Left warns govt of direct action on banking laws

New Delhi, Oct 13: Putting at rest speculation that the Left may go soft on the pension reforms and banking regulation Bills, the Left parties and their affiliate trade unions today said they would oppose these legislations in their present form and warned the UPA government about ''direct action''.

Stating that they would also oppose any increase in FDI cap in the insurance sector from the present 26 per cent to 49 per cent, the Left said the moment the government brought about any amendments to this effect, employees would oppose the move.

In separate interviews to sources, top leaders of the CPI(M) and CPI and central trade unions CITU and AITUC, said they had made their postion abundantly clear in last month's UPA-Left Coordination Committee meeting.

According to a senior Finance Ministry official, a Bill to amend the Insurance Act and facilitate increase in FDI would be introduced in Parliament in the next three- four months.

The Left parties have in no uncertain terms made their displeasure known about Prime Minister Manmohan Singh's emphasis on carrying on the economic reforms on the plea that social and economic objectives could not be achieved unless these measures are taken.

CPI General Secretary A B Bardhan said: ''We told even in the UPA-Left Coordination panel meeting that the issue of pension and banking Bills should be discussed with the trade unions and only then it be brought at the political level.'' ''Even the Prime Minister in his London press confernce has admitted that no legislative measures will be taken or initiated without prior consultation with the coalition partners and supporting parties. That should end the matter,'' Mr Bardhan, the veteran Communist and freedom fighter added.

On the government's move to increase FDI in the insurance sector, CPI National Secretary Shamim Faizi asserted that no such amendment would be acceptable to the Left. ''If it permits unbridled entry of foreign investors, the Left will resist it.'' CPI (M) veteran and polit bureau member M K Pandhe said: ''We do not support these government moves. The moment the government initiates the move, the government employees will take to direct action.'' Mr Pandhe, who is also the CITU president, said the government insistance on financial sector reforms is also one of the issues that has been listed as problem areas in the December 14 All India General Strike by the trade unions last year.

Fellow polit bureau member Brinda Karat said when the issue came before the UPA-Left Coordination meeting, it was made clear to the government that this was not acceptable to the Left. ''Any further increase in FDI in the insurance sector is neither required nor it is in the interest of the country.'' On the pension scheme, AITUC secretary D L Sachdev said the demand was that the scheme should assure 50 per cent of the pay as pension at the time of retirement or death of an employee. ''We will always continue to press for assured benefits,'' he said.

On banking reforms, Mr Sachddev said the trade unions are against merger of banks and increase in cap in voting rights which is at present 10 per cent. On the insruance issue, the AITUC leader said he was against any increase in FDI, because the private agencies would not be able to guraantee payment at the time of maturity of insurance polcies of the people. ''Besides, the track record of insruance companies in the US and elsewhere has not been good.''

UNI