During its weekly meeting, the Shura Council Passes the supplementary express budget and issue of development bonds
Qudaybiah: Shura Council
In its 9th session held this Monday Morning presided over by His Excellency Mr. Ali bin Saleh Al-Saleh, Speaker of the Shura Council, the Council approved a draft law for opening extra appropriations in the State’s general budget for the two fiscal years 2009-2010 (referred on an urgent basis pursuant to article 87 of the Constitution) and a draft law for amendment of certain provisions of the Legislative Decree No.115 for the year 1977 for issuance of development bonds, attached to royal decree No.87 for the year 2009. Their Excellencies the members of the Shura Council confirmed the importance of the draft laws for completion of the infrastructure projects and promotion of the standards of the services rendered to the citizens.
This took place during the 9th session of the fourth cycle of the second legislative season which was held this morning and was presided over by His Excellency Mr. Ali Saleh Al-Saleh, Speaker of the Shura Council. The session began with the comments of Their Excellencies the Members on the agenda of the 9th session before ratification. His Excellency Abdul Jalil Ebrahim Al-Turaif read the Shura Council’s communiqué regarding the Kingdom of Bahrain’s celebration of the Bahraini Woman Day. The Shura Council expressed its highest accolade and esteem to each and every Bahraini woman who contributed to the building of the nation and the advancement of its citizens. The Council reasserted that this day is considered an annual stop for declaration of its appreciation of the role played by Bahraini woman in the various fields. The communiqué also highly appreciated the effort of the wise leadership which reflected the unprecedented attention to giving the woman its full rights in recognition and appreciation of the great role she plays and her contributions to all aspects of life.
The communiqué adds: “This occasion comes this year under the slogan of the woman and health security… a midwife… a nurse ….a technician… a physician ….a minister… a nonstop procession of giving”, to reflect the brilliance and excellence of the Bahraini woman in one of the most important fields, namely the field of health care and contribution to realization of health security. Today, and in tandem with the Kingdom’s celebrations of the achievements of the Bahraini woman, we express our thanks and appreciation of all women working in the health sector and other fields, and applaud their contributions in the field of providing care and social security to the citizens and residents on the land of our beloved Kingdom.”
The communiqué continues “While we applaud the achievements of the Bahraini woman, we express our great appreciation of and pride in the efforts exerted by the Supreme Council of Woman under the leadership of Her Royal Highness Princess Sabikha bint Ebrahim Al Khalifa, the King’s wife, for being the voice which expresses all grievances, aspirations and needs of the Bahraini woman, and confirm our faith that the Bahraini woman will continue her effective role through her presence in all fields in order to attain the quantum leap sought by the Kingdom under the leadership of His Majesty King Hamad bin Isa Al Khalifa and the constant follow up by His Royal Highness Amir Khalifa bin Salman Al Khalifa, the Prime Minister, and the relentless efforts of His Royal Highness Amir Salman bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander, may Allah preserve them.”
The communiqué continues “in the same context, the Shura Council, represented by the Speaker and the Members, welcomes the participants in the fourth regional conference of female parliamentarians in the GCC States which will open the day after tomorrow, Wednesday, 9 December 2009 and will continue until Thursday 10 December 2009, which will be held in the Kingdom of Bahrain with the cooperation and coordination between the Shura Council, House of Representatives and the International Parliament Association, in sync with Bahrain’s celebration of the 10th anniversary of the crowning of His Majesty the King and the 34th anniversary of the National Day, congratulating the leadership of these two occasions, and expressing its thanks and appreciation to Her Royal Highness Princess Sabikha bint Ebrahim Al Khalifa, wife of His Majesty the King and President of the Supreme Council of Woman for sponsoring the conference. The Council hopes that the conference will realize its objectives and come out with decisions and recommendations which will lead to the support of the Gulf woman in all aspects. The Council expresses satisfaction at the sound arrangements in preparation for convening this conference.”
