Some UNZA students enraged by PF government’s decision to remove maize and fuel subsidies protested at ZNBC Wednesday mid-morning.

The students were however met by police officers in full riot gear deployed to ZNBC along Alick Nkhata road to maintain public peace.

The students carried placards denouncing the PF government and urging President Michael Sata to listen to the cries of the poor.

There placards also read that “PF is Bufi,” in reference to hit antigovernment song Bufi by Petersen and Pilato.

The students vowed to continue protesting until government rescinds its decision to remove the subsidies.

There is now a heavy presence of riot police on Great East road in Lusaka in anticipation of further student riots.

And Students at the Copperbelt University (CBU) in Kitwe have expressed displeasure with Government over its move to remove subside on both fuel and maize because this would ultimately have adverse effect on the value of meal allowance they are getting.

Copperbelt University Students Union (COBUSU) president Oscar Mbewe who also expressed his fellow students’ dissatisfaction with the proposed 26 per cent tariff increase said the increase in the price of fuel and electricity would definitely push upward the overall cost of production in the country.

Mr Mbewe said in Kitwe today the students were concerned that this would render the amount of money they were getting for meal allowance insignificant, as it would be of little value.

He said out of this realization, the students had embarked on an exercise of collecting signatures with the view to petitioning Government over the scrapped subside on fuel and maize.

“I have so far received petition from over 300 students who have appended the signatures and the idea is to hold a peaceful demonstration against the scrapped subsides on fuel and maize,” he said.

Mr Mbewe said current students’ meal allowances were already not sufficient given the ever increasing costs of essential products such as mealie meal.

“The amount of meal allowances we are getting is already meaningless looking at the prices of commodities, for example mealie meal we used to get it at K45, 000 and now it has gone up to over K60, 000,” Mr Mbewe said.

Agriculture and Livestock Minister Bob Sichinga has announced that cabinet has approved the removal of Maize subsidies

The move means that the price of Mealie meal, the country’s staple food will go up.

Mr. Bob Sichinga announced in Lusaka that cabinet had no choice but to do away with the maize subsidies.

“It was a very difficult decision to take, unpleasant as it, it is inevitable but I know something has to give,” Mr. Sichinga said.

“Therefore following intense and very passionate deliberations by cabinet, cabinet very reluctantly has authorized the removal of the miller/consumer subsidy,” he said.

“The implication of this removal is that the price of our staple food commodity, Mealie meal will have to rise, unfortunately for me I have the unenviable as well as unpleasant duty of been the bearer of this very difficult but in my opinion unavoidable task of announcing on behalf of government that with effect from the forthcoming marketing season, the very costly subsidy on Mealie meal will be removed.”

Mr. Sichinga explained that Government has been spending huge sums of money to support subsidies at the Food Reserve Agency.

He added, “A multi-sectoral and multi-disciplinary team comprising all stakeholders is been constituted to work out the pricing modalities and that a new pricing structure will be announced in due course.”

He tabulated how much the FRA original budget had been exceeded by extremely high percentages from 2009 to 2012 rising as high as 2,632 percent.

In 2009 the FRA budget exceeded by 21.6 percent, in 2010, it was 2,632 percent, in 2011 2,114 percent and in 2012 it was 732.7 percent.

[pullquote]“Therefore following intense and very passionate deliberations by cabinet, cabinet very reluctantly has authorized the removal of the miller/consumer subsidy,” he said.[/pullquote]

He said if the current subsidy was to be maintained, it would mean FRA would continue to be in a loss making position and for it to survive it had to stop depending on Government to support such subsidies.

Mr Sichinga said currently the FRA had been buying maize at KR65 and selling it to millers at KR60, with a resultant loss of KR5 for every 50 kg bag sold or KR100 per tonne.

He said a multi-sectoral and multi-disciplinary team comprising all stakeholders was being constituted to work out the detailed modalities and the pricing structure mealie meal.

He said the FRA would this farming season purchase 500, 000 tonnes of maize and any maize that would be left after the private sector buys the maize from the farmers.

He said the floor price for maize would, however, be maintained at KR65.

