KUCHING: The Pakatan Harapan (PH) Sarawak will continue to pursue the promise of 20 per cent oil royalty based on its Manifesto.
This was stated by Pakatan Harapan Sarawak chairman, Chong Chieng Jen yesterday during a press conference on the announcement of the proposed ‘New Deal Agreement’ after the Parliament sitting at Parliament House in Kuala Lumpur yesterday.
Under the Sarawak PH manifesto, it was promised that 20 per cent (additional 15 per cent) oil and gas royalty plus 50 per cent of all tax revenue collected in Sarawak to be given to the State government, and the State government shall attain full autonomy in every education and healthcare matter in Sarawak and undertake the financial obligations of these two ministries in the State.
It was even agreed in the Manifesto that if the oil and gas companies cannot afford to pay the full 20 per cent royalty, the Federal government will top up the shortfall. This was in line with Sarawak PH’s ‘State Autonomy’ agenda.
“The Sarawak State government rejected this offer and conveniently highlighted the 20 per cent royalties while omitting the financial obligations and autonomy of education and healthcare part.
“Given the Sarawak State government rejection of the above offer, the Federal government has to renegotiate the whole matter, and thus the issue of 20 per cent oil profit.
“It is the Sarawak State government who has brought upon themselves and Sarawakians in general the present predicament,” said Chong.
On the 20 per cent oil profits, Sarawakians can rest assured that it would not compromise the present 5 per cent royalty. The 5 per cent was an agreement between Petronas and the State government and cannot be varied unless the State government voluntarily gives it up.
“The PH Government is also concerned about direct cash payment to the Sarawak State government given that the State government does not practise transparent and good governance.
“The State government’s policies on land and timber have proven that the State government policies on the management of natural wealth have resulted in the general populace not getting a fair share of the wealth.
“As such, a cabinet commitee was set up to discuss further the matter, quantum and mechanism to channel the fund to the people, while minimising the risk of mismanagement by the State government,” he said.
At the bottom line, 20 per cent oil profit is now being offered in addition to the present 5 per cent oil and gas royalty. This is a positive development and far better than the arrangement by Barisan Nasional (BN) whereby the 5 per cent royalty stayed stagnant for the past 45 years.
“We have been fighting for all these years for the 20 per cent oil royalty. Finally, two months after the change of the government, there is at least an additional revenue to the State other than the 5 per cent oil royalty agreed by the BN government which remained unchanged for 45 years.
“We do hope that the State government will continue to discuss with the Federal government the matter as per PDA 1974 towards a fairer sharing of the Sarawak’s oil resources,” he disclosed.