In the same context, His Excellency the Secretary General read the Shura Council’s release on the International Day of Disabled Persons which states that “The third of December marks and coincides with the International Day of Disabled Persons, an amenable and favorable opportunity to explore the Kingdom’s pioneering achievements and advantages in favor of the disabled persons and persons with special needs, thanks to the constant care extended by the leadership to this category of the citizens, based on the leadership’s firm belief in equal opportunity and equality and in solidarity with the human rights in their comprehensive concept, the Shura Council is pleased to present its sincere congratulations to disabled persons and people with special needs of the Kingdom’s sons and confirm its endeavor and efforts to enact more legislations for the maintenance and protection of this category.”
The statement adds “while we congratulate this category of our people, whose merger has become one of the benefits in political, social, economic and cultural life of the Kingdom, we applaud the sagacious vision of His Majesty King Hamad bin Isa Al Khalifa, may God preserve him, who channeled all necessary resources to enable this category to exercise its role in the community.”
The statement continues to say “We express our great appreciation of the effort exerted in this regard by the government under the leadership of His Royal Highness Amir Khalifa bin Salman Al Khalifa, the Honorable Prime Minister, and the support extended by His Royal Highness Amir Salman bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander, may God preserve them. Our thanks are also in order to the civil society organizations for their support to the disabled persons and people with special needs, which confirms the integrity of the approach founded on the spirit of one family in our beloved Bahrain and preservation of its social fabric.”
The statement continues “On this occasion, it gives us pleasure to applaud the efforts of Mrs. Muneera Isa bin Hindi, Member of the Shura Council, whose tireless effort in the various fields and outstanding contributions to the service of the disabled persons are recognized and appreciated by all. Thanks are due to her to confirm that disability serves as an incentive to challenge and motivation to more giving and generosity.”
Then, the Council was informed of the message received from His Royal Highness Amir Khalifa bin Salman Al Khalifa, the Prime Minister, regarding withdrawal of the electricity and water draft law attached to royal decree No.34 for the year 2006, for introduction of certain amendments in it. The Council was also informed of the message received from His Excellency Mr. Khalifa bin Ahmad Al-Dhahrani, Speaker of House of Representatives, regarding the conclusion reached by the House of Representatives with respect to a draft law for ratification of the UN Convention against Corruption (UNCAC), attached to royal decree No.64 for the year 2009. The Council was informed of the referral of the draft law to the Foreign Affairs, Defence and National Security Committee and the Committee on Legislative and Legal Affairs.
Then, the Council heard the comments of Her Excellency Member Rabab Al-Arayyed on the response of His Excellency Shaikh Khalid bin Ali Al Khalifa, Minister of Justice and Islamic Affairs to the question she posed to His Excellency regarding the practical steps taken by the Ministry of Justice and Islamic Affairs for implementation of the strategic plan for the development and reform of the judiciary. She raised in her question a number of inquiries regarding the criteria followed in the selection of the judges, whether there are initiatives for amelioration of the judges’ status, since this is considered part of the development of the judiciary, provision of services and housing to them, in addition to provision of resources and information for the judges and the need for a legal code for the judges’ behavior.
On his part, His Excellency the Minister explained within the context of his response to the inquiries that the competent agency in charge of all affairs of the judge, from his selection to his appointment is the Supreme Judiciary Council, where the Ministry of Justice and Islamic Affairs represents the executive arm of the Council. He pointed out to the existence of a behavior code approved in the year 2007 which is based on Islamic history and heritage, drawing attention to the fact that this code had been activated and circulated and that certain implementation procedures had been taken with respect to some judges and members of the public prosecution who failed to comply with the code.
His Excellency the Minister stated that promotion of the living standard of the judges and provision of housing is currently being reviewed by the Supreme Judiciary Council, while a number of judges and members of the prosecution general have previously received training on the use of modern methods and devices. He confirmed that the Ministry would spare no effort in cooperating with the Supreme Judiciary Council, however the Bahraini judiciary is independent and is headed by His Majesty the King, and the executive authority does not interfere in its operations.
The Council then heard the comments of Her Excellency Member Muneera Isa bin Hindi on the response of His Excellency Shaikh Khalid bin Ali Al Khalifa, Minister of Justice and Islamic Affairs, to her questions on the supporting role assumed by the Ministry to the persons with impaired hearing who are exposed to circumstances which force them to go to courts and be in pressing need for someone to communicate with them in this regard. Her Excellency expressed appreciation of His Excellency the Minister’s responsiveness to her question and his positive dealing with the citizens with special needs.
