public debate on the issue of proposed amendment in the Indian Post Office Act, 1898 before it is presented in the Parliament. The Amendment Bill proposed to be tabled in the current parliamentary session has not been made public and thus there is little consultation. Even the definition of mails below 500gms has not been mentioned in the proposed amendment, copy of which has been obtained by CUTS. The proposed amendment to create a monopoly for the Post Department to handle all mails below 500gms is a retrograde step. A distinction should be made between ordinary mail and express mail, as prevalent in USA and European countries where a monopoly does exist for the national post offices to carry ordinary mail but express mail can be sent through couriers, where charges are much higher, CUTS has suggested. Setting up a postal regulator is indeed a welcome move and has been a demand by consumer groups for long, CUTS said. "The courier/express industry in India is not at all regulated with no tariffs or standards at all". It is because of sloppy postal services, that many public sector bodies are now using private couriers, rather than relying upon the post office, where deliveries are never assured. "Such a regulator will regulate the post offices, which too have been rendering sloppy services for long", asserts CUTS. On the matter of a USO type of fund to enable the post office to meet the demand of rural areas, CUTS has stated that there is hardly any need to do so because letters to rural areas can continue to be sent through the postal system when the proposed amendment would cover the distinction between the ordinary and express mail. Further, the post offices works through extra departmental agencies (EDAs) to handle mails in rural areas, and there is nothing which would prevent private couriers to use the same EDAs network. Regarding the issue of the Post Department running in losses, CUTS has suggested that they should take cue from the Railways and use their huge and valuable real estate to turn themselves into profit-making ventures. The Post Offices can expand their business to sell and deliver a large number of other services and goods, as is being done in the West. As it stands, the Posts do make money in the savings banking business, while losing money in postal services, CUTS has said. For
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March 20, 2006, New Delhi, Press Release Speaking at the Seminar on ‘Competitive Policy and Law,’ organised by CUTS in the capital today, Mr John Preston, Competition Policy Consultant, Private Sector Policy Department, DFID, London said that there is a close correlation between competitive markets and poverty eradication. Presence of a healthy competitive market is therefore an important tool to bring about economic growth in the country. “Everyone must get optimum value for money he spends,” Mr Preston said. “This, in the long run, would foster mobility of resources, economic efficiency and consumer welfare by maintaining and encouraging the process of competition leading to growth and employment.” Mr Shyam Khemani, Advisor, Competition Policy Private Sector Development - Vice Presidency, The World Bank Group, Washington D.C. in his remarks said that regulatory reforms are gaining pace in the developing world, with an increasing number of countries enacting competition and sectoral regulatory laws. Protection and enhancement of commercial interests has become one of the most important policy objectives. More over, emergence of international trading systems through the WTO ad other regional agreements has opened up new opportunities, besides posing new challenges. The five day seminar kick starts the activities of CUTS Institute for Regulation and Competition (CIRC) and aims at developing analytical capabilities to comprehend competitive policy and law issues, their perspectives and linkages with the industry and economy. It will also brush up the skills for developing understanding on compliance issues related to competition law among businesses and understanding the expected role of different stakeholders and groups in order to ensure competitiveness of the markets and accelerate economic growth. "There is lack of scientific capacity”, Mr Pradeep S Mehta, Secretary General, CUTS International said in his introductory remarks. “There is complete lack of understanding and lack of awareness over the subject of competition law. With so much happening on the economic front, there is a pressing need for finer knowledge, better negotiating skills and improved capacity of understanding of competition laws, economic regulations and commercial aspects of diplomacy." CIRC has been conceived with the idea of making the markets work better for the people by creating an intellectual and knowledge base on regulatory reforms, including economic regulation, competition policy and commercial diplomacy. It would facilitate research to enhance understanding and explore inter disciplinary linkages among the identified subjects, Mr Mehta said. The Seminar has delegates from countries like Singapore, Thailand, Mauritius, Vietnam, Central Government and representatives of many Multi national corporate houses. The resource persons for the Seminar include practitioners, economists and lawyers such as Aditya Bhattacharjea, Francois Souty, John Preston, Jaivir Singh, Manish Agarwal, Partha Mukhopadhyay, Shravan Nigam, S Sundar and T C A Anant. For
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March 18, 2006, New Delhi, Press Release The Central Electricity Regulatory Commission (CERC) yesterday appointed Pradeep S Mehta, Secretary General, Consumer Unity and Trust Society (CUTS) as Member of the Central Advisory Committee to advise the Commission on the issues related to policy, quality, continuity and extent of services provided by licencees, protection of consumer interests and overall standard of performance by utilities. In his communication, Mr Ashok Basu, Chairman, CERC has said that the role of CAC is paramount in supporting the mission of the Commission to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise the government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers. Mr Pradeep Mehta said that the primary challenge before the Commission is to manage the transition, from the existing system of distorted price signals and inefficient allocation of resources to a more rational system of prices and vastly superior quality of supply. Appropriate Government policies would be needed to create a facilitating macro environment for reform. Increasing consumer awareness of rights and obligations and formulating easily accessible channels of grievance redressal is another area of priority before the Commission, Mr Mehta added. For
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CUTS International Releases Book on Consumers Affairs March 15, 2006, Jaipur
CUTS International aims to disseminate right information on consumer issues to the people of India in general and the people of Rajasthan in particular, so that a right environment could be created where every consumer can voice his or her concerns and problems. The book contains a wealth of information on consumer issues including: a brief introduction by Pradeep S Mehta, General Secretary CUTS International; the rights and responsibilities of consumers; how the consumers should deal with consumer-related problems; what the governmental efforts and actions have been regarding the consumer issues; the sets of yes-no questions; recommendations and suggestions for effective protection of consumer rights and the role of consumer organisations (with the list of consumer organisations in various districts of Rajasthan) etc. To reach out to wide sections of the society, including the common men and women and the grassroots people, the CUTS International brought out the book in Hindi language. Mrs Meenakshi Hooja, Principal Secretary, Food and Consumer Affairs, Government of Rajasthan, Justice S K Garg, President, State Consumer Dispute Redressal Commission, Mr M C Gupta, Deputy Commissioner, Food were the other dignities present on the occasion. They were highly impressed by the topic that CUTS International selected for doing service to the common people. They were presented a copy each as a gift. Other distinguished participants included representatives from voluntary civil organisations (VCO), panchayati raj institutions (PRIs), district supply officers (DSOs) working on consumer clubs of various schools in Rajasthan, and some bright students of consumer clubs (who were also awarded at the function), presidents and members of District Forums and media persons. There were about 300 delegates present in the function. Deepak Saxena and K C Sharma represented CUTS International. The book got attention of every attendee present there. In the introduction, Mr S P Paliwal, who was also moderating appreciated CUTS’ efforts in doing this exercise, quoted a few passages from the book. In addition, the senior officials from Department of Food & Consumer Affairs, Rajasthan, also read out a few significant lines from the book. For
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Copyright
2005 Consumer Unity & Trust Society (CUTS),
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A
path-breaking book of CUTS International, Jaipur titled, 'Rajasthan
Mein Upbhoktaon Ki Stithi' (State of Consumers in Rajasthan) was
released by Dr Kirori Lal Meena, Minister of Food, Public Distribution
and Consumer Affairs, Government of Rajasthan at a state function organised
to commemorate the World Consumer Rights Day (March 15, 2006). The release
of the book was kept as one of the main items in the programme agenda
of the government. The Minister, who kept a copy to read, lauded CUTS’
efforts in bringing out such a valuable book, which would help consumers
in many ways.