More MPs speak against K7bn cement subsidy

Several members of Parliament (MPs) have spoken out against a planned subsidy of cement and iron sheets targeting low-income earners. The MPs argue the K7 billion could have been used to buy drugs for hospitals.

Minister of Finance, Economic Planning and Development Goodall Gondwe announced in his 2014/15 national budget statement that K7 billion (US$16 990 291) had been allocated towards a pilot programme of the subsidy which was a Democratic Progressive Party (DPP) election campaign promise.

But following on leader of opposition in Parliament Lazarus Chakwera’s remarks that government should have instead provided private sector incentives for production of cement and iron sheets, Lilongwe East MP Ezekiel Ching’oma said the impact of the subsidy would be negligible considering that only 100 people would be targeted in each of the 193 constituencies.

He said when DPP was campaigning, they never said the subsidy would be targeted, but changed tune after winning the vote.

Said Ching’oma: “It means that for each constituency, there will be 500 beneficiaries by the end of the five years. It has to be noted that 80 percent of Malawians live in poor housing, in this way the impact of this programme, after five years, will surely be close to negligible.”

He asked government to increase the number of beneficiaries to 1 000 if the programme is to benefit most Malawians.

Rumphi West MP Jacqueline Kouwenhoven said the new subsidy would just create a new dependency on the part of Malawians.

She said: “When we start building houses for people, next they will look to government for other areas. That K7 billion could have gone into health care or education and people would be better helped through this.”

Dowa East MP Richard Banda said much as the new subsidy was not a bad idea, it was ill-timed.

“Looking at the challenges that the country’s economy is facing, this subsidy should have been pended until our economy was manageable,” he said.

Gondwe is expected to respond to observations on the budget before Parliament rises.