His Excellency the Minister explained that the disabled person had the right and access to all his judiciary rights and point out that the Ministry of Justice and Islamic Affairs appointed persons to deal with the handicapped person, based on the Ministry’s belief in the necessity and importance of the proper and due processes of the laws in dealing with this category and the Ministry’s keen desire to nurture the rights of this category.
Then, the Council moved on to discuss the next item on the agenda and a final opinion was taken approving a draft law for amendment of article 393 of the Penal Code, promulgated b Legislative Decree No.15 for the year 1976 (prepared in the light of a proposed law submitted by House of Representatives).
Then, Their Excellencies the Members moved on discuss the report of the Committee responding to the royal high address which His Majesty King Hamad bin Isa Al Khalifa, gave when he opened the fourth cycle of the second legislative season.
Her Excellency Dr. Bahiyah Jawad Al-Jishi explained that the Committee took great care to cover all aspects contained in the high royal address to the Council and that the Committee heard the opinions of all Council Members by communicating with the competent committees and requesting their feedback on the report of the response committee.
After deliberation of the Committee report by Their Excellencies the Members, the Council decided to refer the report and the comments of the members to the Council’s Office Staff in preparation for raising the report to His Majesty the King.
In the same context, the Council considered the report of the Financial and Economic Committee on the draft law to open additional appropriation in the State’s general budget for the two fiscal years 2009 and 2010 (referred on an express basis in accordance with article 87 of the Constitution). Her Excellency Dr. Nada Abbas Haffaz read the committee’s recommendation to approve the draft law in principle.
The rapporteur of the Committee explained that the draft law specifically aims at making the financial appropriations available for a number of projects approved within the State’s general budget for the two fiscal years 2009 and 2010 and already started but the budgetary allocations are not for completion. The draft law was then raised to cover the financial obligations of the government to the parties contracted to implement those projects, including, but not limited to, the roads and sanitary drainage projects of the Ministry of Works, in addition to covering the additional requirements for the expenditure of a number of important projects and new expansions which were not included in the State’s general budget, such as confrontation of the swine flu disease and the purchase of drugs, vaccines and medical equipment and coverage of the surcharge in the cost of King Hamad General Hospital Project in Muharraq, besides completion of the procedures for the disbursement of the entitlements of the government employees who will be reassigned from the Civil Aviation Affairs to Bahrain Airport Company before the end of the current fiscal year, etc.
Her Excellency the Rapporteur of the Committee added that House of Representatives introduced an amendment in the amount by adding a sum of 43 million dinars to bring the total amount to 375747000 dinars. This increase was in response to a number of important projects, including construction of a diabetic treatment unit, development of the emergency division, and the project involving the homes threatened with collapse, village development project and improving the conditions of retirees.
The Committee rapporteur expressed her thanks to His Majesty the King for issuing the royal order approving the total of the additions made by House of Representatives, which is what we have grown accustomed to from the King in his constant and tireless endeavor to provide his people with means of honorable living. The thanks are also extended to the government for its cooperation with the executive authority in the service of the community. Proposing the draft law was a commendable act since the government, with the improvement in the oil prices, opened additional appropriations for responding to the demands and obligations of the ministries in order to boost the economic growth and to implement the 2030 economic vision, with focus on the infrastructure projects to the extent that the expenditure on projects of the additional appropriation after amendment by House of Representatives amounts to 57% in the year 2009 and 76% in the year 2010.
Her Excellency the Committee rapporteur continued to state that “the volume, growth and amounts of the financial deficit and public debt and how to cover them are considered of the important issues which reflect the government’s financial policy and which have an impact on the overall financial condition of the State, the financial and economic stability and the Kingdom’s reputation in global markets. For this reason, it is important to remind that and after approval of this appropriation, the amount of deficit estimated in the approved budget will increase by 33% in the year 2009 and by 28% in the year 2020. Similarly the ratio of the government debt to the gross domestic product will jump from 15 % in the year 2008 to 26% in the year 2009 and to 3% in the year 2010. Also, the total general expenditure percentage will increase by 11% in the year 2009 and 9% in the year 2010, while the increase in the repeated expenditure will increase by 5% in the year 2009 and 3% in the year 2010 and the increase in the project will be higher by 47% in the year 2009 and by 50% in the year 2010 and the debt interest ratio to the Gross Domestic Product will remain at the same percentage point of the year 2008 at 0.7%.
