Pumping it up

The prices of goods in my local shops is not going up. The servings are, instead, getting smaller. It's a cunning way of getting round restrictions on inflation, but one that leaves a sour flavour in my throat.

However, I've not been one of those demonstrating outside KLCC. Weaning the nation off petrol subsidies is long overdue. Subsidising petrol is bad for the environment, bad for public transport, bad for the roads. Bad policy generally. The temptation to join the chanting mob does come, however, whenever I read the justifications for the price increase and the plethora of projects announced to sweeten the sour.

First off there is the obviously overdue investment in public transport. Melts like honey, until the bee sting of the contract award comes to light, at least of one of the contracts. Closed tender by Keretapi Tanah Melayu, awarded to a company majority-owned by the Prime Minister's son. The defence was that of urgency. And there is an urgency about it. But surely equally urgent is the need to rebuild the people's faith in our institutions. And urgent need to account for every ringgit of money spent. Especially when over 47 million of them are being spent all at once.

Abdullah's appeals for us to trust him that the people will benefit from the petrol price rise are wearing thin.

Second, there was the announcement of the National Automotive Policy. If we're investing in public transport to get cars off the road, where's the sense in bringing down car prices? If a justifiable motive for this is to address income inequality (in line with our pro-poor Ninth Malaysia Plan), why is it that larger, more expensive car buyers (read, the rich) benefit disproportionately? And within days, questions are once again raised about how the Approved Permits are being awarded, and the disproportionate number going to Naza Motors.

Then there is the problem of Petronas profits. Not knowing how that money has been spent over the years, the populace seem reluctant to allow it leeway now. And each day seems to bring new revelations of financial mismanagement, or at a least of a lack of transparency, to light. The latest being a slew of allegations made by a Sarawakian opposition MP Chong Chieng Jen, who reminded the public of a variety of scandals that have plagued Barisan Nasional, the most recent being the MAS buy-out.

How can these problems be solved? Firstly, had the Government announced its spending plans, for public transport in particular, prior to the announcement of petrol price hikes, it might have saved itself some bad publicity. Second, it needs to show in actions, not just words, that it is pro-poor. The Ninth Malaysia Plan sounds good, but if the experience of the National Automotive Policy is any indicator, when the poor receive benefits with one hand, there are two hands giving out benefits to the rich.

But most important, the public need to have confidence that their money is being spent wisely and in their interests. The accounts need to be made public, the contracts need to be awarded in an open and transparent fashion. Only then will the Government's appeals for the people to trust it fall on something other than deaf ears.