SriLanka: Cabinet to Approve CPC Take Over of Service Stations
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Friday, 02 January 2009 |
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Petroleum Minister A.H.M. Fowzie has assured CPC union leaders that a
cabinet paper would be presented for the takeover of 107 service
stations presently functioning under the Treasury.
The assurance came when the two sides met for discussions this week,
spokesman of CPC Combined Trade Union D.J. Rajakaruna said.' Ministry
secretary W.B. Ganegala, additional secretary Kanthi Wijetunga and MP
K.D. Lal Kantha also attended the meeting.
Ceylon Petroleum Storage Terminal Ltd. was established during the last
UNP regime for the storage and distribution of fuel, and it is co-owned
by the CPC, Lanka Indian Oil Company and the Treasury. Signed in
2003, the agreement for its formation does not allow the Treasury-owned
shares to be transferred to either of the two other shareholders.
The five year pact expires on 31st December, 2008.
A report by the attorney general says that from next year, there will
be no legal hurdle against the CPC's takeover of the 107 service
stations. At the meeting, trade union leaders had also asked the
minister to immediately takeover the service stations and attach their
employees to the CPC.
Further, the agreement with Caltex expires on July 14th, they have
pointed out, and asked that its building and machinery be taken over by
the CPC and start the production of gas under the corporation. CPC
already produces between 55 and 60 metric tonnes of gas a day, which is
10 per cent of the consumer requirement.
PetrolWorld 291208
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