Her Excellency the Committee Rapporteur stated that the foreign loans would account for 86% of the total government debt in the year 2009, compared with 72% in the year 2008, while the local loans would not exceed 32% of the total government debt. The Committee discussed the ramifications of all these components on the economic circumstances of the Kingdom, including the international economic crisis and the current financial crisis in the Emirate of Dubai, and concluded that the balanced and prudent financial policy followed by the Kingdom of Bahrain will place it in a position of confidence which will make it easy for the government to borrow, that the public debt can still be under control and that the higher oil prices, if maintained at 83 dollars for the duration of the year 2010, constitute cause for optimism and consequently the government will be in a position to cover the deficit in the budget. No doubt, pumping such liquidity in the infrastructure projects will stimulate the economy in a positive sense.
The Committee concluded that, and owing to the importance of the draft law for financing the developmental projects in the Kingdom, the Committee recommended approval of the draft law.
After deliberation by Their Excellencies the Members of the recommendation of the Committee, a decision was made to approve the draft law on the condition that the final opinion thereon should be taken one hour after its deliberation.
Within the same context, the Council discussed the report of the Financial and Economic Affairs Committee regarding a draft law for amendment of certain provisions of the Legislative Decree No. 15 for the year 1977, regarding the issuance of development bonds, attached to royal decree No.87 for the year 2009. His Excellency Khalid Hussain Al-Maskati, the Committee Rapporteur, read its recommendation approving the draft law in principle.
The Committee Rapporteur stated that the draft law aims at financing the budget deficit by using one of the public debt tools, namely the bonds. The government submitted this law to the legislative authority on an urgent basis and the representatives of the Ministry of Finance explained that the justifications of the rush basis lie in providing flexibility and the legal framework which regulates the program for financing the deficit expected in the general budget, in addition to satisfying the requirements of the housing projects and the electricity and water commission which calls for lifting the ceiling of the public debt tools from nine hundred millions to one thousand and nine hundred million dinars.
The Committee rapporteur added that and in accordance with the draft law, the key reason for the government resorting to the bonds is to make available 250 million dinars to finance the Housing Bank loans and the need to make available 500 million dinars for funding the water and electricity projects. The remaining amount of the required ceiling will be for financing any potential deficit in the state budget for the year 2010.
His Excellency the Committee Rapporteur explained that the development bonds are considered a form of public debt according to article 108 of the Constitution, and as such must be under the surveillance of the legislative authority before any action is taken with respect thereto by the executive authority. According to the statistics of the Central Bank of Bahrain, the local public debt as on 30 September 2009 consisted of treasury bonds, Salam bonds and Islamic lease SUKUK, in the amount of 1.203 million dinar, while Bahrain’s internal and external total public debt amounted to 20.7% of the Gross Domestic Product, which is an acceptable ratio from an economic point of view.
His Excellency the Committee Rapporteur explained that in the event the higher ceiling is used for the value of the development bonds and the other funding tools under this draft law, the total public debt of the Kingdom will increase to 2.706.4 million dinars and to an increase of 32.9% in the ratio of the public debt to the gross domestic product according to current prices of the year 2008, which is still acceptable from an economic point of view. For this reason, the committee concluded after discussion of the issue to recommend the approval of this draft law.
After discussion of the contents and articles of the draft law by Their Excellencies the Members of the Council, the Council decided to approve the draft law, subject to the condition that the final opinion be taken one hour after its deliberation.
Besides, the Council looked into the report of the Committee on Foreign Affairs, Defence and National Security Affairs regarding the draft law for approval of the International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 (OPRC), attached to royal decree No.53 for the year 2009. The Committee Rapporteur, His Excellency Faisal Folad, read the committee’s recommendation approving the draft law in principle.
His Excellency the Committee Rapporteur explained that the convention aims at facilitation of the exchange of aid between the member states in the event of any disaster that may result in any oil pollution, thereby leading to the existence of international cooperation for combating this kind of marine pollution and the need for satisfaction of the minimum requirements and obligations accepted and provided by the convention member states.
