Enact model legislation for corporates: CPI(M)

Madurai, July 29: Maintaining stiff opposition to Foreign Direct Investment (FDI) in retail the CPI(M) today sought a regulatory framework for domestic corporate houses entering the sector.

''Parliament should enact a model legislation to be followed suit by all the states, '' CPI(M) polit bureau member Sitaram Yechury said addressing the members of the Tamil Nadu Chamber of Commerce and Industry (TNCCI) here last night.

Mr Yechury, the second polit bureau member to address the TNCCI after a gap of 26 years after veteran Jyoti Basu, said the party was for a system of licensing to allow big business houses to venture into the sector, in order to prevent monopoly.

Domestic corporate houses, which initially supported the party's stand on opposing FDI in retail have now become apologists, offering a fallacious rationale, he observed, expressing surprise. This was because they have resigned to the fate of being collaborators for the backdoor entry of foreign monopoly into this vital sector, he explained.

In this context, he welcomed the initiative of Tamil Nadu Chief Minister M Karunanidhi to study the legal options adopted by other states to prevent the entry of corporate giants in this field.

Justifications by the Centre and ruling classes for FDI, including quality, competitive price and helping farmers, were all myths which, Mr Yechury said were exposed much earlier.

After elimination of competition where could the consumer compare either quality or the cost, the seinor leftist questioned. The Left parties were able to stall the Centre from pushing through the entry of FDI, Mr Yechury said but maintained that the 'battle was not over yet since successive Governments, from the BJP-led NDA to the Congress-led UPA, have been facilitating backdoor entry, of the comporates.

While the NDA opened up wholesale trade, the UPA had allowed business by 'Single Brand' entities.

Warning of the dangers in allowing FDI and unrestricted entry of domestic big business in this crucial sector, Mr Yechury said it would result in greater misery for the farming community and throw out of employment the vast majority of the more than four crore people engaged in retail trade, further widening the gap between 'India Shining and India Suffering'.

Resisting monopoly in the retail sector required peoples' movement as well as support in Parliament, he said and called upon the industry not to be oblivious of the fact that its very survival would be in jeopardy in the event of growing unemployment and continuing crisis in the farm sector.

UNI