He said the restriction in the purchase of maize was meant to buy enough to cater for the strategic reserve space that FRA had.

He said the move would also encourage the private sector to buy and for millers not to rely on the maize released by the FRA but buy enough to stock for themselves.

He said under the re-aligned FISP programme the price for a bag of fertiliser had been adjusted from KR50 to KR100 and that Government would give the seed pack under the programme for free.

Government has also introduced a barter system under the programme where 659, 000 out of the 900, 000 farmers would be allowed to barter for fertiliser.

“This would work as follows, two 50 Kg bags of grade A maize grain in exchange for one bag of fertiliser both basal and top dressing. Government will offer to subsidise 100 percent the 10 Kg seed pack. In other words seed would be provided for free,” Mr Sichinga said.

He said the remaining 241, 000 farmers under the FISP programme would be incorporated in the implementation of the E-Voucher system, a subsidy management system aimed at responding to the weaknesses identified in the programme.

He said the E-Voucher system would allow for the private sector participation in the input marketing system and enable gradual withdrawal by Government from the physical supply of inputs.

And Mr Sichinga announced that the official crop production for the 2012/12013 farming season had declined by 11 percent and stood at 2,532,800 tonnes which was marginally lower than the estimated national annual maize requirement of 2,534,000.

He, however, noted that though the maize production did not perform well in some areas other crops like Soya beans, sunflower and mixed beans performed well.

He encouraged farmers to diversify to other cash crops besides maize and consider engaging in conservation farming for a long lasting solution and in line with the continued weather pattern changes.

Government has directed unionized workers at Zambia Revenue Authority (ZRA) regional office in Kitwe to return to work with immediate effect. The unionized workers had been on a go slow demanding not less than sixteen percent salary increment contrary to the twelve percent increment that ZRA management had offered them.

Speaking at press briefing Labor and Social Security Minister Fackson Shamenda has charged the go slow by the ZRA unionized workers in Kitwe was illegal and that the Patriotic Front government will not tolerate such illegal strikes in the country.

Mr Shamenda said Government would not tolerate industrial unrest at the institution charged with the responsibility to collect revenue for the country.

“ZRA is not an ordinary institution. Without collection of revenue,there is no government to talk about,” he said.

Mr. Shamenda noted that strikes at important institutions such as the ZRA have the potential to bring government machinery to a stand still.

He warned ZRA workers not to ever attempt to go on strike. “In future they should not even think about going on strike or go-slow because they are a very sensitive institution.

Without Government revenue it means we can’t provide medicines in the hospitals and the civil service can grind to a halt and so this irresponsible approach to industrial relations cannot be entertained,” he said.

Government has asked public transport operators to comply with the 16 per cent hike in bus fares effected for all local routes in provincial centres countrywide, due to the recent 21 per cent hike in the price of petroleum products.

Transport, Works, Supply and Communications Minister Christopher Yaluma said in an interview today that prior to authorising the 16 per cent fare hike, the Government, had conducted a thorough negotiations with other stakeholders in order to make an informed decision in the public’s interest.

“So many factors had to be considered before we could authorise operators to hike the fares and because Government has the duty to protect the interest of the public, we considered these factors, for instance, the wage bill and the plight of the unemployed,” he said.

Mr Yaluma said calls by transport operators to have the fares hiked in conformity with the KR 1.75 fuel price increase were misplaced and warned that law enforcers will not hesitate to reprimand all earring transporters.

[pullquote]“When the fuel is hiked by a certain amount, it does not mean even transport fares go up to match that figure, if some operators decide to overcharge commuters, the law will reprimand them,” he said.[/pullquote]

“When the fuel is hiked by a certain amount, it does not mean even transport fares go up to match that figure, if some operators decide to overcharge commuters, the law will reprimand them,” he said.

In a separate interview, Commuters Rights Association of Zambia (CRAOZ) president Aaron Kamuti said commuters should report any public transport operators found charging passengers above the permissible bus fare.

“Commuters must ensure that they are availed the fare charts before making a payment so that operators who are fond of exploiting passengers are exposed and reported to the relevant authorities,” he said.

The 16 percent hike means bus fares for all local routes have been increased by KR 60.