Date:09/09/2005 URL: http://www.thehindubusinessline.com/2005/09/09/stories/2005090901331900.htm

Back Motor strike near total in Kerala

Our Bureau

Thiruvananthapuram , Sept. 8

The day-long strike in the State called on Thursday by the Motor Vehicle Coordination Committee to protest the hike in fuel prices was near total in most parts.

This came a day after a meeting of the State Cabinet decided to forego the sales tax receivables from the latest hikes and seeking to contain what it described as the domino effect on the masses to the extent possible.

But the motor workers said this was poor consolation and that the State Government had not gone the full distance, which had forced them to stick with their decision to observe a day's strike. Buses, taxis, trucks and commercial vehicles stayed off the road. Fleet from the State-owned Kerala State Road Transport Corporation (KSRTC) maintained its services, but failed to cope with the chaotic situation on roads.

But attendance in offices, banks and business establishments was not largely affected since there was no obstruction to movement of private vehicles. The district of Kottayam had been exempted in deference to the observance of a local religious event.

The unions wanted the Centre to roll back the latest hike in prices of petrol and diesel and the State Government to cut back further on local taxes. They have warned of an indefinite strike from October 1 if no amicable settlement to the issue was found by that time.

Govt forgoes tax: Meanwhile on Wednesday, the Chief Minister, Mr Oommen Chandy, told presspersons after a routine meeting of the Cabinet that the State Government would forego the incremental sales tax receivables from the latest round of fuel price hikes.

This would mean that petrol and diesel, prices of which had gone up respectively by Rs 3.27 and Rs 2.26 per litre, would be cheaper to the extent of 25 per cent in the State. The total receivables foregone at the end of the year would be Rs 180 crore, Mr Chandy said.

When asked if this would not contravene the code of conduct in place for the already notified elections to the local bodies, he said he hoped that it would not. The State Election Commission had already been notified of the decision.