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{
"id": 1031394,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1031394/?format=api",
"text_counter": 349,
"type": "speech",
"speaker_name": "Pokot South, JP",
"speaker_title": "Hon. David Pkosing",
"speaker": {
"id": 2662,
"legal_name": "Losiakou David Pkosing",
"slug": "losiakou-david-pkosing"
},
"content": "Thirdly, we are asking the House to agree with us that as a revenue raising measure, the Government should consider adjustment to the Railway Development Levy (RDL) to give incentives for the use of SGR. How do we do it? We are proposing that importers who choose to haul their goods using the SGR be allowed pay a preferential RDL of 1.5 per cent instead of 2 per cent of the value of the goods they import. The reason is that this Levy is supposed to promote the SGR. If one uses the SGR, then one needs to get incentives to use it more. We calculated and found out that the more you use the SGR, the more you save a lot of money in terms of the 0.5 per cent and the more the SGR gets money from transportation. So, there is a symbiotic relationship. Further, we want to suggest that importers who choose to use the road transport should attract an additional surcharge of 0.3 per cent. It means that if you continue using the road, then instead of paying 2 per cent to the RDL, you will be required to pay 2.3 per cent. That is if the House agrees with our recommendation. It is because you are putting a lot of weight on the road. So, you should be punished for putting a lot of weight on the road and yet we have given you the SGR. Fourthly, to guide the use of SGR, increase competitiveness in the sector and promote stop- over economy along the railway line, the Government should come up with a policy that will not discriminate against any user of SGR or transporter. That way, we will form a lot of symbiotic relationship between the transporters and the management of the SGR. We are also asking the House to agree with us that for the purpose of the Last Mile Connectivity, the Government should allow private investors, where possible, to extend the railway to their respective yards at their own cost. As you read on, you will realise that the Last Mile Connectivity and the First Mile Connectivity are among the biggest problems. The House should also agree with us that on clearance of cargo, importers should have the freedom to nominate a licensed container freight service company for the purpose of clearing items. There is no need to force anybody. Under No.7, we are asking the House to agree with us that the Government should initiate the process of renegotiating the loan, of course, using the opportunity available, that is, COVID- 19. The effects and impact of COVID-19 should be appreciated in the payment of the loan. In any case, nobody planned for it. Finally, we are asking the House to agree with us that the negotiation of the current operational agreement should be fast-tracked. What is the operational agreement here? There is somebody who actually operates the SGR. The Government is not running the SGR directly. Perhaps, in future the Government will run the SGR, but at the moment it is run by a private entity. That private entity signed an agreement with the Government earlier and we found out that such an arrangement was a little bit expensive. That is why, maybe, the SGR is more expensive. We are urging the Government to fast-track that negotiation. As a Committee, we urged the Government to renegotiate that operational agreement and the costs attendant to it. You know it was costing the Government close to Kshs1 billion per month. We have told them to renegotiate that to about Kshs500 million per month. If this House agrees with us, then we will move to a different level, which is bringing amendments in terms of law in order to effect some of these proposals. Why did we go that direction? I know I started with the requests or recommendations. Hon. Members in this House, including the Chairman of Public Investments Committee (PIC) raised several critical issues concerning representation of the people of the coast and the entire country. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}