The emotive subject of subsidies once again boiled over as Forum for Democracy and Development (FDD) president Edith Nawakwi and Agriculture Minister Bob Sichinga faced off on ZNBC’s Quest live programme that had the officials flagging each other off as the discussion got heated.
Sichinga accused Nawakwi of playing politics while Nawakwi said the PF may have been suffering from the effects of overstaying in the opposition.
Sichinga, however, admitted that the Fertlizer Support Programme had failed because of government inefficiency.
Nawakwi said the government had donated maize to Zimbabwe when Zambia had hardly enough to feed its citizens.
“I have a budget here at no time does the minister here (in the budget) say that this country has been subsidizing agriculture, and he wants to change the system,” she said of Finance Minister Alexander Chikwanda’s budget that never hinted at any sticky points in the agricultural subsidies.
“Instead the minister has provided Farmer Input Support at K500 billion in this budget. I would like to know from the minister here why it has become necessary half way, quarter of the implementation of this budget, mind you I was also minister of finance.”
She adds: “We are supposed to be discussing budget implementation, which ministries has received their allocation, what they have done.”
Nawakwi said while Zambian banks were crying for the money that the Food Reserve Agency borrowed, the PF government was giving out maize generously to Zimbabwe.
“Now they are telling us we can feed our neighbours in Zimbabwe and I have a statement here where our president in Zimbabwe (Mugabe) says we have received 150 metric tonnes but the payment will be later because our bank balances are low,” said the former Finance Minister.
“And the minister is complaining that the local banks are in dire need of money because FRA borrowed.”
Nawakwi said the PF had not laid a plan for improving the agriculture sector despite having had a lot of time in the opposition to plan how to do things better.
“The problem of the agriculture sector in this country is big. When the minister says it is politicized, they were in opposition for a long time they should have prepared the script on agriculture and how they were going to handle it,” she said.
She said it was difficult for people to believe that there was no money when the government was harbouing officials in lodges and other provinces for newly created districts and provinces.
“This is the very first PF budget and I still maintain it is ‘best’ because you have officials for example in Muchinga Province who are residing in Mpika and working in Chinsali as provincial officials, you have officials in Vubwi who are living in Chipata they are supposed to be working in Vubwi,” she said.
“You have civil servants in Rufunsa living in lodges and for that, you cannot tell the people you will eat tomorrow, we have no money.”
And Sichinga who accused Nawakwi of soliciting for votes and not being truthful said subsidies had become unsutainable.
“It is important that we correct this. It is very important in our discussion to avoid arguments that are aimed at attracting voter sympathy,” he complained as Nawakwi delighting in the moment remarked, “I like it when ministers lose their temper.”
Sichinga said, “Let us look at this from an economic standpoint. There is no way we can say that we want you people to suffer, we do not want you to keep your children, get rid of your children.
The minister packaged a background of Farmer Support Input programme.
“In 2009 the total amount that was actually paid was K316.7 billion, in 2010 it was two trillion five hundred and thirty two billion one hundred and seventy four million, in 2011 it was three trillion two hundred and sixteen billion,” he said.
“In 2012 we had three hundred million kwacha allocated. However that amount was totally inadequate because of the bumper harvest of 2.7 million metric tonnes and it had to be purchased.
“So an additional borrowing was made from commercial banks who lent the government a total of K1.9 trillion to enable us to buy that maize that is the maize that is available at the moment. This is what has enabled the government to meet that requirement.”
He said the FSP was meant to last three years.
“If you go back to 2003, the arrangement was that when you start these subsidies people would graduate after three years,” he said.
“The arrangement was that initially the first year the government would contribute 60 percent and the farmers 40 percent, and the second it would be 50/50 percent and the third year the government would only be contributing 40 percent and the farmers would continue with the 60 percent because the farmers would have developed the capacity and after that they would have graduated and then go to other fields of support.”
He said the maize subsidy had failed due to government inefficiency.
“The small scale farmer who is supposed to benefit has not even been receiving a full bag of fertilizer they have been receiving medas (tins) BECAUSE of the inefficiency of the system,” Sichinga said.
“This is why it becomes necessary to adjust a system so that it really benefits the people that need that assistance that is one problem.”
He said government was buying maize from farmers at a high price and sold it to millers at a cheap price.
“On the consumption side which is on paying the farmers a high price but then the millers are getting at a lower price has been that it is into everybody, you who can afford and me who cannot afford we have all benefitted from it. The targetting of that subsidy has not been adequate,” said Sichinga.
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