He advised that the convention provides for the member states agreement to the direct cooperation and exchange of the findings of the programs related to research and development of innovations of preparedness and response to oil pollution. The practical application of these requirements will undoubtedly lead to prevention as much as possible of recurrence of oil pollution incidents or at least prevent their aggravation if they did occur. For this reason, the committee appreciated the importance of a recommendation involving approval of the draft law in principle for the above mentioned justifications.
After completion of deliberation by the members, the draft law was approved subject to the condition that the final opinion thereon be taken in the upcoming session.
Within the same context, the Council discussed the report of the Foreign Affairs, Defence and National Security Affairs Committee regarding a draft law for ratification of the free trade agreement between the GCC States and the Republic of Singapore, attached to Royal Decree No.65 for the year 2009.
The Committee Rapporteur, His Excellency Faisal Folad, read the approval of the draft law in principle.
The Committee rapporteur stated that the Committee reviewed the draft law and exchanged the viewpoints between the committee members, the Ministry of Finance, the Ministry of Industry and Commerce and the Council’s legal advisors. The Committee also reviewed the opinion of the Legislative and Legal Affairs Committee of the Shura Council, which confirmed the soundness of the draft law from the constitutional and legal aspects, in addition to the opinion of the Financial and Economic Affairs Committee of the Shura Council, which the Committee reviewed in the light of the memorandum filed by the Council’s Financial and Economic advisor, and the committee concluded that it is important to approve the said draft law considering its many benefits to the region.
His Excellency the Rapporteur stated that it was the Committee’s opinion that this agreement would establish an important framework for the economic relations between the GCC States and Singapore and the trade between the two parties, and that this agreement is likely to strengthen the relations between the GCC States and the Asian countries, which reflect the mutual desire of the two parties to strengthen the ties of friendship, nurturing of international relationships, and enhancing the commercial exchange of commodities and services between the contracting countries. For all these reasons, the Committee appreciates the importance of its recommendation to approve the draft law in principle.
After hearing the inputs and comments of the members on the draft law, the council approved the draft law on the condition that the final opinion thereon be taken in the upcoming session.
Within the same context, the Council discussed the report of the Foreign Affairs, Defence and National Security Affairs Committee regarding a draft law for ratification of the Protocol for Prevention of Double Taxation between the Government of the Kingdom of Bahrain and the Government of the Republic of France, attached to royal decree No.70 for the year 2009. His Excellency the Committee Rapporteur, Member Rashid Malallah Al-Sabt, read the committees’ recommendation approving the draft law in principle.
The Rapporteur stated that the committee reviewed the draft law and exchanged viewpoints with the Council’s legal advisors. The Committee also reviewed the opinion of the Legislative and Legal Affairs Committee of the Shura Council, which confirmed the soundness of the draft law from the constitutional and legal aspects. The committee also reviewed the decision and attachments of House of Representatives on the draft law, and concluded that the protocol contains an amendment of the said agreement whereby the nomenclature of the Kingdom of Bahrain was changed, in addition to a new article to the agreement providing for exchange by the competent authorities in the two countries of the information related to taxation affairs to ensure compatibility of the agreement with the standards of the Organization of Economic Cooperation and Development related to exchange of taxation information which have been reconfirmed by the G20.
The Rapporteur stated that it is the committee’s opinion that the protocol represents a positive step with respect to the management of tax affairs which will likely promote the investment activities, boost the mutual economic relations between the Government of the Kingdom of Bahrain and the Government of the Republic of France by removal of the financial hurdles. Therefore, the committee saw the importance of the recommendation to approve the draft law in principle.
Their Excellencies concluded their deliberations related to the articles of the agreement and the Council approved the draft law on the condition that the final opinion thereon be made in the upcoming session of the Shura Council.
Then, the final opinion was taken to approve the draft law for opening additional appropriations in the State’s public budget for the two fiscal years 2009-2010 (referred on an urgent basis in accordance with article 87 of the constitution. Also the final opinion was taken by name calling with regard to the draft law to amend some of the provisions of the Legislative DecreeNo.15 for the year 1977, involving the issuance of development bonds, attached to royal decree No.87 for the year 2009