KOTA KINABALU: Sabah Progressive Party (SAPP) will not bulge from its struggle to get the oil royalty payment for Sabah increased from five per cent to 20 per cent despite facing yet another stumbling block when its motion for the State Assembly sitting from today (Monday) was rejected.
The motion requesting the State Government to review the agreement on the petroleum royalty from five per cent to 20 per cent was submitted by Luyang Assemblywoman, Melanie Chia, who is also SAPP Wanita Chief, to the State Assembly Speaker before the deadline on Aug 12.
"However, on August 19, I received a reply in writing signed by the Secretary of the State Assembly informing me that the motion submitted by me is rejected by the Speaker, with two reasons given for the rejection," she said.
Under Standing Order 31, for a motion to be accepted, it must be deemed of urgency, of importance and involving the interest of the people, but Chia said Speaker Datuk Salleh Tun Said had also given additional reasons.
The first reason was that Petronas had and will be implementing development projects costing billions of ringgit in Sabah, directly benefiting the rakyat; of Sabah and local contractors.
Among the projects that would bring a huge economic impact to the State stated by the Speaker are the Sabah Oil and Gas Terminal, Gas Power Plant in Kimanis and in POIC Lahad Datu as well as the Sabah Ammonia and Urea Project in Sipitang.
The Speaker said the State Government was confident that benefits from spin-off projects would be more than the royalty rate as proposed in Chia's motion.
Secondly, the agreement of the royalty rate was under the 1974 Petroleum Development Act, which is under the Federal Government's jurisdiction.
Nonetheless, Chia said she was disappointed with the rejection because the review on the petroleum royalty rate from five to 20 per cent has no relation or connection with the proposed projects and developments to be undertaken and implemented by Petronas or its agents as stated by the Speaker.
'"The projects and developments to be undertaken and implemented by Petronas anti its agents are investments by the corporation and is not the same as petroleum royalty which is a State's revenue.
"Petronas can still have its investments and the State Government can still have its own revenue," she said.
She said revierving the oil royalty percentage has no direct connection with the Petroleum Development Act 1974 and does not require any amendment to the said Act.
"Therefore, the second reason given for the rejection that the change of the rate of petroleum royalty is under the power of the Federal Government is not accurate as the petroleurn royalty agreement is signed between the State Government and Petronas.
"I, therefore, opine that the two reasons given for the rejection is not strong and not firm. The rejection is merely to be evasive of an important issue, and that is, to reviewthe agreement to cirange the petroleum royalty oil five per cent which was signed on June 14, 1976," she said.
Chia said she had explained in her motion the background on the Petroleum Development Act 1974 and commentary on the motion.
"As the Petroleum Agreement is signed between the State Government and Petronas, it is possible that the agreement be reviewed by negotiation of the parties concerned, that is, via negotiation between the State Government, Federal Government and Petronas.
"This agreement has been in existence for the last 35 years and it is not an unreasonable act to request for a review in view of current situation and changing circumstances.
“Sabah is still one of the poorest states in Malaysia and therefore fitting that it should benefit further from the natural resources that it is endowed with so that its revenue and economic status may be strengthened in the long run for the benefit of the State and its people.
"The motion which I intended to bring to the State Assembly is to bring the pleas and voices of the people of Sabah to as certain that their right and their interests are defended.
"The rejection of this motion also confirmed that the Barisan Nasional (BN) Government is not serious about the claim on the rights of the people of Sabah," she said.
Daily Express
Monday, 22nd August 2011
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